Monster Worldwide Reports First Quarter 2007 Results

Total Revenue Grows 28% to $329 Million Driven by International Revenue Growth of 64%

Diluted Earnings Per Share from Continuing Operations Increases to $0.30, Including a $0.05 per Share Impact from the Stock Option Investigation

Cash Flow from Operations Reaches $79 Million; Net Cash Balance Increases to $674 Million

Monster Worldwide, Inc. (NASDAQ:MNST) today reported financial results for the first quarter ended March 31, 2007.

Total revenue grew 28% overall and 24% organically to $329.0 million in the first quarter of 2007 from $257.0 million in the comparable quarter of 2006.

Monster Careers revenue increased 29% to $290.2 million, compared with $224.6 million in last year’s comparable quarter, as International revenue grew 64% to $106.2 million and North American Careers increased 15% to $184.0 million in the first quarter of 2007. The Internet Advertising and Fees business grew revenue 20% to $38.8 million in the first quarter of 2007.

Monster Worldwide’s deferred revenue balance at March 31, 2007 was $449.8 million, representing a 31% increase from last year’s first quarter balance of $343.3 million, and up slightly from the $444.1 million reported at December 31, 2006.

Income from continuing operations was $39.7 million while diluted earnings per share from continuing operations were $0.30 in the first quarter of 2007. Income from continuing operations includes $9.8 million, or $0.05 per diluted share on an after-tax basis, for legal and professional fees related to the continuing investigations of the Company’s historical stock option grant practices.

At March 31, 2007, the Company’s net cash position was $673.5 million compared with $572.9 million at December 31, 2006. Cash generated from operating activities was $79.0 million compared to $82.1 million in the first quarter of 2006. Free cash flow was $57.4 million versus $72.6 million in the comparable quarter of the prior year. Capital expenditures totaled $21.6 million in the first quarter of 2007.

On April 11, 2007, the Company appointed Salvatore Iannuzzi to the positions of Chairman of the Board of Directors and Chief Executive Officer. Mr. Iannuzzi has been a member of the Board of Directors of Monster Worldwide since July 2006 and was named Chairman of the Executive Committee in October 2006.

Our strong first quarter revenue growth and operating performance demonstrates Monster’s leading global position in the online careers market, said Mr. Sal Iannuzzi, Chairman and CEO of Monster Worldwide. Since assuming the position of CEO, I have and will continue to work closely with our associates to maintain our long term focus on investing and growing the business. Our objectives center on building the powerful Monster brand, enhancing the user experience, providing quality service to our customers and generating value to our shareholders. On a personal note, I look forward to leading Monster Worldwide and working with the many talented and dedicated employees across the Company.

Lanny Baker, Monster Worldwide’s Chief Financial Officer, added First quarter revenue growth of 28% was driven by exceptional performance in Monster’s International business and solid, but reduced, growth in Careers North America and Internet Advertising and Fees. In the first quarter we invested in key long-term growth initiatives, while simultaneously generating solid earnings growth and healthy cash flows. Looking to the second quarter and balance of 2007, we expect continued strong, but more moderate overall revenue growth, with expense levels that will reflect our commitment to invest in Monster’s product, people and brand. As a result, we now anticipate somewhat lower earnings levels for 2007 than we had previously indicated. Additionally, our second quarter and full year outlook now includes $12.7 million of severance costs related to the resignation of the Company’s former Chief Executive Officer.

Recent Company Developments
Monster Worldwide Launched Career Ad Network

In March 2007, Monster Worldwide announced the availability of the Monster Career Ad Network(TM), a recruitment media product that helps employers reach the millions of active job seekers on Monster’s network of career management sites, while also targeting the broader pool of passive job candidates who may be open to new career opportunities that match their backgrounds and interests. The first solution of its kind, the Career Ad Network merges Monster’s expertise in careers, online media and marketing to enable the creation of targeted and creative job advertising campaigns.

Media Alliance Update

As part of the Company’s continuing strategy to increase its sales distribution points, the Company announced a strategic alliance with The New York Times Company in February 2007. The alliance will involve co-branded newspaper and online job sections of The New York Times, The Boston Globe and 16 regional newspapers owned by The New York Times Company. Monster’s newspaper alliances now represent 60 daily newspapers with daily circulation of approximately 6 million readers, representing approximately 11% of the total circulation of daily newspapers in the United States.

Monster also expanded its media strategy by partnering with Adicio Inc., the leading provider of interactive classified advertising software for media companies. Adicio’s 250 clients will now be able to utilize Monster’s industry-leading tools and resources, with Adicio also providing technical support for media companies selecting Monster for recruitment services. Monster also expanded its existing relationship with Internet Broadcasting, the nation’s largest web publisher for local Television stations. Monster will power co-branded career sites for 120 of Internet Broadcasting’s local TV web sites, including many in the top 20 U.S. markets.

Business Outlook

The business outlook below includes only selected financial statement line items, none of which include any legal or other fees or expenses related to the ongoing stock option investigations and related litigations. The investigations of the Company’s historical stock option practices continue to center on external investigations by government agencies of the conduct of former employees, and the defense of shareholder lawsuits. The Company cannot forecast these costs with any certainty.

The Operating Expenses included in the Company’s outlook ranges are non-GAAP financial measures within the meaning of Regulation G as promulgated by the Securities and Exchange Commission because they do not include legal costs and expenses that the Company will incur as a result of its historical stock option granting practices. Because the Company cannot reasonably estimate or predict these costs and expenses, the Company cannot calculate the most directly comparable GAAP measure of Operating Expenses that would include such legal costs and expenses. Therefore, the Company cannot reconcile the non-GAAP measure to the most directly comparable GAAP measure. While the amount of the legal costs and expenses associated with the Company’s historical stock option granting practices is likely to be material, the Company believes that such costs and expenses are of limited significance to an evaluation of the Company’s business fundamentals, since such costs and expenses bear little relation to the Company’s core business or operating prospects.

The preceding forward-looking statements regarding our business outlook reflect Monster Worldwide’s expectations as of April 26, 2007. These expectations do not include the effect of any future acquisitions or dispositions, costs associated with the ongoing investigations and litigation relating to past stock option grants (including the likely professional fees and other costs, potential fines or settlements, and excise or other tax liabilities), or factors outside of our control, which may have an impact on future financial results and are subject to the Special Note regarding forward-looking statements elsewhere in this release.

Supplemental Financial Information

The Company has made available certain supplemental financial information, in a separate document that can be accessed directly at http://www.monsterworldwide.com/Q107.pdf or through the Company’s Investor Relations website at http://ir.monsterworldwide.com.

Conference Call Information

First quarter 2007 results will be discussed on Monster Worldwide’s quarterly conference call taking place on April 26, 2007 at 10:00 AM EDT. To join the conference call, please dial in on 1-888-551-5973 at 9:50 AM EDT and reference conference ID#: 5134683. For those outside the United States, please call in on (706) 643-3467 and reference the same conference ID#. The call will begin promptly at 10:00 AM EDT. Individuals can also access Monster Worldwide’s quarterly conference call online through the Investor Relations section of the Company’s website at www.monsterworldwide.com. For a replay of the call, please dial (800) 642-1687 or for outside the United States dial (706) 645-9291 and reference ID # 5134683. This number is valid until midnight on May 3, 2007.