Randstad Q2 results

Highlights Q2

Organic growth strategy is yielding results: double digit growth in major markets and market share gained through focused execution of standardized market approach

Net income up by 183% to Ä 37.1 million (Q2 2003: Ä 13.1 million)

First revenue growth in the Netherlands in four years

Productivity up 12% from Q2 2003

Operating expenses down to 17.5% of revenue (Q2 2003: 19.1%)

Gross margin is 20.9% after adjustment for the release of a provision of Ä 5 million (Q2 2003: 20.8%)

Total specialty revenue in business mix currently 25%. Specialty roll-out in copy and paste format gaining speed: 20 new units operational

Outlook Q3 2004: diluted earnings per share before amortization goodwill of at least Ä 0.38 (Q3 2003: Ä 0.24)

ìIím very proud of all the people in our organizationî says Ben Noteboom, CEO Randstad Holding. ìWe tripled our profitability, with a good gross margin performance from Germany. Equally important is that we have grown faster than the market in almost every area, with very good performances in Italy, Spain and Belgium. Whether it is for specialty concept introductions, new HR solutions products, or online transactions: the results are quite encouraging, and our clients recognize the added value. After our initial experiences in Poland, we are now studying further expansion in Eastern Europe and Asia. And finally, we are now also showing some growth in the Netherlands. Throughout the quarter, overall performance kept improving slowly but surely, and weíre confident about our ability to maintain this performance.î

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