Monster Worldwide Reports Second Quarter and Six Months 2007 Results

Monster Worldwide, Inc. today reported financial results for the second quarter and six months ended June 30, 2007.

Second Quarter Results
Total revenue grew 20%, or 18% before the benefit of foreign exchange rates, to $331 million in the second quarter of 2007 from $275 million in the comparable quarter of 2006.

Monster Careers revenue increased 23% to $291 million, compared with $237 million in last year's second quarter, led by International revenue growth of 57% to $117 million. Included in International revenue is a $6.0 million benefit from the effect of foreign exchange rates. North American Careers revenue increased 7% to $174 million in the second quarter of 2007, while the Internet Advertising & Fees business grew revenue 5% to $40 million.

Monster Worldwide's deferred revenue balance at June 30, 2007 was $452 million, representing a 30% increase from last year's second quarter balance of $349 million.



Income from continuing operations was $29 million, or $0.22 per diluted share, in the second quarter of 2007. Income from continuing operations includes pre-tax amounts of $5.3 million for legal and professional fees related to the continuing external investigations of the Company's historical stock option grant practices and $15.8 million of previously disclosed severance costs for former executives.

At June 30, 2007, the Company's net cash position was $719 million compared with $674 million at March 31, 2007. Cash generated from operating activities was $53 million compared to $63 million in the second quarter of 2006. Free cash flow was $37 million versus $47 million in the comparable quarter of the prior year. Capital expenditures totaled $16 million in the second quarter of 2007.

Sal Iannuzzi, Chairman and Chief Executive Officer of Monster Worldwide, said, Our second quarter financial results delivered 20% top-line growth and earnings in line with our expectations. We continued to experience strong performance in our International business, reflecting our efforts to expand market share and brand awareness in key markets in Europe and Asia. However, we are not satisfied with our overall performance. We believe that we are capable of significantly more robust growth and are taking decisive action to increase our investment levels to deliver on the growth opportunities in all of our businesses. As an indication of our confidence in the Company's long-term prospects, we also intend to make active use of the existing share repurchase program authorized by our Board of Directors.

Six Months Results
Monster Worldwide reported total revenue of $660 million for the six months ended June 30, 2007 compared to $532 million in the comparable period last year, a 24% increase, or 22% before the benefit of foreign exchange rates. Monster Careers revenue grew 26% to $582 million compared with $462 million in the 2006 period. Internet Advertising & Fees reported revenue of $79 million, an increase of 12% over the prior year period. The Company reported income from continuing operations of $69 million, or $0.51 per diluted share. Net income for the first six months of 2007 was $68 million, or $0.51 per diluted share.

Restructuring Plan
Following a comprehensive business review, the Company's executive management team announced a series of strategic restructuring actions to position Monster Worldwide for sustainable long-term growth in the rapidly evolving global online recruitment and advertising industries. The restructuring plan consists of the following key initiatives:

A significant commitment to invest in innovative, revenue-generating products and services, as well as technology upgrades, which will make Monster Worldwide's offerings more compelling for employers, job seekers and advertisers, while strengthening the Company's infrastructure to support long-term growth. In the near term, investments also will include additional advertising and promotional efforts to reinforce the Monster brand and drive customer activity. At the same time, the Company will make investments in products, technology and people to provide customers with the level of service they expect from the market leader, as career solutions continue to shift from print to online.

A substantial reduction in the current cost structure to improve productivity, generate greater efficiency, support investment, and foster an environment that encourages innovation. Specifically, the Company expects to reduce its current workforce by approximately 800 associates, or 15% of its full-time staff, beginning immediately and into 2008. The Company anticipates the majority of the reductions will occur by the end of this year. The staff reduction will primarily impact non-sales related functions in North America, although portions of the global sales force with low productivity rates will be affected.

Further streamlining the organizational structure by centralizing certain non-revenue generating functions, such as human resources and finance, which had operated semi-autonomously within each business unit. This follows management's decision in early June to realign the business operations by function across the entire global organization.

Monster Worldwide expects the cost-saving component of the plan to reduce the current operating expense base by $150 million to $170 million on an annualized basis, through a combination of workforce reductions and the adoption of more efficient methodologies throughout the operations. The Company will invest approximately $80 million on an annualized basis in new product development and innovation, enhanced technology, global advertising campaigns and selective sales force expansion. Included in the $80 million is estimated depreciation expense on incremental capital expenditures in new technology which the Company anticipates will be approximately $50 million.

As a result of the restructuring initiatives, the Company expects to record a cumulative pre-tax charge within the range of $55 million to $70 million, beginning in the third quarter of 2007 and into 2008. Approximately $15 million of the charge will be non-cash, primarily related to fixed asset write-offs and accelerated depreciation for assets to be phased out.

The restructuring plan recognizes that we can - and will - do better in driving long-term performance for our shareholders, Mr. Iannuzzi added. Our top priority is to invest in key areas that will improve the customer experience and foster solid revenue growth, while at the same time lowering our cost base and streamlining operations. We will not allow short-term considerations to prevent us from investing in world-class, innovative products that will serve the next-generation of job seeker and employer needs. We are confident that these investments will lead to higher levels of revenue growth and strong operating margin expansion over time.

Mr. Iannuzzi concluded, While I regret that workforce reduction is a necessary part of our plan, we believe this action is in the best interest of our customers and shareholders. A clearer and more simplified structure will empower our talented associates to innovate, share best practices and leverage the significant strengths that exist at Monster. We're committed to assisting those associates who will be affected as a result of this decision. We remain extremely optimistic about the huge opportunity that exists in the global online recruitment and internet advertising markets, and are confident that our strategy positions us for future growth.

Business Outlook
For the remainder of 2007, the Company's business outlook reflects the anticipated savings and investments of the restructuring plan noted above, as well as other initiatives to improve long-term revenue growth and profitability.

The total revenue outlook for the balance of 2007 assumes that the rate of revenue growth in the third quarter will continue at approximately the same rate as in the second quarter, offset by planned reductions in certain interstitial ads and the elimination of work-at-home job postings, with a higher revenue growth rate in the fourth quarter.

Prior to the restructuring, the expected run-rate for 2007 non-GAAP operating expenses would have been $1.097 billion, and expenses were increasing at a faster rate than revenue. The restructuring is expected to reduce the current operating expense base by approximately $150 million to $170 million on an annualized basis, and more closely align future expense increases with revenue growth, while providing $80 million for reinvestment in the business. The plan will also provide the financial flexibility to make further investments in response to potential opportunities.

The Company stated that, by re-energizing growth and controlling expenses, the Company expects to generate an operating margin of 25% by the fourth quarter of 2008.

Supplemental Financial Information
The Company has made available certain supplemental financial information, in a separate document that can be accessed directly at here or through the Company's Investor Relations website at http://ir.monsterworldwide.com.

Conference Call Information
Second quarter 2007 results will be discussed on Monster Worldwide's quarterly conference call taking place on July 30, 2007 at 10:00 AM EDT. To join the conference call, please dial (888) 551-5973 at 9:50 AM EDT and reference conference ID# 10294066. For those outside the United States, please dial (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 outside the United States dial (706) 645-9291 and reference ID #10294066. This number is valid until midnight on August 1, 2007.