May 06, 2008 12:23 ET

TELEPERFORMANCE : 1st Quarter 2008 Achievements

PARIS--(Marketwire - May 6, 2008) - 1st Quarter 2008 Achievements:

- Revenues: EUR 411.7 million vs. EUR 336.3 million in 2007

- Increase in revenues

- Based on published data: +22.4%

- Excluding foreign exchange effect: +30.1%

- On a comparable basis*: +8.5%

*excluding foreign exchange and scope of consolidation effects

Paris, May 6, 2008

I. Revenues

The Teleperformance Group's consolidated revenues for the 1st quarter 2008 amounted to EUR 411.7 million, an increase of +22.4% based on published data, despite the negative foreign exchange fluctuations resulting from the rise of the Euro against the US Dollar and the Pound Sterling (representing US$617 million revenues based on the 1st quarter 2008 average exchange rate, i.e., EUR 1 < > = US$1.4988).

If not considering the foreign exchange effect, the Group's revenues increased by +30.1%.

Excluding foreign exchange and scope of consolidation effects, the Group achieved a +8.5% organic growth rate over the first quarter 2008, exceeding the 6.5% annual objective announced during the last financial meeting held at the end of November 2007.

Distribution per region

|(in millions of euros) |1st Quarter 2008 |1st Quarter 2007 |
|                       |                 |                 |
|                       |                 |                 |
|Europe                 |           221.7 |           168.8 |
|NAFTA*                 |           166.5 |           127.5 |
|Rest of the World**    |            23.5 |            40.0 |
|Total                  |           411.7 |           336.3 |

|(in millions of euros) |Growth (in %)       |                    |
|                       |Based on published  |On a comparable     |
|                       |data                |basis***            |
|Europe                 |+31.3               |+10.7               |
|NAFTA*                 |+30.6               |+17.8               |
|Rest of the World**    |-41.2               |- 39.7              |
|Total                  |+22.4               |+ 8.5               |
* The NAFTA region includes the U.S., Canada and Mexico.

** The Rest of the World includes Latin America and Asia.

*** Excluding foreign exchange and scope of consolidation effects

The Group's revenues were broken down by business segment as follows:

|     (in %)       |1st Quarter 2008 |1st Quarter 2007 |
|Inbound services  |              72 |              68 |
|Outbound services |              25 |              27 |
|Other             |               3 |               5 |
|Total             |             100 |             100 |

The share of Inbound services now stands for 72% of the Group's total revenues versus 68% in the 1st quarter 2007.

II. Business Developments

A/ 1st Quarter 2008 Business Activity

To assess the Teleperformance Group's activity over the 1st quarter 2008, the following factors must be taken into consideration:

1. Foreign Exchange Effect

The negative foreign exchange effect amounted to EUR 25.7 million. Such effect mainly resulted from the rise of the Euro against most currencies, and especially the U.S. Dollar and the Pound Sterling.

The foreign exchange effect may be analyzed by geographical segment as follows:

-NAFTA: -EUR 22.1 million

-Europe: -EUR 3.1 million

-Rest of the World: -EUR 0.5 million

2. Scope of consolidation effect

The scope of consolidation effects represented a positive impact of EUR 66.9 million. After adjusting the scope of consolidation effects, the Group's revenues in the 1st quarter 2007 amounted to EUR 403.2 million.

The main external growth transactions impacting the 1st quarter 2008 business activity were completed in 2007 in the following regions:

- Europe:

- Acquisition of the German group Twenty4help Knowledge Service AG, which was consolidated as of April 1, 2007.

- Acquisition of the French company The Phone House Services Telecom, which was consolidated as of May 1, 2007.

- NAFTA region:

- Acquisition of the US company Alliance One, which was consolidated as of

August 1, 2007.

- Acquisition of the Mexican company Hispanic Teleservices, which was consolidated as of December 1, 2007.

Moreover, early this year the Group sold the last two operations in the Marketing Services Division specializing in training activities. They were deconsolidated as of January 1, 2008.

3. Base effect

Overall, the 1st quarter 2008 business activity was sustained throughout the network.

The termination of the Brazil Telecom contract at the end of November 2007 strongly impacted the 1st quarter 2008 business in the Rest of the World region; such loss of revenue was offset by very sustained business activity in the NAFTA region, where the organic growth rate exceeded 17% over the 1st quarter 2008, i.e., a rate comparable to the rate recorded in the 4th quarter 2007.

Finally, in the 1st quarter 2008 the organic growth rate was 8.5% throughout the network, versus 7% in the 1st quarter 2007.

B/ Financial Position

At the end of the 1st quarter 2008, the Group's positive financial position was particularly strong. And to be noted that a EUR 300 million syndicated line of credit was also negotiated in January 2008.

C/ Outlook

Considering the business achievements in the 1st quarter 2008, the Group is in a position to confirm its growth and profitability objectives announced during the last financial meeting in November 2007.

During the financial meeting that will be held on May 21, 2008, the Group will present its new half-year and annual objectives based on the updated market data, as well as the new assumptions considering the foreign exchange fluctuations in 2008.

III. Key transactions and events in the last quarter

The major events which occurred in the 1st quarter 2008 and impacted the Group's business and financial position were as follows:

3.1 Sale of non-core operations

In January, Teleperformance sold its controlling interest in both training companies Pédagogie du Management (Institut Supérieur du Marketing) and IDCC (Institut du Call Center). Both companies were deconsolidated as of January 1, 2008. In 2007, they achieved EUR 8 million annual revenues.

This transaction was part of the Group's policy of refocusing on its core business: the Contact Center Division. This was the last step in the Group's disinvestment from Marketing Services operations, a policy which had been initiated in 2003.

3.2 Successful completion of negotiations between Teleperformance USA and its top client.

The contract binding on TP USA and its major client for customer service, technical support and loyalty programs was extended for a further 3-year period.

3.3 Early 2008 - Strong business development in the United States

Early 2008, the US subsidiary Teleperformance USA signed a series of 5 multi-year contracts with major US Fortune 500 companies operating in the IT, media and healthcare industries.

As a result, over 1,100 full-time equivalent employees will be hired in 2008 in the US, Mexico and the Philippines.

3.4 Management Reorganization

Further to Christophe Allard's resignation, Jacques Berrebi was unanimously appointed Chairman of the Board of Directors by the Supervisory Board chaired by Daniel Julien.

In this new position, Jacques Berrebi, in tandem with Daniel Julien, will focus on implementing the Group's leadership policy and optimizing the value-creation strategy across the Group.

It was also decided that the operational management of the three major business units -NAFTA, Europe and Rest of the World- would be grouped under the same management entity that is Teleperformance Group Inc., a fully- owned subsidiary whose Chairman and CEO are respectively Jacques Berrebi and Daniel Julien.

Such reorganization will help unify the Group under major decisions for consistent global business development, IT choices and operational process implementation across all regions.

3.5 The North American Frost & Sullivan award for IT Innovation & Advancement in Contact Center Outsourcing was presented to Teleperformance.

Based on its recent analysis of the contact center outsourcing market, Frost & Sullivan presented Teleperformance with the 2008 North American Contact Center Outsourcing Industry Innovation & Advancement of the Year Award.

This Award is in recognition of Teleperformance's solid IT security foundation (network, applications and desktop) and industry-leading security organization, which includes Payment Card Industry (PCI) certification and the use of information security best practices as part of an ongoing commitment to excellence in serving clients in this vital area.

IV. Key dates

The Teleperformance Board of Directors has convened the Shareholders' Combined General Meeting to be held on June 3, 2008 at 9 am. Venue of the meeting: Capital 8, 32 rue Monceau, 75008 Paris, France.

During the General Meeting, shareholders shall approve the annual financial statements and decide upon a dividend of EUR 0.44 per share, which payment date will be June 9, 2008.

About Teleperformance:

Teleperformance (NYSE Euronext: FR 0000051807), the world's leading provider of outsourced CRM and contact center services, has been serving companies around the world rolling out customer acquisition, customer care, technical support and debt collection programs on their behalf. In 2007, the Teleperformance Group achieved EUR 1.593 billion revenues (US$2.182 billion - exchange rate at December 31, 2007: EUR 1 < > = US$1.37). Last November, the Teleperformance management team announced 2008 revenue objectives at around EUR 1.755 billion, increasing by +10% compared to 2007 (US$2.580 billion at: EUR 1 < > = US$1.47).

The Group operates nearly 75,000 computerized workstations, with more than 83,000 employees (Full-Time Equivalents) across 281 contact centers in 45 countries and conducts programs in 66 different languages and dialects on behalf of major international companies operating in various industries.

For more information, visit:

Teleperformance Contacts: (

Michel PESCHARD, Finance Managing Director, Board Member: +33-

VIVACTIS Public Relations

Houney Touré Valogne : +33-1 46 67 63 55

+33-6 10 80 72 96

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