Strong operating margin performance in Q2 2007/Q2 HIGHLIGHTS (Q2 07 vs. Q2 06)

Zürich (ots) - Revenues of EUR 5.3 billion, up 3% (5%
organically[1])
- Reported operating income of EUR 322 million, up 59%
- Reported net income of EUR 222 million, up 64%
- Underlying[2] gross margin improvement of 40 bps to 17.6%
- Underlying[2] operating margin improvement of 30 bps to 4.2%
- Successful close of Tuja acquisition

Zurich, Switzerland, August 10, 2007: The Adecco Group, the
worldwide leader in Human Resource services, today announced results
for the second quarter of 2007. For the second quarter net income
increased by 64% to EUR 222 million compared to EUR 135 million a
year earlier, positively impacted by EUR 66 million French social
charge benefits. Revenues were up 5% organically to EUR 5.3 billion
compared with EUR 5.1 billion in 2006. Underlying[2] operating margin
improved 30 bps to 4.2%.

Dieter Scheiff, Chief Executive Officer, Adecco Group said: "I'm
pleased with the performance of Adecco in the second quarter. We
continued to expand our underlying[2] operating margin to 4.2%. It's
good to see that our value oriented management approach has triggered
good pricing discipline, which, combined with efficient cost
management, led to encouraging earnings growth. The result of the
second quarter is another step towards our goal of reaching over 5%
operating margin by 2009."

"While we maintain our focus on shareholder value, we continue to
see good demand in Europe and Asia, which more than compensates for a
still weak US market."

Q2 2007 FINANCIAL PERFORMANCE

Revenues
Group revenues for Q2 2007 were EUR 5.3 billion, a 3% increase
compared with Q2 2006. On an organic basis, when excluding the impact
of currency and acquisitions, Adecco grew revenues by 5%.

Gross Profit
Gross margin improved 310 bps to 20.3% compared to the second quarter
of 2006. On an underlying[2] basis, when excluding the modification
of the calculation of French social charges, gross margin improved 40
bps to 17.6% as a result of higher gross margins in the temporary
staffing business and the growing contribution of permanent
placement.

Selling, General and Administrative Expenses (SG&A)
SG&A increased 10% in the period under review. Underlying[2] SG&A
grew 7% in constant currency, reflecting an underlying[2] SG&A as a
percentage of revenues increase of 10 bps to 13.3%. Organically,
Adecco grew the office network by 4% (+300 offices) and FTEs by 3%
(+1,000 FTEs) compared to the same quarter last year. At the end of
June 2007, Adecco had over 36,000 FTEs and over 7,000 offices.

Operating Income
Operating income for the second quarter 2007 was EUR 322 million, an
increase of 59% (12% on an underlying[2] basis in constant currency)
compared with Q2 2006. Operating margin improved to 6.1% versus 3.9%
for the same period last year. Underlying[2] operating margin
increased by 30 bps to 4.2%.

Interest Expense and Other Income / (Expenses), net
Interest expense was EUR 13 million in the period, which compares to
EUR 12 million in Q2 2006. For the full year 2007, interest expense
is expected to be approximately EUR 56 million. Other income /
(expenses), net increased to EUR 10 million (Q2 2006: EUR 3 million),
mainly due to a higher interest income on a higher cash position.

Provision for Income Taxes
The effective tax rate for the second quarter of 2007 was 29.6%
compared with 29.2% in the same period last year. For the remaining
quarters of 2007, Adecco continues to expect an effective tax rate of
approximately 29%.

Net Income and EPS
Net income was up 64% to EUR 222 million in the second quarter of
2007 (Q2 2006: EUR 135 million), which represents a net income margin
of 4.2%. Basic EPS was EUR 1.20 (EUR 0.72 for Q2 2006). The modified
calculation of French social charges had a positive impact on Q2 2007
EPS of EUR 0.36 (EUR 0.30 for the period 2006 and Q1 2007 and EUR
0.06 for the period Q2 2007).

Balance Sheet, Cash-flow, and Net Debt[3]
The Group generated EUR 394 million of operating cash flow in the
first half of 2007 and paid dividends of EUR 135 million, which
reduced the net debt position to EUR 310 million at the end of June
2007 compared to EUR 556 million at the year end of 2006. In the
second quarter of 2007 DSO improved 1 day to 58 days compared with Q2
2006.

Currency Impact
Currency fluctuations had a negative impact of 2% on revenues and 4%
on operating income in the second quarter of 2007, mainly due to the
weakness of the US dollar and the Japanese yen.

GEOGRAPHICAL PERFORMANCE

In France, Adecco increased revenues by 3% to EUR 1.8 billion in
the second quarter of 2007. Operating income grew 196% to EUR 179
million, which reflects an operating margin improvement of 650 bps to
10.0%. Underlying[2] gross margin improved 70 bps, while
underlying[2] operating margin expanded by 80 bps to 4.3%.
Disciplined pricing and higher permanent placement revenues combined
with a continued focus on cost efficiency are the reasons behind this
underlying[2] improvement.

For Q3 2007 Adecco expects to benefit from approximately EUR 10
million higher operating income based on lower social charges due to
the still modified calculation of social charges for the months of
July and August. Currently there is no benefit anticipated for the
periods thereafter as the French Parliament passed an amendment to
the social security legislation which would eliminate the change in
calculation made in April 2007.

In USA & Canada, Adecco's revenues declined by 6% in constant
currency to EUR 0.8 billion in Q2 2007, continuing the development
seen in the first quarter of 2007. The decline was most significant
in the Industrial business, while only moderate in the Office
business. In particular, a better customer mix led to a 40 bps
improvement in gross margin, which combined with a decline in SG&A
resulted in an operating income growth of 8% in constant currency.
Operating margin increased by 60 bps to 4.7%.

In the second quarter of 2007, revenues in the UK & Ireland
increased 6% in constant currency mainly driven by good demand in the
Office and Industrial businesses as well as in Finance & Legal.
Operating income declined 10% in constant currency. Operating margin
was 2.7%.

Adecco plans to restructure this business in order to improve
customer mix and cost efficiency, which will cause an additional
expense of approximately EUR 5 million in the second half of 2007.

In Japan, revenues in constant currency grew 9% in the second
quarter of 2007. The general shortage of candidates combined with
strong demand for permanent placements led to a 60 bps gross margin
improvement, while operating margin expanded to 7.5% from 6.4% in the
same period last year.

Revenue growth in Germany was 24% in the second quarter of 2007.
The healthy economic environment combined with higher acceptance
levels of temporary staffing are the main drivers behind this growth,
particularly for the Industrial business. Adecco Germany experienced
31% revenue growth, while DIS grew 15% in the period under review.
Combined operating income grew 64% compared to Q2 2006, reflecting an
operating margin improvement of 220 bps to 9.2%.

Nordics' revenues increased by 25% in constant currency (21%
organically). Italy, Iberia and Benelux grew revenues by 8%, 6% and
6% respectively in Q2 2007. In the Emerging Markets revenues
increased 13% in constant currency.

BUSINESS LINE PERFORMANCE

Q2 2007 Revenues in percent

Q2 2007 Underlying[2] gross profit in percent

(The pie charts are visable in the PDF version of the report)

Adecco grew revenues of the Office and Industrial businesses by 4%
in constant currency to EUR 4.1 billion in Q2 2007 and raised gross
margin by 390 bps to 19.4%. Underlying[2] gross margin improved 40
bps to 15.9%. The Industrial business, which increased revenues by 4%
in constant currency, has been driven by strong demand in Italy and
Germany. France added 3% to revenues, while demand in USA & Canada
continued to be soft, where revenues declined 11% in constant
currency. In the Office business, the increase in revenues was 5% in
constant currency (4% organically) with business remaining very solid
in Japan, Nordics and in UK & Ireland.

In the second quarter of 2007, revenues in the Professional
Business[4] grew 7% in constant currency and 5% on an organic basis.
Gross margin in the Professional Business increased 30 bps to 26.2%.

In Information Technology (IT), Adecco achieved revenue growth of
4% in constant currency (2% organically). In UK & Ireland the focus
on value based management led to a growth deceleration, while in USA
& Canada revenues declined, both in constant currency.

In the second quarter, Adecco's Engineering & Technical (E&T)
business grew revenues by 8% in constant currency (6% organically).
In USA & Canada as well as UK & Ireland Adecco increased revenues in
single digit growth rates in constant currency, while demand in
Germany continued to be strong.

In Finance & Legal (F&L), Adecco increased revenues by 5% in
constant currency in the second quarter of 2007. The declining
business in USA & Canada was compensated by good revenue growth in UK
& Ireland.

In the second quarter of 2007, revenues in Human Capital Solutions
(HCS) were flat in constant currency. In Sales, Marketing & Events
(SM&E) and Medical & Science (M&S) revenues grew 16% and 14% (11%
organically) in constant currency, respectively.

MANAGEMENT OUTLOOK

The key indicators for the global staffing services market
continue to point to a favourable growth for the industry. The Group
remains committed to its objective of revenue growth of at least 7-9%
per annum on average for the coming years, providing no material
changes to the macroeconomic environment. At the same time management
continues to be confident that the focus on value based management
and professional and specialized business fields will allow Adecco to
continuously improve 2009 operating margin to over 5% and 2009 return
on capital employed (ROCE) to above 25%, which compares to 20.3% in
2006.

In the shorter term, management expects to grow slightly below the
market in France as the focus on shareholder value and profitable
growth continues. USA & Canada is anticipated to see a similar
development as in Q2 2007, while strong growth in Germany and ongoing
good demand in Japan should continue.

The Commission of European Communities approved the takeover of
Tuja Group on July 25, 2007 without any conditions and obligations
pursuant to the European Merger Control Regulation. Adecco will
consolidate Tuja Group as of August 2007. The transaction was mainly
financed in cash.

Financial Agenda 2007 and 2008

Q3 2007 results
November 2, 2007

Q4 & FY 2007 results
March 4, 2008

Q1 2008 results
May 5, 2008

Annual general meeting
May 6, 2008

Q2 2008 results
August 12, 2008

Q3 2008 results
November 4, 2008

Forward-looking statements
Information in this release may involve guidance, expectations,
beliefs, plans, intentions or strategies regarding the future. These
forward-looking statements involve risks and uncertainties. All
forward-looking statements included in this release are based on
information available to Adecco S.A. as of the date of this release,
and we assume no duty to update any such forward-looking statements.
The forward-looking statements in this release are not guarantees of
future performance and actual results could differ materially from
our current expectations. Numerous factors could cause or contribute
to such differences. Factors that could affect the Company's
forward-looking statements include, among other things: global GDP
trends and the demand for temporary work; changes in regulation of
temporary work; intense competition in the markets in which the
Company competes; changes in the Company's ability to attract and
retain qualified temporary personnel; the resolution of the French
anti-trust investigation and the resolution of the US class action;
and any adverse developments in existing commercial relationships,
disputes or legal and tax proceedings.

About Adecco
Adecco S.A. is a Fortune Global 500 company and the global leader in
HR services. The Adecco Group network connects over 700,000
associates with business clients each day through its network of over
36,000 employees (FTEs) and over 7,000 offices in over 60 countries
and territories around the world. Registered in Switzerland, and
managed by a multinational team with expertise in markets spanning
the globe, the Adecco Group delivers an unparalleled range of
flexible staffing and career resources to clients and associates.

Adecco S.A. is registered in Switzerland (ISIN: CH001213860) and
listed on the Swiss Stock Exchange with trading on Virt-x
(SWX/VIRT-X: ADEN) and the Eurolist of Euronext Paris (EURONEXT:
ADE).

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Originaltext: Adecco Personaldienstleistungen GmbH
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Pressekontakt:
Adecco Corporate Investor Relations
Investor.relations@adecco.com or +41 (0) 44 878 8925
Adecco Corporate Press Office
Press.office@adecco.com or +41 (0) 44 878 8832