USG People NV (AMS:USG) Third-quarter 2008 Results USG People N.V.

USG People NV (AMS:USG) Strong improvement in financial position due to operating cash flow of € 102 million

Almere, 28 October 2008, 07:00 CET

Q3 2008 highlights

* Group revenue up 5% to € 1.069 billion in the third quarter, mainly due to German acquisition earlier this year; slight drop in organic revenue of 1% year on year * Strong growth in Belgium despite a decline in the market * Strong operating cash flow of € 102 million in the third quarter; net bank debt down € 86 million to € 459 million * Net income down from € 40 million to € 33 million due to higher amortisation and non-cash valuation of interest rate hedges * Further improvement in solvency ratio to 35% (Q2 2008: 33%)

9 9 (in € Q3 Q3 months months millions) Growth to to Growth 2008 2007 Sept. Sept. 2008 2007 Revenue 1,069 1,019 5% 3,074 2,879 7% EBITA 68 72 -6% 184 187 -2% Net 33 40 -19% 94 104 -10% income EPS (in 0.50 0.63 -21% 1.46 1.64 -11% euro)

"Our group achieved revenue growth of 5 percent in the third quarter," said Ron Icke, CEO of USG People. "The downward trend in the markets resulted in a slight drop in USG People's organic revenue of 1 percent. The profitability of our operations has remained steady, boosted by a strong performance in the Benelux and by an acquisition in Germany earlier this year. The short-term outlook for the European market appears to be deteriorating further. The impact of the credit crisis is expected to intensify the downward trend in the economic cycle. This has already become visible in a rapid drop in staffing activity in Spain and France, while the Netherlands and Belgium are now also witnessing a market decline. The long-term outlook for the European market remains positive however, also given recent agreement by the European Parliament on a new European directive that removes obstacles to temporary work. This could lead to a significant considerable rise in the degree of penetration of temporary staffing in Europe. Our focus is on adjusting our operating expenses and optimising our organisation and network. In addition, our priority in utilising our operating cash flow is to assure a solid financial structure."

The full press release including appendices is included as PDF file

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LINK: http://hugin.info/130803/R/1263712/277490.pdf

USG People NV

http://www.usgpeople.nl

ISIN: NL0000354488

Stock Identifier: XAMS.USG