Adecco delivers on gross margin improvements and cost cuts

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Despite weak topline net profit remains in the black and operating
cash flow is robust

Q1 HIGHLIGHTS (Q1 2009 versus Q1 2008

* Revenues of EUR 3.7 billion, down 26% (-28% organically[1])
* Gross margin up 40 bps compared to the prior year at 18.5%
* Strong 15% reduction of SG&A expenses on an adjusted[2] and
organic basis
* EUR 36 million restructuring costs for headcount reductions and
branch network optimization
* Adjusted EBITA[3] margin at 2.1%, down 220 bps
* Strong operating cash flow of EUR 205 million and net debt[4]
further reduced to EUR 445 million

Key figures

+-------------------------------------------------------------------+
| | Q1 2009 | Q1 | Q1 2009 | Q1 2009 |
| | reported | 2009 | | adjusted[2] |
| | | reported | adjusted[2] | |
| | | growth | | organic[1] |
| in EUR millions | | | | growth |
|-----------------+----------+----------+-------------+-------------|
| Revenues | 3,703 | -26% | 3,703 | -28% |
|-----------------+----------+----------+-------------+-------------|
| Gross profit | 686 | -25% | 686 | -27% |
|-----------------+----------+----------+-------------+-------------|
| EBITA | 43 | -80% | 79 | -66% |
|-----------------+----------+----------+-------------+-------------|
| Operating | 30 | -85% | | |
| income | | | | |
|-----------------+----------+----------+-------------+-------------|
| Net income | | | | |
| attributable to | 23 | -83% | | |
| Adecco | | | | |
| shareholders | | | | |
+-------------------------------------------------------------------+

Zurich, Switzerland, May 6, 2009: Adecco Group, the worldwide leader
in Human Resource services, today announced results for the first
quarter of 2009. Revenues were down 28% organically to EUR 3.7
billion compared to EUR 5.0 billion in Q1 2008. The gross margin was
up 40 bps to 18.5%. SG&A on an adjusted and organic basis was
reduced by 15% in Q1 2009 compared to the prior year, as a result of
headcount reductions and branch network optimization. The reported
EBITA margin was 1.2%, or adjusted for EUR 36 million restructuring
costs 2.1%, down 220 bps. Operating cash flow was EUR 205 million.

Dominik de Daniel, CFO of the Adecco Group said: "We continued to
face strong pressure on revenues, with an organic decline of 28% in
the first quarter this year. Nonetheless, I am pleased to report
that we were able to increase the gross margin by 40 bps to 18.5%,
due to the good business mix. Given our proactive and accelerated
approach to adapt the cost base in order to protect margins, SG&A was
reduced by 15% on an adjusted and organic basis in Q1 2009, compared
to the prior year's first quarter. The EBITA margin was down 220 bps
to 2.1%, when excluding restructuring expenses. Operating cash flow
of EUR 205 million was strong, helped by lower working capital
needs."

Q1 2009 FINANCIAL PERFORMANCE

Revenues
Group revenues in Q1 2009 were down 26% to EUR 3.7 billion compared
to Q1 2008. Organically, revenues declined by 28%. In the first
quarter of 2009, permanent placement revenues were EUR 53 million, a
decline of 45% in constant currency and outplacement revenues
amounted to EUR 88 million, an increase of 65% in constant currency.

Gross Profit
The gross margin improved by 40 bps to 18.5% compared to Q1 2008. The
gross margin in the temporary staffing business was 50 bps lower in
Q1 2009 compared to Q1 2008, partly due to lower utilisation in
Germany and Sweden, where temporary employees are on Adecco's
payroll, while the decline in the permanent placement business also
impacted gross margin negatively. The growing contribution of the
outplacement business more than compensated the negative impact on
the gross margin of the temporary and permanent staffing
businesses.

Selling, General and Administrative Expenses (SG&A)
In Q1 2009 SG&A was reduced by 7% compared to the same period last
year. Organically and adjusted for EUR 36 million restructuring
expenses, SG&A declined by 15%. Organically, FTE employees were
reduced by 12% (-4,600) compared to Q1 2008, while the branch network
was reduced by 11% (-700 branches). At the end of the first quarter
of 2009, the Adecco Group operated a network of over 6,000 offices
with more than 31,000 FTE employees.

EBITA
In the period under review, reported EBITA was EUR 43 million, a
decline of 80%. Organically and adjusted for EUR 36 million
restructuring expenses, EBITA declined by 66% to EUR 79 million. The
adjusted EBITA margin was 2.1% in Q1 2009. This compares to an EBITA
margin of 4.3% in the prior year.

Amortisation of Intangible Assets
Amortisation in Q1 2009 amounted to EUR 13 million compared to EUR 10
million in first quarter of 2008.

Operating Income
In Q1 2009, the company reported operating income of EUR 30 million,
a decline of 85%, which compares to EUR 205 million in Q1 2008.

Interest Expense and Other Income / (Expenses), net
The interest expense amounted to EUR 9 million in the period under
review, EUR 5 million less than in Q1 2008. Given the recent bond
issuance of EUR 500 million, the interest expense is expected to
amount to approximately EUR 60 million for the full year of 2009.
Other income / (expenses), net was EUR 3 million in Q1 2009 compared
to EUR 2 million in the first quarter of 2008.

Provision for Income Taxes
The effective tax rate for the first quarter of 2009 was 3%, compared
to 28% in the same period last year. The tax rate for Q1 2009 was
lower due to the favourable settlement of tax audits and expiration
of statute of limitations in certain jurisdictions.

Net Income attributable to Adecco shareholders and EPS
Net income attributable to Adecco shareholders in Q1 2009 was down
83% to EUR 23 million compared to EUR 137 million in Q1 2008,
resulting in a margin of 0.6%. Basic EPS was EUR 0.13 (EUR 0.78 for
Q1 2008).

Balance Sheet, Cash flow, and Net Debt
The operating cash flow generated in Q1 2009 amounted to EUR 205
million. The Group invested EUR 26 million in capex. Net debt
declined to EUR 445 million at the end of March 2009 compared to EUR
617 million at the end of 2008. DSO improved by 2 days to 55 days in
the first quarter of 2009.

Currency Impact
In Q1 2009, currency fluctuations had a positive impact of
approximately 1% on revenues and on operating income.

GEOGRAPHICAL PERFORMANCE

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

Revenues in France declined by 32% (-33% organically) to EUR 1.1
billion in Q1 2009, compared to Q1 2008. Pricing remained rational,
in Adecco's biggest market in terms of revenues. Excluding EUR 12
million costs associated with headcount reductions and branch
closures, EBITA declined by 87% to EUR 7 million compared to Q1 2008.
The adjusted EBITA margin was 0.6%, compared to 3.4% a year ago.

In the USA & Canada, revenues declined by 26% in constant currency to
EUR 584 million in Q1 2009. Organically, revenues were down 25%. The
decline was mostly driven by the strongly decelerating Office and
Industrial businesses, while revenues in Human Capital Solutions
increased substantially. EBITA declined by 12% in constant currency,
whereas the EBITA margin increased by 100 bps to 5.6%, due to the
positive contribution of the Human Capital Solutions business.

In Germany, Q1 2009 revenues declined by 32% to EUR 263 million,
while EBITA was down 85% compared to the same period a year ago,
resulting in an EBITA margin of 2.2% (Q1 2008: 9.7%). Besides
negative operating leverage, the impact of the lower utilisation led
to the reduction of the EBITA margin in the quarter under review.

In the first quarter of 2009, Japan's revenues declined by 10% in
constant currency to EUR 418 million. EBITA declined by 7% in
constant currency, corresponding to an EBITA margin of 7.0%, up 20
bps compared to Q1 2008. The excellent profitability continues to be
driven by superior cost management.

In the UK & Ireland, revenues in Q1 2009 declined by 31% in constant
currency. The region posted a small loss at the EBITA level. Besides
company specific issues, for which measures to improve the situation
are taken, the weak permanent placement business continued to
negatively impact results.

Italy faced a sharp decline in demand with revenues falling 45% in
Q1 2009. At the EBITA level, Italy posted a loss of EUR 13 million,
mainly as a result of EUR 18 million costs associated with headcount
reductions and branch closures. FTE employees were reduced by 21%
since December 2008. Revenues in the Benelux declined by 14% or 22%
organically, while in the Nordics, revenues declined by 32% in
constant currency and in Iberia by 42%.

Emerging Markets revenues grew by 3% in constant currency and
organically. The corresponding EBITA margin was 2.4% in the period
under review.

BUSINESS LINE PERFORMANCE

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

In Q1 2009, Adecco's revenues in the Office and Industrial businesses
declined by 33% in constant currency to EUR 2.6 billion. In the
Industrial business, revenues declined by 38% in constant currency,
driven by weak demand in France where revenues were down 36%, Germany
which declined by 41%, Italy by 50%, and by the USA & Canada where
revenues decreased 35% in constant currency. In the Office business,
revenues declined by 21% in constant currency. While Japan was down
10% in constant currency, the revenue decline was more pronounced in
the USA & Canada with a decline of 30%, in the UK & Ireland where
revenues were down 32% and in the Nordics by 33%, all in constant
currency. In France, revenues were down 25%.

In the Professional Business[5] segment, revenues in Q1 2009 declined
by 9% in constant currency and by 13% on an organic basis. The gross
margin improved by 260 bps to 30.0%, mainly driven by the Human
Capital Solutions business.

In Information Technology (IT), Adecco's revenues decreased 6% in
constant currency and by 16% organically. In the USA & Canada
revenues were down 21% and in the UK & Ireland down 22%, both in
constant currency.

Adecco's Engineering & Technical (E&T) business was down 22% in
constant currency. Whereas the USA & Canada faced a revenue decline
of 23% in constant currency, revenues in Germany declined by 8% in
the first quarter of 2009.

In Finance & Legal (F&L), revenues declined by 27% in constant
currency and by 32% on an organic basis. Weak demand in the USA &
Canada was the main reason for the decline.

In Q1 2009, revenues in Medical & Science declined by 9% and in
Sales, Marketing & Events (SM&E) by 5%, whereas revenues in Human
Capital Solutions (HCS) were up 45%, all in constant currency.

MANAGEMENT OUTLOOK

The business environment in the first quarter of 2009 was
exceptionally difficult and the near future continues to look
challenging. Consequently, management adheres to a proactive,
cost-focused approach in order to protect margins and remains fully
committed to its value-based strategy. Despite significant pressure
on revenues, price discipline remains a key priority throughout the
organization.

Near term, management expects no reversal of current conditions and
sees no clear signs of stabilization yet. During Q1 2009 revenues
continued to decelerate, with an exit rate in March of approximately
31%, organically and adjusted for trading days. Developments are
closely observed and actions to further adjust the cost base continue
to be taken as necessary in order to protect the profitability.
Already initiated structural changes and headcount reductions are
well on track and the remaining EUR 14 million of the initially
planned EUR 50 million restructuring costs are expected to be
incurred in the second quarter of 2009.

Recent EUR 500 million bond issuance
On April 21, 2009 Adecco placed a 5-year EUR 500 million bond with a
coupon of 7.625%, issued by Adecco International Financial Services
B.V. and guaranteed by Adecco S.A. The proceeds further increase the
Group's financial flexibility with respect to the refinancing of the
outstanding zero-coupon convertible bond as well as for general
corporate purposes. The 5-year EUR 500 million bond was issued
within the framework of the recently established Euro Medium Term
Note programme and trades on the London Stock Exchange.

Financial Agenda 2009

* Annual General Meeting May 13, 2009
* Q2 2009 results August 11, 2009
* Q3 2009 results November 5, 2009

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 internal or external personnel or clients; the
potential impact of disruptions related to IT; any adverse
developments in existing commercial relationships, disputes or legal
and tax proceedings.

About the Adecco Group
The Adecco Group, based in Zurich, Switzerland, is the world's
leading provider of HR solutions. With over 31,000 FTE employees and
6,000 offices, in more than 60 countries and territories around the
world, Adecco Group offers a wide variety of services, connecting
more than 500,000 colleagues with over 145,000 clients every day. The
services offered fall into the broad categories of temporary
staffing, permanent placement, outsourcing, consulting and
outplacement. The Adecco Group is a Fortune Global 500 company.

Adecco S.A. is registered in Switzerland (ISIN: CH0012138605) with
listings on the SIX Swiss Exchange (ADEN) and on Euronext in France
(ADE).

Adecco Corporate Investor Relations
Investor.relations@adecco.com or +41 (0) 44 878 89 89

Adecco Corporate Press Office
Press.office@adecco.com or +41 (0) 44 878 87 87

There will be a media conference call at 9 am CET as well as an
analyst conference call at 11 am CET, details of which can be found
on our website in the Investor Relations section at
http://webcast.adecco.com.

[1] Organic growth is a non US GAAP measure and excludes the impact
of currency, acquisitions and divestitures.
[2] Adjusted is a non US GAAP measure and excludes the negative
impact associated with headcount reductions and branch optimization
in France, Italy and other countries of EUR 36 million in 2009.
[3] EBITA is a non US GAAP measure and refers to operating income
before amortization of intangible assets.
[4] Net debt is a non US GAAP measure and comprises short-term and
long-term debt less cash and cash equivalents and short-term
investments.
[5] Professional business refers to Adecco's Information Technology,
Engineering & Technical, Finance & Legal, Medical & Science, Sales,
Marketing & Events and Human Capital Solutions business.

The full report (in English) including tables can be downloaded from
the following link:

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Adecco SA
Sagereistrasse 10 Glattbrugg Switzerland

WKN: 922031;
ISIN: CH0012138605; Index: SLCI, SMI, SPI, SMIEXP;
Listed: Main Market in SIX Swiss Exchange;
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