TMP Reports Record-Breaking Third Quarter Results

Led By Monster.com, TMP Interactive Commissions and Fees at $117.4 Million for Third Quarter Up 192% Year-on-Year

NEW YORK--(BUSINESS WIRE)--Nov. 7, 2000--TMP Worldwide Inc. (NASDAQ: TMPW; ASX: TMP), the leading global provider of career services and solutions, including the dominant Internet career portal, Monster®.com, and the world's largest Yellow Pages advertising agency, today reported another record-breaking quarter, reflecting the company's ability to leverage its integrated on-line and off-line business strategy to create and market a comprehensive global portfolio of human capital solutions.

Total commissions and fees jumped 43% to $339.2 million for the third quarter ended September 30, 2000, up from $236.6 million for the same period a year ago. Adjusted net income for the third quarter was $31.5 million, up 72% from $18.3 million for the same period in 1999. Diluted adjusted earnings per share amounted to $0.30, a 43% increase over diluted adjusted earnings per share of $0.21 for both the third quarter of 1999 and the second quarter of 2000.

Total Company gains in commissions and fees and net income were once again led by the continued strong growth of Monster.com, the flagship product of the TMP Interactive division. Total Internet commissions and fees for TMP Interactive were $117.4 million for the third quarter ended September 30, 2000, a 192% organic increase over 1999's third quarter total and a 27% sequential increase over the $92.3 million for this year's second quarter. Monster.com also posted an operating profit of $18.9 million on its commissions and fees of $97.1 million, for a 20% operating margin in the third quarter ended September 30, 2000.

Quarter versus quarter comparative results for TMP Worldwide are as follows (all numbers in thousands, except per share amounts):
TMP Worldwide 3Q'00 3Q'99 (1) % Change 2Q'00 (1) % Change Total Commissions and Fees $339,239 $236,648 +43% $302,385 +12% Adjusted Operating Income (2) $46,754 $37,704 +24% $29,944 +56% Adjusted EBITDA (2) $60,295 $48,988 +23% $41,758 +44% Adjusted Net Income (3) $31,489 $18,339 +72% $21,450 +47% Diluted Adjusted EPS (4) $0.30 $0.21 +43% $0.21 +43% Diluted Weighted Avg. Shares 103,515 88,423 +17% 102,456 +1%

See Endnotes

The adjusted operating income, EBITDA, net income and diluted EPS amounts discussed above reflect adjustments to exclude merger and integration costs incurred in connection with companies acquired using the pooling of interests method of accounting (please see the Endnotes). Merger and integration costs for the quarter ended September 30, 2000 were $14.8 million versus $34.8 million for the third quarter of 1999. Such costs include transaction costs for the mergers completed in the respective year-to-date periods and the amortization of employee stay bonuses. In addition, these costs include separation pay and office and management integration costs, which include the elimination of redundant management, closing of excess leasehold facilities, and the write-off of fixed assets, which will not be used in the future.

''Our company generated an outstanding performance in the third quarter. TMP is firing on all cylinders, reflecting the power of Monster.com's global brand and the tremendous synergies we realize across our on-line and off-line businesses,'' said Andrew J. McKelvey, Chairman and CEO of TMP Worldwide. ''The impressive growth in our Interactive division is also driving growth company-wide.''

Mr. McKelvey added, ''TMP is unique. We are the only global career services company that can offer the preeminent Internet portal supported by the best off-line human capital services and solutions, from recruitment advertising to mid-level management selection and upper-level executive search. By capitalizing on the leadership positions of our different business segments, as well as our strategic global expansion, we have the ability to offer our clients Intern-to-CEO services on a worldwide basis. In offering a complete range of services to our clients, we have a formidable business advantage in a highly competitive job market.''

Strong organic growth drove increased commissions and fees in Interactive, Recruitment Advertising and Selection & Temporary Contracting. Higher operating margins in Interactive and Executive Search contributed to a 24% increase in adjusted operating profit to $46.8 million and a 23% increase in adjusted EBITDA to $60.3 million.

Quarter versus quarter comparative results for TMP Worldwide commissions and fees, are as follows (in thousands): TMP Worldwide 3Q'00 3Q'99(1) % Change Interactive $117,380 $40,189 +192% Recruitment Advertising $49,360 $44,542 +11% Selection & Temporary Contracting $95,326 $75,601 +26% Executive Search $47,888 $47,776 0% Yellow Pages Advertising $29,285 $28,540 +3% Total $339,239 $236,648 +43%

Jim Treacy, Executive Vice President and COO of TMP Worldwide, said, '' The strategy of expanding our Intern-to-CEO and Monster.com offerings to bring clients to the Internet has been highly successful. Our employees are trained to cross-sell interactive services into existing client relationships and the solid increases in commissions and fees in our traditional businesses are indicative of the opportunities to leverage our strengths across the divisions. We expect sales in all segments to continue to benefit from aligning with TMP Interactive. By differentiating ourselves from the competition and offering global solutions across the spectrum of the employment cycle, we've been able to win market share from our competitors.''

The 11% growth in Recruitment Advertising commissions and fees to $49.4 million for the third quarter of 2000 reflects a 5% increase in advertising billings and increases in creative and other value-added services, such as employee communications and retention programs, where the fees earned are higher than advertising commissions. In addition, the division also increased its contribution to the $117.4 million of total Company Interactive commissions and fees to $8.9 million, versus $2.9 million for the same period last year, a more than three-fold increase.

Selection & Temporary Contracting commissions and fees grew 26% to $95.3 million for the third quarter of 2000, reflecting a continued strong global labor market and high demand for professional employees. This division continues to grow organically by leveraging the power of the Internet and the Monster.com resume database. The division has also grown through targeted acquisitions, such as QD Group Limited in the UK, making TMP Worldwide the largest legal placement firm outside of the US.

Executive Search commissions and fees were $47.9 million for the third quarter of 2000, up slightly from the $47.8 million reported in the third quarter of 1999. In the third quarter of 2000, average billings per consultant rose to approximately $250,000 from $185,000 last year. This quarter's billings were achieved with 65 fewer consultants than in the same period of 1999, as TMP Executive Search moved up the value chain becoming one of the premier global search brands. This positioning also drove divisional operating profits up strongly for the quarter ended September 30, 2000 versus the prior year period.

Yellow Page Advertising commissions and fees were $29.3 million for the third quarter of 2000, up 3% from $28.5 million in the third quarter of 1999. This reflects the benefit of advertising rate increases by the yellow page publishers and a stabilizing of the gross margin which had been declining in recent quarters due to reduced commissions paid by publishers and the effects of higher discounts for certain large clients. In addition, the recent launch of Monstermoving.com should also provide a valuable new advertising venue for moving-related clients, as approximately 30% of TMP's traditional Yellow Page billings are currently derived from the moving services industry, including van lines, truck rentals and home services.

''Our recent launch of Monstermoving.com should enable the Company to continue its proven strategy of capitalizing on our on-line innovations to fuel growth within our traditional businesses. TMP is already cross-selling the on-line venue to its moving related clients, a step that exemplifies our commitment to leverage interactive technology and generate new business opportunities for our traditional clients and for TMP. The success of this strategy is evidenced by our recent announcement that two prominent Yellow Pages advertisers, Allied Worldwide and Shurgard Storage, have already signed on with Monstermoving.com to tap into the lucrative consumer lead generation potential of this traffic.'' added Mr. Treacy. ''Monstermoving.com's commissions and fees, included in the total Company Interactive commissions and fees amount, were $3.1 million for the third quarter ended September 30, 2000 compared to $2.1 million for the quarter ended June 30, 2000.''

Total commissions and fees as a percent of related billings for the quarter ended September 30, 2000 were 52% compared to 44% for the prior year period. The higher percentage primarily reflects increased Interactive, and Selection & Temporary Contracting sales volumes, where TMP Worldwide retains greater portions of the amounts billed. This also reflects the higher gross margins achieved in Recruitment Advertising related to the increase in fee-driven creative, interactive and other value-added services.

Monster.com Further Expands World's Largest Resume Database, Global Reach and Service Offerings

Monster.com's domination of the on-line careers category and premier position with job seeking consumers further advanced in the third quarter of 2000 in all key metrics areas. As the world's largest resume database of over 6.3 million resumes, Monster.com has serviced over 5% of the US adult (age 18 to 64) on-line audience, based on Nielsen//Net Ratings data for September 2000, and the Monster.com resume database is currently growing by over 15,000 resumes daily. In addition, with over 480,000 current job postings - all paid for, as there are no aggregated jobs from other sites on Monster.com - the site continues to represent the largest professional help-wanted market in the world.

According to Media Metrix, in September 2000, Monster.com had more than 4.4 million unique visitors, accounting for 5.7% of all Internet users. More importantly, Monster's reach combined with an average of 38.6 page views per visit, resulted in a ''power ranking(5)'' of 220 for Monster.com - more than five times larger than Monster.com's closest competitor's ''power ranking'' of 43 and more than Monster's next 14 competitors combined. In addition, Monster.com's total number of registered job seeker accounts surpassed 10 million in the quarter, and Media Metrix ranked Monster.com as the 82nd most visited site on the Internet. Monster.com's 52% market share of ''career eyeball minutes(6)'' further reinforces that the Monster.com brand is the undisputed leader in the Internet recruitment market. Monster.com's share is also nearly five times larger than its nearest competitor's share of a distant 11%.

Additionally, according to independent research conducted by Nielsen//NetRatings, Monster.com was the ''stickiest'' careers site, outpacing its competitors with an average time spent per person of nearly 25 minutes in September 2000. Nielsen//NetRatings, which provides monthly data on the number of Monster.com users who log on at home, at work, and a combined number for both at work and at home, also found that the number of unique visitors who logged onto Monster.com from home increased 87% from 1.8 million in October 1999 to 3.4 million in September 2000, more than double the unique audience of its nearest competition. Nielsen//NetRatings' research shows that Monster achieved over 5.2 million unique visitors for both home and work in September - nearly double the amount of its closest competitor.

Jeff Taylor, CEO of TMP Interactive, said, ''Monster's success can be attributed to its high quality and reputation for providing lifetime career management solutions. In the past several months, Monster was named number 440 of America's top 2,000 brands by Brandweek and was noted as one of the top five most recognized Internet brands by a Greenfield survey.''

Mr. Taylor continued, ''The strength of the Monster.com brand is enabling us to successfully expand across borders. To date, we have extended our global reach with local language and content sites in 13 countries, including the recent launch of Monster.es in Spain - and others are in the pipeline. For both employers and job seekers, there has been a movement towards globalization, and we strive to offer both parties all the benefits and services they need worldwide. We've also broadened our service offerings to include ChiefMonster, a career strategy resource for today's senior executives. With the demand for qualified talent at an all-time high, we believe ChiefMonster gives executives a new, comprehensive career tool and presents employers a competitive advantage by significantly cutting the time it takes to find and hire great senior-level employees.''

To further capitalize on the strength of the Monster.com brand, in October 2000, TMP launched Monstermoving.com, an online relocation Web site and marketing extension of Monster.com. The new site provides consumers with the comprehensive resources needed to plan and execute a move, offers moving and real estate-related businesses ''real-time'' access to their target audience, and leverages Monster.com's global advertising and marketing campaigns, brand visibility and high-volume site traffic. As part of the Monstermoving.com launch, TMP announced an alliance with Homestore.com(TM), the largest home and real estate network on the Internet. Accessible at www.monstermoving.com and from the home page of www.monster.com, Monstermoving.com's offerings are supported across all TMP Worldwide business units and provide an important new advertising venue for moving-related clients in the company's Yellow Pages advertising division.

TMP's Financial Strength Fuels Organic and Acquisition Growth

TMP ended the third quarter with over $500 million in cash and cash equivalents, and approximately $38 million in debt. The Company's debt-to-equity ratio was less than 4%. Supported by the continued profitability of the Company, and its cash flow from its operations, TMP is again strongly positioned for organic and acquisition growth. Jim Treacy noted that TMP Worldwide has increased its balance sheet assets approximately 72% since the beginning of 2000 and approximately 103% since the beginning of 1999.

''We have been highly successful in seeking out value-accretive acquisitions to grow profitably, enhance our portfolio of human capital services, and maximize shareholder value,'' said Mr. Treacy. ''We've been able to effectively integrate these synergistic acquisitions into TMP and continue to focus on leveraging our sales force across all of our businesses, while improving our margin structure. We will continue to take advantage of the opportunities in combining our on-line and off-line businesses in further driving profitable growth at TMP. We have proven client strategies and business models in place to maintain and strengthen our leadership position in providing global human capital management services. Our strong cash flow in the third quarter provides us with the flexibility to selectively pursue value-added acquisitions.''

In addition to the launch of Monstermoving.com, other significant TMP Worldwide milestones include:

- During the quarter, Monster.com awarded its U.S. advertising account to Arnold Communications, located in Boston, Mass. Monster.com also announced the purchase of ad space during Super Bowl XXXV, marking the third year that Monster.com has advertised on one of the nation's most widely-viewed television events. Over the past two years, Monster.com advertising in the Super Bowl has been a tremendous success in increasing the number of job searches and resume submissions on the site.

- In September, TMP Worldwide announced a partnership with the State of Connecticut to host an Internet-based job fair offering employment opportunities with companies and organizations based in the state. The site will remain live until November 10 and is accessible through www.monster.com and ifair.ct.monster.com.

- Monster.com extended its European reach, launching Monster.es in Spain in September. This launch marked the next phase of the expansion of Monster's European Network of local language sites. Monster.es offers multiple services for both job seekers and employers, including resume management, personal job search agents, career networks, chats and message boards.

- Monster.com launched two new online communities providing career development resources and targeted job locators: Monster Retail (http://retail.monster.com/), with a direct link to over 34,000 retail job postings; and Monster Admin/Support (http://adminsupport.monster.com/), serving one of the largest occupations in America.

- As part of the strategy to expand mid-market Selection globally, TMP's Executive Resourcing division acquired Stratascape, Inc. and Accounting Solutions, both US-based companies, QD Group Limited, a UK-based company with additional offices in Canada, Germany, Hong Kong and Singapore, and CRDP located in Poland. The US firms will provide TMP clients with IT consultative, engineering and accounting resourcing solutions, and QD specializes in the legal profession.

- In August, TMP Worldwide acquired Rich, Gardner & Associates, Ltd., a highly regarded full service recruitment-advertising firm in the Atlanta area. Rich, Gardner will be integrated into TMP Worldwide's recruitment advertising division, Advertising and Communications. The acquisition will allow the Company to create a significant presence in the Southeast marketplace and serve to further diversify TMP's client base, using TMP's traditional and interactive services.

- In October, Monster.com and Robert Half International announced the launch of a new microsite, Salary Center, which contains compensation ranges from RHI for an array of professions, delivered through an interactive salary calculator. The site joins Monster.com's growing collection of lifetime career management resources.

- Shortly after its launch, Monstermoving.com announced a strategic advertising and marketing agreement with Allied Worldwide, the world's largest relocation and van line logistics company, to support their efforts in identifying and reaching movers in the early stages of the relocation process. Allied Van Lines has been a TMP Yellow Pages client since 1986.

- Most recently, Monstermoving announced an advertising and marketing agreement with Shurgard Storage Centers, Inc., a global leader in storage products and services. Operating over 392 storage centers throughout the United States and Europe, Shurgard has been a client of TMP Yellow Pages since 1992.

- In November, Monster Momentum(SM) (www.monstermomentum.com) launched, marking Monster.com's move into the Application Service Provider space. Monster Momentum, a Web-based hiring management system for small- and medium-sized businesses, streamlines the entire hiring process from job posting, applicant screening, hire tracking and report generation, and seamlessly integrates into a client's existing corporate Web site.

- Also in early November, Monstermoving.com announced a partnership with Domania.com to exclusively offer the Home Price Check tool, enabling users to search for prices on a home, or find out how much a home sold for in the past, by accessing an online database of over 21 million home sales.

Business Outlook Remains Favorable

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions or other business combinations completed after November 7, 2000. These statements also exclude merger and integration expenses and restructuring costs incurred in connection with companies acquired using the poolings of interests method of accounting. Note that quarterly results are anticipated to reflect the seasonal nature of our businesses.

TMP Worldwide believes that its market-leading portfolio of on-line and off-line services, combined with its geographic diversification will position the company strongly for the fourth quarter of 2000 and for the total year 2001.

''For the fourth quarter of 2000, for Interactive we anticipate commission and fee growth of 12% over the previous quarter,'' said Bart Catalane, CFO of TMP Worldwide. ''For total Company commissions and fees, we anticipate an increase over the fourth quarter of last year of between 38% to 42%. Operating expenses, including amortization of intangibles, and between $33 million to $37 million of marketing and promotion expenses, but excluding merger and integration expenses, are expected to be between 85% and 87% of total Company commissions and fees. We continue to be comfortable with the Wall Street analysts' diluted adjusted earnings per share consensus estimate of $0.30.''

Mr. Catalane then continued with 2001 year expectations based on current full year 2000 estimates, ''For the full year 2001, we anticipate annual Interactive commissions and fees to grow approximately 63% over the previous year. For total Company commissions and fees, we anticipate an annual increase over 2000 of between 26% to 28%. Operating expenses, including amortization of intangibles, and between $240 million to $260 million of marketing and promotion expenses, but excluding merger and integration expenses, are expected to be between 85% and 87% of total Company commissions and fees. We are comfortable with annual diluted adjusted earnings per share estimates in the range of $1.36 to $1.40. Considering the seasonal nature of our businesses, we expect estimated diluted adjusted earnings per share by quarter to range between $0.14 to $0.15 for the first quarter ending March 31; $0.30 to $0.31 for the second quarter ending June 30; $0.45 to $0.46 for the third quarter ending September 30; and $0.47 to $0.48 for the fourth quarter ending December 31 of 2001.''

Nine Months Results

TMP reported total commissions and fees of $900.6 million for the nine months ended September 30, 2000, compared to $640.9 million for the year-earlier period, an increase of 41%. Interactive commissions and fees increased 209% to $280.4 million for the nine months ended September 30, 2000, from $90.9 million for the nine months ended September 30, 1999.

Recruitment Advertising commissions and fees increased 5% to $146.2 million for the nine months ended September 30, 2000 compared to $139.3 million for the prior year period, reflecting moderate growth in billings, primarily related to increased client activity and publisher price increases for help-wanted advertisements placed in newspapers and increased fees for creative and other value-added services.

Selection & Temporary Contracting commissions and fees increased 32% to $263.2 million for the nine months ended September 30, 2000 compared to $199.3 million for the prior year period, again reflecting the strong global labor market and resulting demand for permanent professional employees, particularly in mid-level management positions (annual salaries of $75,000 to $150,000). Executive Search commissions and fees increased 2% to $135.2 million for the nine months ended September 30, 2000 compared to $132.0 million for the prior year, also reflecting the strong labor market and demand for senior executive positions and an increase in average billings per consultant.

Yellow Pages advertising commissions and fees decreased 5% to $75.7 million for the nine months ended September 30, 2000 versus $79.5 million for the prior year period, again reflecting substantially reduced commissions paid by publishers and the effects of higher discounts for certain clients partially offset by higher billings from publisher pricing increases.

Total commissions and fees as a percent of related billings for the nine months ended September 30, 2000 were 49.6% compared to 43.0% for the prior year period. The higher percentage reflects increased Interactive, Executive Search and Selection & Temporary Contracting sales volumes, where the Company retains greater portions of the amounts billed.

The Company reported adjusted operating income of $94.8 million for the nine months ended September 30, 2000 compared to $64.7 million for the prior year period, a 47% increase. Growth in Interactive, Executive Search, and Selection & Temporary Contracting commissions and fees, together with higher operating margins in Interactive and Executive Search partially offset by lower margins in Yellow Pages and Selection & Temporary Contracting, contributed to the $30.1 million increase in adjusted operating profit. The adjusted operating profit margin increased to 10.5% for the nine months ended September 30, 2000, compared to 10.1% for the prior year period.

Adjusted EBITDA for the nine months ended September 30, 2000 was $131.9 million versus $93.2 million for the prior year, an increase of 42%. Adjusted net income increased 104% to $64.0 million for the nine months ended September 30, 2000 compared to $31.4 million for the prior year period. Diluted adjusted earnings per share was $0.63 for the nine months ended September 30, 2000 versus $0.35 for the prior year, an 80% increase.

The adjusted operating income, EBITDA, net income and diluted EPS amounts discussed above reflect adjustments to exclude merger and integration costs and restructuring charges incurred in connection with companies acquired using the pooling of interests method of accounting. For the nine months ended September 30, 2000 such costs were $37.1 million compared with $46.3 million for the same period in 1999. In addition, restructuring charges at LAI were $2.8 million for the nine months ended September 30, 1999.

About TMP Worldwide

Founded in 1967, TMP Worldwide, now with more than 8,750 employees in 30 countries, is the on-line recruitment leader, the world's largest Recruitment Advertising agency network, and one of the world's largest Executive Search & Executive Selection agencies. TMP Worldwide, headquartered in New York, is also the world's largest Yellow Pages advertising agency and a provider of direct marketing services. The Company's clients include more than 90 of the Fortune 100 and more than 480 of the Fortune 500 companies. More information about TMP Worldwide is available at www.tmp.com.

Monster.com (www.monster.com), headquartered in Maynard, Mass, the flagship product of the Interactive Division of TMP Worldwide, is the leading global career portal on the web and recorded over 17.1 million unique visits during the month of August 2000 according to independent research conducted by I/PRO. Monster.com connects the most progressive companies with the most qualified career-minded individuals, offering innovative technology and superior services that give them more control over the recruiting process. The Monster.com global network consists of local language and content sites in the United States, United Kingdom, Australia, Canada, the Netherlands, Belgium, New Zealand, France, Singapore, Hong Kong, Germany, Spain and Ireland. More information about Monster.com is available at www.monster.com

Monstermoving.com, the newest interactive product offering of TMP Worldwide, is a marketing extension of Monster.com. As one of the world's largest online marketplaces of relocation information, services and moving-related decision support tools, Monstermoving.com intends to change the way people move by leveraging the power of the Internet to successfully manage all stages of the relocation process. More information about Monstermoving.com is available at www.monstermoving.com.

Condensed consolidated statements of operations for the three months and nine months ending September 30, 2000 for TMP Worldwide Inc. and subsidiaries follow. For an investment kit, please contact Victoria Albert at (212) 351-7063 or visit www.tmp.com.

Special Note:

The above statements include forward-looking statements based on current management expectations. Factors that could cause future results to differ from these expectations include the following: risks associated with acquisitions, competition and seasonality. Additional factors are described in the company's reports filed with the Securities and Exchange Commission.

Third Quarter 2000 results will be discussed on TMP Worldwide's quarterly conference call taking place on November 8, 2000. To join the conference call, please dial in on 1-800-348-6379 at 8:20 AM E.D.T. For those outside the United States, please call in on 1-212-676-5288. The call will begin promptly at 8:30 AM E.D.T. Individuals can also access TMP Worldwide's quarterly conference call through Yahoo! Finance at www.yahoo.com and the investor information section of the company's web site at www.tmp.com. Interactive Metrics for TMP Worldwide are available at www.monster.com or www.tmp.com.

Endnotes

1 Prior periods' results have been retroactively restated to reflect the effects of acquisitions accounted for as poolings of interests that were completed prior to September 30, 2000.

2 Operating income and EBITDA have been adjusted to exclude the effects of merger and integration costs of $14.8 million, $34.8 million and $13.6 million for the third quarters ended September 30, 2000 and 1999 and the second quarter ended June 30, 2000, respectively.

3 Net income has been adjusted to exclude the effects of merger and integration costs incurred, net of the tax benefits thereon, of $8.1 million, $21.6 million and $12.2 million for the quarters ended September 30, 2000 and 1999 and the second quarter ended June 30, 2000, respectively.

4 Available to common and Class B shareholders after excluding merger and integration costs, net of the tax benefits thereon.

5 ''Power ranking'' is the result of Media Metrix ''audience reach'' multiplied by Media Metrix ''unique pages per visitor per month'' and therefore indicates a Web site's recognition by and usefulness to consumers (who in Monster.com's case are job seekers).

6 ''Career eyeball minutes'' is the result of Media Metrix ''unique visitors'' multiplied by Media Metrix ''average minutes per visitor per month'' and therefore also indicates a Web site's share of total career or job seeker audience that month.

-0- TMP WORLDWIDE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended (in thousands, except per share amounts) (unaudited) Sept. 30, 2000 Sept. 30, 1999 Gross billings: Interactive $131,123 $45,059 Recruitment advertising 216,639 207,039 Selection & temporary contracting 96,881 76,788 Executive search 47,888 47,776 Yellow page advertising 162,789 156,580 Total gross billings $655,320 $533,242 Commissions & fees: Interactive $117,380 $40,189 Recruitment advertising 49,360 44,542 Selection & temporary contracting 95,326 75,601 Executive search 47,888 47,776 Yellow page advertising 29,285 28,540 Total commissions & fees 339,239 236,648 Operating expenses: Salaries & related 168,582 129,159 Office & general 70,671 48,907 Marketing & promotion 48,842 17,676 Merger & integration 14,823 34,808 Restructuring - - Amortization of intangibles 4,390 3,202 Total operating expenses 307,308 233,752 Operating income 31,931 2,896 Other income (expense): Interest income (expense), net 6,345 (3,031) Other, net 209 (910) Total other income (expense), net 6,554 (3,941) Income (loss) before provision for income taxes, minority interests & equity in losses of affiliates 38,485 (1,045) Provision for income taxes 15,165 2,089 Income (loss) before minority interests & equity in losses of affiliates 23,320 (3,134) Minority interests (62) - Equity in losses of affiliates - (100) Net income (loss) applicable to common and Class B common stockholders $23,382 ($3,234) Adjusted net income: Net income (loss) $23,382 ($3,234) Merger & integration costs and restructuring charges 14,823 34,808 Tax benefit of M&I costs and restructuring charges (6,716) (13,235) Adjusted net income $31,489 $18,339 TMP WORLDWIDE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended (in thousands, except per share amounts) (unaudited) Sept. 30, 2000 Sept. 30, 1999 Net income (loss) per common and Class B common share: Basic $0.24 ($0.04) Diluted $0.23 ($0.04) Adjusted net income per common and Class B common share: Basic $0.33 $0.22 Diluted $0.30 $0.21 Weighted average shares outstanding: Basic 96,705 84,754 Diluted (except for losses) 103,515 88,423 Adjusted E B I T D A (a) $60,295 $48,988