Within a mere decade, Monster has eclipsed the momentum of newspaper advertising that was built over a century’s time. We were pioneers in the mid-1990s, and we’re pioneers today. As online recruitment becomes the model by which companies find successful candidates, we are undeniably in the right place, at the right time.

In the years to come, the Internet and recruiting online are only going to grow bigger. And, as an industry leader, we plan on continuing to grow with it.

Strong Financial Results Reflect Growth
Our strong financial results in 2005 reflect our continued growth in the market, as we delivered substantial increases in profits at home, while positioning ourselves for new opportunities abroad. Highlights include:

• Revenue: Revenue reached $987 million in 2005, a 31% increase over 2004, and over a quarter of our revenue was generated from outside North America. In the promising European market, revenue grew at roughly two times the rate achieved within North America; while in Asia, we planted the seeds of long-term growth in a region that may someday become our largest market.
• Income: Our ability to efficiently manage expenses, coupled with the inherent operating leverage in our business model, allowed the company to expand operating and EBITDA margins and generate a 77% increase in income from continuing operations to $115 million for 2005.
• Earnings per share: Diluted earnings per share from continuing operations climbed to $0.92 from $0.54 the prior year.
• Operating cash: Free cash flow, which we regard as a clear measure of our success in building shareholder value, more than doubled to $182 million for 2005, while Monster’s deferred revenue balance was $327 million as we entered 2006 - a positive indicator for future revenue that supports our optimism about the new year.

With our strong financial position, we initiated a share repurchase program toward the end of 2005. We remain committed to prudently allocating capital to enhance shareholder value, balancing our share repurchase activity with investments that will help Monster capture additional market share and extend its leadership around the world.

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Succeeding in a Flattening World Economy
Renowned New York Times columnist, Thomas L. Friedman, noted that Internet technologies have made the world “tiny” and “flatter,” creating “a global, Web-enabled playing field that allows for collaboration without regard to geography or distance.” Only those organizations geared to this environment will succeed, according to Friedman.

Monster has positioned itself well to compete in such an environment. In 2005 we demonstrated this by taking advantage of new opportunities abroad. Our brand, products and sales force extend throughout the world, giving us a fully global presence, while our global strategy places us in a unique position to take advantage of a flattening economic community.

In Europe, we have expanded our leadership in the key markets of Germany, France and the Netherlands, while regionalizing sales, product and marketing to more efficiently and effectively serve Europe’s smaller countries. Several of our North American veteran managers migrated to Monster Europe during 2005, bringing proprietary knowledge and valuable experience that is helping to shape our future in this region.

We have also made significant strides in the talent-hungry Asia Pacific region—led by dynamic countries like China, India and Korea—which are rapidly becoming peer players on the global stage:

China: During 2005, Monster invested in a 40% stake in ChinaHR.com, a leading recruitment website in China. To job seekers and corporations, ChinaHR’s premium brand and services are synonymous with quality and effectiveness in the recruitment process.

We believe China represents an enormous long-term opportunity for Monster, given both the size of the Chinese market and because China’s economic boom is occurring in the era of the Internet. China’s massive job formation in the coming years will be facilitated by the Internet and we are helping ChinaHR cement its leadership position by sharing our expertise and technology. ChinaHR is in the process of substantially increasing the capacity of its telesales call center, the first effort of its kind in the People’s Republic; and we also helped ChinaHR launch a major branding campaign in early 2006.

India: In India, we continue to be the leading player in online recruitment, with a management team focused on driving profits while making significant investments in marketing, product and sales force expansion. India’s highly skilled, English-speaking workforce plays a growing role in the world’s economy, and Monster India is well-positioned to support and benefit from that country’s growth.

Korea: In October 2005, we acquired JobKorea, the premier online recruitment website in South Korea, serving more than three million registered users. JobKorea gives us the leading presence in one of Asia’s largest and most advanced online markets, and combines two Internet leaders committed to expanding online recruitment throughout Asia. JobKorea’s profitable and distinctive eCommerce business model is something we will export elsewhere in the world, even as JobKorea imports Monster’s telesales competency to grow revenue and expand margins within Korea.

We believe that Monster’s international revenues are likely to eventually rival, if not exceed, those of Monster North America in the future, as our global leadership continues to present new opportunities that would have been unimaginable a few years ago.

For example, a leading global natural resources company recently enlisted Monster for its around-the-world recruitment endeavors, tapping into nearly all of our services and products, and spanning across many of our local markets. Monster is the only company able to provide this kind of online recruitment reach and depth that such a multi-national corporation seeks.

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