Monster Worldwide Reports Fourth Quarter and Full Year 2008 Results

Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the fourth quarter and full year ended December 31, 2008.

* Diluted Earnings Per Share from Continuing Operations of $0.24 on Total Revenue of $291 Million

* Non-GAAP Diluted Earnings Per Share from Continuing Operations of $0.27, Excluding $0.03 Loss from ChinaHR

* Operating Expenses at $248 Million; Non-GAAP Operating Expenses, Excluding ChinaHR, Decline to $235 Million

* Net Cash and Securities of $259 Million, Reflecting Acquisition of ChinaHR and Payment to Settle Stock Option Litigation

* Complete Re-Design of Sites Provides Industry Leading Capabilities for Seekers and Employers

Fourth Quarter Results

GAAP
Total revenue was $291 million, a 16% decline, compared with $348 million in the comparable quarter of 2007, as the weakening global economy significantly impacted hiring demand. Monster generated 44% of its revenue outside the United States and total revenue was negatively impacted by $19 million from unfavorable foreign exchange rates.

Consolidated operating expenses were $248 million, and income from continuing operations was $29 million, or $0.24 per diluted share, compared to $46 million, or $0.36 per diluted share, in the comparable 2007 period. Foreign exchange rates negatively impacted consolidated operating income by approximately $6 million, or $0.03 per diluted share.

PRO FORMA ADJUSTMENTS
Income from continuing operations for the three months ended December 31, 2008 includes pre-tax pro forma adjustments that include: $3.2 million of expenses associated with the Company's restructuring plan; $3.3 million of legal fees, primarily related to the Company's obligation to indemnify former officers for their defense in connection with the ongoing litigation related to historical stock option grant practices; and a $2.2 million reduction to total revenue due to the purchase accounting for ChinaHR. Offsetting these adjustments were $10.0 million of reimbursements from former Company officers related to the stock option settlement announced on July 31, 2008. As a result, the Company recorded a pre-tax pro forma benefit to income of $1.3 million. These pro forma adjustments are described in the Notes Regarding the Use of Non-GAAP Financial Measures and are reconciled to the GAAP measure in the accompanying tables.

CHINAHR
On October 8, 2008, Monster completed the acquisition of ChinaHR, which is consolidated in the Company's quarterly financial results, and is included as a component of the Careers - International operating segment. Monster has recorded a $2.2 million purchase accounting adjustment to reduce revenue, which is reflected as a pro forma adjustment in reconciling the Company's non-GAAP results. For the fourth quarter of 2008, ChinaHR generated $11.1 million of non-GAAP revenue and posted an after-tax loss of $3.7 million, or a $0.03 loss per diluted share.

SEGMENTS
Careers non-GAAP revenue declined 18% to $260 million compared with last year's fourth quarter. Careers - International non-GAAP revenue was $125 million, a 13% decline over the prior year period, or an 8% decline excluding currency and the contribution from ChinaHR. Careers - North America revenue was $135 million, compared with $174 million in the prior year period. Internet Advertising & Fees revenue grew 6% to $33 million over last year's fourth quarter.

NON-GAAP
Excluding the pro forma adjustments and the financial results of ChinaHR, the Company generated revenue of $282 million and $235 million of operating expenses, representing the lowest quarterly expense level since the fourth quarter of 2006. In last year's fourth quarter, revenue was $348 million and operating expenses were $272 million. Income from continuing operations was $32 million, or $0.27 per diluted share, compared to $53 million, or $0.42 per diluted share, in the prior year.

LIQUIDITY & BALANCE SHEET
Monster ended 2008 with total available liquidity of $512 million. As of year-end, the Company had cash and marketable securities of $314 million and $198 million available to borrow under its credit facilities, providing significant financial liquidity.

During the quarter, the Company paid approximately $36 million, which was previously accrued, to settle certain litigation related to historical stock option practices. Prior to this one-time payment, the Company generated $21 million from operating activities, compared to $64 million generated in the prior year period.

During the fourth quarter Monster deployed its capital in a number of strategic areas. In October 2008, the Company purchased the remaining 55% interest in ChinaHR for $174 million. The Company also had net repayments of $193 million under its existing credit facilities. Capital expenditures were $22 million, reflecting the Company's strategic investments in technology and infrastructure. Approximately $90 million of auction rate securities are classified as a long-term asset on the consolidated balance sheet, and are included in the cash and securities balance as of December 31, 2008. As a result, the Company ended the quarter with net cash and securities of $259 million, after accounting for $55 million of total debt.

The Company did not repurchase shares during the fourth quarter under its stock repurchase program. Monster Worldwide's deferred revenue balance at December 31, 2008 was $414 million, reflecting global economic weakness, compared with last year's fourth quarter balance of $524 million, and $412 million reported for the third quarter of 2008.

Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, During the quarter we operated in a sharply deepening economic recession that significantly impacted demand worldwide for online recruitment services. As the quarter progressed, we took swift and decisive action to reduce operating expenses without compromising our strategic investments.

In commenting on the new seeker experience, Mr. Iannuzzi said, We are extremely proud that we successfully delivered on our commitment to provide industry leading products to our global customers and millions of job seekers. On January 10, 2009, we unveiled a new seeker experience across 24 countries, an unprecedented feat in our industry. Seekers are now experiencing a personal, relevant and engaging site that provides valuable tools to help them find the right job and manage their career goals.

GAAP Full Year Results
Monster Worldwide reported total revenue of $1.34 billion for the year ended December 31, 2008, a 1% increase compared to $1.32 billion in the comparable period last year. Careers revenue was $1.21 billion compared with $1.20 billion in the 2007 period. Internet Advertising & Fees reported revenue of $130 million, a slight increase over the prior year period. The Company reported income from continuing operations of $114 million, or $0.94 per diluted share, compared to $150 million or $1.15 per diluted share in the prior year period.

Mr. Iannuzzi concluded, The quarter continued a year of many accomplishments as we made significant strides towards the transformation to the 'new' Monster. In addition to our successful product launch on January 10th, we rebuilt our technology platform, expanded our sales coverage and extended our global presence in key international markets. These achievements were all accomplished while we significantly reduced our cost base in an extremely challenging operating environment. We are fortunate to enter 2009 with a strong net cash position and a solid, liquid balance sheet to support our business plan and growth initiatives. We are carefully monitoring our customers' needs and are in an excellent position to take appropriate action in response to the evolving global economy. Our strong fundamentals, now augmented by these new products, position us well to gain market share during an economic recovery.

Supplemental Financial Information
The Company has made available certain supplemental financial information, in a separate document that can be accessed directly at http://corporate.monster.com/Q408.pdf or through the Company's Investor Relations website at http://ir.monster.com.

Conference Call Information
Fourth quarter 2008 results will be discussed on Monster Worldwide's quarterly conference call taking place on January 29, 2009 at 5:00 PM EST. To join the conference call, please dial (888) 551-5973 at 4:50 PM EST and reference conference ID# 81751364. For those outside the United States, please dial (706) 643-3467 and reference the same conference ID#. The call will begin promptly at 5:00 PM EST. Individuals can also access Monster Worldwide's quarterly conference call online through the Investor Relations section of the Company's website at http://ir.monster.com. For a replay of the call, please dial (800) 642-1687 or outside the United States dial (706) 645-9291 and reference ID #81751364. This number is valid until midnight on February 5, 2009.