Korn/Ferry International Opens 67th Office in Rio De Janeiro

Business Wire, Sept 10, 1997

NEW YORK--(BUSINESS WIRE)--Sept. 10, 1997--

--Expect Strong Demand For Search As Upturn In Economic

Activity Continues --

Korn/Ferry International, the world's leading executive search firm, today announced the opening of its newest office in Rio de Janeiro, Brazil.

Operating in Brazil in Sao Paulo, since 1975, Korn/Ferry observed a significant increase in demand from companies headquartered in Rio de Janeiro to justify the opening of this 67th office in its worldwide network.

For Korn/Ferry International, Rio de Janeiro is the ninth branch in its Latin American network. Since 1975, Korn/Ferry International has placed more than 1,800 executives in Brazil. Its expanding global network will guarantee its consolidated position in the region.

"The outlook for Rio de Janeiro is extremely positive," says Robert Wong, Korn/Ferry's Managing Director and Regional Vice President of Latin America, East Area. "Most companies recently privatized are headquartered in Rio de Janeiro, and we expect more of the same in the coming five years." According to Mr. Wong, the share of foreign capital in Brazil's privatizations has jumped to 40 percent from 12 percent since 1994 with $54 billion in U.S. dollars expected to change hands through 1999. Many of these investors are setting up representative offices in Brazil, most of them in Rio de Janeiro.

Companies with significant local presence, headquartered in Rio de Janeiro, include Aracruz, BAT Industries, Bozano/Simonsen, Coca- Cola, Gillette, IBM, Johnson Wax, Royal Dutch/Shell, Xerox and Ypiranga. According to Mr. Wong, each has grown considerably over the past few years and continues to have aggressive plans for growth in sales for the future." He adds, "All of the above translate into what Korn/Ferry perceives as strong demand for executive search services, identifying and placing key individuals who will be responsible for taking these local companies and subsidiaries into the 21st Century."

Brazil, including Rio de Janeiro, is aggressively pursuing its global role as one of the Latin tigers of the 21st Century. Recovering from the oil crisis of the seventies and the debt crisis of the eighties, Rio de Janeiro is re-attaining its original dual role as an important financial and business center as well as prime tourist destination. With inflation down from 40 percent a month to eight percent a year, investment has been spurred moving many of Brazil's inhabitants above the poverty line. Mr. Wong suggests, "There is still a lot of work to do in Brazil. Companies are still inefficient by first world standards, distribution of income is still severely stilted, and economic growth, although robust, is limited by serious shortfalls in energy and education, a result of two decades of underinvestment."

The Next Five Years

What are the other growth areas for Brazil in the coming years? According to Mr. Wong, the retail, entertainment and hospitality businesses are booming because consumers, under a stable currency, find that they now have more money in their pockets. Recently deregulation has completely recast some important segments of the Brazilian economy such as financial institutions, the auto industry and information technology, and some basic industries including cement and paper/pulp should be boosted by the increased economic activity.

Heading up the Rio de Janeiro office is Augusto L. Dias Carneiro as Branch Manager. Prior to joining Korn/Ferry, Mr. Carneiro headed his own management consulting company, ZAITECH, which he founded and managed for 10 years. A citizen of both Brazil and the U.S., Mr. Carneiro holds a B.S. degree from the Massachusetts Institute of Technology and an M.B.A. degree from the University of California, Los Angeles. Prior to running ZAITECH, he worked for Xerox, Citibank and Billiton, an aluminum producer, formerly a subsidiary of Royal Dutch/Shell. Born in Boston, Mr. Carneiro is also a member of the MIT educational committee and a patron of Sao Martinho, a local organization dedicated to finding productive work for street children.

About Korn/Ferry International

Korn/Ferry International -- the world's leading search firm with 67 offices in 40 countries -- specializes in senior-level executive searches throughout North America, Latin America, Europe and Asia/Pacific. In addition to Rio de Janeiro, Korn/Ferry's Latin American network includes offices in Bogota, Buenos Aires, Caracas, Lima, Mexico City, Monterrey, Santiago and Sao Paulo. Drawing on the experience and expertise gained over more than 28 years, Korn/Ferry International has developed an in-depth understanding of the industry, business and management issues faced by companies around the world. Clients count on the firm to work with them as partners to help them deal with the human resources challenges they face and to identify the senior executives they need to grow and prosper.

CONTACT: Stephanie Rosenfelt, 212/984-9316