Korn/Ferry International Enters Into Letter of Intent to Acquire PA Consulting Group's Search and Selection Recruitment Business

Business Wire, Sept 13, 1999

NEW YORK--(BUSINESS WIRE)--Sept. 12, 1999--

Combination Further Expands the Success of Futurestep,

Korn/Ferry's Internet-based Business

Korn/Ferry International (NYSE:KFY), the world's largest executive search firm, announced today that it has entered into a letter of intent to acquire the search and selection recruitment business of PA Consulting Group, a leading management, systems and technology consulting firm based in London. PA Consulting Group's search and selection business has annual revenues approximating US$40 million, with over 200 employees operating out of 33 offices in 22 countries. The purchase price is in the range of approximately US$35 million and is expected to be payable either all, or substantially all, in cash.

Windle B. Priem, President and Chief Executive Officer of Korn/Ferry International, said, "PA Consulting Group's search and selection recruitment business has an excellent reputation and is focused mainly on the middle market. Its operations will be complementary to Futurestep, particularly in a broad range of European and Asian markets." Futurestep, Korn/Ferry's Internet-based business, combines executive search expertise and proprietary cultural assessment tools with the broad reach and efficiency of the Internet to address the underserved middle management market.

With the acquisition, Korn/Ferry will also be bringing in several PA consultants to its executive search business in Europe and Asia/Pacific. In addition, Korn/Ferry has the option to purchase PA's assessment and development business.

Emphasized Mr. Priem, "Korn/Ferry and PA's search and selection business share a common commitment to partnering with clients in the creation of competitive advantage -- identifying and delivering the resources and expertise companies need to grow their businesses. The deal brings together two companies that share a reputation for recruiting excellence."

About Korn/Ferry International

Korn/Ferry International is the world's largest executive search firm and has the broadest global presence in the executive search industry with over 70 offices across 40 countries. In fiscal 1999, Korn/Ferry reported revenues of US$373 million for its fiscal year ended April 30, 1999. Last year, Korn/Ferry performed over 6,700 assignments for more that 4,100 clients., including approximately 43 percent of the Fortune 500.

About PA Consulting Group

PA Consulting Group is a leading management information and technology consulting firm. Its search and selection business has over 200 employees operating out of 33 offices in 22 countries, including locations in Australia, Belgium, Denmark, Finland, France, Germany, Hong Kong, India, Italy, Japan, Luxembourg, Malaysia, The Netherlands, New Zealand, Norway, Singapore, Spain, Sweden and the United Kingdom.

Certain statements in this press release regarding the business of Korn/Ferry International that are not historical facts are "forward-looking statements" within the context of the "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. These statements may involve risks and uncertainties and Korn/Ferry gives no assurance that such expectations will be attained. Readers of this press release are cautioned to consider these risks and uncertainties and not place undue reliance on such forward-looking statements.