TeleTech Announces First Quarter 2008 Business Highlights

TeleTech Holdings, Inc. (NASDAQ: TTEC), one of the largest and most geographically diverse global providers of business process outsourcing ("BPO") solutions, today announced business highlights for the first quarter ended March 31, 2008.

TeleTech reported record first quarter 2008 revenue of $368 million, a 10.5 percent increase over first quarter 2007 revenue of $333 million. The first quarter 2008 was the tenth consecutive quarter of double-digit revenue growth.

First quarter 2008 revenue from services performed for clients in offshore locations grew approximately 29 percent to $164 million and represented 45 percent of total revenue. TeleTech currently offers offshore services from eight countries including Argentina, Brazil, Canada, Costa Rica, Malaysia, Mexico, the Philippines and South Africa. TeleTech believes it has one of the largest and most geographically diverse offshore footprints of any global BPO provider with approximately 24,000 offshore workstations representing more than 60 percent of its total delivery capacity. TeleTech believes its offshore revenue in 2008 will grow to approximately 50 percent of total revenue and its offshore capacity will be approximately 70 percent of its total delivery capacity by the end of the year. TeleTech is committed to continued offshore diversification and plans to enter at least one new offshore country by the end of 2008.

EXECUTIVE COMMENTARY ON TELETECH'S FIRST QUARTER BUSINESS HIGHLIGHTS

"I am pleased that we achieved our tenth consecutive quarter of double-digit revenue growth and delivered record first quarter revenue of $368 million," said Kenneth Tuchman, chairman and chief executive officer. "Our strong start to 2008 reinforces our confidence in being able to perform well in a dynamic global economy. The investments we have made in a centralized global delivery model, an expansive offshore footprint and innovative, high-quality solutions have enabled us to win an estimated $102 million in annualized business during the first quarter of 2008. Our services become even more strategically relevant in the current economic environment, as evidenced by our broad-based growth across our targeted verticals and geographies. This strong pace of new business wins, coupled with our commitment to technological and operational excellence, continues to support our business outlook."

PRELIMINARY FIRST QUARTER 2008 BUSINESS HIGHLIGHTS

Preliminary Balance Sheet Continues to Fund Organic Growth

--  As of March 31, 2008, TeleTech had cash and cash equivalents of $98
    million and total debt of $74 million.
--  Capital expenditures net of investment incentives were in line with
    company expectations totaling approximately $15 million in the first
    quarter.  Approximately 80 percent of capital expenditures in the first
    quarter 2008 were for growth related needs with the balance for improving
    TeleTech's embedded infrastructure.
    

New Business

--  During the first quarter of 2008, TeleTech signed an estimated $102
    million in annualized long-term revenue from new and expanded client
    relationships.
    

Business Outlook

--  Consistent with previous disclosures, TeleTech expects 2008 revenue
    will grow between 12 and 15 percent and operating margin will improve
    by approximately 200 basis points over 2007, before unusual charges,
    if any.
    --  TeleTech expects 2008 capital expenditures will approximate $70
        million with the addition of an estimated 7,000 workstations to
        meet continued strong demand.
    --  TeleTech plans to enter at least one new offshore country by the
        end of 2008 and believes its offshore revenue will approximate 50
        percent of  total revenue and its offshore delivery capacity will
        represent approximately 70 percent of its total capacity by the end
        of the year.
--  For 2009, TeleTech expects revenue will grow between 12 and 15 percent
    and operating margin will improve by at least 100 basis points over
    2008, before unusual charges, if any.

REVIEW OF EQUITY-BASED COMPENSATION PRACTICES AND RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

On February 20, 2008, TeleTech announced that its Audit Committee had completed its review of the Company's historical equity-based compensation practices and the related accounting (the "Review"). The Review, which covered the period from the Company's Initial Public Offering in 1996 through August 2007, is described in more detail in a Current Report on Form 8-K filed on that date with the Securities and Exchange Commission ("SEC").

Based on the Review and management's own additional review, the Company has concluded that it would be necessary to record additional equity-based compensation expense during the accounting periods covered by the review. As a result, the Company is actively working to complete the necessary restatements. The Company has made significant progress in completing these restatements and continues to work diligently with its auditors to finalize this work. The Company intends to complete this restatement concurrently with the filing of its third quarter 2007 Quarterly Report on Form 10-Q, its 2007 Annual Report on Form 10-K (the "2007 Form 10-K") and its first quarter 2008 Quarterly Report on Form 10-Q. Restatements for fiscal years 2005 and 2006 and the first two quarters of 2007 will be reflected in the 2007 Form 10-K's consolidated financial statements and accompanying notes. Restatement adjustments for periods prior to 2005 will be reflected as adjustments to the beginning balances of stockholders' equity in 2005. Given the restatement adjustments are expected to largely impact periods prior to 2002, additional information on all pre-2005 restatement adjustments will be set forth in the notes to the restated financial statements.