Kronos® Business is Thriving

Q3 highlights: strong retail and healthcare demand; climbing sales in SMB market; excellent momentum in talent management; global expansion

CHELMSFORD, Mass., August 6, 2008 — Balancing budgets, controlling overtime, and maximizing employee productivity are business challenges that all organizations face, regardless of size. Since payroll is often one of the largest controllable expenses, managing employee time is a logical place to gain more control. As a result of this dynamic, Kronos® Incorporated, provider of software and services for managing the workforce, continues to demonstrate excellent momentum.

Aron Ain, Kronos chief executive officer, commented, "Our business continues to thrive as organizations increasingly embrace technology to hire the best people and maximize their performance. During our third quarter, we experienced notable momentum in the retail and healthcare sectors; sales of our solutions for small and midsize businesses continued to climb; we exceeded many goals in our talent management business; and we remained focused on global expansion efforts." (Read Ain's thoughts on the current and future state of workforce management in a recently published interview with AMR Research's Bruce Richardson.)

Kronos' third-quarter Fiscal 2008 revenues grew to $186.2 million. Earnings before interest, tax, and amortization (EBITA) rose 35 percent to $41.1 million. Kronos' third-quarter Fiscal 2008 results mark the company's 114^th consecutive quarter of year-over-year revenue growth and 85^th consecutive quarter of EBITA profitability. ¹

Building upon leadership in workforce management

The retail and healthcare sectors of Kronos' business performed exceptionally well during the quarter as these service-oriented industries turned to Kronos for its vertical and global expertise. During the quarter, Kronos secured contracts with retailers and healthcare organizations such as:

The Carphone Warehouse, Europe's leading independent retailer of mobile phones and services, with more than 2,400 stores in nine countries
Catholic Health Initiatives, the nation's largest Catholic healthcare system with approximately 72,000 employees
Munson Healthcare, a regional, non-profit healthcare system in northern Michigan
PUMA North America, the global athletic brand that fuses influences from sport, lifestyle, and fashion
United Supermarkets, a Texas-based grocery chain with 48 stores in 27 cities across Texas
University Medical Center, affiliated with the University of Nevada School of Medicine, serving the medical needs of southern Nevada and parts of California, Utah, and Arizona

Demand for Kronos Essentials, an easy-to-use solution designed specifically for small and midsize businesses (SMBs), continues to accelerate. Contracts closed in the third quarter included sales of Analytics Essentials and Scheduling Essentials, two applications which Kronos added to its SMB offering during the quarter. Other SMB highlights for the quarter included a record number of long-time customers who purchased upgrades to Kronos Essentials. Contracts with SMBs during the quarter included The Metropolitan Museum of Art, one of the world's largest and finest art museums.

Among larger businesses, Kronos is seeing continued demand for workforce management solutions across its spectrum of targeted industries. Contracts secured during the quarter included:

Clark County, Nevada, one of the fastest growing areas in the country, currently providing regional services for more than two million residents
JBS Swift & Company, one of the leading processors of fresh beef and pork in the U.S., with more than 17,000 employees
Lifetouch Portrait Studios Inc., one of the largest U.S. portrait photographers with hundreds of photography studios in retail chains across the nation;
The National Business Center (NBC), within the Department of the Interior (DOI), a shared services center supporting offices and bureaus within the DOI and 39 other federal agencies
Newark Public Schools, the largest school system in the State of New Jersey, serving more than 42,000 students

"In addition, we experienced particularly strong demand for our Kronos 4500™ data collection terminals to new and existing customers during the quarter," commented Ain.

Helping organizations recruit and retain a high-quality workforce

When hiring frontline staff, the focus should be less on finding that single star performer and more upon improving the quality and consistency of the overall workforce at every location. In an effort to improve the quality and consistency of their workforce, organizations are turning to Kronos' selection and hiring solution to increase their applicant pool, streamline and automate hiring processes, build hiring compliance across distributed locations, reduce turnover, and hire employees who will be productive and dependable.

"During the quarter, our Talent Management Division rolled out our selection and hiring solution to more than 700 locations while exceeding performance goals such as renewals, revenue, and EBITA targets," continued Ain. Contracts secured or renewed during the quarter included:

Claim Jumper Restaurants, which operates 45 dining locations
Sheetz, one of America's fastest-growing convenience store chains with 350 locations

Expanding globally

Kronos continues to execute an aggressive plan to target new markets and serve the workforce management needs of multinational organizations. During the quarter, Kronos secured contracts with international and multinational organizations such as:

Ceradyne, a worldwide leader in the development and production of advanced technical ceramics
Elk Valley Coal, the Canada-based exporter of high-quality steelmaking coal to the international steel industry in the Northern hemisphere
GSL, a UK-based leader on an international scale in the provision of critical support services for public authorities and corporate organisations
Heat & Control, a multinational food processing, packaging, and weighing equipment manufacturer
Husco, a global leader in the development and manufacture of hydraulic and electro-hydraulic controls for off-highway and automobile applications

"While we're gaining traction in all of the regions in which we operate, we continue to be particularly pleased with our momentum in China. We had a very strong quarter in this region, with many new contracts and an increasingly robust pipeline of both Chinese-owned businesses and multinational organizations," concluded Ain.

About Kronos Incorporated

Kronos Incorporated empowers organizations around the world to effectively manage their workforce. At Kronos, we are experts who are solely focused on delivering software and services that enable organizations to reduce costs, increase productivity, improve employee satisfaction, and ultimately enhance the level of service they provide. Kronos serves customers in more than 60 countries through its network of offices, subsidiaries, and distributors. Widely recognized as a market and thought leader in managing the workforce, Kronos has unrivaled reach with more than 30 million people using a Kronos solution every day. Learn more about Kronos at www.kronos.com.