Kronos® Momentum Continues

Company remains focused on three strategic objectives

CHELMSFORD, Mass., April 30, 2008 — According to a recent IDC report, "Kronos® Incorporated made a bold move in early 2007 by going private, and now it appears that the gamble is beginning to pay off. The new status of Kronos has enabled the number one Human Capital Management (HCM) vendor in the workforce management applications segment to continue investing in new products, emerging growth opportunities, and acquisitions to fuel its growth."¹

Aron Ain, Kronos chief executive officer, commented about Kronos' second-quarter Fiscal 2008 performance, "We're executing well, especially considering the current economic slowdown. Moving into the second half of our fiscal year, we remain focused on three strategic objectives: building upon our leadership in workforce management; helping organizations with a high concentration of field-based employees to recruit and retain a high-quality workforce; and expanding globally."

Once again extending its impressive track record of revenue growth and profitability, Kronos' second-quarter Fiscal 2008 revenues grew to $169.5 million. Earnings before interest, tax, and amortization (EBITA) rose 14 percent to $28.9 million. Kronos’ second quarter Fiscal 2008 results mark the company’s 113th consecutive quarter of year-over-year revenue growth and 84th consecutive quarter of EBITA profitability. ²

Building upon leadership in workforce management

Kronos is witnessing a global phenomenon in healthcare. As labor costs increase in developed nations; as Baby Boomers require increasing services; and as the shortage of skilled staff worsens, the efficient use of existing patient care staff is becoming critical. While healthcare systems vary greatly from region to region, they all share the singular goal of delivering high quality patient care. Now, with these evolving challenges in healthcare, they also share the strain of balancing quality care with the cost to deliver it.

According to Gartner, "Appropriate nurse staffing is essential to patient care quality; there is growing world demand for this function, and shortages are a persistent problem." As highlighted in "Gartner's Top 12 Actions for the Healthcare CIO", published in March 2008, "nursing keeps the wheels turning on most hospital patients' care", and "The importance of recruiting, satisfaction, and productivity make nursing the classic place to focus on technology-enabled improvement." ³

To help balance these competing needs, healthcare organizations across the globe are turning to Kronos. Some of the healthcare contracts closed during the quarter include:

ABM University NHS Trust is the largest hospital trust in Wales, and one of the largest in the U.K.
Capital Health, one of the largest integrated health regions in Canada
Emeritus Assisted Living, operator of one of the largest networks of assisted living and retirement communities in North America

Kronos is seeing continued demand for workforce management solutions across its spectrum of targeted industries. Additional contracts secured during the quarter include:

Chicago Metropolitan Division Salvation Army
Delta Technology, the information technology division of Delta Air Lines, Inc.
The Department of Correction and Rehabilitation of Puerto Rico, with 11,000 employees
The High Companies based in Lancaster, Penn., which offers a range of manufacturing/fabrication/ distribution, real estate, construction, and business services and products to customers in the Eastern and Midwestern U.S.

Helping organizations recruit and retain a high-quality workforce

Kronos' October 2007 acquisition of Deploy Solutions extended the company's market-leading position in the area of field-based hiring. In the first full quarter since acquiring Deploy, Kronos’ Talent Management Division exceeded all performance goals including bookings, renewals, revenue, and EBITA targets. Contracts secured or renewed during the quarter include:

Six Flags, Inc. the world’s largest regional theme park company with 21 parks across Canada, Mexico, and the U.S.
Southwest Airlines, the nation’s largest carrier in terms of domestic passengers enplaned, with more than 34,000 employees
Tire Kingdom, one of the largest independent tire and automotive services retailers in the U.S. operating more than 600 stores
One of the largest restaurant companies with more than 35,000 restaurants

In a mere 20 months, Kronos entered and seized a solid leadership position in the market for field-based recruiting. According to a recent report published by AMR Research, "For many industries like retail, recruiting will never go away, with hourly workers experiencing high turnover for many legitimate reasons, such as seasonality. Kronos has all but locked up the market for hourly recruiting applications, following its acquisition of Deploy last year and Unicru before that. Unicru’s greatest asset is its assessment capabilities to predict the employees that will perform well and be more likely to stay longer with firms."⁴

Expanding globally

Kronos is executing an aggressive plan to target new markets and serve the workforce management needs of multinational organizations. During the quarter, Kronos expanded its footprint in the Asia Pacific region by opening offices in Mumbai and Shanghai, and secured contracts with international and multinational organizations such as:

Bharat Forge Limited, flagship company of the Kalyani Group, one of India’s emerging multinationals and one of the largest forging companies in the world
McDermott International, Inc., a leading engineering and construction company, with specialty manufacturing and service capabilities, operating in 23 countries with more than 20,000 employees
ICT Group, a leading global provider of customer management and business process outsourcing solutions with more than 40 operations centers across North America, Europe, Latin America, and Asia
Safety-Kleen, North America’s leading oil collection and re-refining, parts cleaner, and industrial waste management services company, with approximately 4,300 employees serving hundreds of thousands of customers in Canada, Puerto Rico, and the U.S.
A major mobile phone manufacturer, who purchased Kronos solutions for use at its largest manufacturing facility in China

"We're particularly pleased with our momentum in China, where we've secured several contracts with multinationals and Chinese-owned businesses since we began offering our products last year," concluded Ain. "We're also pleased with our progress in India, where we've already booked business and developed a strong pipeline of opportunities."

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 .