Heidrick & Struggles Updates Guidance on Fourth Quarter 2001 Expectations

CHICAGO, Jan. 10 /PRNewswire/ -- Heidrick & Struggles International, Inc. (Nasdaq: HSII), the world's premier executive search and leadership consulting firm, today announced that it has revised its expectations for worldwide consolidated revenue for the fourth quarter ended December 31, 2001. The company expects revenue for that period to be in the range of $85 million to $88 million as revenue in all geographic regions was lower than initially anticipated. Although the revenue expectations are below the company's earlier guidance, the loss in the quarter is not anticipated to exceed the $0.33 per share previously linked to the higher revenue expectations. Prior company guidance, issued on November 5, 2001, estimated 2001 fourth quarter revenue in a range of $95 million to $105 million with a corresponding range of losses per share of $0.33 to $0.11, excluding previously announced restructuring charges.
"It is important to note that through our considerable efforts to reduce costs, and because of the variability of certain elements of our compensation structure, we do not expect to report increased losses on the lower revenue," said Piers Marmion, Chief Executive Officer of Heidrick & Struggles International. "The fourth quarter typically represents the lowest percentage of total annual revenue for us, and this will indeed be true in 2001. Although revenue is now expected to be below our original thinking, we believe the state of the world economy magnified the normal seasonality of the business. However, given the uncertainty that continues to exist in the business environment, we acknowledge that we will have to move further into the new year before this opinion can be confirmed."

As previously stated, Heidrick & Struggles is assuming that no improvement in the economy will occur in 2002. Therefore, its early view is that worldwide consolidated revenue for the full year 2002 will be approximately $420 million, with modest profitability, as the company considers 2002 to be a year of transition, during which it will implement programs and processes that will enable margin improvement when the economy recovers.

"A constant in our firm during these times of change is that we continue to build excellent management teams for our clients," said Marmion. "The many actions we are taking today are expected over the long term to strengthen our ties to clients and candidates, and to enhance our leadership position under an operating model that can generate improved financial returns."

Heidrick & Struggles plans to announce its 2001 fourth quarter and full year financial results after the close of the U.S. Market on Wednesday, February 13, 2002. The company will provide a real-time webcast of the related investor call on Thursday, February 14, 2002, at 9:00 a.m. Central Time. The call will last up to one hour and will feature remarks by Marmion and other members of management. The webcast will be available online at http://www.heidrick.com/ . Listeners should log on approximately ten minutes in advance to ensure they are set up to receive the webcast. A replay will be available for up to 30 days. The webcast will also be available through CCBN's Investor Distribution Network. Individual investors can listen to the webcast through CCBN's individual investor center at http://www.companyboardroom.com/ . Institutional investors can access the webcast via CCBN's password-protected event management site, StreetEvents, at http://www.streetevents.com/ .

About Heidrick & Struggles International, Inc.
Heidrick & Struggles International, Inc. is the world's premier provider of executive-level search and leadership consulting services. Currently, approximately 1,900 Heidrick & Struggles search professionals and employees operate from offices throughout North and South America, Europe, the Middle East, Africa and Asia Pacific. For nearly 50 years, Heidrick & Struggles Executive Search has specialized in chief executive, board member and senior- level management assignments for a broad spectrum of clients: multi-national corporations, mid-cap and start-up companies, nonprofit entities, educational institutions, foundations, associations and governmental units. We are expanding our range of complementary services to offer solutions to senior management teams for their human capital needs. LeadersOnline, our Internet- enhanced recruiting business, serves clients who seek the next generation of corporate leaders. For more information about Heidrick & Struggles, visit our web site at http://www.heidrick.com/ .

Safe Harbor Statement
This news release contains forward-looking statements. The forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry in which we operate and management's beliefs and assumptions. Forward-looking statements may be identified by the use of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar expressions. Forward-looking statements are not guarantees of future performance and involve certain known and unknown risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed, forecasted or implied in the forward-looking statements. Factors that may affect the outcome of the forward-looking statements include, among other things, our ability to attract and retain qualified executive search consultants; a continuing economic downturn in the United States or a material economic downturn in Europe or elsewhere, or social or political instability in overseas markets; bad debt write-offs far in excess of allowances for doubtful accounts; continued increased acceptance of online recruiting; losses in our venture capital investments; an inability to achieve the planned cost savings from our restructuring initiatives; and delays in the development and/or implementation of new technology and systems. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Heidrick & Struggles International, Inc.

Web site: http://www.heidrick.com/

CONTACT: Media, Eric Sodorff, +1-312-496-1613, esodorff@heidrick.com , or Analyst, Barry Hollingsworth, +1-312-496-1723 or bhollingsworth@heidrick.com , both of Heidrick & Struggles International