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Spherion net income rises 13.4%

October 30 2007

Spherion Corp.'s (NYSE: SFN) third-quarter profit rose 13.4%. The Fort Lauderdale FL-based staffing company posted net income of $9.5 million in the third quarter, compared with $8.4 million in the same period last year.

Gross margin improved to 24.0% from 23.3%.

"We are very pleased with our third-quarter performance," said President and CEO Roy Krause. "Earnings were significantly higher than last year and revenue trends outpaced the U.S. performance of our major diversified staffing competitors. Operating margins again increased in the quarter, with continued focus on operational discipline."

Third-quarter revenue rose 0.6% to $495.2 million from $492.3 million in the same period last year.

Spherion shares rose 5.78% to $8.42 in late morning trading.

"Based on recent trends, the company anticipates revenue for the fourth quarter will be between $535 and $550 million, reflecting overall modest organic growth as demand across the industry, especially in larger accounts, remains challenging," Krause said.

In the third quarter Spherion purchased Todays Staffing Inc. from CDI Corp. (NYSE: CDI) for $40 million. Krause said Todays will add six cents to eight cents per share in 2008.

Spherion Corp. (NYSE: SFN)

For the third quarter ended Sept. 30, 2007, compared with the same period in 2006.

Revenue: $495.2 million, +0.6%

Net income: $9.5 million, +13.4%

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