Second Quarter Revenue Reaches Record $357 Million; Signs Estimated $65 Million of New Annualized Revenue During the Second Quarter; Generates $12 Million of Free Cash Flow; Reaffirms $100M Share Repurchase Authorization

TeleTech reported record second quarter 2008 revenue of $357 million, an 8.4 percent increase over second quarter 2007 revenue of $330 million. Revenue in TeleTech's BPO segment grew 10.4 percent from the year-ago period.

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. Second quarter 2008 revenue from TeleTech's offshore delivery centers grew approximately 18 percent to $156 million and represented 44 percent of total revenue. TeleTech's offshore workstations currently span seven countries including Argentina, Canada, Costa Rica, Malaysia, Mexico, the Philippines and South Africa.

TeleTech's income from operations was $29.7 million or 8.3 percent of revenue. Income from operations for the second quarter 2008 included $0.4 million of restructuring charges and, as previously disclosed, $3.4 million of audit, legal and other professional fees associated with the Audit Committee's review of the Company's equity-based comensation practices and the subsequent financial restatement. Excluding these charges, which totaled $3.8 million, TeleTech's income from operations in the second quarter 2008 was $33.5 million or 9.4 percent of revenue, an increase from a 9.1 percent operating margin, excluding unusual charges, in the year-ago quarter. Furthermore, excluding $2.0 million of non-cash expense in the 2008 second quarter for equity-based compensation, operating margin would have been 9.9 percent.

Fully diluted GAAP earnings per share for the second quarter 2008 were 28 cents on net income of $20.4 million. Excluding the unusual charges discussed above, which totaled $3.8 million pre-tax or approximately 4 cents per share after-tax, second quarter 2008 non-GAAP earnings per share were 32 cents, up 28 percent from 25 cents non-GAAP earnings per share in the year-ago quarrter.

EXECUTIVE COMMENTARY ON TELETECH'S SECOND QUARTER FINANCIAL RESULTS

"I am pleased that we delivered record second quarter revenue of $357 million," said Kenneth Tuchman, chairman and chief executive officer. "Our year-to-date BPO revenue grew 11.4 percent and our year-to-date operating margin, excluding unusual items, increased to 9.6 percent. We continue to perform well in a dynamic global economy and our leading industry position enabled us to win an estimated $65 million in annualized new business during the second quarter of 2008. We believe the third quarter of 2008 will again represent a strong level of new business wins, based on the size and number of deals we are currently working to complete."

SECOND QUARTER 2008 FINANCIAL HIGHLIGHTS

Solid Balance Sheet Continues to Fund Organic Growth

--  As of June 30, 2008, TeleTech had cash and cash equivalents of $127
    million and total debt of $90 million.
--  Capital expenditures were $21 million in the 2008 second quarter of
    which approximately 80 percent were for growth related needs with the
    balance for improving TeleTech's embedded infrastructure.
    

New Business

--  During the second quarter of 2008, TeleTech signed an estimated $65
    million in annualized long-term revenue from new and expanded client
    relationships.
    

Business Outlook

--  Consistent with our previous guidance, TeleTech expects 2008 revenue
    will grow a minimum of between 6 and 8 percent and 2008 operating margin
    will range between 9 and 10 percent, before unusual charges.
    

CONFERENCE CALL

A conference call and webcast with management will be held on Monday, August 4, 2008, at 8:30 a.m. Eastern Time. You are invited to join the live webcast of the conference call by visiting the "Investors" section of the TeleTech website at www.TeleTech.com. If you are unable to participate during the live webcast, a replay will be available on the TeleTech website through Monday, August 18, 2008.

NON-GAAP FINANCIAL MEASURES

To supplement the Company's consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP) in the United States, the Company uses the following non-GAAP financial measures: Free Cash Flow, Non-GAAP Income from Operations and Non-GAAP EPS. TeleTech believes that providing these non-GAAP financial measures provides investors with greater transparency to the information used by TeleTech's management in its financial and operational decision-making and allows investors to see TeleTech's results "through the eyes" of management. TeleTech also believes that providing this information better enables TeleTech's investors to understand its operating performance and information used by management to evaluate and measure such performance. The presentation of these financial measures are not intended to be used in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. A reconciliation of these non-GAAP financial measures is available in the financial tables attached to this press release.

ABOUT TELETECH

TeleTech is one of the largest and most geographically diverse global providers of business process outsourcing solutions. We have a 26-year history of designing, implementing, and managing critical business processes for Global 1000 companies to help them improve their customers' experience, expand their strategic capabilities, and increase their operating efficiencies.