FIRST QUARTER 2009 FINANCIAL RESULTS

TeleTech reported first quarter 2009 revenue of $304.0 million compared to $367.6 million in the first quarter 2008 and $326.0 million in the fourth quarter 2008. On a constant currency basis, revenue declined 8.4 percent or $27.8 million from the first quarter 2008 and 5.7 percent or $18.4 million from the fourth quarter 2008. These declines were primarily attributable to lower client volumes related to the weak economic environment and increased offshore work when compared to the prior quarters.

TeleTech's first quarter 2009 gross margin improved to 28.0 percent from 26.5 percent in the year-ago quarter aided by a favorable shift to higher margin offshore revenue and increased workstation utilization across a 24-hour period.

TeleTech's first quarter 2009 income from operations was $20.3 million compared to $28.8 million in the year-ago quarter. Income from operations for the quarter included $2.6 million of unusual charges, primarily related to restructuring and impairment charges in TeleTech's International BPO segment.

Excluding the $2.6 million of unusual charges mentioned above, TeleTech's first quarter 2009 non-GAAP income from operations was $22.9 million, or 7.5 percent of revenue. This is lower than 9.8 percent, excluding unusual charges, in the year-ago quarter. This decrease is due in part to higher equity-based compensation expense and an increased investment in TeleTech's global sales team.

First quarter 2009 fully diluted earnings per share were 23 cents on net income of $15.1 million. Excluding the $2.6 million of unusual pre-tax charges discussed above, first quarter 2009 non-GAAP earnings per share were 26 cents.

FIRST QUARTER 2009 BUSINESS HIGHLIGHTS

Strong Balance Sheet Continues to Fund Operations

 --  As of March 31, 2009, TeleTech had cash and cash equivalents of $91.2     million and total debt of $56.1 million, resulting in a net positive cash     position of $35.1 million. --  First quarter 2009 cash flow from operations grew $27.8 million or 106     percent to $54.0 million from $26.2 million in the first quarter 2008. --  Free cash flow for the first quarter 2009 was $45.6 million,     representing a 315 percent increase from $11.0 million in the year ago     quarter. --  Capital expenditures in the first quarter 2009 were $8.5 million, down     from $15.2 million in the year-ago quarter. --  Return on invested capital was 28 percent as of March 31, 2009, up     from 27 percent in the year-ago quarter.      

New Business

 --  During the first quarter 2009, TeleTech signed an estimated $60     million in new, annualized long-term revenue predominantly from expanded     existing client relationships.      

Share Repurchases

 --  In the first quarter 2009, TeleTech's Board of Directors approved an     incremental $25 million for additional share repurchases.  As of March 31,     2009, TeleTech had $33.4 million authorized for share repurchases under     this program. --  TeleTech's strong balance sheet has given the Company the flexibility     to fund organic growth while also repurchasing common stock.  During the     first quarter 2009, the Company repurchased 195,000 shares of common stock     for $2.0 million and is continuing its stock repurchase program.      

EXECUTIVE COMMENTARY ON TELETECH'S FINANCIAL RESULTS

"We continue to perform well in a dynamic economic environment," said Kenneth Tuchman, chairman and chief executive officer. "The strength of our client relationships and reputation for operational excellence enabled us to sign $60 million of new business this quarter, primarily with existing clients. While we are seeing sales cycles lengthen compared to 2007 and early 2008, we continue to steadily build our sales pipeline across multiple industry verticals. Our growing pipeline and high client retention rate of 98 percent this quarter gives us confidence in our ability for renewed growth in 2010 as we believe client volumes will begin to stabilize in the latter part of 2009."

BUSINESS OUTLOOK

As previously discussed, the stronger U.S. dollar in 2009 relative to currencies of certain foreign subsidiaries is expected to adversely impact 2009 revenue between $90 and $110 million when compared to 2008.

In light of the challenging global economic climate, TeleTech believes its 2009 revenue, after the foreign currency impact described above, will decline 8 percent to 10 percent from 2008, due to the following factors:

 --  The continued migration to offshore locations of certain domestic work     currently being performed in countries such as Australia, New Zealand,     Spain, and the United States is estimated to reduce 2009 revenue between     $50 and $60 million when compared to 2008.      --  While TeleTech continues to sign and ramp new business, the organic     revenue growth from these programs is expected to be more than offset by     lower volumes with certain existing clients due to lower demand for their     products or services.  This is expected to result in an estimated 'net'     revenue reduction in 2009 of between $60 and $70 million when compared to     2008.      

TeleTech expects 2009 operating margin will range between 7 percent and 8 percent, in line with current consensus expectations.

Despite the economic climate, TeleTech continues to maintain high client retention rates and believes that as the economy improves, certain existing client volumes will return to more normalized levels. Furthermore, TeleTech continues to reduce its client concentration along with strengthening its balance sheet via ongoing free cash flow generation and proactive working capital management. In addition, the Company intends to continue repurchasing its stock under the current program authorization.

CONFERENCE CALL

A conference call and webcast with management will be held on Tuesday, May 12, 2009 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 Tuesday, May 26, 2009.

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, Non-GAAP EBITDA and Non-GAAP EPS.