SECOND QUARTER 2009 FINANCIAL RESULTS

TeleTech reported second quarter 2009 revenue of $301.5 million compared to $357.4 million in the second quarter 2008 and $304.0 million in the first quarter 2009. On a constant currency basis, revenue declined 8.0 percent or $28.6 million from the second quarter 2008. These declines were primarily attributable to the increased migration of client programs to offshore locations and lower client volumes resulting from the weak economic environment.

TeleTech's second quarter 2009 gross margin improved 370 basis points to 29.3 percent from 25.6 percent in the year-ago quarter. This improvement was primarily due to increased intra-quarter workstation utilization driven in part by a short-term program in the government vertical, a favorable shift to higher margin business, including professional services and technology-based offerings, and lower workforce attrition.

TeleTech's second quarter 2009 income from operations was $23.0 million or 7.6 percent of revenue, compared to $29.7 million or 8.3 percent of revenue in the year-ago quarter. Income from operations for the quarter included $6.8 million of unusual charges, primarily related to restructuring and impairment charges.

Excluding the $6.8 million of unusual charges mentioned above, TeleTech's second quarter 2009 non-GAAP income from operations was $29.9 million, or 9.9 percent of revenue, as compared to 9.4 percent, excluding unusual charges, in the year-ago quarter. This increase in operating margin is due to the improvement in gross margin as outlined above, along with proactive management of the Company's operating and workforce-related expenses.

Second quarter 2009 fully diluted earnings per share were 25 cents on net income attributable to TeleTech shareholders of $16.1 million. Excluding the $6.8 million of unusual pre-tax charges discussed above, second quarter 2009 non-GAAP earnings per share were 32 cents.

SECOND QUARTER 2009 BUSINESS HIGHLIGHTS

Strong Balance Sheet Continues to Fund Operations

 --  As of June 30, 2009, TeleTech had cash and cash equivalents of $84.0     million and total debt of $33.3 million, resulting in a net positive cash     position of $50.7 million. --  Second quarter 2009 cash flow from operations grew $6.7 million or 20     percent to $39.8 million from $33.1 million in the second quarter 2008. --  Free cash flow for the second quarter 2009 was $34.0 million,     representing a 185 percent increase from $11.9 million in the year-ago     quarter. --  Capital expenditures in the second quarter 2009 were $5.8 million,     down from $21.2 million in the year-ago quarter. --  Return on invested capital was 28 percent as of June 30, 2009, up from     27 percent in the year-ago quarter.      

New Business

 --  During the second quarter 2009, TeleTech signed an estimated $80     million in new revenue predominantly from expanded existing client     relationships. This includes $21 million of revenue recognized in the     second quarter 2009 related to services performed for a short-term program     in the government vertical and approximately $24 million of recurring,     seasonal revenue that will be recognized over the next several quarters     primarily related to the healthcare vertical.      

Share Repurchases

 --  TeleTech's strong balance sheet has given the Company the flexibility     to fund organic growth while also repurchasing common stock.  During the     second quarter 2009, the Company repurchased 1.9 million shares of common     stock for $24.1 million leaving more than $9 million available for future     share repurchases as of June 30, 2009.      

EXECUTIVE COMMENTARY ON TELETECH'S FINANCIAL RESULTS

"We are very pleased with our ability to deliver strong profitability and free cash flow in light of lower revenue when compared to the year ago quarter," said Kenneth Tuchman, chairman and chief executive officer. "Our second quarter results demonstrate our ability to align our cost structure with the current business conditions as well as our favorable shift of business to higher margin offerings. Although the pace of new business wins continues to be slower than it has been historically, we are encouraged by the number of potential clients that are actively discussing outsourcing opportunities with TeleTech. In addition, we remain committed to technological innovation as we firmly believe this will continue to be a key differentiator for TeleTech."

BUSINESS OUTLOOK

In light of the challenging global economic climate, TeleTech currently believes its 2009 revenue will be adversely impacted by the following:

 --  The stronger U.S. dollar in 2009 relative to currencies of certain     foreign subsidiaries is currently expected to adversely impact TeleTech's     2009 revenue between $60 and $80 million when compared to 2008.      --  The continued migration to offshore locations of certain domestic work     currently performed in Asia Pacific, Europe and North America is estimated     to reduce 2009 revenue between $60 and $70 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 reduced demand for their     products or services.  This is expected to result in an estimated 'net'     revenue reduction in 2009 of between $80 and $90 million when compared to     2008.      

TeleTech currently expects 2009 operating margin, excluding unusual items, will range between 7.5 percent and 8.5 percent, an increase from its previous expectation of between 7 percent and 8 percent.

Despite the economic climate, TeleTech continues to believe 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 plans to continue repurchasing its stock under the current program authorization.

CONFERENCE CALL

A conference call and webcast with management will be held on Thursday, July 30, 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 Thursday, August 13, 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. 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.