| July 24, 2001 Hunt-Scanlon Lowers Revenue Projections for Recruiting Industry; Slowest Growth Seen in 10 Years Stamford, CT, July 24, 2001 — After posting an average annual growth rate of 22 percent over the past five years, worldwide revenues for the retained executive search industry are expected to be flat in 2001. According to Hunt-Scanlon Advisors, a market research firm and online information provider to the human capital and executive recruiting industries, the recruiting industry registered negative year-over-year growth for the first half of 2001. Hunt-Scanlon projects the industry will grow at a rate of six to eight percent over the next 18 months, a figure much lower than it had projected a year ago. These conclusions are based on recruiting industry CEO interviews and industry analysis Hunt-Scanlon recently conducted during the company's mid-year poll of U.S. executive search firms. Similar to other professional service industries, demand for executive search services has been plagued by the slowdown prevalent throughout the U.S. and world economies. Unlike previous years where industry growth was fueled primarily by search assignments from dot-com companies, start-up ventures, and technology and financial service clients, recruiting executives cited smaller, recession-proof industries like healthcare and energy as sectors showing the best performance so far in 2001. Brian P. Lee, chief market strategist at Hunt-Scanlon, confirmed widespread worries that 2001 is likely to bring the slowest growth in a decade to the executive search industry. "Our first-half analysis indicates that the industry is off far more than we thought it was – down about 15 percent industry-wide – and therefore we are lowering our growth expectations for the next 18 month period." Mr. Lee said that the economy had softened to such a degree that it was now unrealistic to expect the recruiting sector to outpace the continued sluggish economic environment. If Hunt-Scanlon's reduced 2001 revenue estimates hold, this year will show the smallest growth in U.S. executive recruiting revenue in the last 10 years. "That could be particularly troublesome for the industry's two largest search firms, each now publicly traded," said Scott A. Scanlon, chairman and CEO of Hunt-Scanlon. ABOUT HUNT-SCANLON Hunt-Scanlon Corporation is a leading market research firm and online data provider to the executive recruiting and human capital industries. The firm publishes market intelligence, including: industry rankings, online research, real time electronic newswires, three monthly newsletters (Executive Search Review, Online Recruiting Strategist and Diversity Monitor), directories of executive recruiters and senior executives, online database products, and also provides advisory services. The firm's online recruitment portals for senior executives connect buyers and sellers of recruiting and human capital services worldwide. Hunt-Scanlon produces executive-level conferences on human capital management, senior-level recruiting, staffing technology, diversity and talent acquisition strategies for CEOšs, senior human resource executives and recruiting professionals. Contact Information:
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