| March 14, 2003 Hunt-Scanlon Reports U.S. Search Industry Declined 18 Percent In 2002; Heidrick & Struggles No. 1 in Both U.S. and World Rankings Stamford, CT, March 14, 2003 - According to analysis conducted by market research firm Hunt-Scanlon Advisors, combined retainer fees in 2002 for the 25 largest U.S. search firms fell below the $1 billion mark for the first time since 1997, as aggregate revenues dipped 18 percent. Although the recruiting industry posted a double-digit revenue decline for the second consecutive year, it represents a slight improvement over 2001 when industry fees plummeted 31 percent. In fact, unlike 2001 when only a few firms posted single-digit revenue growth, 2002 was a bounce back year for several recruiting firms who achieved revenue growth rates ranging from three to 51 percent. Firms who produced positive results in this difficult search environment cited two factors for their gains. First, while the entire search industry was negatively impacted in 2001 by the September 11th terrorist attacks, some firms in 2002 were fortunate to experience a quick recovery in their business activity. In addition, poor stock performance among the publicly traded search firms has created significant turnover within their professional ranks, thereby enabling competing firms to expand their business through the acquisition of experienced search consultants. On an overall basis, 2002 was a mixed year for the four largest U.S. search firms, as only Spencer Stuart posted solid revenue gains. Although Heidrick & Struggles International topped Korn/Ferry International in both the U.S. and worldwide rankings, both firms experienced annual revenue falloffs exceeding 20 percent; since hitting all-time revenue highs in 2000 their U.S. search fees are now off 46 percent and 55 percent respectively. While revenues for these two publicly traded firms now approximate 1998 levels, the gap between them and third-ranked Spencer Stuart has narrowed considerably. "The silver lining is it appears the U.S. recruiting market bottomed out in 2002 as there were fewer office closings and layoffs, coupled with an uptick in executive demand during the fourth quarter," said Brian P. Lee, chief market strategist. "Unfortunately, the current geopolitical situation is creating a tremendous amount of uncertainty in the market. This could delay any anticipated rebound in 2003, as corporate search clients will continue to remain cautious in their hiring decisions." Hunt-Scanlon's official 2002 U.S. and global executive search industry rankings will be published later this month in the March issue of Executive Search Review. 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 CEO's, senior human resource executives and recruiting professionals. Contact Information:
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