SThree plc 06 June 2007 Trading Update SThree, the international specialist staffing business, is today issuing an update on trading for the six month period ended 3rd June 2007. The Group continued to perform strongly in the first half, with trading conditions in the specialist staffing markets it services supporting healthy growth across the business. The Board is pleased with the Group's overall performance in the period. SThree made 4,580 permanent placements during the first half, an increase of 31.8% over the same period last year (2006: 3,475). The Group continued to benefit from both underlying wage inflation and an increase in the proportion of higher salaried candidates within the sales mix. As a consequence average fees achieved continue to improve. At 3rd June 2007, SThree had 4,974 active contractors, an increase of 14.7% over the prior year (2006: 4,335). Contractor gross profit per day rates increased strongly as a result of a continuing move up the candidate value chain and as the benefits of the management actions taken in the second half of the prior year continued to impact positively on contract rates. Russell Clements, Chief Executive, commented: "Trading conditions remain positive and I am pleased to report that the Group has maintained its strong growth momentum during the first half. Growth in both the volume and value of business transacted has been robust, supported by our increased geographical and sector representation. In particular, the initial performance of the Group's first US office, in New York, has been very encouraging and has underlined the scale of the potential opportunity that exists for SThree in that market. Similarly, results from our nascent Far Eastern business have prompted us to bring forward the opening of our planned Hong Kong office to H2 2007. Overall, the first half has given us a strong foundation on which to build and leaves the Group well-positioned to make further progress for the full year." SThree will be announcing its interim results for the six month period ended 3rd June 2007 on 23rd July 2007. - Ends - Enquiries: SThree plc 020 7292 3838 Russell Clements, Chief Executive Officer Michael Nelson, Chief Financial Officer Citigate Dewe Rogerson 020 7638 9571 Kevin Smith / Nicola Smith Notes to editors SThree, founded in 1986, is one of the leading specialist staffing businesses in the UK and Europe, providing permanent and contract specialist staff to a diverse, international client base of well over 4,000 clients. From its well established position as a major player in the information and communications technology ("ICT") sector the Group is now broadening the base of its operations by building fast growing businesses serving the banking and finance, accountancy, human resources, engineering and pharmaceuticals sectors. Following the establishment of its first business, Computer Futures, in 1986, the Group adopted a multi-brand strategy, establishing new operations to address growth opportunities. SThree currently operates 12 brands, the four largest being Computer Futures, Huxley Associates, Progressive and Pathway, and has 33 offices in the UK and 14 offices internationally; 13 in Europe, in Belgium, The Netherlands, France, Germany and Ireland, and one office in New York. SThree has a selective approach to clients and focuses on high margin opportunities, predominantly within the small to medium-sized enterprises ("SME") market. From its inception the Group has avoided the high volume/low margin business model in favour of a focus on high quality business. SThree plc is quoted on the Official List of the UK Listing Authority under the ticker symbol STHR. This information is provided by RNS The company news service from the London Stock Exchange