TRANSCOM REPORTS RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007

TRANSCOM REPORTS RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2007

Luxembourg, 23 July 2007 - Transcom WorldWide S.A. (“Transcom” or “the Company”)
(Nordic Exchange: ‘TWW SDB A', ‘TWW SDB B'), the European CRM and debt
collections specialist, today announced its financial results for the second
quarter and six months ended 30 June 2007.


SECOND QUARTER HIGHLIGHTS

•Net sales up 6% to €138.2 (€130.1) million
•Non Kinnevik related sales up 21% excluding Iberia
•EBITDA down 16% to €8.8 (€10.5) million; impacted by French telemarketing and
labour inflation
•EPS before dilution down 25% to €0.06 (€0.08)
•Acquisition of Polish debt collection company CENT strengthens CMS business


SIX MONTHS HIGHLIGHTS

•Net sales up 8% to €287.5 (€267.3) million
•Non Kinnevik related sales up 24% excluding Iberia
•EBITDA down 10% to €21.0 (€23.2) million
•EPS before dilution down 21% to €0.15 (€0.19)
•Net cash flow from operations up 60% to €23.1 (€14.4) million

Note: for tabular financial information, please refer to attached pdf file or
alternatively download a pdf copy of the attachment at www.transcom.com


CHIEF EXECUTIVE OFFICER'S STATEMENT

Keith Russell, President and Chief Executive Officer of Transcom, said: “As
expected, the second quarter proved to be a challenging period for Transcom. 
Whilst we witnessed good performance across many areas of the business, and we
continue to be very positive for the future, a number of factors impacted our
bottom-line development in the quarter.  

“In line with our expectations, revenues in Iberia continued to decline
year-on-year due to the ongoing transition of CRM business from Spain to Chile. 
This decline stems from the lower prices being charged to clients choosing to
utilise our Chilean solution.  The positive news is that because margins are
higher in Chile, the Iberian region continues to become more profitable.  We are
currently developing our second site in Chile on the back of our success and
strong demand from clients, and expect Iberian profits to continue to strengthen
going forward.  

“Excluding Iberia, Transcom's Non Kinnevik related (or “External”) organic sales
were up 21% in the quarter, which demonstrates our continued outperformance of
the European CRM market.  Collections revenues also continued to develop at a
faster pace than the CRM business in the second quarter.

“The recent approval of SFR's acquisition of Tele2's fixed-line and ADSL
business in France will reduce our overall sales to Tele2 by approximately 10%
and we are working hard to ensure similar results in other countries where they
have recently divested.  Tele2 revenues were up 5.6% overall in the quarter.  In
the North region, Tele2 sales increased strongly on the back of new product
launches, whilst growth was slower in the other regions.  In the South region,
Tele2 revenues were static during the second quarter due to decreases in
telemarketing activity and lower prices in Italy.

“As expected, the bottom-line result for Q2 was below our performance in the
same quarter last year.  The most significant contributor to this was the Tele2
price agreement.  As mentioned in the previous quarter, pricing remained flat
year-on-year with Tele2, however costs have increased due to labour inflation. 
The impact of this delta arising between revenues and costs equates to
approximately €6 million for the full year.  In addition to this, we have seen a
further loss of profit in the second quarter relating to French telemarketing
campaigns of €1 million; however this is the last quarter with such adverse
year-on-year comparisons.  The good news is that we continue to mitigate these
negative factors with the development of higher margin business. 

“As with Q1, the second quarter results include investments in new centres and
start-ups in the West & Central region in support of this strategy, which we
expect to contribute profits in the second half of the year.  We therefore
anticipate more profit overall in the second half of 2007 than was achieved in
the second half of 2006.

“We continue to drive our acquisition strategy on both the tactical and
strategic fronts.  Our focus on M&A remains in debt collection and offshore CRM
services, particularly in new markets.  Both of these business areas complement
our existing skill set and footprint, and can also help us to enhance our Group
margins.  Significant developments have been made in this area, and we expect to
make associated announcements in the near future.

“Looking ahead, we remain confident in the long-term success of our strategy
which is to continue with the expansion of debt collections, nearshore CRM
services and other higher margin activities, focusing on extending our client
base outside the Kinnevik group.  This strategy is delivering strong results
albeit masked by weaker performance of our Tele2 services in the short-term.  In
spite of this, we continue to work with our major client to evolve to a more
innovative partnership that will ensure cost reductions for them and margin
development for Transcom.”   


GROUP OPERATING & FINANCIAL REVIEW

New CRM customer wins in key vertical markets
Transcom reported 6.2% year-on-year net sales growth to €138.2 million (€130.1
million) in the second quarter of 2007.  The second quarter result was accounted
for by an increase of 8.4% in External revenue (€38.7 million), a 5.6% increase
in sales to Tele2 (€95.4 million) whilst other Kinnevik related revenue remained
unchanged at €4.1 million.  During the second quarter, the Company signed a
number of new CRM contracts and expanded many existing contracts.  New CRM
signings in the quarter included: T-Mobile Czech Republic; RM Buch und Medien
Vertrieb, the Austrian online shopping portal (www.donauland.at); and VG Film,
the Norwegian media company.  Transcom has also secured a long-term contract
with a leading global logistics company, however is not at liberty to disclose
further details at this time. 

Collections growth continues to outpace CRM business; augmented by Polish
Acquisition
The CMS business continues to grow at a faster rate than that of CRM, and
Transcom added a number of new debt collections clients during the second
quarter.  These included German financial services company XXL Card Services and
the Swedish municipality of Vämdö Kommun.

On 1st June 2007, Transcom acquired 100% of Centrum Egzekwowania Należności
Trudnych “CENT” Sp. z o.o. in Poland.  This acquisition is in line with
Transcom's strategy of growing its debt collections business, and the deal will
further accelerate the Company growth in CMS within Poland and other Eastern
European countries.  Transcom continues to identify and acquire Collections
agencies to complement its expansion in CMS and expects to make further, more
material acquisitions in this area in the near future.

Continued investment in Growth
The recently opened contact centres in Dresden, Germany and Emmen, the
Netherlands are currently ramping up and are yet to reach full capacity.  As
such, both centres are still loss-making, though they are both expected to begin
yielding profits in the second half of 2007.  During the second quarter,
Transcom invested a further €200,000 of OPEX in the two centres in order to fund
the growth of these sites.

On 26th June 2007 Transcom announced its second organic CRM development in
Poland.  The contact centre, based in Gdansk, was developed on the back of
strong demand from both Tele2 and External clients.  It opened with
approximately 40 agents and is expected to grow to 150 agents by the end of the
year.  In addition to supporting Tele2, Transcom aims to develop significant
External business in Gdansk, both from domestic Polish customers as well as
through nearshore services utilising the German and English languages.

During the second quarter, Transcom incurred a loss of approximately €400,000 in
its North American start-up home-working solution, Cloud10.  Whilst Cloud10 is
still unprofitable, the growth expectation based on client agreements indicates
that profitability will be reached in the fourth quarter of 2007.

Gross margin, SG&A and cash position
Within the gross margin, depreciation increased by €700,000 year-on-year in the
first half as a result higher levels of CAPEX investments carried out.  The
trend of increased depreciation is expected to continue in the rest of the
fiscal year, however with a lower differential in the second half of the year.  

SG&A costs as a percentage of revenue for the quarter were 13.9% versus 13.6% in
Q2 last year.  This increase is mainly the result of continued investment in new
sites, as well as a greater mix of collections activity, which has a different
business model.

Cash positions and cash generation from operations
At the end of the reporting period, Transcom had net cash of €28.8 million,
compared to €10.4 million at June 2006.  

Net cash flow provided by operations for the year to date was €23.1 million,
compared to €14.4 million for the same period last year, showing an increase of
60%.  CAPEX increased slightly to €8.0 million (€7.9 million), highlighting the
continued investments in growth and technology.   

Outlook
Transcom reiterates its confidence in both an improved second half performance
in 2007 and in its long-term strategy.  The results for the rest of the year
will continue to be impacted by labour cost increases and flat pricing from
Tele2.  It is expected, however, that this will be mitigated from the
bottom-line by growth of higher margin business, several investments reaching
profitability in the West & Central region, and more favourable year-on-year
comparisons of depreciation charges.

In the longer-term, Transcom continues to develop the Collections business and
higher-margin CRM business, and to reduce the percentage of revenue share
attributed to Tele2.  Transcom's sales outlook is extremely positive, with some
material new client prospects likely to develop in the second half of 2007. 
There is also a high level of confidence that important and strategic
acquisitions will be closed in the next quarter.


SEGMENTAL OPERATING REVIEW

North
The North region continued to deliver good top-line growth in the second
quarter, with a 12.2% increase in sales year-on-year.  Tele2 revenues grew
strongly during the reporting period due to the launch of a number of new
products.  The bottom-line result of the North region was impacted by
approximately €500,000 due to a combination of the re-launch of CMS services in
Norway and Tele2 pricing.

Transcom expects margins in the North region to benefit in the long-term from
the corporate strategy of improved integration between Collections and CRM
services and the growth of the CMS business.

West & Central
Revenue for the West & Central region was up by 11.2% in the second quarter. 
External sales for the region rose markedly by 29% on the back of strong sales
to a number of new CRM and CMS clients.

On 26th June 2007, Transcom announced the opening of its second contact centre
Poland.  The Gdansk centre was developed on the back of strong demand from both
Tele2 and External clients.  The site opened with approximately 40 agents and
Transcom expects the facility to grow to 150 agents by the end of the year.  The
centre will be utilised for German and English language nearshore services, in
addition to providing domestic CRM solutions.

The West & Central region continues to generate the highest gross and operating
margins within the Group, however profitability within the region continued to
be impacted by the growth investments made in the first half of 2007.  Such
costs for the quarter included an additional €200,000 of OPEX spent on ramping
up the Dresden and Emmen centres, as well as a further €100,000 in the newly
opened Gdansk site.  During the quarter, Transcom incurred a loss of
approximately €400,000 in Cloud10, the Company's US start-up home-working
solution, in order to fuel the growth of this business.  It is expected that
Cloud10 will enter profitability in the fourth quarter on the back of recently
signed client agreements.
The West & Central region is expected to perform strongly on both the top- and
bottom-lines in the second half of the year, as the benefits of growth
investments begin to bear fruit.

South
Revenues grew by 2.7% in the South region in the second quarter, with sales
impacted by the loss of approximately €4 million in Outbound sales, which was
largely a result of the shrinkage in French telemarketing activities.  The
effects of weakened profitability in Transcom's French telemarketing programme
contributed to a €1 million loss in profits in the second quarter compared with
2006, causing a significant decrease in operating profit.  Pricing pressure
arising from Tele2 business in Italy also impacted the South region's
bottom-line, with high increases in labour costs significantly reducing Italy's
bottom-line.

On 18th July 2007, SFR's acquisition of Tele2's fixed-line and ADSL business was
approved by the European Commission and Transcom estimates that the percentage
of its sales derived from Tele2 will reduce by approximately 10% as a result. 
The Company is now focused on developing its relationship with SFR and providing
the highest possible service levels.

Transcom expects to maintain revenue growth in the South region for the rest of
the year, which will in part be driven by the continued strong development of
External business in the region.  Going forward, in addition to the growth of
the Collections business, margin development in the South region will be
achieved through an increased mix of near and offshore services from Eastern
Europe and North Africa.  Transcom has also developed marketing tools which
enable improved customer prospect management, resulting in more stable and
higher-margin sales activity for its clients.

Iberia
Sales in the Iberian region decreased by 4.0% year-on-year.  This performance
was in line with the Company's expectations and is largely the result of
carrying out increasing amounts of CRM work from Chile where prices are
approximately 67% of onshore prices in Spain.  Transcom's Chilean operations are
performing extremely well, and the Company is currently developing its second
site in Chile.  

The Iberian region reported a profit of €300,000 for the quarter versus a loss
of €600,000 in Q2 last year, representing a significant turnaround.  This
bottom-line improvement was largely driven by Transcom's Chilean operations,
whose profits amounted to approximately €700,000 for the first half of 2007.

During the second quarter, Transcom took additional restructuring charges of
€200,000 in the Iberian region and it is expects restructuring charges of a
similar magnitude to occur in the second half of the year.

Transcom reiterates its positive outlook for the Iberian region for the rest of
the year, and expects to deliver a modest profit in the region for the full
year.


OTHER INFORMATION 

Notice of Financial Results
Transcom's financial results for the third quarter and nine months ended 30
September 2007 will be published on 22 October 2007.


Keith Russell, President and CEO
23rd July 2007

Luxembourg
Transcom WorldWide S.A.
75, route de Longwy
L-8080 Bertrange, Luxembourg
+352 27 755 000
www.transcom.com
Company registration number: RCS B59528

Notes to Editors:
The following provides a breakdown of which countries are included in each
geographical region.

•North: Denmark, Norway and Sweden
•West & Central: Austria, Belgium, Croatia, Czech Republic, Estonia, Germany,
Hungary, Latvia, Lithuania, Luxembourg, the Netherlands, Poland, Romania,
Serbia, Slovakia, Switzerland, the UK and the USA
•South: France, Italy and Tunisia
•Iberia: Chile, Portugal, Spain


#  #  #

For further information please contact:
Keith Russell, President and CEO
+352 27 755 000

Noah Schwartz, Investor & Press Enquiries
+44 20 7321 5032


About Transcom
Transcom WorldWide S.A. is a rapidly expanding Customer Relationship Management
(CRM) solution provider, with 57 sites employing more than 13,000 people
delivering services to 28 countries - Austria, Belgium, Chile, Croatia, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Italy, Latvia,
Lithuania, Luxembourg, Norway, Poland, Portugal, Romania, Serbia, Slovakia,
Spain, Sweden, Switzerland, the Netherlands,  Tunisia, the UK and the USA.

The company provides CRM solutions for companies in a wide range of industry
sectors, including telecommunications and e-commerce, travel & tourism, retail,
financial services and utilities.  Transcom offers clients a broad array of
relationship management services, including inbound communication; telemarketing
and outbound; Administrative Tasks; Web servicing; CRM Consultancy Service;
Contract Automation; Credit Management Service; Legal Services; and
Interpretation Services.  Client programs are tailor-made and range from single
applications to complex programmes, which are offered on a country-specific or
international basis in up to 33 languages. 

Transcom WorldWide S.A. class A and B shares are listed on the Nordic Exchange
Mid Cap list under the symbols ‘TWW SDB A' and ‘TWW SDB B'.