TRANSCOM REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED 30 JUNE 2011

TRANSCOM REPORTS FINANCIAL RESULTS FOR THE SECOND QUARTER AND SIX MONTHS
ENDED 30 JUNE 2011

Luxembourg, 20 July 2011 - Transcom WorldWide S.A., the global
outsourced services provider, today announced its financial results for
the second quarter and six months ended 30 June 2011.

Transcom delivered €134.3 million revenue and €-26.1 million EBITA in
the second quarter. The main highlights of the second quarter 2011 are:

  · Revenue: €9.8 million sequential revenue erosion with an impact of
€1.9 million on gross profit in the quarter.
  · Restructuring: €24.2 million cost corresponding to the first phase
of the €32.8 million restructuring program announced on June 21, 2011
  · Additional one-off charges: €2.2 million one-off cost related to the
change in revenue outlook and risk position.

Note: these one-off costs do not qualify as restructuring costs nor can
they be associated with the restructuring program, according to IFRS

  · Operational inefficiencies: €1.5 million costs related to the
adaptation of our operations to the lower volume base, mainly in the
North America & Asia Pacific and North regions

Revenue decreased by 6.8% sequentially and 9.7% year-on-year. The
revenue erosion in the quarter was driven by weaker volumes in general,
fewer production days and installed base volume shifts.

  · North region: The sequential revenue erosion is driven by changes in
one of our major contracts and fewer production days in the quarter. The
sequential impact is -7%.
  · NAA region: The revenue erosion is driven by volume shifts in our
Installed Base that resulted in a sequential erosion of -18%.
Year-on-year, revenue decreased by 42.7%
  · South: Revenue decreased in France due to the disposal of two sites
(-19% quarter to quarter)

One off charges of €2.2M not included in the restructuring charge.

  · North region: €0.9 million of which €0.6 million are operational
investments related to the implementation of changes to a major
contract, and €0.3 million is a bad debt write-off
  · West and Central: €0.7 million cost of which €0.5 million is a
reassessment of accrued revenue in the collection business, and €0.2
million is related to higher costs than accrued for, to consolidate two
sites in the UK
  · Corporate: €0.6 million consulting fees related to our IT
transformation

Excluding the €24.2 million restructuring cost, EBITA for the quarter
stood at €-1.9 million. Excluding the €2.2 million one-off charges,
underlying EBITA is €0.3 million.

Following the launch of our restructuring program, reported EBITA
includes restructuring costs of €10.8 million and additional
non-recurring items of €13.4 million, for a total of €24.2 million,
corresponding to the first phase of the €32.8 million restructuring
program announced on June 21, 2011. The total net cash impact associated
with the €32.8 million restructuring program amounts to €27.2 million,
including the negative cash flow impact from onerous contracts. Out of
this amount, €0.7 million has impacted the second quarter cash flow and
€11.0 million will impact H2 2011 cash flow. The non-cash items of the
restructuring costs (€5.6 million) relate predominantly to asset
write-offs.

Covenants and Financing. Transcom has discussed with its banking
partners the impact of the restructuring program on its covenant
thresholds for 2011, and has obtained their agreement to raise the
existing thresholds for 2011 to the level required to allow a smooth
execution of the plan.

SECOND QUARTER 2011 HIGHLIGHTS - INCLUDING RESTRUCTURING COSTS

Sequential performance

  · Net revenue down 6.8% to €134.3 million (€144.1), net of currency
down 5.8% to €135.6 million.
  · Gross profit down to €13.9 million (€25.3) and gross margin down to
10.3% (17.6%)
  · EBITA down to €-26.1 million (€3.2), net of currency down to €-25.7
million.
  · EPS was €-0.38 (€0.03)

Year-on-year performance

  · Net revenue down 9.7% to €134.3 million (€148.8), net of currency
down 9.6% to €134.5 million.
  · Gross profit down to €13.9 million (€28.1) and gross margin down to
10.3% (18.9%)
  · EBITA down to €-26.1 million (€4.4), net of currency down to €-24.7
million.
  · EPS down to €-0.38 (€0.04).

SIX MONTHS 2011 HIGHLIGHTS - INCLUDING RESTRUCTURING COSTS

Year-on-year performance

  · Net revenue down 5.9% to €278.4 million (€295.8), net of currency
down 7.1% to €274.7 million.
  · Gross profit down to €39.2 million (€58.6) and gross margin down to
14.1% (19.8%)
  · EBITA down to €-22.9 million (€9.4), net of currency down to €-20.9
million.
  · EPS down to €-0.35 (€0.08).

RESTRUCTURING AND NON-RECURRING COSTS OF €32.8 MILLION TO INCREASE
OPERATIONAL EFFICIENCY

Restructuring & Rightsizing Plan. During the past 18 months, Transcom
has been implementing a transformation program with the objective of
accelerating sales growth, improving underperforming areas and changing
the company technology and portfolio footprint.

Despite the significant progress achieved in developing sales
opportunities, the evolution of our pipeline as well as the current
market dynamics and business outlook for the remainder of the year do
not support our current delivery infrastructure.

Transcom has decided to launch a restructuring and rightsizing plan
aimed at adjusting its delivery capacity to the current book of
business, strengthening global competitiveness and increasing
operational efficiency.

This will result in the recording of restructuring and non-recurring
charges in 2011 for a total of €32.8 million, of which €24.2 million in
Q211. The remainder of the restructuring cost - €8.6 million - will be
recorded in Q3 and remains unchanged compared to our initial assessment.

Below is an overview of the impact of the restructuring program region
by region:

NORTH In the North region, the main elements of the non-recurring charge
of €2.3 million were:

  · €1.2 million: recognition of an onerous contract
  · €1.1 million: other non-recurring charges mostly related to the
allocation of the corporate write-off of a bespoke IT solution.

WEST & CENTRAL. In the West & Central region, a restructuring and
non-recurring charge of €3.9 million has been recorded:

  · €0.3 million: closure of one site in Germany;
  · €0.7 million: site consolidation in the UK ;
  · €0.8 million: reduce the workforce and seat capacity;
  · €2.1 million: recognition of various non-recurring charges primarily
linked to accruals for social risks (€1.1 million), and other costs for
€1.0 million which are mostly related to the allocation of the corporate
write-off of a bespoke IT solution.

North America & Asia Pacific. In the North America & Asia Pacific
region, we are recognizing a restructuring and non-recurring charge of
€13.0 million:

  · €7.4 million: closure of 4 sites in Canada, lease contracts (€6.7
million) and asset write-offs (€0.7 million);
  · €2.0 million: reduction of the number of available seats and
workforce capacity
  · €3.6 million: recognition of additional non-recurring charges
corresponding to provisions for one onerous contract of €1.1 million,
asset write-offs for €0.7 million and other costs and accruals for €1.8
million, mostly related to the allocation of the corporate write-off of
a bespoke IT solution.

Iberia. In the Iberia region, the restructuring and non-recurring charge
amounted to €1.3 million:

  · €0.2 million: closure of one site in Portugal
  · €0.2 million: reduction in the number of available seats and
workforce capacity
  · €0.9 million: additional write-offs and accruals, mostly related to
the allocation of a corporate write-off of a bespoke IT solution

South. In the South region, the restructuring and non-recurring charge
amounted to €3.7 million:

  · €1.8 million: reassessment of the 2 onerous client contracts
recognized in France on December 31, 2010;
  · €1.9 million: lease write-off in France for €0.6 million, asset
write-offs for €0.3 million and other costs and accruals for €1.0
million, mostly related to the allocation of a corporate write-off of a
bespoke IT solution.

The restructuring and operational improvement program is expected to
yield annualized gross savings of approximately €10.0 to €12.0 million
when fully implemented.

SECOND QUARTER 2011 HIGHLIGHTS - UNDERLYING PERFORMANCE

Sequential performance

  · Net revenue down 6.8% to €134.3 million (€144.1), net of currency
down 5.8% to €135.6 million
  · Gross profit down to €21.5 million (€25.3) and gross margin down to
16.0% (17.5%)
  · EBITA down to €-1.9 million (€3.2), net of currency down to €-1.5
million. Excluding the €2.2 million one-off costs in NAA and North,
underlying EBITA is €0.3 million
  · EPS was €-0.05 (€0.03)

Year-on-year performance

  · Net revenue down 9.7% to €134.3 million (€148.8), net of currency
down 9.6% to €134.5 million
  · Gross profit down to €21.5 million (€28.1) and gross margin down to
16.0% (18.9%)
  · EBITA down to €-1.9 million (€4.4), net of currency down to €-0.5
million. Excluding the €2.2 million one-off costs in NAA and North,
underlying EBITA is €0.3 million
  · EPS down to €-0.05 (€0.04)

SIX MONTHS 2011 HIGHLIGHTS - UNDERLYING PERFORMANCE

Year-on-year performance

  · Net revenue down 5.9% to €278.4 million (€295.8), net of currency
down 7.1% to €274.7 million
  · Gross profit down to €46.8 million (€58.6) and gross margin down to
16.8% (19.8%)
  · EBITA down to €1.3 million (€9.4), net of currency down to €3.2
million. Excluding the €2.2 million one-off costs in Q2, underlying
EBITA is €3.5 million
  · EPS down to €-0.02 (€0.08)

CHIEF EXECUTIVE OFFICER'S STATEMENT - UNDERLYING BUSINESS PERFORMANCE

Pablo Sánchez-Lozano, President and Chief Executive Officer of Transcom,
said:

“Transcom faced particularly challenging business conditions in the
second quarter of 2011. While we expected to see revenue erosion due to
lower demand in a quarter with fewer production days, volumes decreased
more significantly than what we had anticipated at the beginning of the
period. We reported revenues of €134.3 million, down by 6.8% compared to
last quarter and by 9.7% compared to the same period last year. This
development is largely driven by specific challenges in the North
America & Asia Pacific and North regions, which impacted our revenues
beyond our initial expectations.

“In the North America & Asia Pacific region the revenue erosion is
driven by volume shifts in our installed base, due to customer decisions
to either concentrate volumes to fewer vendors, in-source services or
accelerate off-shore moves. The relationships with our major customers
remain strong and we have been working with them to accommodate these
changes. Q2 has been a transition quarter and the impacts on our
business are of a short-term nature. We will be ramping up new volumes
again through the second half of 2011. The adaptation of our delivery
infrastructure announced this quarter will contribute to aligning our
delivery footprint and infrastructure to these volume shifts.

“In the North region, the revenue erosion was driven by fewer production
days in the quarter but also, to a greater extent, by the implementation
of a new delivery model with one of our top clients. The implementation
of the new delivery model had material impact on training and delivery
related costs in addition to the effect of the summer season, that we
expect to reduce as we transition into Q311.

“Transcom's sales funnel remained at the Q111 level, a record high for
the last 24 months, showing the results of our sales transformation
initiatives. We are very pleased with the level of contract signatures,
both in terms of new business and installed base clients. Q211
performance is a step forward compared to Q111. We are strengthening our
sales capability, adding three new sales representatives in the quarter.
I am confident that we are on the right trajectory to deliver a more
consistent sales performance quarter-on-quarter, and I am pleased to
report that we closed business with a number of new clients during the
quarter, including mobilcom-debitel and Leadwerke DTS GmbH in West &
Central, Sembo AB in North, and Legálitas in Iberia. We are in the
process of ramping up over 1,000 positions in Asia in the coming months.

“The Group's gross margin was 16.0% this quarter, compared to 17.6% last
quarter and 18.9% in the second quarter of 2010. The decrease in gross
margin was driven by the one-off adjustments and the operational
inefficiencies that we experienced in the North America & Asia Pacific,
North and West & Central regions.

“Transcom's EBITA (excluding restructuring related costs) in the second
quarter was €-1.9 million, down from €3.2 million in the first quarter.
Excluding the impact of €2.2 million additional one-off costs incurred
in Q211, underlying EBITA was €0.3 million.

“In the context of the current performance, Transcom's priorities for
the second half of 2011 include the execution of the restructuring and
rightsizing program, the ramp-up new volumes in the North America & Asia
Pacific region, and the stabilization of the new delivery model in the
North region.

“Once executed, by the end of Q411, the company will have reached a
significant milestone in its transformation, with a more competitive
delivery footprint and improved operational efficiency, and will be back
at the EBITA margin level achieved in Q111.”

GROUP OPERATING & FINANCIAL REVIEW

 Financial Review

Depreciation & Amortization

Depreciation in the second quarter of 2011 was €2.8 million and
amortization of intangible assets was 0.7 million.

SG&A

SG&A expenses were €29.2 million in the quarter, of which €7.2 million
is attributable to the restructuring program. Excluding the
restructuring impact, SG&A cost was €22.0 million, in line with the Q111
level.

Working Capital

Working capital at the end of Q211 stood at €64.0 million, a decrease of
€3.8 million compared to Q111. Transcom continues its effort to manage
working capital down.

Foreign Exchange Rate Impact

In the second quarter of 2011, foreign exchange movements had a negative
translation impact of €-1.4 million on revenue and €-0.1 million on EBIT
compared to Q111, and €-0.6 million and -0.3 million respectively
compared to Q210.

The trading impact on revenue was positive €0.1 million positive
compared to Q111 and year-on-year the impact was also positive, by €0.4
million. The total impact on EBIT is €-0.3 million compared to Q111 and
€-1.1m compared to Q210

For further details on the impact of foreign exchange movements on the
Company's results, please refer to the tables provided in the appendix
on page 21.

Debt & Financing

In April 2012, the Revolving Credit Facility matures and therefore the
outstanding amount is now recorded as short term debt. Due to the impact
on cash driven by the lower performance in the context of the
restructuring plan, the Group has negotiated and obtained a formal
agreement from its banking syndicate to increase the Net Debt / EBITDA
thresholds in the covenants.

Interest expenses amounted to €0.9 million in Q211. For Q311 and Q411,
the expenses related to the Revolving Credit Facility are estimated to
increase by €0.2 million per quarter.

On a rolling 12-month basis, the Net Debt/EBITDA ratio at the end of
Q211 was 4.2, compared to 2.6 for Q1 2011. The ratio for Q211 remains
within the new covenant thresholds and is expected to remain within the
agreed thresholds for the remainder of 2011.

Effective Tax Rate

Transcom reported a tax expense of €1.1 million in the quarter, compared
to a tax income of €0.4 million in Q1.

The €1.1 million tax expense in Q2 mainly stems from:

    · reduced current tax charges because of the tax deductibility of
most of the restructuring provisions booked in Q2;
    · a write-off for €1.1 million of a deferred tax asset in Canada, as
a direct consequence of the restructuring plan in Canada.

Due to the restructuring impacts and the lower profitability outlook as
well as the potential negative outcome of ongoing tax audits, on an
annualized basis, the Group effective tax rate for 2011 is forecast to
increase up to a range between 25 and 30% of operating profits.

SEGMENTAL OPERATING REVIEW - EXCLUDING RESTRUCTURING COSTS IN Q2 2011
AND Q4 2010

North America & Asia Pacific

Revenue in the North America & Asia Pacific region amounted to €20.5
million in the second quarter of 2011, a decrease of 15.6% compared to
the previous quarter, and a decrease of 42.7% compared to Q210. Transcom
experienced significant volume reductions in the installed client base
in the region during the quarter driven by customer decisions to bring
volumes in-house, consolidate vendors or accelerate off-shore moves.
Approximately 60% of the decrease occurred in our North American
operations, and the rest in Asia. In H2 2011, we expect most of these
volumes to ramp up again, mostly off-shore. We are therefore in a
transition period, ramping down volumes in North America, and ramping up
volumes in Asia. Net of currency effects, revenue decreased by 11.1% to
€21.6 million sequentially and by 36.9% to €22.6 million year-on-year.

During the quarter we experienced operational inefficiencies related to
the revenue reduction that we estimate to be in the range of €0.6
million. The installed base volume shifts led us to decide to accelerate
the rationalization of our footprint. We decided to close 4 sites in
Canada through Q211 and Q311 and to adjust the remaining capacity to
better reflect our current book of business.

Gross margin fell to 14.8% in Q211, compared to 19.8% in Q111 and 20.7%
in Q210.

The region's EBITA was €-2.2 million in Q211, down from €-0.6 million in
the previous quarter and from €0.9 million in Q210. €1.0 million of the
quarterly margin decrease is driven by the revenue erosion, and the rest
is related to lower productivity. The restructuring plan is expected to
bring €1.0 million in quarterly savings once implemented.

West & Central

Revenue in the West & Central region was €27.5 million, down by 6.8%
compared to Q111 and by 14.9% compared to Q210. While we experienced
some revenue growth from new sales in Germany and the Netherlands during
the quarter, overall revenue from our installed client base in the
region showed a net decrease, mainly driven by weaker volumes. Revenue
in the quarter was impacted by the reassessment of the accrued revenue
in our collection business.

During the quarter we incurred an incremental €0.2 million cost to
consolidate two sites in the UK.

EBITA in the second quarter was €0.6 million, compared to €2.0 million
in Q111 and €2.4 million in Q210. EBITA in the quarter declined by €1.4
million, of which €0.6 million is due to the revenue erosion and €0.8
million to the one-off charges explained above. 

Iberia

Revenue in the Iberian region was €26.7 million in the second quarter of
2011, down by 1.1% compared to Q111 and up by 2.7% compared to Q210.
While revenue benefited from the ramp-up of new volumes, as well as from
higher productivity and increasing volumes from our installed base
clients, this positive effect was more than offset by lower demand in
the quarter.

The region's gross margin was 19.9% in the second quarter of 2011,
compared to 20.0% in Q111 and 15.4% in Q210, above last year average.

EBITA for the region was €1.0 million, down by €0.5 million compared to
the previous quarter and up by €0.6 million compared to Q210. SG&A costs
increased in the quarter due to €0.2 million higher support costs as a
result of the ramp-up of the Valdivia site in Chile, which we expect to
be fully operational in Q311, as well as €0.3 million higher corporate
cost allocation to the Iberia region due to the change of the revenue
mix across the Group. These costs are of a temporary nature and are
expected to progressively decrease during Q311.

North

Revenue in the North Region was €34.6 million in the second quarter of
2011, down from €37.4 million in Q111 and almost flat compared to Q210.
Compared to the first quarter, revenue was mainly impacted by fewer
business days in the quarter, lower demand and a new delivery model with
one of Transcom's largest clients in the region.

Net of currency effects, revenue decreased by 7.2% to €34.7 million
sequentially and by 6.9% to €32.6 million year-on-year.

The region's gross margin was 12.7% in the second quarter, 4.4pp below
Q111 and 7.0pp below Q210. Margins were negatively impacted by three
factors

    · €0.6 million operational investments related to the implementation
of changes to a major contract
    · €0.3 million bad debt write off
    · Operational inefficiencies related to summer temporary staff
ramp-up and site consolidation for a total value of €0.9 million.

We expect operational performance to improve in Q311.

The North region reported EBITA of €0.0 million in the quarter, compared
to €2.5 million in Q111 and €2.9 million in Q210. On top of the
operational items highlighted above, €0.6 million of the EBITA decrease
is driven by volume erosion.

South

Revenue in the South region was €25.0 million in the second quarter of
2011, compared to €25.9 million in Q111 and €19.7 million in Q210. In
fact, revenue decreased by €1.7 million due to the disposals of the
Tulle and Roanne sites in France, but increased by €0.8 million due to
higher volumes from our installed client base in Italy. The net revenue
decrease is €0.9 million.

In Q311, the full effect of the site disposal on the South region
revenue run rate will be approximately €3.8 million.

Gross margin increased to 8.8% from 3.9% in Q111, and from 8.1% in Q210.
The gross margin improvement compared to the previous quarter was partly
due to the fact that direct costs in France decreased to a greater
extent than the corresponding revenues did. This was driven by lower
costs following the disposal of the sites in Roanne and Tulle, as well
as by increased operational efficiency and decreased personnel costs.

EBITA was €-1.4 million, compared to €-2.2 million in Q111 and €-2.2
million in Q210. 

OTHER INFORMATION

The financial information in this press release has been prepared in
accordance with International Financial Reporting Standards (“IFRS”) as
endorsed by the European Union. While the interim financial information
included in this announcement has been prepared in accordance with IFRS
applicable to interim periods, this announcement does not contain
sufficient information to constitute an interim financial report as
defined in International Accounting Standards 34, “Interim Financial
Reporting”. Unless otherwise noted, the numbers in the press release
have not been audited. The financial information and certain other
information presented in a number of tables in this press release have
been rounded to the nearest whole number or the nearest decimal.
Therefore, the sum of the numbers in a column may not conform exactly to
the total figure given for that column. In addition, certain percentages
presented in the tables in this press release reflect calculations based
upon the underlying information prior to rounding and, accordingly, may
not conform exactly to the percentages that would be derived if the
relevant calculations were based upon the rounded numbers.

Results Conference Call and Webcast

Transcom will host a conference call at 11.00 am CET (10:00 am UK time)
on Wednesday, July 20, 2011. The conference call will be held in English
and will also be available as webcast on Transcom's website,
www.transcom.com (http://www.transcom.com/).

Dial-in information

To ensure that you are connected to the conference call, please dial in
a few minutes before the start in order to register your attendance.

Sweden: 08-503 364 34

UK: +44 (0) 1452 555 566

US: +1 631 510 7498

Passcode: 53887696

For a replay of the results conference call, please visit
www.transcom.com (http://www.transcom.com/) to view the webcast of the
event.

Notice of Financial Results

Transcom's financial results for the third quarter of 2011 will be
published on 19 October 2011.

Pablo Sánchez-Lozano

20 July 2011

Transcom WorldWide S.A.
45 rue des Scillas
L-2529 Howald

Luxembourg

+352 27 755 000

www.transcom.com (http://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, the Czech Republic,
Estonia, Germany, Hungary, Latvia, Lithuania, Luxembourg, the
Netherlands, Poland, Romania, Serbia, Slovakia, Switzerland and the
United Kingdom
    · South: France, Italy and Tunisia
    · Iberia: Chile, Portugal and Spain
    · North America & Asia Pacific: Canada, Philippines and the United
States of America

# # #

For further information please contact:

Pablo Sánchez-Lozano, President and CEO                            +352
27 755 000

Aïssa Azzouzi, CFO                                                      
                 +352 27 755 013

Stefan Pettersson, Head of Investor Relations                          
+46 70 776 80 88