Accordance with the Adecco Board's Official Declaration:
In a significant development, the global HR solutions provider, Adecco Group, has been hit by investigations from the US Securities and Exchange Commission (SEC) and the US Attorney's Office for the Southern District of New York. The investigations centre around unspecified matters, with no direct or specific mentions of material weaknesses in the internal controls and practices of Adecco Staffing North America as stated in any Adecco Board statement dated January 16, 2004.
The company, a Forbes 500 company and the global leader in HR Solutions, has been facing challenges in maintaining its financial transparency. The delay in announcing audited results for the year ended December 28, 2003, has caused concerns among investors and the general public.
In response to these challenges, the Board of Directors held an extraordinary meeting on January 15, 2004, to discuss the situation. John Bowmer, Chairman of the Board, has agreed to serve as Executive Chairman with immediate effect, leading the company's efforts regarding the pending enquiries. Jérôme Caille, Group CEO, will concentrate on managing day-to-day business and enhancing the company's leading position worldwide.
The company's Group CFO, Felix Weber, has resigned and will be replaced on an interim basis by the current Group Financial Controller, Andres Cano. Julio Arrieta has also resigned as CEO of Staffing North America.
Despite these challenges, the Board of Directors remains confident about the company's future. They have mandated the law firm Paul Weiss, Rifkind, Wharton & Garrison LLP to conduct an investigation into these matters. The Audit and Finance Committee of the Board will oversee this investigation.
A media conference will be held at 13.00 CET (07.00 EST) on Friday, January 16, 2004, and a telephone conference for analysts and investors will be held at 15.00 CET (09.00 EST). Conference telephone numbers for US participants are 1 718 354 1153, while those for European participants are 44 (0) 207 785 1005 and 1 718 354 1153.
Additional information about the company can be found on its website at www.adecco.com. Enquiries can be made to the media centre at 41 1 878 8888 or Cubitt Consulting at 44 20 7367 5100.
The Adecco Group's network connects 650,000 associates with business clients each day through its network of 28,000 employees and more than 5,800 offices in 68 territories around the world. As of the end of 2003, the company's cash and cash equivalents and short-term investments were CHF 1.4 billion (€900 million). The company is registered in Switzerland and is listed on the Swiss Exchange (ADEN / trading on Virt-x: 1213860), NYSE (ADO), and Euronext Premier Marché (12819).
The press release for this announcement can be downloaded from the provided link. The company's Annual Report on Form 20-F for the year ended December 31, 2002, discusses factors and risks associated with the business. For more specific details about the material weaknesses in Adecco's internal controls or practices, it is recommended to consult official SEC filings or company archives from January 2004 for the Adecco Group's internal control statements.
The Adecco Group, a Forbes 500 company and the global leader in HR Solutions, is currently facing challenges in maintaining its financial transparency, as evident in the delayed announcement of audited results for the year ended December 28, 2003. In response to these financial concerns, staffing solutions industry experts are closely monitoring the company's operations and financial practices, as the unfolding investigations from the US Securities and Exchange Commission (SEC) and the US Attorney's Office for the Southern District of New York may impact the company's future finances and reputation.
