TeleTech Reports Third Quarter 2005 Financial Results

TeleTech Holdings, Inc., a global provider of customer management and transaction-based business process outsourcing (BPO) services, today announced third quarter 2005 financial results. The Company also filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission for the quarter ended September 30, 2005.

Business highlights include:

• Several new client wins and key client renewals
• Third quarter 2005 operating margin more than doubles from last quarter
• Capacity utilization improves by 25 percent sequentially in shared client centers
• International segment profitable before corporate allocations
• Global profit improvement plans on track
• Newgen’s operating loss reduced by nearly half from last quarter
• Under construction for 1,500 new workstations in the Philippines
• $63 million of common stock repurchased year-to-date through October 31, 2005
• $52 million of international monies moved back to the U.S. resulting in no bank debt outstanding as of September 30, 2005

“We are pleased to report record revenue for the quarter and a significant improvement in our sequential operating margin,” said Ken Tuchman, Chairman and Chief Executive Officer. “Our improved performance is the result of the work we completed over the last 36 months to fine tune every aspect of our global business. We remain committed to achieving our long-term goal of growing both revenue and operating margin to a run rate of $1.5 billion and 10 percent, respectively, by the end of 2007.”

“We continue to see increased demand for our services as current and prospective clients are increasingly focused on our unique capabilities given we deliver both innovative offerings and measurable results,” continued Tuchman. “During the past several months, TeleTech renewed or expanded existing client business estimated at $70 million annually and signed new client relationships estimated at $20 million annually in the financial services, communications, healthcare, and commercial industries. We are investing in an enhanced product suite that leverages our existing infrastructure and is actively being marketed to current and prospective clients. We continue to expand and grow existing client relationships given our high client satisfaction levels, and our prospects for new business around the globe remain strong.”