55135--2/11/2009--KELLY_SERVICES

related topics

{stock, price, operating}

{system, service, information}

{personnel, key, retain}

{condition, economic, financial}

{stock, price, share}

{regulation, government, change}

{operation, international, foreign}

{provision, law, control}

{competitive, industry, competition}

{financial, litigation, operation}

{control, financial, internal}

{debt, indebtedness, cash}

{cost, contract, operation}

{regulation, change, law}

We operate in a highly competitive industry with low barriers to entry, and may be unable to compete successfully against existing or new competitors. Our business is significantly affected by fluctuations in general economic conditions. Our loss of major customers or the deterioration of their financial condition or prospects could have a material adverse effect on our business. Our customer contracts contain termination provisions that could decrease our future revenues and earnings. We depend on our ability to attract and retain qualified temporary personnel. We may be exposed to employment-related claims and losses, including class action lawsuits, that could have a material adverse effect on our business. Unexpected changes in claim trends on our workers compensation and benefit plans may negatively impact our financial condition. Failure to maintain specified financial ratios in the Company s bank credit facility could adversely restrict our financial and operating flexibility and subject us to other risks, including access to capital markets. Damage to our key data centers could affect our ability to sustain critical business applications. Our investment in the PeopleSoft payroll, billing and accounts receivable project may not yield its intended results. We are highly dependent on our senior management and the continued performance and productivity of our local management and field personnel. Our business is subject to extensive government regulation, which may restrict the types of employment services we are permitted to offer or result in additional or increased tax or other costs that reduce our revenues and earnings. We conduct a significant portion of our operations outside of the United States and we are subject to risks relating to our international business activities, including fluctuations in currency exchange rates. If we fail to maintain effective internal control over our financial reporting, we may cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our stock. Our controlling stockholder exercises voting control over our company and has the ability to elect or remove from office all of our directors. We are not subject to most of the listing standards that normally apply to companies whose shares are quoted on the NASDAQ Global Market. Provisions in our certificate of incorporation and bylaws and Delaware law may delay or prevent an acquisition of our company. The holders of shares of our Class A common stock are not entitled to voting rights. Our stock price may be subject to significant volatility and could suffer a decline in value.

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55135--2/11/2009--KELLY_SERVICES_INC