TeleTech Reports Fourth Quarter 2005 Financial Results

TeleTech Holdings, Inc., a leading global business process outsourcing (BPO) provider of customer management and transaction-based processing solutions, today announced fourth quarter 2005 financial results. The Company also filed its Annual Report on Form 10-K with the Securities and Exchange Commission for the year ended December 31, 2005.

TeleTech’s fourth quarter revenue grew 16.6% over the year-ago quarter and 10.9% over the third quarter with record quarterly revenue of $304 million. Net income was $10.1 million, or 14 cents per diluted share. Approximately ten percent of the fourth quarter 2005′s revenue was from hurricane relief work. These results compare to quarterly revenue of $261 million and net income of $9.7 million, or 13 cents per diluted share, for the year-ago quarter. Included in the year-ago quarter’s operating results was a benefit of $4.8 million, or 4 cents per diluted share, arising from the reversal of certain employee-related healthcare liabilities. Please refer to the Company’s “Management’s Discussion & Analysis” section of the Form 10-K for a complete discussion of items affecting comparability to prior periods.

“We are extremely pleased to have achieved the majority of our planned strategic goals during 2005, including the implementation of worldwide best operating practices and the global standardization, centralization and virtualization of our technology platform,” said Ken Tuchman, Chairman and Chief Executive Officer. “We believe this solid operational foundation and increased demand for our complex back office outsourcing solutions puts us in a strong position to report record revenue again in 2006.”

“Going forward, we are focused on continuing to deliver innovative new offerings and driving profitable revenue growth,” continued Tuchman. “Towards this end, we have made significant progress having announced significant new, renewed and expanded client relationships since June of 2005. These new business wins and client renewals are the basis for our belief that revenue in 2006 will grow between 8 to 10 percent over 2005.”

SHARE REPURCHASE PROGRAM
During 2005, TeleTech repurchased 7.1 million shares, or approximately 10 percent of its common stock outstanding, for $67.8 million. In February 2006, the Board of Directors authorized an additional $50 million share repurchase program.

BUSINESS OUTLOOK
For the full year 2006, TeleTech expects organic revenue to grow between 8 to 10 percent over 2005 and believes its fourth quarter 2006 operating margin will approximate 6 to 7 percent, excluding unusual charges, if any.

SEC FILINGS
The Company’s filings with the Securities and Exchange Commission are available in the “Investors” section of TeleTech’s website, which can be found at www.teletech.com.

CONFERENCE CALL
TeleTech executive management will hold a conference call to discuss fourth quarter 2005 financial results on Wednesday, February 22, 2006, at 11:00 a.m. Eastern Time. You are invited to join a live webcast of the call by visiting the “Investors” section of the TeleTech website at www.teletech.com. If you are unable to participate during the live webcast, a replay of the call will be available on the TeleTech website through Wednesday, March 8, 2006.