Hudson Global (HSON) 8-K Hudson Highland Group Completes Sale of its Netherlands

Exhibit 99.2

HUDSON HIGHLAND GROUP, INC.

UNAUDITED PRO FORMA FINANCIAL INFORMATION

The unaudited pro forma financial information filed herewith as Exhibit 99.2 is incorporated herein by reference and reflects the unaudited pro forma consolidated condensed statements of operations of Hudson Highland Group, Inc. (the “Company”) for the nine months ended September 30, 2007 and the year ended December 31, 2006 and the unaudited pro forma condensed consolidated balance sheet of the Company as of September 30, 2007 reflecting the sale (the “Sale”) of the Company’s Netherlands work and mobility subsidiary, Hudson Human Capital Solutions B.V., (“HHCS”). The unaudited pro forma consolidated condensed statements of operations for the nine months ended September 30, 2007 and the year ended December 31, 2006 give effect to the Sale as if it occurred on January 1, 2006. The unaudited pro forma condensed consolidated balance sheet as of September 30, 2007 gives effect to the Sale as if it occurred on September 30, 2007. The unaudited pro forma financial information is based on the historical financial statements of the Company after giving effect to the Sale and is not necessarily indicative of the financial position or results of operations of the Company that would have actually occurred had the Sale occurred as of January 1, 2006 or September 30, 2007. The unaudited pro forma consolidated condensed financial statements have been prepared based on preliminary estimates. In the opinion of management, all adjustments have been made that are necessary to present fairly the unaudited pro forma financial information. The unaudited pro forma financial information should be read in conjunction with the Company’s historical financial statements included in its Form 10-K for the year ended December 31, 2006 and Form 10-Q for the quarter and nine months ended September 30, 2007.

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HUDSON HIGHLAND GROUP, INC.

PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(Unaudited)

	For the Nine Months Ended September 30, 2007
	As Reported			Pro Forma Adjustments (A)			Pro Forma Results
Revenue	$	1,007,134		$	(10,765	)	$	996,369
Direct costs		610,003			(5,844	)		604,159
Gross margin		397,131			(4,921	)		392,210
Operating expenses:
Selling, general and administrative expenses		366,208			(4,432	)		361,776
Compensation on JMT acquisition		3,551			—			3,551
Depreciation and amortization		11,396			(242	)		11,154
Business reorganization expenses		4,638			—			4,638
Merger and integration recoveries		(795	)		—			(795	)
Operating income		12,133			(247	)		11,886
Other income (expense):
Other, net		3,675			189			3,864
Interest, net		514			(12	)		502
Income from continuing operations before provision for income taxes		16,322			(70	)		16,252
Provision for income taxes		12,478			—			12,478
Income from continuing operations	$	3,844		$	(70	)	$	3,774
Basic and diluted per share:
Income from continuing operations	$	0.15					$	0.15
Weighted average shares outstanding:
Basic		25,205,000						25,205,000
Diluted		25,958,000						25,958,000

The accompanying note is an integral part of this financial statement.

HUDSON HIGHLAND GROUP, INC.

PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(Unaudited)

	For the Year Ended December 31, 2006
	As Reported			Pro Forma Adjustments(A)			Pro Forma Results
Revenue	$	1,373,473		$	(18,674	)	$	1,354,799
Direct costs		878,874			(9,753	)		869,121
Gross margin		494,599			(8,921	)		485,678
Operating expenses:
Selling, general and administrative expenses		461,280			(7,355	)		453,925
Depreciation and amortization		20,372			(438	)		19,934
Business reorganization expenses		6,048			—			6,048
Merger and integration expenses		373			—			373
Operating income		6,526			(1,128	)		5,398
Other income (expense):
Other, net		1,171			399			1,570
Interest, net		(1,641	)		7			(1,634	)
Income from continuing operations before provision for income taxes		6,056			(722	)		5,334
Provision for income taxes		4,544			(95	)		4,449
Income from continuing operations	$	1,512		$	(627	)	$	885
Basic and diluted per share:
Income from continuing operations	$	0.06					$	0.04
Weighted average shares outstanding:
Basic		24,471,000						24,471,000
Diluted		25,239,000						25,239,000

The accompanying note is an integral part of this financial statement.

HUDSON HIGHLAND GROUP, INC.

PRO FORMA CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands)

(unaudited)

	As of September 30, 2007
	As Reported		Pro Forma Adjustments(B)			Pro Forma Results
ASSETS
Current assets:
Cash and cash equivalents	$	34,874	$	(2,585	)	$	32,289
Accounts receivable, net		233,105		(2,879	)	$	230,226
Prepaid and other		17,163		(332	)		16,831
Current assets of discontinued operations		4,129		—			4,129
Total current assets		289,271		(5,796	)		283,475
Intangibles, net		76,521		—			76,521
Property and equipment, net		29,187		(343	)		28,844
Other assets		8,147		(740	)		7,407
Non-current assets of discontinued operations		8		—			8
Total assets	$	403,134	$	(6,879	)	$	396,255
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	32,116	$	(1,200	)	$	30,916
Accrued expenses and other current liabilities		131,408		(4,822	)		126,586
Short-term borrowings and current portion of long-term debt		15,494		—			15,494
Accrued business reorganization expenses		3,483		—			3,483
Accrued merger and integration expenses		440		—			440
Current liabilities of discontinued operations		539		—			539
Total current liabilities		183,480		(6,022	)		177,458
Other non-current liabilities		20,205		—			20,205
Accrued business reorganization expenses, non-current		3,763		—			3,763
Accrued merger and integration expenses, non-current		398		—			398
Long-term debt, less current portion		27		—			27
Total liabilities		207,873		(6,022	)		201,851
Total stockholders’ equity		195,261		(857	)		194,404
	$	403,134	$	(6,879	)	$	396,255

The accompanying note is an integral part of this financial statement.

HUDSON HIGHLAND GROUP, INC.

NOTE TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Pro Forma Adjustments

The accompanying unaudited pro forma consolidated condensed financial statements give effect to the following pro forma adjustments necessary to reflect the disposition and discontinuation of operations of the work and mobility business as outlined in the proceeding introduction as if the disposition occurred on January 1, 2006 in the unaudited pro forma consolidated condensed statements of operations and on September 30, 2007 in the unaudited pro forma consolidated condensed balance sheet.

(A) Reduction of revenue and expenses are the result of the disposition of HHCS. These amounts do not consider an allocation of corporate overhead to HHCS and therefore, selling general and administrative expenses do not reflect any potential reductions in costs in response to this change in the Company. These amounts are expected to be immaterial.

(B) Reduction of assets and liabilities are as a result of the disposition of HHCS and includes cash of $0.7 million from the proceeds, less other estimated payments and costs related to the disposition ($1.6 million).