Kelly Services 8K REPORTS 4th QUARTER 2009 AND YEAR-END RESULTS | KELYA 5 Feb 10

Exhibit 99.1

KELLY SERVICES REPORTS 4th QUARTER 2009 AND YEAR-END RESULTS

TROY, MI (February 5, 2010) — Kelly Services, Inc., a world leader in workforce management services and human resources solutions, today announced results for the fourth quarter and year ended January 3, 2010.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the fourth quarter of 2009 totaled $1.2 billion, a 7% decrease compared to the corresponding quarter in 2008. On a sequential basis, fourth quarter revenue increased 14%, compared to the third quarter in 2009. Revenue for the full year totaled $4.3 billion, a 22% decrease compared to the prior year. The fourth quarter included an extra week which adds approximately 4-5% to our quarterly comparisons and 1% to annual comparisons.

Losses from operations for the fourth quarter of 2009 totaled $13.0 million, compared to losses from operations of $83.7 million reported for the fourth quarter of 2008. Included in the results from operations for the fourth quarter of 2009 are restructuring charges of $13.4 million. The loss from operations in the fourth quarter of 2008 included impairment charges of $80.5 million and restructuring charges of $4.3 million. Excluding the impairment and restructuring charges, earnings from operations were $0.4 million in the fourth quarter of 2009 compared to $1.1 million in 2008.

Losses from operations for the full year of 2009 totaled $146.1 million compared to a loss of $70.3 million in 2008. The results for the full year 2009 include $53.1 million of impairment charges, $5.3 million of legal charges and $29.9 million of restructuring charges. The results for 2008 included $80.5 million of impairment charges, $22.5 million of legal charges and $6.5 million of restructuring charges.

Diluted losses per share from continuing operations in the fourth quarter of 2009 were $0.23 compared to fourth quarter 2008 losses of $2.55 per share. The restructuring charges totaled $0.29 per share in the fourth quarter of 2009. The impairment charges were $2.22 per share and the restructuring charges were $0.11 per share in the fourth quarter of 2008.

Diluted losses per share from continuing operations for the full year of 2009 were $3.01 compared to 2008 losses of $2.35 per share. The impairment charges totaled $1.43 per share, legal charges totaled $0.09 per share and restructuring charges totaled $0.69 per share in 2009. The impairment charges were $2.22 per share, legal charges were $0.40 per share and the restructuring charges were $0.15 per share in 2008.

Commenting on the fourth quarter results, Camden was optimistic. “We are very pleased that the improved revenue trends in our business, combined with our significant cost reduction initiatives allowed us to realize a small operating profit for the fourth quarter, excluding restructuring charges.”

Camden added that while 2009 has been a challenging year for the staffing industry, “Kelly has done an excellent job of re-shaping and strategically positioning the company to seize future growth opportunities and create value for our shareholders.

“We look forward to 2010, and will focus on maximizing profitability across all operations; accelerating growth of higher-margin Professional & Technical disciplines and outsourcing and consulting services; winning new business; and helping our customers manage their ever-changing workforce needs.”

In conjunction with its fourth quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on February 5, to review the results and answer questions. The call may be accessed in one of the following ways:

Via the Telephone:


U.S.		1 800 288-9626
International		1 612 332-0107

The pass code is Kelly Services

Via the Internet:

The call is also available via the internet through the Kelly Services website:
www.kellyservices.com

This release contains statements that are forward looking in nature and accordingly, are subject to risks and uncertainties. These factors include: competition, changing market and economic conditions, currency fluctuations, changes in laws and regulations, including tax laws, and other factors discussed in this release and in the Company’s filings with the Securities and Exchange Commission. Actual results may differ materially from any forward looking statements contained herein.

About Kelly Services

Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly offers a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temp-to-hire and permanent placement basis. Serving clients around the globe, Kelly provides employment to 480,000 employees annually. Revenue in 2009 was $4.3 billion. Visitwww.kellyservices.com.


ANALYST CONTACT: James Polehna (248) 244-4586 james_polehna@kellyservices.com		MEDIA CONTACT: Jane Stehney (248) 244-5630 jane_stehney@kellyservices.com

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 14 WEEKS ENDED JANUARY 3, 2010 AND 13 WEEKS ENDED DECEMBER 28, 2008
(UNAUDITED)
(In millions of dollars except per share data)


	2009			2008			Change			% Change

Revenue from services	$	1,194.1		$	1,279.1		$	(85.0	)		(6.6	)%

Cost of services		1,005.8			1,054.5			(48.7	)		(4.6	)


Gross profit		188.3			224.6			(36.3	)		(16.2	)

Selling, general and administrative expenses		201.3			227.8			(26.5	)		(11.7	)

Asset impairments		—			80.5			(80.5	)		(100.0	)


Loss from operations		(13.0	)		(83.7	)		70.7			84.5

Other expense, net		(0.9	)		(3.4	)		2.5			73.8


Loss from continuing operations before taxes		(13.9	)		(87.1	)		73.2			84.1

Income taxes		(5.7	)		1.5			(7.2	)		(469.5	)


Loss from continuing operations		(8.2	)		(88.6	)		80.4			90.8

Loss from discontinued operations, net of tax		—			(0.1	)		0.1			100.0


Net loss	$	(8.2	)	$	(88.7	)	$	80.5			90.8	%


Basic loss per share on common stock
Loss from continuing operations	$	(0.23	)	$	(2.55	)	$	2.32			91.0	%
Loss from discontinued operations		—			(0.01	)		0.01			100.0
Net loss		(0.23	)		(2.55	)		2.32			91.0

Diluted loss per share on common stock
Loss from continuing operations	$	(0.23	)	$	(2.55	)	$	2.32			91.0	%
Loss from discontinued operations		—			(0.01	)		0.01			100.0
Net loss		(0.23	)		(2.55	)		2.32			91.0

STATISTICS:

Gross profit rate		15.8	%		17.6	%		(1.8	) pts.

Selling, general and administrative expenses:
% of revenue		16.8			17.8			(1.0	)
% of gross profit		106.9			101.4			5.5

% Return — Loss from operations		(1.1	)		(6.5	)		5.4
Loss from continuing operations before taxes		(1.2	)		(6.8	)		5.6
Loss from continuing operations		(0.7	)		(6.9	)		6.2
Net loss		(0.7	)		(6.9	)		6.2

Effective income tax rate		41.0	%		(1.8	)%		42.8	pts.

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 53 WEEKS ENDED JANUARY 3, 2010 AND 52 WEEKS ENDED DECEMBER 28, 2008
(In millions of dollars except per share data)


	2009			2008			Change			% Change

Revenue from services	$	4,314.8		$	5,517.3		$	(1,202.5	)		(21.8	)%

Cost of services		3,613.1			4,539.7			(926.6	)		(20.4	)


Gross profit		701.7			977.6			(275.9	)		(28.2	)

Selling, general and administrative expenses		794.7			967.4			(172.7	)		(17.9	)

Asset impairments		53.1			80.5			(27.4	)		(34.1	)


Loss from operations		(146.1	)		(70.3	)		(75.8	)		(107.8	)

Other expense, net		(2.2	)		(3.4	)		1.2			35.8


Loss from continuing operations before taxes		(148.3	)		(73.7	)		(74.6	)		(101.1	)

Income taxes		(43.2	)		8.0			(51.2	)	NM


Loss from continuing operations		(105.1	)		(81.7	)		(23.4	)		(28.6	)

Earnings (loss) from discontinued operations, net of tax		0.6			(0.5	)		1.1			212.0


Net loss	$	(104.5	)	$	(82.2	)	$	(22.3	)		(27.0	)%


Basic loss per share on common stock
Loss from continuing operations	$	(3.01	)	$	(2.35	)	$	(0.66	)		(28.1	)%
Earnings (loss) from discontinued operations		0.02			(0.02	)		0.04			200.0
Net loss		(3.00	)		(2.37	)		(0.63	)		(26.6	)

Diluted loss per share on common stock
Loss from continuing operations	$	(3.01	)	$	(2.35	)	$	(0.66	)		(28.1	)%
Earnings (loss) from discontinued operations		0.02			(0.02	)		0.04			200.0
Net loss		(3.00	)		(2.37	)		(0.63	)		(26.6	)

STATISTICS:

Gross profit rate		16.3	%		17.7	%		(1.4	) pts.

Selling, general and administrative expenses:
% of revenue		18.4			17.5			0.9
% of gross profit		113.2			99.0			14.2

% Return — Loss from operations		(3.4	)		(1.3	)		(2.1	)
Loss from continuing operations before taxes		(3.4	)		(1.3	)		(2.1	)
Loss from continuing operations		(2.4	)		(1.5	)		(0.9	)
Net loss		(2.4	)		(1.5	)		(0.9	)

Effective income tax rate		29.1	%		(10.8	)%		39.9	pts.

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)


	Fourth Quarter
										Constant
	2009			2008						Currency
	(14 Weeks)			(13 Weeks)			Change			Change
Americas Commercial
Revenue from services (including fee-based income)	$	557.4		$	595.6			(6.4	)%		(7.3	)%
Fee-based income		1.5			2.8			(46.7	)		(48.3	)
Gross profit		79.8			96.4			(17.2	)		(18.0	)
SG&A expenses excluding restructuring charges		67.9			79.7			(14.8	)
Restructuring charges		3.5			0.6			450.2
Total SG&A expenses		71.4			80.3			(11.1	)		(11.9	)
Earnings from operations		8.4			16.1			(47.7	)
Earnings from operations excluding restructuring charges		11.9			16.7			(28.9	)

Gross profit rate		14.3	%		16.2	%		(1.9	) pts.
Expense rates (excluding restructuring charges):
% of revenue		12.2			13.4			(1.2	)
% of gross profit		85.0			82.5			2.5
Operating margin (excluding restructuring charges)		2.2			2.8			(0.6	)

Americas PT
Revenue from services (including fee-based income)	$	208.3		$	219.3			(5.0	)%		(5.3	)%
Fee-based income		2.2			3.7			(39.8	)		(40.0	)
Gross profit		31.9			37.5			(14.9	)		(15.1	)
SG&A expenses excluding restructuring charges		24.7			27.8			(11.0	)
Restructuring charges		0.8			—		NM
Total SG&A expenses		25.5			27.8			(8.1	)		(8.3	)
Earnings from operations		6.4			9.7			(34.4	)
Earnings from operations excluding restructuring charges		7.2			9.7			(26.2	)

Gross profit rate		15.3	%		17.1	%		(1.8	) pts.
Expense rates (excluding restructuring charges):
% of revenue		11.9			12.7			(0.8	)
% of gross profit		77.5			74.1			3.4
Operating margin (excluding restructuring charges)		3.4			4.4			(1.0	)

EMEA Commercial
Revenue from services (including fee-based income)	$	238.9		$	283.3			(15.7	)%		(22.8	)%
Fee-based income		4.3			7.5			(42.6	)		(45.6	)
Gross profit		37.4			47.6			(21.5	)		(28.3	)
SG&A expenses excluding restructuring charges		35.2			51.4			(31.4	)
Restructuring charges		4.9			3.0			60.0
Total SG&A expenses		40.1			54.4			(26.3	)		(32.5	)
Earnings from operations		(2.7	)		(6.8	)		59.9
Earnings from operations excluding restructuring charges		2.2			(3.8	)	NM

Gross profit rate		15.7	%		16.8	%		(1.1	) pts.
Expense rates (excluding restructuring charges):
% of revenue		14.8			18.1			(3.3	)
% of gross profit		94.2			107.8			(13.6	)
Operating margin (excluding restructuring charges)		0.9			(1.3	)		2.2

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)


	Fourth Quarter
										Constant
	2009			2008						Currency
	(14 Weeks)			(13 Weeks)			Change			Change
EMEA PT
Revenue from services (including fee-based income)	$	39.6		$	38.4			3.0	%		(6.1	)%
Fee-based income		3.6			5.5			(34.4	)		(37.4	)
Gross profit		9.8			11.2			(12.7	)		(19.4	)
Total SG&A expenses		10.6			11.7			(9.5	)		(17.1	)
Earnings from operations		(0.8	)		(0.5	)		(58.0	)

Gross profit rate		24.7	%		29.1	%		(4.4	) pts.
Expense rates:
% of revenue		26.8			30.5			(3.7	)
% of gross profit		108.5			104.7			3.8
Operating margin		(2.1	)		(1.4	)		(0.7	)

APAC Commercial
Revenue from services (including fee-based income)	$	83.0		$	73.5			12.9	%		(2.2	)%
Fee-based income		2.9			3.0			(6.2	)		(15.2	)
Gross profit		12.1			11.4			6.8			(7.8	)
SG&A expenses excluding restructuring charges		11.6			12.4			(7.2	)
Restructuring charges		1.4			—		NM
Total SG&A expenses		13.0			12.4			4.6			(9.8	)
Earnings from operations		(0.9	)		(1.0	)		19.7
Earnings from operations excluding restructuring charges		0.5			(1.0	)	NM

Gross profit rate		14.6	%		15.5	%		(0.9	) pts.
Expense rates (excluding restructuring charges):
% of revenue		13.9			16.9			(3.0	)
% of gross profit		95.0			109.3			(14.3	)
Operating margin (excluding restructuring charges)		0.7			(1.4	)		2.1

APAC PT
Revenue from services (including fee-based income)	$	7.2		$	7.2			(0.4	)%		(15.9	)%
Fee-based income		1.0			0.8			29.9			17.7
Gross profit		2.1			1.9			7.8			(7.0	)
Total SG&A expenses		2.6			2.2			19.3			2.4
Earnings from operations		(0.5	)		(0.3	)		(106.4	)

Gross profit rate		28.6	%		26.4	%		2.2	pts.
Expense rates:
% of revenue		35.8			29.9			5.9
% of gross profit		125.2			113.1			12.1
Operating margin		(7.2	)		(3.5	)		(3.7	)

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)


	Fourth Quarter
										Constant
	2009			2008						Currency
	(14 Weeks)			(13 Weeks)			Change			Change
OCG
Revenue from services (including fee-based income)	$	68.2		$	68.4			(0.3	)%		(1.3	)%
Fee-based income		6.0			7.2			(16.2	)		(19.6	)
Gross profit		15.5			18.9			(18.0	)		(19.6	)
SG&A expenses excluding restructuring charges		17.9			18.0			(0.8	)
Restructuring charges		1.3			0.4			239.5
Total SG&A expenses		19.2			18.4			4.1			1.1
Earnings from operations		(3.7	)		0.5		NM
Earnings from operations excluding restructuring charges		(2.4	)		0.9		NM

Gross profit rate		22.7	%		27.6	%		(4.9	) pts.
Expense rates (excluding restructuring charges):
% of revenue		26.2			26.4			(0.2	)
% of gross profit		115.7			95.6			20.1
Operating margin (excluding restructuring charges)		(3.6	)		1.2			(4.8	)

Corporate Expense
SG&A expenses excluding restructuring charges	$	17.7		$	20.6			(14.2	)%
Restructuring charges		1.5			0.3			418.1
Total SG&A expenses		19.2			20.9			(8.1	)		(8.1	)

Asset Impairments	$	—		$	80.5			(100.0	)%

Consolidated Total (excluding intersegment activity)
Revenue from services (including fee-based income)	$	1,194.1		$	1,279.1			(6.6	)%		(10.0	)%
Fee-based income		21.5			30.5			(29.5	)		(33.0	)
Gross profit		188.3			224.6			(16.2	)		(19.4	)
SG&A expenses excluding restructuring charges		187.9			223.5			(16.0	)
Restructuring charges		13.4		��	4.3			209.0
Total SG&A expenses		201.3			227.8			(11.7	)		(15.1	)
Earnings from operations		(13.0	)		(83.7	)		84.5
Earnings from operations excluding restructuring charges		0.4			(79.4	)	NM

Gross profit rate		15.8	%		17.6	%		(1.8	) pts.
Expense rates (excluding restructuring charges):
% of revenue		15.7			17.5			(1.8	)
% of gross profit		99.8			99.4			0.4
Operating margin (excluding restructuring charges)		0.0			(6.2	)		6.2

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT
(UNAUDITED)
(In millions of dollars)


	December Year to Date
										Constant
	2009			2008						Currency
	(53 Weeks)			(52 Weeks)			Change			Change
Americas Commercial
Revenue from services (including fee-based income)	$	1,980.3		$	2,516.7			(21.3	)%		(20.3	)%
Fee-based income		6.6			15.7			(58.4	)		(56.8	)
Gross profit		290.7			399.0			(27.1	)		(26.3	)
SG&A expenses excluding restructuring charges		273.2			328.2			(16.7	)
Restructuring charges		7.2			0.9		NM
Total SG&A expenses		280.4			329.1			(14.8	)		(13.8	)
Earnings from operations		10.3			69.9			(85.1	)
Earnings from operations excluding restructuring charges		17.5			70.8			(75.2	)

Gross profit rate		14.7	%		15.9	%	(1.2		) pts.
Expense rates (excluding restructuring charges):
% of revenue		13.8			13.0			0.8
% of gross profit		93.9			82.2			11.7
Operating margin (excluding restructuring charges)		0.9			2.8			(1.9	)

Americas PT
Revenue from services (including fee-based income)	$	792.6		$	938.2			(15.5	)%		(15.4	)%
Fee-based income		9.4			19.4			(51.5	)		(51.4	)
Gross profit		125.1			161.7			(22.6	)		(22.5	)
SG&A expenses excluding restructuring charges		100.9			113.3			(10.9	)
Restructuring charges		1.0			—		NM
Total SG&A expenses		101.9			113.3			(10.0	)		(9.8	)
Earnings from operations		23.2			48.4			(52.2	)
Earnings from operations excluding restructuring charges		24.2			48.4			(50.0	)

Gross profit rate		15.8	%		17.2	%	(1.4		) pts.
Expense rates (excluding restructuring charges):
% of revenue		12.7			12.1			0.6
% of gross profit		80.7			70.1			10.6
Operating margin (excluding restructuring charges)		3.0			5.2			(2.2	)

EMEA Commercial
Revenue from services (including fee-based income)	$	895.2		$	1,310.5			(31.7	)%		(24.9	)%
Fee-based income		16.6			39.5			(58.0	)		(52.6	)
Gross profit		140.2			227.3			(38.4	)		(32.5	)
SG&A expenses excluding restructuring charges		150.3			226.5			(33.7	)
Restructuring charges		15.6			3.9			301.4
Total SG&A expenses		165.9			230.4			(28.0	)		(20.2	)
Earnings from operations		(25.7	)		(3.1	)	NM
Earnings from operations excluding restructuring charges		(10.1	)		0.8		NM

Gross profit rate		15.7	%		17.4	%	(1.7		) pts.
Expense rates (excluding restructuring charges):
% of revenue		16.8			17.3			(0.5	)
% of gross profit		107.2			99.6			7.6
Operating margin (excluding restructuring charges)		(1.1	)		0.1			(1.2	)

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)


	December Year to Date
										Constant
	2009			2008						Currency
	(53 Weeks)			(52 Weeks)			Change			Change
EMEA PT
Revenue from services (including fee-based income)	$	141.9		$	172.5			(17.8	)%		(10.7	)%
Fee-based income		15.7			26.8			(41.2	)		(33.2	)
Gross profit		37.8			51.2			(26.2	)		(18.8	)
Total SG&A expenses		40.6			48.9			(16.9	)		(8.5	)
Earnings from operations		(2.8	)		2.3		NM

Gross profit rate		26.6	%		29.7	%	(3.1		) pts.
Expense rates:
% of revenue		28.6			28.3			0.3
% of gross profit		107.6			95.5			12.1
Operating margin		(2.0	)		1.3			(3.3	)

APAC Commercial
Revenue from services (including fee-based income)	$	284.9		$	336.0			(15.2	)%		(11.0)	%
Fee-based income		9.7			17.0			(43.0	)		(40.6	)
Gross profit		41.6			56.3			(26.1	)		(22.6	)
SG&A expenses excluding restructuring charges		44.6			56.6			(21.3	)
Restructuring charges		1.6			—		NM
Total SG&A expenses		46.2			56.6			(18.5	)		(14.8	)
Earnings from operations		(4.6	)		(0.3	)	NM
Earnings from operations excluding restructuring charges		(3.0	)		(0.3	)	NM

Gross profit rate		14.6	%		16.8	%	(2.2		) pts.
Expense rates (excluding restructuring charges):
% of revenue		15.6			16.8			(1.2	)
% of gross profit		107.0			100.5			6.5
Operating margin (excluding restructuring charges)		(1.0	)		(0.1	)		(0.9	)

APAC PT
Revenue from services (including fee-based income)	$	25.4		$	34.3			(26.0	)%		(24.3	)%
Fee-based income		3.8			5.1			(25.0	)		(21.0	)
Gross profit		7.7			10.2			(25.1	)		(22.6	)
Total SG&A expenses		9.2			10.7			(14.2	)		(9.9	)
Earnings from operations		(1.5	)		(0.5	)		(224.9	)

Gross profit rate		30.2	%		29.8	%	0.4		pts.
Expense rates:
% of revenue		36.2			31.2			5.0
% of gross profit		119.8			104.6			15.2
Operating margin		(6.0	)		(1.4	)		(4.6	)

KELLY SERVICES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS BY SEGMENT (continued)
(UNAUDITED)
(In millions of dollars)


	December Year to Date
										Constant
	2009			2008						Currency
	(53 Weeks)			(52 Weeks)			Change			Change
OCG
Revenue from services (including fee-based income)	$	219.9		$	233.3			(5.7	)%		(4.7	)%
Fee-based income		24.4			27.8			(12.3	)		(9.4	)
Gross profit		59.7			72.9			(18.0	)		(16.1	)
SG&A expenses excluding restructuring charges		69.6			69.5			0.0
Restructuring charges		1.9			0.5			328.4
Total SG&A expenses		71.5			70.0			2.0			4.3
Earnings from operations		(11.8	)		2.9		NM
Earnings from operations excluding restructuring charges		(9.9	)		3.4		NM

Gross profit rate		27.2	%		31.2	%	(4.0		) pts.
Expense rates (excluding restructuring charges):
% of revenue		31.7			29.8			1.9
% of gross profit		116.6			95.6			21.0
Operating margin (excluding restructuring charges)		(4.5	)		1.4			(5.9	)

Corporate Expense
SG&A expenses excluding restructuring charges	$	77.5		$	108.2			(28.4	)%
Restructuring charges		2.6			1.2			116.3
Total SG&A expenses		80.1			109.4			(26.8	)		(26.8	)

Asset Impairments	$	53.1		$	80.5			(34.1	)%

Consolidated Total (excluding intersegment activity)
Revenue from services (including fee-based income)	$	4,314.8		$	5,517.3			(21.8	)%		(19.2	)%
Fee-based income		86.1			151.3			(43.1	)		(39.2	)
Gross profit		701.7			977.6			(28.2	)		(25.7	)
SG&A expenses excluding restructuring charges		764.8			960.9			(20.4	)
Restructuring charges		29.9			6.5			360.9
Total SG&A expenses		794.7			967.4			(17.9	)		(14.8	)
Earnings from operations		(146.1	)		(70.3	)		(107.8	)
Earnings from operations excluding restructuring charges		(116.2	)		(63.8	)		(82.0	)

Gross profit rate		16.3	%		17.7	%	(1.4		) pts.
Expense rates (excluding restructuring charges):
% of revenue		17.7			17.4			0.3
% of gross profit		109.0			98.3			10.7
Operating margin (excluding restructuring charges)		(2.7	)		(1.2	)		(1.5	)

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions of dollars)


	January 3,			December 28,
	2010			2008
Current Assets
Cash and equivalents	$	88.9		$	118.3
Trade accounts receivable, less allowances of $15.0 and $17.0, respectively		717.9			815.8
Prepaid expenses and other current assets		70.6			62.0
Deferred taxes		21.0			31.9


Total current assets		898.4			1,028.0

Property and Equipment, Net		127.1			151.3

Noncurrent Deferred Taxes		77.5			40.0

Goodwill, Net		67.3			117.8

Other Assets		131.4			120.2



Total Assets	$	1,301.7		$	1,457.3


Current Liabilities
Short-term borrowings and current portion of long-term debt	$	79.6		$	35.2
Accounts payable and accrued liabilities		182.6			244.1
Accrued payroll and related taxes		208.3			243.2
Accrued insurance		19.7			26.3
Income and other taxes		47.4			51.8


Total current liabilities		537.6			600.6

Noncurrent Liabilities
Long-term debt		57.5			80.0
Accrued insurance		47.3			46.9
Accrued retirement benefits		76.9			61.6
Other long-term liabilities		16.0			15.3


Total noncurrent liabilities		197.7			203.8

Stockholders’ Equity
Common stock		40.1			40.1
Treasury stock		(107.2	)		(111.2	)
Paid-in capital		36.9			35.8
Earnings invested in the business		571.5			676.0
Accumulated other comprehensive income		25.1			12.2


Total stockholders’ equity		566.4			652.9


Total Liabilities and Stockholders’ Equity	$	1,301.7		$	1,457.3


STATISTICS:
Working Capital	$	360.8		$	427.4
Current Ratio		1.7			1.7
Debt-to-capital %		19.5	%		15.0	%
Global Days Sales Outstanding		51			50

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 53 WEEKS ENDED JANUARY 3, 2010 AND 52 WEEKS ENDED DECEMBER 28, 2008
(In millions of dollars)


	2009			2008

Cash flows from operating activities
Net loss	$	(104.5	)	$	(82.2	)
Noncash adjustments:
Impairment of assets		53.1			80.5
Depreciation and amortization		40.9			46.0
Provision for bad debts		2.2			6.7
Stock-based compensation		5.1			4.4
Other, net		(2.2	)		3.7
Changes in operating assets and liabilities		(11.8	)		42.5


Net cash from operating activities		(17.2	)		101.6


Cash flows from investing activities
Capital expenditures		(13.1	)		(31.1	)
Acquisition of companies, net of cash received		(7.5	)		(32.7	)
Other investing activities		(2.8	)		(0.2	)


Net cash from investing activities		(23.4	)		(64.0	)


Cash flows from financing activities
Net change in revolving line of credit		52.7			(34.2	)
Repayment of debt		(30.5	)		—
Proceeds from debt		—			42.5
Dividend payments		—			(19.1	)
Purchase of treasury stock		—			(8.0	)
Other financing activities		(12.8	)		10.0


Net cash from financing activities		9.4			(8.8	)


Effect of exchange rates on cash and equivalents		1.8			(3.3	)


Net change in cash and equivalents		(29.4	)		25.5
Cash and equivalents at beginning of period		118.3			92.8


Cash and equivalents at end of period	$	88.9		$	118.3

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)


	Fourth Quarter (Commercial, PT and OCG)
					% Change
	2009		2008					Constant
	(14 Weeks)		(13 Weeks)		US$			Currency

Americas
United States	$	733.1	$	781.5		(6.2	)%		(6.2	)%
Canada		51.5		50.2		2.7			(9.9	)
Mexico		19.0		18.1		5.3			6.6
Puerto Rico		15.0		18.7		(19.7	)		(19.7	)

Total Americas		818.6		868.5		(5.7	)		(6.4	)

EMEA
France		78.7		75.1		4.7			(6.2	)
United Kingdom		43.1		80.7		(46.5	)		(48.1	)
Switzerland		38.8		41.4		(6.4	)		(17.5	)
Russia		19.9		22.3		(10.8	)		(3.3	)
Portugal		19.4		15.6		24.4			11.3
Italy		19.0		25.2		(24.8	)		(32.9	)
Germany		17.6		17.7		0.3			(10.5	)
Norway		17.3		16.9		1.7			(14.2	)
Other		29.0		32.7		(11.4	)		(20.1	)

Total EMEA		282.8		327.6		(13.7	)		(21.0	)

APAC
Australia		30.4		26.0		16.9			(13.1	)
Singapore		17.9		16.1		10.9			4.1
Malaysia		13.7		12.3		12.3			7.7
Other		30.7		28.6		7.0			(3.8	)

Total APAC		92.7		83.0		11.6			(3.5	)

Total Kelly Services, Inc.	$	1,194.1	$	1,279.1		(6.6	)%		(10.0	)%

KELLY SERVICES, INC. AND SUBSIDIARIES
REVENUE FROM SERVICES
(UNAUDITED)
(In millions of dollars)


	December Year to Date (Commercial, PT and OCG)
					% Change
	2009		2008					Constant
	(53 Weeks)		(52 Weeks)		US$			Currency

Americas
United States	$	2,634.3	$	3,237.1		(18.6	)%		(18.6	)%
Canada		183.4		237.8		(22.9	)		(17.5	)
Mexico		66.5		76.2		(12.7	)		6.2
Puerto Rico		57.9		77.4		(25.2	)		(25.2	)

Total Americas		2,942.1		3,628.5		(18.9	)		(18.2	)

EMEA
France		272.7		350.8		(22.3	)		(18.3	)
United Kingdom		206.7		398.0		(48.1	)		(37.0	)
Switzerland		138.6		184.9		(25.1	)		(25.2	)
Italy		72.9		131.9		(44.7	)		(41.5	)
Russia		65.4		90.9		(28.0	)		(8.9	)
Germany		65.1		83.0		(21.5	)		(17.2	)
Norway		61.7		86.1		(28.4	)		(18.9	)
Portugal		59.5		27.5		116.5			124.9
Other		111.2		154.4		(28.0	)		(22.1	)

Total EMEA		1,053.8		1,507.5		(30.1	)		(23.3	)

APAC
Australia		98.3		133.7		(26.4	)		(21.3	)
Singapore		64.4		71.3		(9.6	)		(7.3	)
Malaysia		50.1		55.2		(9.2	)		(4.1	)
Other		106.1		121.1		(12.5	)		(9.0	)

Total APAC		318.9		381.3		(16.4	)		(12.3	)

Total Kelly Services, Inc.	$	4,314.8	$	5,517.3		(21.8	)%		(19.2	)%

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)
(In millions of dollars except per share data)


	Fourth Quarter						December Year to Date
	2009			2008			2009			2008

Pretax loss from operations	$	(13.0	)	$	(83.7	)	$	(146.1	)	$	(70.3	)

Restructuring charges (Note 1)		13.4			4.3			29.9			6.5
Asset impairments (Note 2)		—			80.5			53.1			80.5
Litigation charges		—			—			5.3			22.5


Earnings (loss) from operations excluding restructuring, asset impairment and litigation charges	$	0.4		$	1.1		$	(57.8	)	$	39.2


	Fourth Quarter
	2009						2008
	Amount			Per Share			Amount			Per Share

Loss from continuing operations, net of tax	$	(8.2	)	$	(0.23	)	$	(88.6	)	$	(2.55	)

Restructuring charges, net of taxes (Note 1)		10.1			0.29			3.7			0.11
Asset impairments, net of taxes (Note 2)		—			—			77.2			2.22


Earnings (loss) from continuing operations excluding restructuring and asset impairment charges, net of taxes	$	1.9		$	0.05		$	(7.7	)	$	(0.22	)


	December Year to Date
	2009						2008
	Amount			Per Share			Amount			Per Share

Loss from continuing operations, net of tax	$	(105.1	)	$	(3.01	)	$	(81.7	)	$	(2.35	)

Restructuring charges, net of taxes (Note 1)		24.0			0.69			5.3			0.15
Asset impairments, net of taxes (Note 2)		50.0			1.43			77.2			2.22
Litigation charges, net of taxes		3.3			0.09			13.9			0.40


(Loss) earnings from continuing operations excluding restructuring, asset impairment and litigation charges, net of taxes	$	(27.8	)	$	(0.80	)	$	14.7		$	0.42

KELLY SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP MEASURES
(UNAUDITED)

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the impairment, restructuring and litigation charges is useful to understand the Company’s fiscal 2009 financial performance and increases comparability. Specifically, Management believes that excluding these items allows for a more meaningful comparison of current period operating performance with the operating results of prior periods. These non-GAAP measures may have limitations as analytical tools because they exclude items which can have a material impact on cash flow and earnings per share. As a result, Management considers these measures, along with reported results, when it reviews and evaluates the Company’s financial performance. Management believes that these measures provide greater transparency to investors and provide insight into how Management is evaluating the Company’s financial performance. Non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

(1) Restructuring charges represent global costs incurred in connection with the reduction in the number of permanent employees and the consolidation, sale or closure of branch locations. These costs include severance, lease terminations, asset write-offs and other miscellaneous costs.

(2) For 2009, asset impairment charges include adjustments to the value of goodwill for the Company’s Americas Commercial, EMEA PT and APAC Commercial reporting segments, and long-lived assets and intangible assets related to Japan and Europe. For 2008, asset impairment charges include adjustments to the value of goodwill for the Company’s EMEA Commercial segment, the Company’s investment in Tempstaff, and assets related to operations in the U.K.

Kelly Services (KELYA) 8-KKELLY SERVICES REPORTS 4th QUARTER 2009 AND YEAR-END RESULTS