Kelly Services (KELYA) 8-K KELLY SERVICES REPORTS 4th QUARTER AND FULL YEAR 2010 RESULTS

Exhibit 99.1

KELLY SERVICES REPORTS 4th QUARTER AND FULL YEAR 2010 RESULTS

TROY, MI (February 3, 2011) — Kelly Services, Inc. (NASDAQ:KELYA) (NASDAQ:KELYB), a leader in providing workforce solutions, today announced results for the fourth quarter and full year 2010.

Carl T. Camden, President and Chief Executive Officer, announced revenue for the fourth quarter of 2010 totaled $1.3 billion, an 11% increase compared to the corresponding quarter in 2009. Revenue for the full year totaled $5.0 billion, a 15% increase compared to the prior year. The fourth quarter of 2009 included an extra week which reduces the quarterly and annual comparisons by approximately 5% and 1%, respectively.

Earnings from operations for the fourth quarter of 2010 totaled $16.9 million, compared to losses from operations of $13.0 million reported for the fourth quarter of 2009. Included in the results from operations for the fourth quarter of 2009 are restructuring charges of $13.4 million.

Earnings from operations for the full year of 2010 totaled $38.1 million compared to a loss of $146.1 million in 2009. The results for the full year 2010 include $7.2 million of restructuring charges. The results for 2009 include $29.9 million of restructuring charges and $53.1 million of goodwill and related impairment charges.

Diluted earnings per share from continuing operations in the fourth quarter of 2010 were $0.39 compared to fourth quarter 2009 losses of $0.23 per share. The restructuring charges were $0.29 per share in the fourth quarter of 2009.

Diluted earnings per share from continuing operations for the full year of 2010 were $0.71 compared to 2009 losses of $3.01 per share. In 2010, the restructuring charges totaled $0.15 per share. In 2009, the restructuring charges totaled $0.69 per share and goodwill and related impairment charges totaled $1.43 per share.

Commenting on the fourth quarter results, Camden stated, “We’re pleased to report another successful quarter fueled by sustained demand for temporary staffing, a healthier global economy, and Kelly’s focus on business execution and operational excellence.”

Camden added that 2010 was much improved over a very difficult 2009, and Kelly made significant progress during the year in response to a changing labor market.

“As we begin 2011 and look to the future, we will continue to focus on building shareholder value by delivering a competitive profit in our industry, from the right solutions for our customers, delivered by the best talent in the business,” said Camden.

In conjunction with its fourth quarter earnings release, Kelly Services, Inc. will host a conference call at 9:00 a.m. (ET) on February 3, 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	1 651 291-5254

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, but are not limited to, competitive market pressures including pricing, changing market and economic conditions, material changes in demand from large corporate customers, availability of temporary workers with appropriate skills required by customers, increases in wages paid to temporary workers, liabilities for client and employee actions, foreign currency fluctuations, changes in laws and regulations (including federal, state and international tax laws), continued availability of financing for funding working capital and acquisitions and for general corporate purposes, the Company’s ability to effectively implement and manage its information technology programs, the ability of the Company to successfully expand into new markets and service lines, and other risks, uncertainties and factors discussed in this release and in the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2010 filed 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, temporary-to-hire and direct-hire basis. Serving clients around the globe, Kelly provides employment to more than 530,000 employees annually. Revenue in 2010 was $5.0 billion. Visit www.kellyservices.com and connect with us on facebook.com/kellyservices, linkedin.com/companies/kelly-services and twitter.com/kellyservices.

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

2

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 13 WEEKS ENDED JANUARY 2, 2011 AND 14 WEEKS ENDED JANUARY 3, 2010
(UNAUDITED)
(In millions of dollars except per share data)

	2010			2009			Change			% Change
Revenue from services	$	1,325.8		$	1,194.1		$	131.7			11.0	%
Cost of services		1,109.4			1,005.8			103.6			10.3
Gross profit		216.4			188.3			28.1			15.0
Selling, general and administrative expenses		199.0			201.3			(2.3	)		(1.1	)
Asset impairments		0.5			—			0.5		NM
Earnings (loss) from operations		16.9			(13.0	)		29.9		NM
Other expense, net		(0.7	)		(0.9	)		0.2			14.6
Earnings (loss) from continuing operations before taxes		16.2			(13.9	)		30.1		NM
Income taxes		1.6			(5.7	)		7.3			127.2
Earnings (loss) from continuing operations		14.6			(8.2	)		22.8		NM
Earnings from discontinued operations, net of tax		—			—			—		NM
Net earnings (loss)	$	14.6		$	(8.2	)	$	22.8		NM		%
Basic earnings (loss) per share on common stock
Earnings (loss) from continuing operations	$	0.39		$	(0.23	)	$	0.62		NM		%
Earnings from discontinued operations		—			—			—		NM
Net earnings (loss)		0.39			(0.23	)		0.62		NM
Diluted Earnings (loss) per share on common stock
Earnings (loss) from continuing operations	$	0.39		$	(0.23	)	$	0.62		NM		%
Earnings from discontinued operations		—			—			—		NM
Net earnings (loss)		0.39			(0.23	)		0.62		NM
STATISTICS:
Gross profit rate		16.3	%		15.8	%		0.5	pts.
Selling, general and administrative expenses:
% of revenue		15.0			16.8			(1.8	)
% of gross profit		92.0			106.9			(14.9	)
% Return — Earnings (loss) from operations		1.3			(1.1	)		2.4
Earnings (loss) from continuing operations before taxes		1.2			(1.2	)		2.4
Earnings (loss) from continuing operations		1.1			(0.7	)		1.8
Net earnings (loss)		1.1			(0.7	)		1.8
Effective income tax rate		9.5	%		41.0	%		(31.5	)pts.
Average number of shares outstanding (millions):
Basic		36.7			34.9
Diluted		36.7			34.9

3

KELLY SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE 52 WEEKS ENDED JANUARY 2, 2011 AND 53 WEEKS ENDED JANUARY 3, 2010
(UNAUDITED)
(In millions of dollars except per share data)

	2010			2009			Change			% Change
Revenue from services	$	4,950.3		$	4,314.8		$	635.5			14.7	%
Cost of services		4,155.8			3,613.1			542.7			15.0
Gross profit		794.5			701.7			92.8			13.2
Selling, general and administrative expenses		754.4			794.7			(40.3	)		(5.1	)
Asset impairments		2.0			53.1			(51.1	)		(96.2	)
Earnings (loss) from operations		38.1			(146.1	)		184.2			NM
Other expense, net		(5.4	)		(2.2	)		(3.2	)		(144.7	)
Earnings (loss) from continuing operations before taxes		32.7			(148.3	)		181.0			NM
Income taxes		6.6			(43.2	)		49.8			115.3
Earnings (loss) from continuing operations		26.1			(105.1	)		131.2			NM
Earnings from discontinued operations, net of tax		—			0.6			(0.6	)		(100.0	)
Net earnings (loss)	$	26.1		$	(104.5	)	$	130.6			NM	%
Basic earnings (loss) per share on common stock
Earnings (loss) from continuing operations	$	0.71		$	(3.01	)	$	3.72		NM		%
Earnings from discontinued operations		—			0.02			(0.02	)		(100.0	)
Net earnings (loss)		0.71			(3.00	)		3.71			NM
Diluted Earnings (loss) per share on common stock
Earnings (loss) from continuing operations	$	0.71		$	(3.01	)	$	3.72		NM		%
Earnings from discontinued operations		—			0.02			(0.02	)		(100.0	)
Net earnings (loss)		0.71			(3.00	)		3.71			NM
STATISTICS:
Gross profit rate		16.0	%		16.3	%		(0.3	)pts.
Selling, general and administrative expenses:
% of revenue		15.2			18.4			(3.2	)
% of gross profit		94.9			113.2			(18.3	)
% Return — Earnings (loss) from operations		0.8			(3.4	)		4.2
Earnings (loss) from continuing operations before taxes		0.7			(3.4	)		4.1
Earnings (loss) from continuing operations		0.5			(2.4	)		2.9
Net earnings (loss)		0.5			(2.4	)		2.9
Effective income tax rate		20.2	%		29.1	%		(8.9	)pts.
Average number of shares outstanding (millions):
Basic		36.1			34.9
Diluted		36.1			34.9

4

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

	Fourth Quarter
										Constant
	2010			2009						Currency
	(13 Weeks)			(14 Weeks)			Change			Change
Americas Commercial
Revenue from services (including fee-based income)	$	646.3		$	557.4			16.0	%		15.3	%
Fee-based income		2.3			1.5			49.9			48.6
Gross profit		98.4			79.8			23.3			22.6
SG&A expenses excluding restructuring charges		73.4			67.9			8.2
Restructuring charges		—			3.5			(100.0	)
Total SG&A expenses		73.4			71.4			2.9			2.4
Earnings from operations		25.0			8.4			194.8
Earnings from operations excluding restructuring charges		25.0			11.9			108.3
Gross profit rate		15.2	%		14.3	%		0.9	pts.
Expense rates (excluding restructuring charges):
% of revenue		11.4			12.2			(0.8	)
% of gross profit		74.6			85.0			(10.4	)
Operating margin (excluding restructuring charges)		3.9			2.2			1.7
Americas PT
Revenue from services (including fee-based income)	$	229.9		$	208.3			10.4	%		10.3	%
Fee-based income		2.3			2.2			4.8			4.6
Gross profit		36.8			31.9			15.2			15.1
SG&A expenses excluding restructuring charges		24.5			24.7			(0.8	)
Restructuring charges		—			0.8			(100.0	)
Total SG&A expenses		24.5			25.5			(3.9	)		(4.0	)
Earnings from operations		12.3			6.4			92.0
Earnings from operations excluding restructuring charges		12.3			7.2			70.5
Gross profit rate		16.0	%		15.3	%		0.7	pts.
Expense rates (excluding restructuring charges):
% of revenue		10.7			11.9			(1.2	)
% of gross profit		66.8			77.5			(10.7	)
Operating margin (excluding restructuring charges)		5.3			3.4			1.9
EMEA Commercial
Revenue from services (including fee-based income)	$	229.2		$	238.9			(4.0	)%		0.6	%
Fee-based income		4.7			4.3			9.9			14.8
Gross profit		37.2			37.4			(0.6	)		4.4
SG&A expenses excluding restructuring charges		34.8			35.2			(1.4	)
Restructuring charges		—			4.9			(100.0	)
Total SG&A expenses		34.8			40.1			(13.3	)		(9.7	)
Earnings from operations		2.4			(2.7	)	NM
Earnings from operations excluding restructuring charges		2.4			2.2			12.8
Gross profit rate		16.2	%		15.7	%		0.5	pts.
Expense rates (excluding restructuring charges):
% of revenue		15.2			14.8			0.4
% of gross profit		93.5			94.2			(0.7	)
Operating margin (excluding restructuring charges)		1.1			0.9			0.2

5

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

	Fourth Quarter
										Constant
	2010			2009						Currency
	(13 Weeks)			(14 Weeks)			Change			Change
EMEA PT
Revenue from services (including fee-based income)	$	41.2		$	39.6			4.0	%		9.8	%
Fee-based income		3.8			3.6			5.1			10.0
Gross profit		10.4			9.8			6.9			12.7
Total SG&A expenses		9.3			10.6			(12.7	)		(8.6	)
Earnings from operations		1.1			(0.8	)	NM
Gross profit rate		25.4	%		24.7	%		0.7	pts.
Expense rates:
% of revenue		22.5			26.8			(4.3	)
% of gross profit		88.7			108.5			(19.8	)
Operating margin		2.9			(2.1	)		5.0
APAC Commercial
Revenue from services (including fee-based income)	$	102.0		$	83.0			22.9	%		14.8	%
Fee-based income		2.9			2.9			0.7			(6.1	)
Gross profit		12.9			12.1			6.0			(1.1	)
SG&A expenses excluding restructuring charges		13.1			11.6			13.7
Restructuring charges		—			1.4			(100.0	)
Total SG&A expenses		13.1			13.0			0.9			(5.7	)
Earnings from operations		(0.2	)		(0.9	)		72.3
Earnings from operations excluding restructuring charges		(0.2	)		0.5		NM
Gross profit rate		12.6	%		14.6	%		(2.0	)pts.
Expense rates (excluding restructuring charges):
% of revenue		12.9			13.9			(1.0	)
% of gross profit		101.8			95.0			6.8
Operating margin (excluding restructuring charges)		(0.2	)		0.7			(0.9	)
APAC PT
Revenue from services (including fee-based income)	$	8.9		$	7.2			23.8	%		16.2	%
Fee-based income		2.9			1.0			189.7			174.1
Gross profit		3.8			2.1			86.7			76.1
Total SG&A expenses		5.0			2.6			93.3			82.8
Earnings from operations		(1.2	)		(0.5	)		(119.4	)
Gross profit rate		43.2	%		28.6	%		14.6	pts.
Expense rates:
% of revenue		55.9			35.8			20.1
% of gross profit		129.6			125.2			4.4
Operating margin		(12.8	)		(7.2	)		(5.6	)

6

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

	Fourth Quarter
										Constant
	2010			2009						Currency
	(13 Weeks)			(14 Weeks)			Change			Change
OCG
Revenue from services (including fee-based income)	$	75.0		$	68.2			9.9	%		10.1	%
Fee-based income		7.3			6.0			21.4			21.7
Gross profit		17.6			15.5			13.5			14.1
SG&A expenses excluding restructuring charges		20.7			17.9			15.8
Restructuring charges		—			1.3			(100.0	)
Total SG&A expenses		20.7			19.2			8.2			8.5
Earnings from operations		(3.1	)		(3.7	)		14.0
Earnings from operations excluding restructuring charges		(3.1	)		(2.4	)		(30.6	)
Gross profit rate		23.4	%		22.7	%		0.7	pts.
Expense rates (excluding restructuring charges):
% of revenue		27.6			26.2			1.4
% of gross profit		118.0			115.7			2.3
Operating margin (excluding restructuring charges)		(4.2	)		(3.6	)		(0.6	)
Corporate Expense
SG&A expenses excluding restructuring charges	$	18.9		$	17.7			6.7	%
Restructuring charges		—			1.5			(100.0	)
Total SG&A expenses		18.9			19.2			(1.7	)
Asset impairments		0.5			—		NM
Consolidated Total (net of intersegment activity)
Revenue from services (including fee-based income)	$	1,325.8		$	1,194.1			11.0	%		11.3	%
Fee-based income		26.0			21.5			21.7			21.8
Gross profit		216.4			188.3			15.0			15.4
SG&A expenses excluding restructuring charges		199.0			187.9			6.0
Restructuring charges		—			13.4			(100.0	)
Total SG&A expenses		199.0			201.3			(1.1	)		(0.9	)
Asset impairments		0.5			—		NM
Earnings from operations		16.9			(13.0	)	NM
Earnings from operations excluding restructuring charges		16.9			0.4		NM
Gross profit rate		16.3	%		15.8	%		0.5	pts.
Expense rates (excluding restructuring charges):
% of revenue		15.0			15.7			(0.7	)
% of gross profit		92.0			99.8			(7.8	)
Operating margin (excluding restructuring charges)		1.3			0.0			1.3

7

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

	December Year to Date
										Constant
	2010			2009						Currency
	(52 Weeks)			(53 Weeks)			Change			Change
Americas Commercial
Revenue from services (including fee-based income)	$	2,428.2		$	1,980.3			22.6	%		21.4	%
Fee-based income		8.8			6.6			31.8			29.0
Gross profit		354.9			290.7			22.0			21.0
SG&A expenses excluding restructuring charges		275.3			273.2			0.7
Restructuring charges		0.3			7.2			(95.0	)
Total SG&A expenses		275.6			280.4			(1.7	)		(2.6	)
Earnings from operations		79.3			10.3		NM
Earnings from operations excluding restructuring charges		79.6			17.5			352.7
Gross profit rate		14.6	%		14.7	%		(0.1	)pts.
Expense rates (excluding restructuring charges):
% of revenue		11.3			13.8			(2.5	)
% of gross profit		77.5			93.9			(16.4	)
Operating margin (excluding restructuring charges)		3.3			0.9			2.4
Americas PT
Revenue from services (including fee-based income)	$	889.0		$	792.6			12.2	%		12.0	%
Fee-based income		9.0			9.4			(4.5	)		(4.9	)
Gross profit		140.0			125.1			12.0			11.8
SG&A expenses excluding restructuring charges		93.7			100.9			(7.0	)
Restructuring charges		—			1.0			(100.0	)
Total SG&A expenses		93.7			101.9			(8.0	)		(8.2	)
Earnings from operations		46.3			23.2			100.1
Earnings from operations excluding restructuring charges		46.3			24.2			91.4
Gross profit rate		15.8	%		15.8	%		—	pts.
Expense rates (excluding restructuring charges):
% of revenue		10.5			12.7			(2.2	)
% of gross profit		67.0			80.7			(13.7	)
Operating margin (excluding restructuring charges)		5.2			3.0			2.2
EMEA Commercial
Revenue from services (including fee-based income)	$	872.0		$	895.2			(2.6	)%		(0.9	)%
Fee-based income		19.1			16.6			15.9			16.0
Gross profit		141.0			140.2			0.6			2.3
SG&A expenses excluding restructuring charges		130.5			150.3			(13.2	)
Restructuring charges		2.7			15.6			(82.8	)
Total SG&A expenses		133.2			165.9			(19.7	)		(18.9	)
Asset impairments		1.5			—		NM
Earnings from operations		6.3			(25.7	)	NM
Earnings from operations excluding restructuring charges		9.0			(10.1	)	NM
Gross profit rate		16.2	%		15.7	%		0.5	pts.
Expense rates (excluding restructuring charges):
% of revenue		15.0			16.8			(1.8	)
% of gross profit		92.6			107.2			(14.6	)
Operating margin (excluding restructuring charges)		1.0			(1.1	)		2.1

8

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

	December Year to Date
										Constant
	2010			2009						Currency
	(52 Weeks)			(53 Weeks)			Change			Change
EMEA PT
Revenue from services (including fee-based income)	$	147.6		$	141.9			4.0	%		6.7	%
Fee-based income		15.0			15.7			(4.3	)		(4.1	)
Gross profit		38.7			37.8			2.9			4.8
Total SG&A expenses		36.9			40.6			(9.3	)		(8.2	)
Earnings from operations		1.8			(2.8	)	NM
Gross profit rate		26.3	%		26.6	%		(0.3	)pts.
Expense rates:
% of revenue		25.0			28.6			(3.6	)
% of gross profit		94.8			107.6			(12.8	)
Operating margin		1.4			(2.0	)		3.4
APAC Commercial
Revenue from services (including fee-based income)	$	355.3		$	284.9			24.7	%		12.9	%
Fee-based income		11.4			9.7			16.6			5.6
Gross profit		48.4			41.6			16.2			4.6
SG&A expenses excluding restructuring charges		45.1			44.6			1.3
Restructuring charges		0.5			1.6			(66.5	)
Total SG&A expenses		45.6			46.2			(1.0	)		(10.7	)
Earnings from operations		2.8			(4.6	)	NM
Earnings from operations excluding restructuring charges		3.3			(3.0	)	NM
Gross profit rate		13.6	%		14.6	%		(1.0	)pts.
Expense rates (excluding restructuring charges):
% of revenue		12.7			15.6			(2.9	)
% of gross profit		93.3			107.0			(13.7	)
Operating margin (excluding restructuring charges)		0.9			(1.0	)		1.9
APAC PT
Revenue from services (including fee-based income)	$	32.5		$	25.4			28.2	%		16.8	%
Fee-based income		10.5			3.8			172.1			156.3
Gross profit		13.9			7.7			81.3			68.3
Total SG&A expenses		17.0			9.2			85.1			72.0
Earnings from operations		(3.1	)		(1.5	)		(104.5	)
Gross profit rate		42.7	%		30.2	%		12.5	pts.
Expense rates:
% of revenue		52.2			36.2			16.0
% of gross profit		122.3			119.8			2.5
Operating margin		(9.5	)		(6.0	)		(3.5	)

9

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

	December Year to Date
										Constant
	2010			2009						Currency
	(52 Weeks)			(53 Weeks)			Change			Change
OCG
Revenue from services (including fee-based income)	$	254.8		$	219.9			15.8	%		15.6	%
Fee-based income		25.6			24.4			4.9			3.9
Gross profit		60.0			59.7			0.2			(0.1	)
SG&A expenses excluding restructuring charges		77.5			69.6			11.3
Restructuring charges		0.1			1.9			(96.0	)
Total SG&A expenses		77.6			71.5			8.5			8.1
Earnings from operations		(17.6	)		(11.8	)		(50.8	)
Earnings from operations excluding restructuring charges		(17.5	)		(9.9	)		(78.3	)
Gross profit rate		23.5	%		27.2	%		(3.7	)pts.
Expense rates (excluding restructuring charges):
% of revenue		30.4			31.7			(1.3	)
% of gross profit		129.5			116.6			12.9
Operating margin (excluding restructuring charges)		(6.9	)		(4.5	)		(2.4	)
Corporate Expense
SG&A expenses excluding restructuring charges	$	73.6		$	77.5			(5.1)	%
Restructuring charges		3.6			2.6			37.4
Total SG&A expenses		77.2			80.1			(3.7	)
Asset impairments		0.5			53.1			(99.1	)
Consolidated Total (net of intersegment activity)
Revenue from services (including fee-based income)	$	4,950.3		$	4,314.8			14.7	%		13.7	%
Fee-based income		99.0			86.1			15.0			12.6
Gross profit		794.5			701.7			13.2			12.3
SG&A expenses excluding restructuring charges		747.2			764.8			(2.3	)
Restructuring charges		7.2			29.9			(75.8	)
Total SG&A expenses		754.4			794.7			(5.1	)		(5.9	)
Asset impairments		2.0			53.1			(96.2	)
Earnings from operations		38.1			(146.1	)	NM
Earnings from operations excluding restructuring charges		45.3			(116.2	)	NM
Gross profit rate		16.0	%		16.3	%		(0.3	)pts.
Expense rates (excluding restructuring charges):
% of revenue		15.1			17.7			(2.6	)
% of gross profit		94.0			109.0			(15.0	)
Operating margin (excluding restructuring charges)		0.9			(2.7	)		3.6

10

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

	January 2,			January 3,
	2011			2010
Current Assets
Cash and equivalents	$	80.5		$	88.9
Trade accounts receivable, less allowances of $12.3 and $15.0, respectively		810.9			717.9
Prepaid expenses and other current assets		44.8			70.6
Deferred taxes		22.4			21.0
Total current assets		958.6			898.4
Property and Equipment, Net		104.0			127.1
Noncurrent Deferred Taxes		84.0			77.5
Goodwill, Net		67.3			67.3
Other Assets		154.5			142.2
Total Assets	$	1,368.4		$	1,312.5
Current Liabilities
Short-term borrowings and current portion of long-term debt	$	78.8		$	79.6
Accounts payable and accrued liabilities		181.6			182.6
Accrued payroll and related taxes		243.3			208.3
Accrued insurance		31.3			22.9
Income and other taxes		56.0			47.4
Total current liabilities		591.0			540.8
Noncurrent Liabilities
Long-term debt		—			57.5
Accrued insurance		53.6			54.9
Accrued retirement benefits		85.4			76.9
Other long-term liabilities		14.6			16.0
Total noncurrent liabilities		153.6			205.3
Stockholders’ Equity
Common stock		40.1			40.1
Treasury stock		(70.9	)		(107.2	)
Paid-in capital		28.0			36.9
Earnings invested in the business		597.6			571.5
Accumulated other comprehensive income		29.0			25.1
Total stockholders’ equity		623.8			566.4
Total Liabilities and Stockholders’ Equity	$	1,368.4		$	1,312.5
STATISTICS:
Working Capital	$	367.6		$	357.6
Current Ratio		1.6			1.7
Debt-to-capital %		11.2	%		19.5	%
Global Days Sales Outstanding		49			51

11

KELLY SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE 52 WEEKS ENDED JANUARY 2, 2011 AND 53 WEEKS ENDED JANUARY 3, 2010
(UNAUDITED)
(In millions of dollars)

	2010			2009
Cash flows from operating activities
Net earnings (loss)	$	26.1		$	(104.5	)
Noncash adjustments:
Impairment of assets		2.0			53.1
Depreciation and amortization		34.9			40.9
Provision for bad debts		2.1			2.2
Stock-based compensation		3.2			5.1
Other, net		0.5			(2.2	)
Changes in operating assets and liabilities		(27.0	)		(22.0	)
Net cash from operating activities		41.8			(27.4	)
Cash flows from investing activities
Capital expenditures		(11.0	)		(13.1	)
Acquisition of companies, net of cash received		—			(7.5	)
Other investing activities		(0.3	)		(2.8	)
Net cash from investing activities		(11.3	)		(23.4	)
Cash flows from financing activities
Net change in short-term borrowings		(44.8	)		52.7
Repayment of debt		(14.9	)		(30.5	)
Sale of stock and other financing activities		24.4			(2.6	)
Net cash from financing activities		(35.3	)		19.6
Effect of exchange rates on cash and equivalents		(3.6	)		1.8
Net change in cash and equivalents		(8.4	)		(29.4	)
Cash and equivalents at beginning of period		88.9			118.3
Cash and equivalents at end of period	$	80.5		$	88.9

12

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

	Fourth Quarter (Commercial, PT and OCG)
					% Change
	2010		2009					Constant
	(13 Weeks)		(14 Weeks)		US$			Currency
Americas
United States	$	829.6	$	733.1		13.2	%		13.2	%
Canada		56.2		51.5		8.9			4.4
Mexico		27.6		19.0		45.2			37.4
Puerto Rico		22.6		15.0		51.5			51.5
Total Americas		936.0		818.6		14.4			13.9
EMEA
France		72.2		78.7		(8.2	)		(0.0	)
Switzerland		50.7		38.8		30.5			24.5
United Kingdom		28.5		43.1		(33.9	)		(31.6	)
Russia		28.1		19.9		41.3			47.4
Portugal		21.8		19.4		12.5			22.5
Germany		19.2		17.6		8.3			17.9
Italy		17.2		19.0		(9.5	)		(1.3	)
Norway		14.3		17.3		(17.3	)		(13.6	)
Other		23.8		29.0		(17.7	)		(11.4	)
Total EMEA		275.8		282.8		(2.5	)		2.4
APAC
Australia		40.6		30.4		33.8			23.2
Singapore		24.1		17.9		34.6			25.7
Malaysia		15.9		13.7		15.9			6.1
India		17.0		11.9		43.1			37.8
Other		16.4		18.8		(13.1	)		(16.6	)
Total APAC		114.0		92.7		23.0			14.9
Total Kelly Services, Inc.	$	1,325.8	$	1,194.1		11.0	%		11.3	%

13

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

	December Year to Date (Commercial, PT and OCG)
					% Change
	2010		2009					Constant
	(52 Weeks)		(53 Weeks)		US$			Currency
Americas
United States	$	3,121.9	$	2,634.3		18.5	%		18.5	%
Canada		219.0		183.4		19.4			8.3
Mexico		93.7		66.5		40.8			32.2
Puerto Rico		78.2		57.9		35.1			35.1
Total Americas		3,512.8		2,942.1		19.4			18.5
EMEA
France		278.4		272.7		2.1			7.6
Switzerland		170.7		138.6		23.2			18.6
United Kingdom		134.1		206.7		(35.1	)		(34.5	)
Russia		103.6		65.4		58.4			53.0
Portugal		80.6		59.5		35.5			43.4
Germany		69.8		65.1		7.1			13.1
Italy		63.3		72.9		(13.2	)		(8.6	)
Norway		57.4		61.7		(7.0	)		(10.2	)
Other		80.7		111.2		(27.4	)		(24.6	)
Total EMEA		1,038.6		1,053.8		(1.4	)		0.4
APAC
Australia		128.8		98.3		31.1			13.5
Singapore		84.3		64.4		30.8			22.5
Malaysia		63.3		50.1		26.3			15.2
India		61.4		36.6		67.8			59.0
Other		61.1		69.5		(12.1	)		(20.8	)
Total APAC		398.9		318.9		25.1			13.3
Total Kelly Services, Inc.	$	4,950.3	$	4,314.8		14.7	%		13.7	%

14

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
	2010		2009			2010		2009
Pretax earnings (loss) from operations	$	16.9	$	(13.0	)	$	38.1	$	(146.1	)
Restructuring charges (Note 1)		—		13.4			7.2		29.9
Goodwill and related impairment charges (Note 2)		—		—			—		53.1
Earnings (loss) from operations excluding restructuring and goodwill and related impairment charges	$	16.9	$	0.4		$	45.3	$	(63.1	)

	Fourth Quarter
	2010				2009
	Amount		Per Share		Amount			Per Share
Earnings (loss) from continuing operations, net of taxes	$	14.6	$	0.39	$	(8.2	)	$	(0.23	)
Restructuring charges, net of taxes (Note 1)		—		—		10.1			0.29
Earnings from continuing operations excluding restructuring charges, net of taxes	$	14.6	$	0.39	$	1.9		$	0.05

	December Year to Date
	2010				2009
	Amount		Per Share		Amount			Per Share
Earnings (loss) from continuing operations, net of taxes	$	26.1	$	0.71	$	(105.1	)	$	(3.01	)
Restructuring charges, net of taxes (Note 1)		5.4		0.15		24.0			0.69
Goodwill and related impairment charges, net of taxes (Note 2)		—		—		50.0			1.43
Earnings (loss) from continuing operations excluding restructuring and goodwill and related impairment charges, net of taxes	$	31.5	$	0.86	$	(31.1	)	$	(0.89	)

15

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

Management believes that the non-GAAP (Generally Accepted Accounting Principles) information excluding the restructuring and impairment charges is useful to understand the Company’s fiscal 2010 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) In 2010, restructuring costs relate primarily to severance and lease termination costs for branches in the EMEA and APAC Commercial segments that were in the process of closure at the end of 2009, as well as severance costs related to the corporate headquarters. In 2009, restructuring costs relate primarily to global severance, lease terminations, asset write-offs and other miscellaneous costs incurred in connection with the reduction in the number of permanent employees and the consolidation, sale or closure of branch locations.

(2) In 2009, the goodwill and related impairment charges included adjustments to the value of goodwill for the Company’s Americas Commercial, APAC Commercial and EMEA PT segments, as well as long- lived assets and intangibles related to operations in Japan and Europe.

16