There was continued demand for the enterprise solutions products i-GRasp andETWeb as customers increasingly sought to maximise returns from their investmentin people. Demand for the Online recruitment products, as in the prior quarter,continued to decline as customers review their overall staffing levels. The important monthly recurring revenue from Solutions` customers has increased30% between Q1 2008 and Q1 2009, driven by a combination of the growing customerbase and minimal churn in the monthly subscriptions. Recurring revenue growth issignificantly outpacing growth from licence fees and professional services. Online revenue has declined for the second successive quarter, in line with thereduced number of job vacancy listings carried on our sites. Customers continueto implement headcount freezes, re-deploy and reduce their workforce as theywrestle with the current economic downturn. The swift action on costs during Q4 2008 and into 2009 has enabled the companyto maintain Online and Solutions EBITDA margins at similar levels to thosedelivered in 2008.

Group operating costs have been reduced by ?3.8m between Q42008 and Q1 2009. As a result, Q1 2009 Online EBITDA margins were 32%, the same as Q1 2008, whilstSolutions EBITDA margins were 10% compared to 12% in Q1 2008. Total companyAdjusted EBITDA for the quarter was ?4.2m representing a 16% margin. The company generated ?4.6m cash from operations in Q1 2009, compared to ?6.8min Q1 2008. During the quarter StepStone acquired the remaining 30% of its Chinese operationand settled the remaining ?0.6m liability in respect of the acquisition ofRecruiter AS in 2008.

The company ended Q1 2009 with ?33.5m of cash and only ?13.8m of interestbearing debt. In addition the company has access to over ?20.0m of undrawnbanking facilities. OutlookStepStone remains a cash generative, well financed and profitable provider ofsoftware and services for the Human Capital Management ("HCM") sector. We have aportfolio of software products and services delivered to a wide geographic baseof customers. Q1 2009 was a solid operating start to what is expected to continue to be a verychallenging year - a year with reduced overall visibility and high expectationsof continued softening of demand, particularly in the Online sector.

The company remains focussed on market share and careful management of cash andcosts. Given the current market conditions, StepStone has already taken actionsto resize the company and reduce its cost base and will continue to closelymanage both costs and cash through 2009. About StepStoneStepStone is a leading international provider of human capital management("HCM") software and services. Its technology and services helps organisationsattract, retain and develop their talent. StepStone was founded in Norway in1996 and listed on the Oslo Børs (Ticker STP.NO) in 2000 and the London StockExchange (LSE: STPS) in 2008. The company is one of just ten businessesshortlisted as European Business of the Year for the 2009 European BusinessAwards.

StepStone operates some of Europe`s largest talent networks which matchemployers with potential employees and provides a complete suite of HCM softwaresolutions. Through its extensive talent network in Europe, StepStone hasprivileged insight into the needs and demands of today`s workforce, allowing thecompany to develop highly innovative HCM solutions. StepStone`s comprehensive portfolio of software and services enableorganisations to implement efficient HCM processes. These services include;attraction and hiring, post-hire talent management, performance management,compensation management, skills and competency management, career and successionplanning, training and development management. As at Q4 2008 more than 16,000 organisations, including many of the world`sleading businesses, use StepStone software and services It operates in 17countries and employs more than 850 people. Its global customers includeDeutsche Telekom, Aviva, PricewaterhouseCoopers, AstraZeneca, ThyssenKrupp, Fiatand Telefonica. For more information see: StepStoneIan Clapp, Director of Investor RelationsTel: + 44 7850 orFinancial PRHudson SandlerAndrew Hayes / Wendy BakerTel: + 44 20 7796 Copyright Business Wire 2009.