Good morning ladies and gentlemen and welcome to Kelly Services fourth quarter 2008 earnings conference call. All parties will be on listen only until the question and answer portion of the presentation. Today's call is being recorded at the request of Kelly Services. If anyone has any objections you may disconnect at this time. I would now like to turn the meeting over to your host, Mr. Carl Camden, President and CEO. Sir, please go ahead.

Thank you, [John]. Good morning and welcome to Kelly Services 2008 fourth quarter and year end Conference Call. Before we begin, let me quickly review the agenda. I'll lead off with a few comments on the current economic situation and its impact on the labor market; then I'll discuss Kelly's earnings and review fourth quarter operating results by segment. Following that, Patricia Little, our CFO will provide more detailed financial commentary, including some additional cost cutting actions that we're announcing today. Finally, I'll recap Kelly's strategic initiatives in response to the change in economic landscape and make a few closing comments before opening the call for questions. Let me remind you that any comments made during this call, including the Q&A, may include forward-looking statements about our expectations for future performance. Actual results could differ materially from those suggested by our comments. Please refer to our 2007 10-K for a description of the risk factors that could influence the company's actual future performance. In addition, we also make reference to non-GAAP performance measures; please refer to the schedules attached to our press release for information on the performance measures and a comparison to our reported financial results. As you're all aware, the fourth quarter was an especially rough one. The widespread economic slowdown and anxiety over the global financial crisis intensified. We saw unprecedented reductions in temporary employment and belatedly received confirmation that we are in fact, in a global recession. Like virtually all other industries, ours has been seriously affected, particularly here in the U.S. where businesses are retrenching, putting expansion plans on hold, and taking actions to optimize their operating results, including reducing personnel expenses. December saw the 12th straight month of overall job losses in the U.S. What's more, jobless claims have reached a 26 year high…

Before I get into the operating results, let me provide a little more information on the fourth quarter accounting charges. We took a non-cash pretax charge of $80.5 million or $2.22 per share for asset impairments in the fourth quarter. $50 million of the impairment charge was a write down of goodwill. During the fourth quarter we completed our annual analysis of goodwill and after carefully reviewing the current equity market and economic conditions, as well as projected cash flows we determined that goodwill in our AMEA commercial segment was impaired and an accounting charge was appropriate. We also wrote down $18.7 million for our investment in Tempstaff a Japanese staffing company. Although we still believe this a good long-term investment the market value has been lower than our cost for nine months and it is appropriate under GAAP to write the investment down to its year-end market value. Also as a result of continued poor operating results in the U.K. we reduced the carrying value of our assets there by $11.4 million. All of these charges are non-cash. Carl talked about our U.K. operations where we have made a decision to further restructure our operations. We expect to consolidate and close a number of branches and we are still working through the restructuring plans, but I anticipate total charges of between $11 million and $14 million primarily for lease termination and severance costs; $1.5 million of these costs were included in the fourth quarter and we expect the remainder, $9.5 million to $12.5, million to occur during 2009. Additionally you may recall that we recorded a restructuring charge of $1.3 million or $0.02 per share in the fourth quarter of 2007. All of the comparisons we reference this morning exclude impairment and restructuring charges. Now moving to our operating…

I wish that I could tell you that we see an end to the economic turmoil, but unfortunately the indicators that we monitor offer neither clarity nor signs of a bottom to this downturn. In fact trends and economic benchmarks of the past 18 months suggest that the world economy could realistically deteriorate further before it begins to turnaround. What’s certain is this recession and the circumstances that surround it are unprecedented. In response we are taking prudent measures, bracing Kelly for what might be a protracted downturn while taking defensive actions to minimize short term risk the best we can. But amidst all the chaos our overarching goal remains unchanged, to position Kelly as the staffing company of choice and our strategic plan to achieve this is straightforward. We will continue to reduce our dependence on the U.S. by diversifying geographically, we will continue to grow profitable higher margin, more recession resistant businesses, to accelerate the globalization of our professional and technical staffing and to aggressively manage expenses, maintain a strong balance sheet, and improve operating margins. And in spite of the economic challenges we faced I’m pleased to report we made noteworthy progress on these strategies this year. In key growth areas around the world we continue to invest, for example we purchased Randstad’s Portuguese operations. In response to demand for technically skilled, degreed and certified professional workers throughout the world we opened roughly 50 new PT and OCG branches outside of the U.S. We also expanded into more fee-based businesses through the acquisition of Access a recruiting and outsourcing operation in Germany and Austria, and during the third quarter we purchased Toner Graham a financial recruiting and accounting firm in the U.K. Here in the U.S. we are focusing on more recession resilience sectors such as education…

(Operator Instructions) Your first question comes from Tobey Sommer – SunTrust Robinson Humphrey Tobey Sommer – SunTrust Robinson Humphrey: I was wondering if I could ask a question about your OCG business? You seem to suggest that you’ve got some infrastructure that you kind of put in place for some recent wins that should allow some good leverage windows when those contracts and relationships ramp up. Are you, could you give us some more color to the degree what makes you confident that those are still ramping etc. and maybe the proportion of kind of new sales that are yet to ramp up?

Some of the details I can’t go through but let me step back Tobey and start first with what I see taking place within our OCG unit. There still are a good number of new account wins. Countervailing against that are decreased volumes inside the accounts that we have already won. Given that a good number of the fees inside OCG business are transaction sensitive, as hiring decreases for example you would see RPO fees come down and so we have new account wins on one side, producing growth but you have lower volumes now taking place in some of the accounts that we’ve won. Additionally then several of the accounts particularly in the VMS space are global accounts. There customers have an ability to dial up or dial down how fast they incur their own implementation, charges related to that and customers have slowed down the implementation on some of these accounts. We have in place that global infrastructure to implement these accounts; the pace is just going slower than originally projected. And so what you should look to see, would be none of the extremely rapid increases that you’ve seen in the past as we’ve been building up the infrastructure, but by no means should you be looking for significant decreases in the expense space either. Tobey Sommer – SunTrust Robinson Humphrey: And then I heard this correctly I apologize if I didn’t, that Eastern European markets still showing some growth there. Is there an expectation for that to continue and if so what may be the drivers of that kind of pocket of growth, is it just small numbers etc?

Yes to many of your conjectures, no I’m not in – the global economic slowdown is a global economic slowdown you’re already seeing that take place in countries like Russia where in fact we had a very strong performance but in terms of macro economics, Russia is already also beginning to experience, particularly with the price of oil and other resources in decline, our experience sees their economic turmoil too. It is the case that Eastern Europe is one of our smallest regions for sure around the world it is small numbers and outsize performance with a customer or two can’t produce strong results for Kelly. I don’t expect long term for Eastern Europe to out perform dramatically as it did this time. The rest of Western Europe, I think the economies are interdependent between Western and Eastern Europe. But Eastern Europe has been and will continue to be the stronger part of the European economic growth and it will be for us also. Tobey Sommer – SunTrust Robinson Humphrey: And I’ll ask one last question and get back in the queue. Could you comment on what you’re seeing in terms of bill rates and customer response to those here in the U.S.? Thanks.

Yes, what we’re not seeing, which I think is behind your question, that we saw much of in the last recession was large numbers of customers saying that pay rates and then therefore the bill rate that comes after that are going to be cut for all temporary employees by x%. Are there are some customers who are focused on trying to bring down their pay rates? Yes, but nothing like we had seen in the last cycle. The other element of the question is, is that last cycle yet several customers trying to unilaterally impose a gross profit rate reduction in order to retain the business. And again while there’s isolated customers that also is not widespread and taking place. So that pressure on bill rate either from a reduction of the pay to temporaries or unilateral reductions and the GP rate. And again you heard both Patricia’s comment and mine on the GP rate is not being seen.

Your next question comes from Andrew Steinman – JP Morgan. Andrew Steinman – JP Morgan: My question is sort of around the same subject, U.S. commercial, gross margins up sequentially year-over-year. Could you give us a sense of what the underlying trends would have been on temp gross margins if not for the worker's comp adjustment and my question also sort of in a bigger picture standpoint is what is Kelly’s pricing strategy as we go through these more difficult times with the economy?

Let me answer the second part of your question first. As I’ve said at a variety of the conferences and so on, the industry is showing much more discipline in terms of prices and customers are showing much more discipline in their response to the long-term needs that they’re going to have for talent. I do not see the industry responding with dramatic price decreases in margin. Kelly has maintained as you’ve been seeing. If you look quarter by quarter at the numbers, Andrew, you’ve seen Kelly maintaining good discipline on the GP rate, so I’m not anticipating any particular change in Kelly’s pricing strategy. In terms of the impact on the temp GP rate overall we basically have seen over the course of the year basic core pricing has been relatively stable throughout the year. There’s been variations from quarter to quarter obviously based on the inclusion of worker's comp credits and how they flowed against prior year adjustments. But in terms of the underlying core temp GP rate in Americas commercial, it’s been stable. Andrew Steinman – JP Morgan: Okay, and will workers comp be a headwind or tailwind for 2009?

We wouldn't make a forward comment about how that plays out. But if you’re asking are we seeing a worsening of worker's compensation experience, no.

(Operator Instructions). And Mr. Camden no further questions in queue.

Thank you, [John], and thank you all for listening, and look forward to better days ahead.

Ladies and gentleman, that does conclude your conference for today. Thank you for your participation.