After Impressive Start, Heidrick's LeadersOnline Is Poised for Aggressive Growth.

CHICAGO--(BUSINESS WIRE)--Oct. 18, 1999--

LeadersOnline Separate Subsidiary Formed as First Step

in Pursuing Alternative Capital Structure

Futurestep Executive James Quandt Appointed

Chief Operating Officer 

LeadersOnline(tm)(LOL), Heidrick & Struggles International's Internet-based online recruiting initiative, today issued an update on recent activities and announced a series of strategic moves designed to create a platform for accelerated growth. These include the formation of LeadersOnline as a separate subsidiary of Heidrick & Struggles, the signing of multiple client contracts and the key appointment of James R. Quandt as Chief Operating Officer.

"When Heidrick & Struggles became a public company this spring, we promised an update on the progress of LeadersOnline by this fall, and we are delighted to report that the progress has been substantial, particularly in the past few months. LeadersOnline has entered a new level of business development and is achieving sustainable revenue growth," said Patrick S. Pittard, President and Chief Executive Officer of Heidrick & Struggles.

"The world of Business to Business (B2B) Internet commerce is unfolding at unprecedented speed. Our LeadersOnline subsidiary enables us to serve our client base with rapid and efficient recruiting of quality talent for their mid-level management positions. Our business potential would yield many more opportunities, however, if we enlarge the scope, ambition and resources of this enterprise.

"To fully realize these great opportunities, we want to invest more aggressively in LeadersOnline. At the same time, we remain committed to our promise of strong profitability for Heidrick & Struggles' shareholders. With this commitment in mind, we are exploring capital structure alternatives. As a first step in this process, we have formed LeadersOnline as a separate and distinct entity."

In reviewing the LeadersOnline business, Michael T. Christy, President of LeadersOnline, stated, "The combination of the powerful marketing arm of the Heidrick & Struggles consultants and the strength of the LeadersOnline sales force is creating momentum on many fronts." LeadersOnline has contracts representing an aggregate value of $5.7 million, Christy said, and its clients include Sun MicroSystems, USWeb/CKS, Visa International, MyHealthSource.com, Organic Online Inc., Washington Mutual, 2nd Century Communications and NetBase Corp. Qualified, interested candidates are being delivered to clients within a two-week timeframe.

Christy also said the appointment of Quandt, formerly Chief Operating Officer of Korn/Ferry International's Futurestep, as LeadersOnline's Chief Operating Officer (a new position) enhances his management team, adding: "Jim's track record and long list of accomplishments make him the ideal person for this critical position."

Heidrick & Struggles intends to implement its Internet strategy rapidly. Pittard explained, "We are now in a position to further develop our Web-based solutions in order to help our clients meet one of the most significant challenges of the new millennium--the global management of human capital. For example, we are currently in discussions with several leading application service providers (ASPs) which would become important technology partners in the future growth of LeadersOnline. We would expect to see many more alliances and partnerships created in the near future, with acquisitions also playing a role in the development of our Internet business."

LeadersOnline is an Internet-based online recruiting business for middle management professionals. LeadersOnline delivers the only end-to-end online recruiting service to meet the mission-critical needs of its clients. LeadersOnline launched its marketing initiative in August 1999, leveraging the unsurpassed access and influence of Heidrick & Struggles' 750 professionals worldwide.

With over 65 locations around the globe, Heidrick & Struggles International, Inc. (Nasdaq: HSII), is the world's leading executive search firm. For more information about both organizations, please visit our websites at www.leadersonline.com and www.heidrick.com.

Certain matters discussed in this news release are forward-looking statements that are necessarily dependent upon assumptions, estimates and data that may be incorrect or imprecise, and include known and unknown risks, uncertainties and other important factors that could cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Some of the risks, uncertainties, assumptions and factors that could affect the Company's financial results are included in the Company's recent SEC filings. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. All forward-looking statements in this news release are expressly qualified by these cautionary statements, and the Company expressly disclaims any duty to update such forward-looking statements.