Kronos[R] Remains Financially Strong with Hundreds of Contracts Closed in Third Quarter.

CHELMSFORD, Mass. -- Kronos[R] Incorporated today announced financial results, company advancements, and customer successes for the third quarter of Fiscal 2009. Kronos revenue for the quarter was $164.6 million. Earnings before interest, tax, and amortization (EBITA) were $37.7 million.1

"In the midst of a difficult environment, we are pleased to report that our third-quarter results were in line with our expectations," said Aron Ain, Kronos chief executive officer. "We are encouraged to continue seeing organizations explore workforce management solutions as a way to control labor costs, minimize compliance risk, and improve workforce productivity. Considering the health of our pipeline and the investments that we're making in product innovation and global expansion, we believe we are uniquely positioned for success as the economy recovers."

News Facts

* More than 600 organizations have already purchased the latest version of the Kronos Workforce Central([R]) suite. Released just five months ago, Workforce Central 6.1 is in high demand for its ease-of-use enhancements and deep functionality. Major advancements include enhanced ERP integration; lower total cost of ownership; complete automation of various workforce management business processes; and additional global capabilities.

* Demand for high-quality information and complete automation of workforce management processes is driving interest in Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications. Some of the organizations who purchased Kronos this quarter include:

* Atlas Roofing Corporation, a leading global manufacturer of residential and commercial building materials, replaced its previous system with time and attendance from Kronos, which will be managed and hosted by Kronos.

* Banner Health, one of the nation's largest non-profit healthcare systems, selected labor analytics and absence management to complement its existing time and attendance and scheduling solution from Kronos for its 35,000 employees.

* BevMo, the leading alcoholic beverage lifestyle superstore in the western U.S., purchased selection and hiring software to complement its Kronos time and attendance solution in an effort to hire the best people and maximize their performance.

* Capella Healthcare Inc., operator of 13 hospitals throughout the U.S., invested in time and attendance solutions for its 6,500 employees. Hospitals in the Capella network will replace disparate time and attendance solutions with Kronos to reduce costs and streamline workforce management processes.

* Evansville Vanderburgh School Corporation, a K-12 school district in southern Indiana, selected Kronos to automate time and attendance and absence management for its 3,000 employees.

* Hampton City School District purchased time and attendance and absence management to manage its 5,500 employees in 37 schools. Kronos was selected because of its ability to eliminate error-prone manual processes and minimize compliance risk. Kronos replaces the school district's previous time and attendance system from an ERP vendor.

* Hope Community Resources, Alaska's largest provider of services to individuals who experience a disability, purchased time and attendance, absence management, labor analytics, and human resources solutions for its 850 employees.

* St. John's County Sheriff's Office purchased time and attendance, absence management, and analytics to better manage its 800 employees and eliminate unnecessary overtime costs.

* A leading office furniture manufacturer purchased 4,500 employee licenses of time and attendance and absence management. The solution replaces another vendor's time and attendance solution which failed to provide the manufacturer with visibility into workforce trends.

* Global demand remains strong despite the weak economy.

* The UK had a very strong quarter with significant investments from The Co-operative Group, a UK grocery chain continuing its rollout of Kronos across more than 2,300 locations; and a new contract with Sports Direct, the UK's leading sports retailer which purchased time and attendance for more than 400 stores across the UK and Europe.

* Customer wins in China included Volkswagen FAW Engine (Dalian) Co., which purchased time and attendance, absence management, and data collection terminals for 600 employees.

* Customer wins in Australia included Southern Cross Care (SA) Inc, providers of aged care accommodation, and Eastern Regional Libraries, provider of library resources and services to residents across three municipalities, both of which purchased Workforce Central upgrades.

* Customer wins in India included Eaton, a leading global diversified industrial manufacturer which purchased time and attendance and absence management; and Bombardier Transportation, a global leader in the rail sector with a presence in 60 countries which purchased workforce management solutions to automate time and attendance and shop floor labor processes.

About Kronos Incorporated

Kronos is the global leader in workforce management solutions that enable organizations to control labor costs, minimize compliance risk, and improve workforce productivity. Tens of thousands of organizations in 60 countries -- including more than half of the Fortune 1000[R] -- use Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications. To learn how Kronos uniquely delivers complete automation and high-quality information in an easy-to-use solution, visit www.kronos.com.

[c] 2009 Kronos Incorporated. Kronos and Workforce Central are registered trademarks of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.

Footnote 1: Revenue excludes purchase accounting adjustments related to the company going private in June 2007 and its acquisition of Unicru and Captor businesses in 2006 and 2007. EBITA excludes purchase accounting adjustments, FAS 123R charges, and non-recurring one-time charges.