4Q2005: ARINSO Has 10th Consecutive Quarter of Double-Digit Sales Growth and Clear Increase in EBITA Margin; 2005 Excellent Year in Net Sales and Profitability

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ARINSO International (Euronext Brussels: ARIN), a global HR Services partner offering innovative HR business solutions, is proud to close 2005 with excellent financial results, proving the performance of the balanced business model by solid topline growth and profitability. The group’s 4Q05 results underpin this statement: ahead of expectations, ARINSO reaches 9% EBITA with 12% net sales growth. The company is confident that 2006 will show double-digit sales growth at steadily increasing margins.

ARINSO International (Euronext Brussels: ARIN), a global HR Services partner offering innovative HR business solutions, is proud to close 2005 with excellent financial results, proving the performance of the balanced business model with solid topline growth and profitability. The group’s 4Q05 results underpin this statement: "Ahead of expectations, ARINSO reaches 9% EBITA with 12% net sales growth. The company is confident that 2006 will show double-digit sales growth at steadily increasing margins."

2005 net sales amounted to €176.1 million, an increase of 15% compared to the previous year. Earnings before amortization, interest & taxes (EBITA) grew 20% to €14.6 million, resulting in a full year EBITA margin of 8.3%. Current profit increased to €12.0 million (+24%), whereas net profit soared 58% to reach €9.0 million, notwithstanding the full impairment on outstanding consolidation goodwill in 4Q.

The “grand cru 2005” resulted in an increase of 52% of net profit per share to €0.61.

As in the previous year, the increase in net sales is realized entirely through organic growth. All three business lines have shown a solid performance: HR Strategy, HR Integration and HR Outsourcing, accounting for respectively 4%, 64% and 32% of group sales. Quarter after quarter, ARINSO is moving closer to its strategic objective to balance long-term recurring services with project revenues.

4Q05 has been the 10th consecutive double-digit growth quarter in sales for ARINSO.

ARINSO reports net sales of €47.0 million (+12%), EBITA of €4.2 million (+30%) resulting in a margin of 9.0% on net sales. This margin corresponds to the guidance ARINSO had previously communicated for 2006. Current profit came in at €3.3 million (+21%).

Under IFRS, ARINSO no longer depreciates the positive consolidation differences in 2005. In line with IAS 36, the yearly impairment test has led to the amortization of remaining goodwill for a total amount of €2,979,597. Hence, at the end of 2005, the balance sheet no longer holds any goodwill. As a consequence, net profit in the fourth quarter amounted to EUR 0.4 million.

In all regions, ARINSO witnessed strong demand for both HR Integration and HR outsourcing activities. ARINSO Europe (+14%) accounts for 78% of group sales, ARINSO Americas (+12%) represents 18% of group sales.

ARINSO’s activities in Asia Pacific (+62%) delivered in 2005 solid growth and sustainable margins as ARINSO’s off-shore capabilities are valued as a key commercial asset. Increasingly, clients seek to lower their cost of HR services, using a model of seamless local and off-shore service provision. Besides operations in Kuala Lumpur, Singapore & Thailand, ARINSO will open an HR Service center in Manila (The Philippines) by Q3, 2006. The group is also about to incorporate ARINSO Australia, operating from Melbourne by May 2006 – celebrating ARINSO’s 25th country.

In 2005, ARINSO completed its SAS 70 Type II audit for the HR outsourcing and payroll services under the responsibility of its Belgian Service Center.

Developed by the American Institute of Certified Public Accountants (AICPA), SAS 70 is the standard for design & operating effectiveness of a service organization's internal controls. This internal certification will help clients to save time and money on audits; the SAS 70 audit process helped ARINSO rendering high quality services more efficiently to its clients. By the end of 2006, ARINSO expects to achieve a worldwide SAS 70 certification for all Service Centers.

On January 9, 2006, ARINSO announced the acquisition of OpenHR, a leading provider of pre-packaged eHR solutions and a highly respected SAP NetWeaver partner. From its inception in 1997, OpenHR has provided SAP consulting services to over 70 companies and completed more than 200 successful installations of its e-HR templates for clients all over the world. OpenHR is active across Europe and North-America with offices in Brussels, Paris, Madrid and Atlanta and clients in 10 different countries. In 2005, revenues exceeded EUR 6 million. The company counts 70 employees, many of them SAPHR or NetWeaver certified. The integration of the OpenHR eHR solutions and experience combined with ARINSO’s QuickStart solutions, will confirm euHReka®, ARINSO’s multi-client HR platform, as the leading integrated and leading SAP based HR outsourcing

solution.

More good news comes from ARINSO People Services. At the start of 2006, ARINSO is servicing close to 160,000 client employees in a comprehensive HRO mode, while the salaries of over 300,000 persons at 41 different customers across the globe are processed in ARINSO service centers.

ARINSO’s outsourcing pipeline for 2006-2007 is strong, with a number of sizeable deals to be decided by the end of Q2. The acquisition by Ineos of Innovene in December 2005 led to the termination of this medium size contract announced in September 2005.

OUTLOOK for 2006-2007:

ARINSO reiterates its double-digit sales growth target for the years to come. The markets of both HR Business Consulting and HR Integration are showing increasing demand, while the HR & Payroll Outsourcing industry, especially in Europe, is facing growth expectations of 20% for the coming years. As many of the initial HRO contracts, signed in 2003-2004, are reaching their stabilization phase, ARINSO expects to see group EBITA margins further improve in 2006 & 2007.

The statutory auditor, KPMG, represented by P.P. Berger, confirms that his audit work, which is substantially completed, has not revealed any significant matters, requiring adjustment to the accounting information which has been prepared in accordance with IFRS accounting principles as included in this press release.

As of 2004 ARINSO publishes full results under International Financial Reporting Standards (IFRS). The IFRS valuation rules can be downloaded from the ARINSO 2004

Annual Report

ARINSO’s consolidated balance sheet per 31 Dec 2005 remains extremely solid, with a solvency ratio (equity vs. total assets) of 66% and a cash position exceeding €67 million, allowing the group to independently invest in its strategic HRO ambitions and allows room for a number of small strategic acquisitions as to reinforce its leadership in HR solutions and outsourcing.

Since the start of the year, ARINSO has generated €17.3 million cash flow from operating activities. Taking into account the net cash in of €0.2 million from investing & financing activities, ARINSO generates sufficient cash to realize its business plan ambitions for the foreseeable future. In view of the long-term outsourcing contracts, ARINSO continues to invest considerably in capital expenditure and pre-financing leveraging. The balance sheet at 31 Dec 2005 contains long and short-term receivables related to pre-financed contracts amounting to almost €6.1million.

STAFFING:

Per December 31, 2005, ARINSO International employed 2,064 staff in 24 countries. Compared to 2004, this is an increase of 16% in headcount.

RELATED PARTY TRANSACTIONS:

Related party transactions over the reporting period consisted of the directors’ and the worldwide executive management’s renumeration of €3.1 million.

Update on the ARINSO share buy-back program:

Per December 31,2005 ARINSO owned 42,680 treasury shares. ARINSO aims to continue the execution of its share buy back program in the months to come.

The 2005 Annual Report can be downloaded from http://www.arinso.com as of March 30, 2006.

View 4Q05 financial results in their entirety by clicking on this link.

ARINSO International (Euronext Brussels: ARIN) is a global HR Services partner offering comprehensive HR business solutions to the world’s largest employers. ARINSO is dedicated to HR Excellence through Strategic Consultancy, Outsourcing Services & Technology Integration Services. ARINSO was founded in 1994, and currently employs over 2,000 staff in 24 countries: Belgium, Luxembourg, the Netherlands, France, Spain, Portugal, Italy, the United Kingdom, Germany, Austria, Sweden, Finland, Poland, the Philippines, Switzerland, the United States, Canada, Argentina, Brazil, Mexico, Singapore, Malaysia, Thailand & Morocco. http://www.arinso.com

Financial Service:

Fortis Bank    

Montagne du Parc 3    

1000 Brussels    

Bank Degroof

Rue de l’Industrie 44

1040 Brussels

More information:

Luc Osselaer                    

Vice President Investor Relations        

Tel. +32 2 558 06 70

Fax +32 2 558 06 80

Marleen Vercammen

Chief Financial Officer

Tel. +32 2 558 06 70    

Fax +32 2 558 06 80                                    

This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.

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Katie Andrews
Arinso
404-260-1879
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