For Immediate Release

Contacts: For investors:
Investor Relations: Stephen Giusto, (310) 843-4144
Gregg Kvochak, (310) 556-8550
For Media: Anneli Ballard, (212) 984-9350

Korn/Ferry International Announces an 11% Increase in
Fee Revenue in the First Quarter

Highlights

	•		First quarter fiscal 2009 fee revenue was $205.7 million, an increase of $20.3 million, or 11%, from $185.4 million in the same quarter last year.
	•		First quarter fiscal 2009 diluted earnings per share was $0.36 compared to $0.36 in Q1’08.

Los Angeles, CA, September 9, 2008 - Korn/Ferry International (NYSE:KFY), a premier global provider of talent management solutions, announced first quarter fiscal 2009 diluted earnings per share of $0.36 compared to $0.36 in Q1’08.

“In the face of continued economic uncertainty, we believe our solid first quarter results reflect the long-term needs of our clients to attract and develop talent,” said Gary D. Burnison, CEO, Korn/Ferry. “The combination of our proprietary talent management solutions, expansive geographic presence and world class colleagues create a unique platform from which we will continue to pursue our strategy of becoming the leading diversified human capital solutions company in the world.”

Financial Results
(dollars in millions, except per share amounts)

		First Quarter
		Q1’09				Q1’08
Fee Revenue		$	205.7			$	185.4
Revenue		$	217.5			$	196.3
Operating Income		$	23.8			$	25.1
Operating Margin			11.5	%			13.5	%
Net Income		$	15.9			$	17.1
Basic Earnings Per Share		$	0.37			$	0.38
Diluted Earnings Per Share		$	0.36			$	0.36

Fee revenue of $205.7 million in Q1’09 increased $20.3 million, or 10.9%, from $185.4 million in Q1’08. Fee revenue improved due to an increase in revenue from all segments of the business including an increase in the number of search engagements opened as well as a 15% increase in the average fee billed per executive search engagement compared to the prior year. Exchange rates impacted fee revenue in Q1’09 favorably by $9.4 million compared to Q1’08 and excluding this favorable impact revenues increased 5.9% over the prior year’s first quarter.

Compensation and benefits, excluding the $6.0 million unfavorable impact of exchange rates, were $136.1 million in Q1’09, an increase of $13.1 million, or 10.7%, compared to $123.0 million in Q1’08. The increase is attributable to profitability based compensation, modest investments in strategic business activities and to a lesser extent severance and related costs with the intention of maintaining consultant productivity. Actual compensation and benefits for Q1’09 was $142.1, an increase of 15.5% when compared to Q1’08.

General and administrative expenses, excluding the $1.8 million unfavorable impact of exchange rates, were $32.2 million in Q1’09 and increased by $0.5 million, or 1.6% from $31.7 million in Q1’08. The increase is primarily attributable to costs associated with business growth such as rent and utilities, and business development activities. Actual general and administrative expenses were $34.0 million in Q1’09 resulting in a 7.3% increase when compared to Q1’08.

Operating income was $23.8 million in Q1’09 compared to $25.1 million in Q1’08, a decrease of $1.3 million or 5.2% over Q1’08.

Balance Sheet and Liquidity

Cash, cash equivalents and marketable securities were $295.0 million at July 31, 2008 compared to $245.3 million at July 31, 2007. The increase was due primarily to improved operating cash flows.

Interest expense was $1.2 million in Q1’09 compared to $1.2 million in the same period last year. Interest expense in both years related primarily to borrowings under Korn/Ferry’s COLI policies. At July 31, 2008, Korn/Ferry had no outstanding borrowings under its credit facility.

Results by Segment

Selected Executive Recruitment Data
(dollars in millions)

		First Quarter
		Q1’09				Q1’08
Fee Revenue		$	174.5			$	159.8
Revenue		$	182.9			$	166.7
Operating Income		$	31.7			$	32.7
Operating Margin			18.1	%			20.5	%
Average number of consultants			522				512
Engagements (a)			1,920				1,774

Fee revenue was $174.5 million in Q1’09, an increase of $14.7 million, or 9.2%, from $159.8 million in Q1’08. Fee revenue improved in the majority of regions due to an increase in the overall number of engagements billed and average fee per engagement. Exchange rates impacted fee revenue in Q1’09 favorably by $7.3 million compared to Q1’08.

Operating income was $31.7 million in Q1’09 compared to $32.7 million in Q1’08 resulting in a decrease of $1.0 million or 3.1% from the prior year.

The total number of consultants at July 31, 2008 was 537, an increase of 21 from July 31, 2007 due primarily to the Company’s annual promotion process.

Selected Futurestep Data
(dollars in millions)

		First Quarter
		Q1’09				Q1’08
Fee Revenue		$	31.2			$	25.6
Revenue		$	34.6			$	29.6
Operating Income		$	2.9			$	2.1
Operating Margin			9.2	%			8.1	%

Fee revenue was $31.2 million in Q1’09, an increase of $5.6 million, or 21.9%, from $25.6 million in Q1’08. Improvements in fee revenue were driven by an increase in the number of engagements billed and offset by a slight decrease in the average fee per engagement. Exchange rates impacted fee revenue in Q1’09 favorably by $2.1 million compared to Q1’08.

Operating income was $ 2.9 million in Q1’09 compared to $2.1 million in Q1’08.

Outlook

Assuming constant foreign exchange rates, Korn/Ferry estimates that second quarter fiscal 2009 fee revenue is likely to be in the range of $185 million to $200 million and diluted earnings per share is likely to be in the range of $0.26 to $0.33.

Earnings Conference Call Webcast

The earnings conference call will be held today at 9:00 AM (EDT) and hosted by Gary Burnison, Chief Executive Officer, and Stephen Giusto, Chief Financial Officer. The conference call will be webcast and available online at www.kornferry.com, accessible through the Investor Relations section.

— Korn/Ferry International (NYSE:KFY), with more than 90 offices in 39 countries, is a premier global provider of talent management solutions. Based in Los Angeles, the firm delivers an array of solutions that help clients to identify, deploy, develop, retain and reward their talent. For more information on the Korn/Ferry International family of companies, visit www.kornferry.com.

Statements in this press release and our conference call that relate to future results and events (“forward-looking statements”) are based on Korn/Ferry’s current expectations. Readers are cautioned not to place undue reliance on such statements. Actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties which are beyond the control of Korn/Ferry. The potential risks and uncertainties relate to competition, the dependence on attracting and retaining qualified and experienced consultants, the portability of client relationships, local political or economic developments in or affecting countries where we have operations, including fluctuations in exchange rates, risks related to the growth and results of Futurestep, restrictions imposed by off-limits agreements, reliance on information systems and employment liability risk. For a detailed description of risks and uncertainties that could cause differences, please refer to Korn/Ferry’s periodic filings with the Securities and Exchange Commission. Korn/Ferry disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

[Tables attached]

KORN/FERRY INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)

		Quarter Ended
		July 31,
		2008				2007
		(unaudited)				(unaudited)
Fee revenue		$	205,733			$	185,353
Reimbursed out-of-pocket engagement expenses			11,739				10,924
Total revenue			217,472				196,277
Compensation and benefits			142,123				122,986
General and administrative expense			34,030				31,701
Out-of-pocket engagement expenses			14,733				14,127
Depreciation and amortization			2,832				2,350
Total operating expense			193,718				171,164
Operating income			23,754				25,113
Interest and other income, net			380				1,498
Income before provision for income taxes and equity in earnings of unconsolidated subsidiaries			24,134				26,611
Provision for income taxes			9,293				10,434
Equity in earnings of unconsolidated subsidiaries, net			1,063				923
Net income		$	15,904			$	17,100
Basic earnings per common share		$	0.37			$	0.38
Basic weighted average common shares outstanding			43,432				45,041
Diluted earnings per common share		$	0.36			$	0.36
Diluted weighted average common shares outstanding			44,549				47,063

KORN/FERRY INTERNATIONAL AND SUBSIDIARIES
FINANCIAL SUMMARY BY SEGMENT
(in thousands)

		Quarter Ended
		July 31,
		2008								2007
		(unaudited)								(unaudited)
Fee Revenue:
Executive recruitment:
North America		$	93,974							$	87,314
EMEA			51,590								44,722
Asia Pacific			21,403								22,661
South America			7,585								5,070
Total executive recruitment			174,552								159,767
Futurestep			31,181								25,586
Total fee revenue			205,733								185,353
Reimbursed out-of-pocket engagement expenses			11,739								10,924
Total revenue		$	217,472							$	196,277
Operating Income (Loss):						Margin								Margin
Executive recruitment:
North America		$	18,637				19.8	%		$	19,791				22.7	%
EMEA			8,486				16.4	%			7,691				17.2	%
Asia Pacific			3,476				16.2	%			4,537				20.0	%
South America			1,080				14.2	%			661				13.0	%
Total executive recruitment			31,679				18.1	%			32,680				20.5	%
Futurestep			2,855				9.2	%			2,084				8.1	%
Corporate			(10,780	)							(9,651	)
Total operating income		$	23,754				11.5	%		$	25,113				13.5	%

KORN/FERRY INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)

		As of				As of
		July 31, 2008				April 30, 2008
		(unaudited)
ASSETS
Cash and cash equivalents		$	205,949			$	305,296
Marketable securities			2,865				5,940
Receivables due from clients, net of allowance for doubtful accounts of $12,558 and $11,504, respectively			138,716				119,952
Income taxes and other receivables			6,516				7,071
Deferred income taxes			9,817				10,401
Prepaid expenses			22,613				20,057
Total current assets			386,476				468,717
Marketable securities, non-current			86,215				78,026
Property and equipment, net			32,631				32,462
Cash surrender value of company owned life insurance policies, net of loans			81,556				81,377
Deferred income taxes			43,338				47,128
Goodwill			142,126				142,699
Intangible assets, net			15,399				15,519
Other assets			15,046				14,286
Total assets		$	802,787			$	880,214
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable		$	11,796			$	15,309
Income taxes payable			18,755				20,948
Compensation and benefits payable			106,463				199,081
Other accrued liabilities			35,953				37,120
Total current liabilities			172,967				272,458
Deferred compensation and other retirement plans			111,153				105,719
Other liabilities			5,660				5,903
Total liabilities			289,780				384,080
Shareholders’ equity
Common stock: $0.01 par value, 150,000 shares authorized, 55,945 and 54,786 shares issued and 45,028 and 44,593 shares outstanding, respectively			362,351				358,568
Retained earnings			110,918				95,014
Accumulated other comprehensive income			40,282				43,097
Shareholders’ equity			513,551				496,679
Less: Notes receivable from shareholders			(544	)			(545	)
Total shareholders’ equity			513,007				496,134
Total liabilities and shareholders’ equity		$	802,787			$	880,214