TeleTech Announces Decision to Exit Customer Management Center in Glasgow, Scotland

DENVER – TeleTech Holdings, Inc., a global provider of customer management and business process outsourcing (BPO) solutions, today announced it will elect an early lease termination option to close its Customer Management Center (CMC) located in Glasgow, Scotland during the second quarter of 2006. No decisions have yet been made regarding alternative locations for the work performed at this facility. The Glasgow CMC generated an operating loss, on a regional basis, of approximately $3 million during the past twelve months.

This announcement is a key element of TeleTech’s plan to achieve profitability in its United Kingdom operations. The other key element is future sales generated from its recent recruitment of a new sales force in the United Kingdom.

The early lease termination of the Glasgow, Scotland CMC will result in an impairment charge of approximately $2.5 million that will be recorded in the Company’s second quarter 2005 financial statements. This action is expected to result in an annualized pre-tax profit improvement of at least $2.5 million beginning in the third quarter 2006.

Percepta, TeleTech’s joint venture with Ford Motor Company, will retain its operations in Glasgow.