Watson Wyatt Completes Acquisition of Premier German Consulting Firm, Heissmann

WASHINGTON, July 20 /PRNewswire-FirstCall/ -- Watson Wyatt Worldwide, a leading global consulting firm, today announced the completion of its acquisition of Heissmann, Germany's premier firm of actuarial, benefits and human resources consultants.

"This is great news for Watson Wyatt, Heissmann, our clients and our associates in both firms," said John Haley, president and chief executive officer of Watson Wyatt. "The integration of the two firms enhances our strong position in Europe for financial and human capital management consulting."

Watson Wyatt has acquired the operations of Dr. Dr. Heissmann GmbH in Germany, including its subsidiaries in Ireland, the Netherlands, France and Austria.

Headquartered in Wiesbaden and established in 1955, Heissmann employs a staff of 360, including 300 people in Germany. The firm has total annual revenues of more than 50 million euros.

"The global consulting strength of Watson Wyatt has grown rapidly in recent years, and we are excited at the prospect of being part of that global expansion," said Boy-Jurgen Andresen, previously managing director of Heissmann and now managing director of Watson Wyatt Heissmann in Germany. "Becoming part of Watson Wyatt provides considerable benefits not only for our operations but, more importantly, for our clients."

The purchase of Heissmann is Watson Wyatt's second significant acquisition in Europe this year; the company acquired Watson Wyatt Brans & Co., its long- time partner in the Netherlands, in February. Watson Wyatt also recently announced its intention to establish a joint venture with Institut fur Finanz und Aktuarwissenschaften (ifa), a leading German insurance consultancy.

Watson Wyatt now has 2,900 associates in Europe, located across 13 countries -- Austria, Belgium, France, Germany, Hungary, Ireland, Italy, the Netherlands, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

Babloo Ramamurthy, Watson Wyatt's European region manager, said: "Heissmann is an excellent strategic and cultural fit for Watson Wyatt. Bringing the two organizations together takes Watson Wyatt's position in Europe to the next level, enhancing our ability to service our clients as well as creating excellent opportunities for all our consultants."

All Watson Wyatt's and Heissmann's business activities in Germany will now be under the new name of Watson Wyatt Heissmann.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, business trends and other such items are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations and are not statements of fact, actual events and results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to our ability to integrate the business, processes and systems; foreign currency exchange and interest rate fluctuations; exposure to certain liabilities; general economic and business conditions that adversely affect us or our clients after the acquisition; and other factors discussed under "Risk Factors" in the Company's Annual Report on Form 10-K dated September 1, 2006, and on file with the Securities and Exchange Commission.

About Watson Wyatt Worldwide

Watson Wyatt is the trusted business partner to the world's leading organizations on people and financial issues. The firm's global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 6,000 associates in 30 countries and is located on the Web at http://www.watsonwyatt.com/.