EXHIBIT 99.1

For Immediate Release	Contacts:	Richard W. Pehlke
		Hudson Highland Group
		212-351-7285
		rich.pehlke@hhgroup.com
		Thomas Smith
		Ogilvy Public Relations Worldwide
		212-880-5269
		thomas.smith@ogilvypr.com

Hudson Highland Group Reports

2005 Second Quarter and Six Month Results

NEW YORK, NY – July 26, 2005 – Hudson Highland Group, Inc. (NASDAQ: HHGP), one of the world’s leading providers of specialized professional staffing, retained executive search and human capital solutions, today announced financial results for the second quarter and six months ended June 30, 2005.

2005 Second Quarter Highlights

• Revenue of $364.8 million, an increase of 18.7 percent from $307.4 million for the second quarter of 2004

• Gross margin of $141.2 million, or 38.7 percent of revenue, an increase of 19.1 percent from $118.5 million, or 38.5 percent of revenue, for the second quarter of 2004

• EBITDA of $11.0 million, an increase of 96.3 percent from $5.6 million for the second quarter of 2004

• Net income of $4.4 million or $0.21 per basic share and $0.20 per diluted share, compared to net income of $0.2 million or $0.01 per basic and diluted share for the second quarter of 2004

• Completed an offering of approximately 3.2 million shares of common stock, which closed in the third quarter, raising net proceeds of $45.1 million

• Increased credit facility from $50 million to $75 million

“The second quarter was characterized by solid progress toward our long-term target for operating profitability,” said Jon Chait, chairman and chief executive officer of Hudson Highland Group. “Virtually all regional operating units contributed in the quarter — Hudson Asia Pacific and North America as expected, and the results of Hudson Europe were encouraging given the weak regional economy.”

“Our restructured, more focused operation and greater cost efficiencies across the company’s businesses are continuing to generate further operating leverage,” said Richard W. Pehlke, Hudson Highland Group’s executive vice president and chief financial officer. “Our guidance remains unchanged.”

Guidance

Given the current economic environment, the company expects EBITDA as a percent of revenue to be 1.5 to 2 percent in 2005 and 3.5 to 4 percent in 2006. The company believes that an assumption of 12 to 15 percent revenue growth for 2005 is reasonable, resulting in a full-year EBITDA range of $22 to $29 million. This is based on expectations of constant currency revenue and gross margin growth of 30 to 35 percent in Hudson North America, 10 to 15 percent in Hudson Europe, and 0 to 5 percent in Hudson Asia Pacific and Highland Partners.

2005 Six Month Results

For the first six months of 2005, Hudson Highland Group reported revenue of $717.7 million, up 20.2 percent from $597.2 million for the first half of last year. Net income was $0.2 million, or $0.01 per basic and diluted share compared with a net loss of $18.5 million, or $1.00 per basic and diluted share, for the same six-month period last year.

Recent Developments

On July 20, Hudson Highland Group announced that it has signed a definitive agreement to acquire Balance Ervaring op Projectbasis B.V. (Balance), a leading professional contract staffing firm in the Netherlands. Balance provides specialized staffing and project management services to the technical, financial, legal and public sectors in the Netherlands. The transaction is expected to close August 17, 2005.

Conference Call / Webcast

Hudson Highland Group will conduct a conference call tomorrow Wednesday, July 27, 2005 at 9:00 AM EDT to discuss this announcement. Investors wishing to participate can join the conference call by dialing 1-800-374-1532 followed by the participant passcode 7859158 at 8:50 AM EDT. For those outside the United States, please call in on 1-706-634-5594 followed by the participant passcode 7859158. Hudson Highland Group’s quarterly conference call can also be accessed online through Yahoo! Finance at www.yahoo.com and the investor information section of the company’s website at www.hhgroup.com.

Hudson Highland Group

Hudson Highland Group is one of the world’s leading professional staffing, retained executive search and human capital solution providers. We help our clients achieve greater organizational performance by attracting, selecting, engaging and developing the best and brightest people for their businesses. Our approximately 3,800 employees in more than 20 countries are dedicated to providing unparalleled service and value to our clients. More information about Hudson Highland Group is available at www.hhgroup.com.

Safe Harbor Statement

This press release contains statements that the company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the company’s future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “predict,” “believe” and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors include, but are not limited to, the impact of global economic fluctuations on temporary contracting operations; the cyclical nature of the company’s executive search and mid-market professional staffing businesses; the company’s ability to manage its growth and fund working capital associated therewith; risks associated with expansion; the company’s reliance on information systems and technology; competition; fluctuations in operating results; risks relating to foreign operations, including foreign currency fluctuations; dependence on highly skilled professionals and key management personnel; the impact of employees departing with existing executive search clients; risks maintaining professional reputation and brand name; restrictions imposed by blocking arrangements; exposure to employment-related claims, and limits on insurance coverage related thereto; government regulations; the company’s ability to successfully operate as an independent company and the level of costs associated therewith; and restrictions on the company’s operating flexibility due to the terms of its credit facility. Additional information concerning these and other factors is contained in the company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this press release. The company assumes no obligation, and expressly disclaims any obligation, to review or confirm analysts’ expectations or estimates or to update any forward-looking statements, whether as a result of new information, future events or otherwise.

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Financial Tables Follow

HUDSON HIGHLAND GROUP, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
Revenue	$	364,835		$	307,431		$	717,704		$	597,235
Direct costs		223,668			188,942			448,330			372,355
Gross margin		141,167			118,489			269,374			224,880
Selling, general and administrative expenses		130,416			112,818			255,315			230,414
Depreciation and amortization		4,626			4,915			9,483			9,994
Business reorganization expenses (recoveries)		(238	)		76			291			136
Merger and integration expenses (recoveries)		8			—			(35	)		(37	)
Operating income (loss)		6,355			680			4,320			(15,627	)
Other income (expense):
Other income (expense), net		271			(290	)		(5	)		(1,887	)
Interest income (expense), net		(495	)		145			(921	)		(256	)
Income (loss) before provision for income taxes		6,131			535			3,394			(17,770	)
Provision for income taxes		1,766			318			3,166			721
Net income (loss)	$	4,365		$	217		$	228		$	(18,491	)
Basic and diluted income (loss) per share:
Basic income (loss)	$	0.21		$	.01		$	0.01		$	(1.00	)
Diluted income (loss)	$	0.20		$	.01		$	0.01		$	(1.00	)
Weighted average shares outstanding:
Basic		20,642,000			19,901,000			20,574,000			18,566,000
Diluted		21,635,000			20,872,000			21,639,000			18,566,000

HUDSON HIGHLAND GROUP, INC.

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands, except share and per share amounts)

	June 30, 2005			December 31, 2004
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	21,687		$	21,064
Accounts receivable, net		222,688			197,582
Other current assets		13,433			14,187
Total current assets		257,808			232,833
Property and equipment, net		33,368			36,360
Intangibles, net		7,467			6,104
Other assets		6,348			6,081
	$	304,991		$	281,378
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	31,711		$	27,023
Accrued expenses and other current liabilities		140,740			140,903
Short-term borrowings and current portion of long-term debt		25,930			4,066
Accrued business reorganization expenses		5,962			8,930
Accrued merger and integration expenses		1,542			1,872
Total current liabilities		205,885			182,794
Accrued business reorganization expenses, non-current		5,187			6,832
Accrued merger and integration expenses, non-current		2,490			3,329
Other non-current liabilities		2,459			2,648
Long-term debt, less current portion		2,448			2,041
Total liabilities		218,469			197,644
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value, 10,000,000 shares authorized; none issued or outstanding		—			—
Common stock, $0.001 par value, 100,000,000 shares authorized; issued: 20,806,596 and 20,612,966 shares, respectively		21			21
Additional paid-in capital		357,772			353,825
Accumulated deficit		(311,348	)		(311,576	)
Accumulated other comprehensive income - translation adjustments		40,307			41,694
Treasury stock, 15,798 shares		(230	)		(230	)
Total stockholders’ equity		86,522			83,734
	$	304,991		$	281,378

HUDSON HIGHLAND GROUP, INC.

SEGMENT ANALYSIS

(in thousands)

(unaudited)

For the Three Months Ended June 30, 2005

	Americas		Europe			Asia Pac			Corporate & Other			Total
Revenue
Hudson	$	107,594	$	124,657		$	116,325		$	219		$	348,795
Highland		11,902		3,234			904			—			16,040
	$	119,496	$	127,891		$	117,229		$	219		$	364,835
Gross Margin
Hudson	$	27,476	$	54,510		$	43,848		$	99		$	125,933
Highland		11,215		3,165			854			—			15,234
	$	38,691	$	57,675		$	44,702		$	99		$	141,167
Adjusted EBITDA (1)
Hudson	$	4,553	$	5,796		$	10,103		$	(1,534	)	$	18,918
Highland		1,291		105			(820	)		—			576
Corporate		—		—			—			(8,743	)		(8,743	)
	$	5,844	$	5,901		$	9,283		$	(10,277	)	$	10,751
EBITDA (1)
Hudson	$	4,644	$	5,796		$	10,103		$	(1,534	)	$	19,009
Highland		1,437		105			(827	)		—			715
Corporate		—		—			—			(8,743	)		(8,743	)
	$	6,081	$	5,901		$	9,276		$	(10,277	)	$	10,981
For the Three Months Ended June 30, 2004
	Americas		Europe			Asia Pac			Corporate & Other			Total
Revenue
Hudson	$	79,996	$	109,260		$	100,753		$	432		$	290,441
Highland		12,203		2,098			2,689			—			16,990
	$	92,199	$	111,358		$	103,442		$	432		$	307,431
Gross Margin
Hudson	$	20,489	$	45,881		$	35,816		$	406		$	102,592
Highland		11,539		1,959			2,399			—			15,897
	$	32,028	$	47,840		$	38,215		$	406		$	118,489
Adjusted EBITDA (1)
Hudson	$	4,026	$	2,525		$	6,620		$	(1,529	)	$	11,642
Highland		1,212		(157	)		337			—			1,392
Corporate		—		—			—			(7,363	)		(7,363	)
	$	5,238	$	2,368		$	6,957		$	(8,892	)	$	5,671
EBITDA (1)
Hudson	$	4,026	$	2,525		$	6,419		$	(1,529	)	$	11,441
Highland		1,337		(157	)		337			—			1,517
Corporate		—		—			—			(7,363	)		(7,363	)
	$	5,363	$	2,368		$	6,756		$	(8,892	)	$	5,595

(1) See the Reconciliation of Adjusted EBITDA to Operating Income (Loss) for a description of note (1).

HUDSON HIGHLAND GROUP, INC.

SEGMENT ANALYSIS

(in thousands)

(unaudited)

For the Six Months Ended June 30, 2005

	Americas		Europe			Asia Pac			Corporate & Other			Total
Revenue
Hudson	$	218,725	$	247,056		$	219,826		$	1,193		$	686,800
Highland		23,687		5,155			2,062			—			30,904
	$	242,412	$	252,211		$	221,888		$	1,193		$	717,704
Gross Margin
Hudson	$	54,276	$	104,961		$	79,964		$	873		$	240,074
Highland		22,308		5,027			1,965			—			29,300
	$	76,584	$	109,988		$	81,929		$	873		$	269,374
Adjusted EBITDA (1)
Hudson	$	7,877	$	9,030		$	16,928		$	(2,392	)	$	31,443
Highland		1,945		19			(938	)		—			1,026
Corporate		—		—			—			(18,410	)		(18,410	)
	$	9,822	$	9,049		$	15,990		$	(20,802	)	$	14,059
EBITDA (1)
Hudson	$	7,402	$	9,110		$	16,928		$	(2,392	)	$	31,048
Highland		2,091		19			(945	)		—			1,165
Corporate		—		—			—			(18,410	)		(18,410	)
	$	9,493	$	9,129		$	15,983		$	(20,802	)	$	13,803
For the Six Months Ended June 30, 2004
	Americas		Europe			Asia Pac			Corporate & Other			Total
Revenue
Hudson	$	152,230	$	212,276		$	200,630		$	580		$	565,716
Highland		21,767		4,145			5,607			—			31,519
	$	173,997	$	216,421		$	206,237		$	580		$	597,235
Gross Margin
Hudson	$	37,241	$	89,253		$	68,340		$	523		$	195,357
Highland		20,445		3,924			5,154			—			29,523
	$	57,686	$	93,177		$	73,494		$	523		$	224,880
Adjusted EBITDA (1)
Hudson	$	3,040	$	(140	)	$	8,740		$	(3,125	)	$	8,515
Highland		808		(225	)		865			—			1,448
Corporate		—		—			—			(15,497	)		(15,497	)
	$	3,848	$	(365	)	$	9,605		$	(18,622	)	$	(5,534	)
EBITDA (1)
Hudson	$	3,110	$	(140	)	$	8,522		$	(3,125	)	$	8,367
Highland		1,023		(391	)		865			—			1,497
Corporate		—		—			—			(15,497	)		(15,497	)
	$	4,133	$	(531	)	$	9,387		$	(18,622	)	$	(5,633	)

(1) See the Reconciliation of Adjusted EBITDA to Operating Income (Loss) for a description of note (1).

HUDSON HIGHLAND GROUP, INC.

RECONCILIATION OF ADJUSTED EBITDA TO OPERATING INCOME (LOSS)

(in thousands)

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2005			2004			2005			2004
Hudson
Adjusted EBITDA (1)	$	18,918		$	11,642		$	31,443		$	8,515
Business reorganization (expenses) recoveries		99			(201	)		(430	)		(185	)
Merger and integration recoveries		(8	)		—			35			37
EBITDA (1)		19,009			11,441			31,048			8,367
Depreciation and amortization		(4,148	)		(3,599	)		(8,519	)		(7,332	)
Operating income	$	14,861		$	7,842		$	22,529		$	1,035
Highland
Adjusted EBITDA (1)	$	576		$	1,392		$	1,026		$	1,448
Business reorganization recoveries		139			125			139			49
EBITDA (1)		715			1,517			1,165			1,497
Depreciation and amortization		(342	)		(409	)		(696	)		(832	)
Operating income	$	373		$	1,108		$	469		$	665
Corporate
Adjusted EBITDA and EBITDA (1)	$	(8,743	)	$	(7,363	)	$	(18,410	)	$	(15,497	)
Depreciation and amortization		(136	)		(907	)		(268	)		(1,830	)
Corporate expenses	$	(8,879	)	$	(8,270	)	$	(18,678	)	$	(17,327	)
Hudson Highland Group consolidated
Adjusted EBITDA (1)	$	10,751		$	5,671		$	14,059		$	(5,534	)
Business reorganization (expenses)		238			(76	)		(291	)		(136	)
Merger and integration recoveries		(8	)		—			35			37
EBITDA (1)		10,981			5,595			13,803			(5,633	)
Depreciation and amortization		(4,626	)		(4,915	)		(9,483	)		(9,994	)
Operating income (loss)	$	6,355		$	680		$	4,320		$	(15,627	)

(1) Non-GAAP earnings before interest, income taxes, special charges, other non-operating expense, and depreciation and amortization (“Adjusted EBITDA”) and non-GAAP earnings before interest, income taxes, other non-operating expense, and depreciation and amortization (“EBITDA”) are presented to provide additional information about the company’s operations on a basis consistent with the measures which the company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted EBITDA and EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the company’s profitability or liquidity. Furthermore, adjusted EBITDA and EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.