Exhibit 99.1

For Immediate Release	Contacts:	Investors:
		David F. Kirby
		Hudson Highland Group
		212-351-7216
		david.kirby@hhgroup.com
		Media:
		Emmanuel Serrano
		Hudson Highland Group
		212-351-7203
		emmanuel.serrano@hhgroup.com

Hudson Highland Group Reports

2006 Third Quarter and Nine Month Results

NEW YORK, NY – October 31, 2006 – Hudson Highland Group, Inc. (Nasdaq: HHGP), a leading provider of permanent recruitment, contract professionals and talent management services worldwide, today announced financial results for the third quarter and nine months ended September 30, 2006.

2006 Third Quarter Highlights

The sale of Highland Partners was completed effective on October 1, 2006 and its results are treated as discontinued operations in the third quarter 2006 financial statements for all periods presented. Other than net income, the financial information discussed herein refers to continuing operations only.

• Revenue from continuing operations of $352.5 million, an increase of 3.3 percent from $341.3 million for the third quarter of 2005

• Gross margin from continuing operations of $127.7 million, or 36.2 percent of revenue, an increase of 5.8 percent from $120.7 million, or 35.4 percent of revenue, for the third quarter of 2005

• Adjusted EBITDA from continuing operations of $12.1 million, or 3.4 percent of revenue, an increase of 101.1 percent from $6.0 million, or 1.8 percent of revenue, for the third quarter of 2005

• EBITDA from continuing operations of $10.0 million, or 2.8 percent of revenue, an increase of 66.1 percent from $6.0 million, or 1.8 percent of revenue, for the third quarter of 2005

• Income from continuing operations of $4.0 million, or $0.16 per basic share and diluted share, compared with $0.0 million, or $0.00 per basic and diluted share, for the third quarter of 2005

• Net income of $4.3 million, or $0.18 per basic share and $0.17 per diluted share, compared with net income of $1.2 million, or $0.05 per basic and diluted share, for the third quarter of 2005

“After a difficult first half of 2006, the company set a solid foundation for the future with its strongest quarterly adjusted EBITDA performance since the 2003 spin-off. Hudson Americas regained profitability, while our international operations showed continued improvement in EBITDA,” said Jon Chait, chairman and chief executive officer.

“We will continue to focus on lowering the cost base to achieve greater operating leverage to drive profit growth in our core markets,” said Mary Jane Raymond, executive vice president and chief financial officer. “Actions under our restructuring plan are a fundamental part of this effort and should produce benefits in 2007.”

Sale of Highland Partners

Effective on October 1, 2006, the company completed the sale of its Highland Partners executive search business to Heidrick & Struggles International, Inc. Highland Partners results in the third quarter of 2006 are included in the consolidated financial statements as discontinued operations, contributing $0.3 million in net income. Revenue in the quarter of $13.7 million was down 11 percent from the third quarter of 2005, while EBITDA reached $1.0 million, or 7.4 percent of revenue, down from $1.5 million, or 9.7 percent of revenue, in the year ago period.

The company’s third quarter guidance included Highland Partners’ results.

Guidance

The company currently expects fourth quarter revenue of $335—$350 million at prevailing exchange rates, and EBITDA of $10.5—$12 million, including $2 million of restructuring charges, compared with revenue of $337 million and EBITDA of $4.5 million in the fourth quarter of 2005.

2006 Nine Month Results

For the first nine months of 2006, Hudson Highland Group reported revenue from continuing operations of $1.0 billion, up 0.2 percent from $1.0 billion for the same nine-month period last year. Net loss was $3.2 million, or $0.13 per basic and diluted share, compared with a net loss of $1.0 million, or $0.04 per basic and diluted share, for the same nine-month period last year.

Conference Call / Webcast

Hudson Highland Group will conduct a conference call tomorrow Wednesday, November 1, 2006 at 9:00 AM EST to discuss this announcement. Individuals wishing to participate can join the conference call by dialing 1-800-374-1532 followed by the participant passcode 8713535 at 8:50 AM EST. For those outside the United States, please call in on 1-706-634-5594 followed by the participant passcode 8713535. 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.

About Hudson Highland Group

Hudson Highland Group, Inc. is a leading provider of permanent recruitment, contract professionals and talent management services worldwide. From single placements to total outsourced solutions, Hudson helps clients achieve greater organizational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs more than 3,600 professionals serving clients and candidates in more than 20 countries. More information 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 those under the caption “Guidance” and other 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 mid-market professional staffing businesses; the company’s ability to manage its growth; risks associated with expansion; risks and financial impact associated with disposition of non-strategic assets; 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; 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; restrictions on the company’s operating flexibility due to the terms of its credit facility; risks associated with the remediation work being performed on the company’s PeopleSoft system; and the company’s ability to maintain effective internal control over financial reporting. 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 September 30,						Nine Months Ended September 30,
	2006(1)			2005 (1,2)			2006(1)			2005 (1,2)
Revenue	$	352,510		$	341,256		$	1,030,312		$	1,028,056
Direct costs		224,860			220,599			664,921			667,325
Gross margin		127,650			120,657			365,391			360,731
Operating expenses:
Selling, general and administrative		115,528			114,628			349,199			343,869
Depreciation and amortization		3,868			3,890			12,081			12,677
Business reorganization expenses (recoveries)		2,090			(1	)		2,747			430
Merger and integration expenses (recoveries)		14			—			86			(35	)
Total operating expenses		121,500			118,517			364,113			356,941
Operating income		6,150			2,140			1,278			3,790
Other income (expense):
Interest, net		(661	)		(287	)		(1,814	)		(1,127	)
Other, net		709			322			1,769			(1,543	)
Income from continuing operations before provision for income taxes		6,198			2,175			1,233			1,120
Provision for income taxes for continuing operations		2,218			2,152			6,244			4,849
Income (loss) from continuing operations		3,980			23			(5,011	)		(3,729	)
Income from discontinued operations		346			1,138			1,857			2,761
Net income (loss)	$	4,326		$	1,161		$	(3,154	)	$	(968	)
Basic income (loss) per share:
Income (loss) from continuing operations	$	0.16		$	0.00		$	(0.21	)	$	(0.17	)
Income from discontinued operations		0.02			0.05			0.08			0.13
Net income (loss)	$	0.18		$	0.05		$	(0.13	)	$	(0.04	)
Diluted income (loss) per share:
Income (loss) from continuing operations	$	0.16		$	0.00		$	(0.21	)	$	(0.17	)
Income from discontinued operations		0.01			0.05			0.08			0.13
Net income (loss)	$	0.17		$	0.05		$	(0.13	)	$	(0.04	)
Weighted average shares outstanding
Basic		24,574,000			23,875,000			24,405,000			21,686,000
Diluted		25,023,000			25,540,000			24,405,000			21,686,000

(1) Note – 2006 and 2005 financial statements have been adjusted to reflect the Highland Partners segment as a discontinued operation. The sale of Highland Partners was completed effective on October 1, 2006.

(2) Note – 2005 financial statements have been adjusted for the Company’s adoption of SFAS 123R using the modified retrospective method. The comparable expenses for the three months ended September 30, 2006 and 2005 were $1,158 and $1,069, respectively, and for the nine months ended September 30, 2006 and 2005 were $3,872 and $3,271, respectively. The comparable expenses for the Highland Partners discontinued operations for the three months ended September 30, 2006 and 2005 were $34 and $65, respectively, and for the nine months ended September 30, 2006 and 2005 were $173 and $220, respectively.

HUDSON HIGHLAND GROUP, INC.

CONSOLIDATED CONDENSED BALANCE SHEETS

(in thousands, except share and per share amounts)

	September 30, 2006 (1)			December 31, 2005 (1,2)
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	31,954		$	34,108
Accounts receivable, net		233,542			222,055
Prepaid and other		11,103			13,593
Current assets of discontinued operations		8,623			10,764
Total current assets		285,222			280,520
Intangibles, net		39,527			30,989
Property and equipment, net		26,575			30,047
Other assets		4,726			4,537
Non-current assets of discontinued operations		1,263			2,323
Total assets	$	357,313		$	348,416
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	32,801		$	24,124
Accrued expenses and other current liabilities		130,314			125,524
Credit facility and current portion of long-term debt		22,512			32,544
Accrued business reorganization expenses		3,725			3,411
Accrued merger and integration expenses		566			693
Current liabilities of discontinued operations		13,052			16,495
Total current liabilities		202,970			202,791
Other non-current liabilities		5,929			5,948
Accrued business reorganization expenses, non-current		1,152			2,171
Accrued merger and integration expenses, non-current		664			980
Long-term debt, less current portion		293			478
Non-current liabilities of discontinued operations		2,487			2,951
Total liabilities		213,495			215,319
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: 24,709,579 and 24,340,462 shares, respectively		25			24
Additional paid-in capital		425,359			416,448
Accumulated deficit		(321,110	)		(317,956	)
Accumulated other comprehensive income—translation adjustments		39,774			34,811
Treasury stock, 15,798 shares		(230	)		(230	)
Total stockholders’ equity		143,818			133,097
	$	357,313		$	348,416

(1) Note – 2006 and 2005 financial statements have been adjusted to reflect the Highland Partners segment as a discontinued operation. The sale of Highland Partners was completed effective on October 1, 2006.

(2) Note – 2005 financial statements have been adjusted for the Company’s adoption of SFAS 123R using the modified retrospective method.

HUDSON HIGHLAND GROUP, INC.

SEGMENT ANALYSIS

(in thousands)

(unaudited)

For the Three Months Ended September 30, 2006 (1)	Hudson Americas		Hudson Europe			Hudson Asia Pacific		Corporate			Total
Revenue	$	117,071	$	119,872		$	115,567	$	—		$	352,510
Gross margin	$	30,237	$	53,523		$	43,890	$	—		$	127,650
Adjusted EBITDA (2)	$	3,807	$	4,982		$	10,721	$	(7,388	)	$	12,122
Business reorganization expenses		1,221		579			56		234			2,090
Merger and integration expenses		13		1			—		—			14
EBITDA (2)		2,573		4,402			10,665		(7,622	)		10,018
Depreciation and amortization		1,130		1,819			760		159			3,868
Operating income (loss)	$	1,443	$	2,583		$	9,905	$	(7,781	)	$	6,150
For the Three Months Ended September 30, 2005 (1,3)	Hudson Americas		Hudson Europe			Hudson Asia Pacific		Corporate			Total
Revenue	$	109,561	$	117,285		$	114,410	$	—		$	341,256
Gross margin	$	29,003	$	49,561		$	42,093	$	—		$	120,657
Adjusted EBITDA (2)	$	3,939	$	3,373		$	8,473	$	(9,756	)	$	6,029
Business reorganization (recoveries)		—		(1	)		—		—			(1	)
Merger and integration expenses		—		—			—		—			—
EBITDA (2)		3,939	$	3,374		$	8,473	$	(9,756	)	$	6,030
Depreciation and amortization		1,698		1,045			1,001		146			3,890
Operating income (loss)	$	2,241	$	2,329		$	7,472	$	(9,902	)	$	2,140

(1) Note – 2006 and 2005 financial statements have been adjusted to reflect the Highland Partners segment as a discontinued operation. The sale of Highland Partners was completed effective on October 1, 2006.

(2) 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.

(3) Note – 2005 financial statements have been adjusted for the Company’s adoption of SFAS 123R using the modified retrospective method.

HUDSON HIGHLAND GROUP, INC.

SEGMENT ANALYSIS

(in thousands)

(unaudited)

For the Nine Months Ended September 30, 2006 (1)	Hudson Americas			Hudson Europe			Hudson Asia Pacific		Corporate			Total
Revenue	$	345,255		$	358,075		$	326,982	$	—		$	1,030,312
Gross margin	$	80,497		$	160,713		$	124,181	$	—		$	365,391
Adjusted EBITDA (2)	$	(5,151	)	$	18,504		$	24,994	$	(22,155	)	$	16,192
Business reorganization expenses		1,470			522			208		547			2,747
Merger and integration expenses		85			1			—		—			86
EBITDA (2)		(6,706	)		17,981			24,786		(22,702	)		13,359
Depreciation and amortization		3,949			5,334			2,306		492			12,081
Operating income (loss)	$	(10,655	)	$	12,647		$	22,480	$	(23,194	)	$	1,278
For the Nine Months Ended September 30, 2005 (1,3)	Hudson Americas			Hudson Europe			Hudson Asia Pacific		Corporate			Total
Revenue	$	329,479		$	364,341		$	334,236	$	—		$	1,028,056
Gross margin	$	84,152		$	154,522		$	122,057	$	—		$	360,731
Adjusted EBITDA (2)	$	8,996		$	12,089		$	25,040	$	(29,263	)	$	16,862
Business reorganization expenses (recoveries)		510			(80	)		—		—			430
Merger and integration (recoveries)		(35	)		—			—		—			(35	)
EBITDA (2)		8,521			12,169			25,040		(29,263	)		16,467
Depreciation and amortization		3,746			2,943			5,574		414			12,677
Operating income (loss)	$	4,775		$	9,226		$	19,466	$	(29,677	)	$	3,790

(1) Note – 2006 and 2005 financial statements have been adjusted to reflect the Highland Partners segment as a discontinued operation. The sale of Highland Partners was completed effective on October 1, 2006.

(2) 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.

(3) Note – 2005 financial statements have been adjusted for the Company’s adoption of SFAS 123R using the modified retrospective method.

HUDSON HIGHLAND GROUP, INC.

HIGHLAND PARTNERS SEGMENT ANALYSIS

(in thousands)

(unaudited)

On September 18, 2006, the Company entered into a Purchase Agreement (the “Agreement”) with Heidrick & Struggles International, Inc. (“Heidrick”) to sell its Highland Partners executive search business (“Highland”) to Heidrick (the “Sale”). Effective October 1, 2006, the Company completed the Sale. The Company will report a gain of approximately $20 million from the Sale in the fourth quarter of 2006, from cash proceeds of $36.6 million, less post-closing net working capital adjustments, $9.55 million paid to certain partners of Highland and other direct costs of the transaction. Up to an additional $15.0 million may be received from Heidrick at future dates, subject to the achievement by Highland of certain future revenue metrics in 2007 and 2008. The Highland business was a separate reportable segment of the Company, and as a result of the Sale, the Company has classified the results of operations of Highland as a discontinued operation.

Reported results for the Highland segment by period are as follows:

	Quarter Ended September 30,				Nine Months Ended September 30,
	2006		2005		2006		2005
Revenue	$	13,685	$	15,348	$	44,419	$	46,253
Gross Margin	$	12,845	$	14,511	$	41,762	$	43,811
EBITDA (1)	$	1,015	$	1,492	$	3,811	$	2,501
Depreciation and amortization		218		327		854		1,023
Operating income	$	797	$	1,165	$	2,957	$	1,478

(1) 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. 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, EBITDA as presented above may not be comparable with similarly titled measures reported by other companies.