Increase of 9,500 client-facing staff by 2013

ELLP expands to 16 countries - as Norway and Saudi Arabia join

Frankfurt, December 17, 2010: KPMG Europe LLP ('ELLP'), the professional services firm providing audit, tax and advisory services, reports today that combined turnover reached €4,065 million in the year to September 30, 2010.

Following mergers and expansion within the year, this represents an increase of 16 percent on the prior year (2009: €3,495 million). On a like-for-like, pro-forma basis, and at constant exchange rates, revenues were €4,280 million, a decline of three percent on the prior year.

The totals represent an aggregation of revenues across the ELLP group of firms, and reflect significant variations in individual countries during different stages of the economic cycle. Revenues in the UK were unchanged on a like-for-like basis at €1,843 million, while in Germany turnover was €1,187 million, down four percent.

Following the year end, KPMG firms in Norway and Saudi Arabia voted to join the merger. ELLP firms will now span 16 countries and employ 30,000 people.

John Griffith-Jones and Rolf Nonnenmacher, ELLP joint chairmen, said:
"This was a strong financial performance in a tough economic environment, and a year in which we made enormous progress in building a powerful grouping of European firms. We have begun to demonstrate the impact we can have when we fully mobilise our people, our resources and our capabilities across borders to help our clients overcome the complex challenges they face.

"The Group is now realising the advantages and synergies of integrating our firms. This allows us to focus on providing clients with outstanding quality and value, while keeping costs tightly controlled. As a result, we have gained market share in some key sectors, and won important new assignments with key clients."

Group financial highlights:
Performance & Technology was the strongest performer, reflecting the increasing needs of business for support on issues including revenue enhancement, cost optimisation, business intelligence, systems integration, supply chain and procurement. Audit and Tax produced a creditable performance in a tough market.

Among markets, there was good growth within Financial Services, reflecting the large amount of regulatory focus and change within that sector, and also Private Equity, where there was renewed appetite for deals and new investments.

Group pro-forma revenues by function:
Audit: €1,787 million - down seven percent
Tax: €865 million - down two percent
Transactions & Restructuring: €716 million - down four percent
Performance & Technology: €457 million - up 17 percent
Risk & Compliance: €455 million - down eight percent

Group pro-forma revenues by market sector:
Consumer & Industrial Markets: €1,469 million - down eight percent
Financial Services: €1,259 million - up four percent
Infrastructure, Government & Healthcare: €971 million - down one percent
Information, Communications & Entertainment: €451 million - down 17 percent
Private Equity: €130 million - up 20 percent

Investments:
ELLP has an ambitious business plan which will involve significant investment over the next three years, and will build on our ability to draw on a rich diversity of skills and talent across member firms. ELLP expects to increase its headcount of client facing staff by 9,500 by 2013. Particular areas of focus will include Financial Services, Healthcare, Government & Infrastructure, Performance & Technology, Tax
and Communications and Media.

Additionally, ELLP has created two new centres of excellence. The energy and natural resource ('ENR') group, based in Moscow, will combine ENR expertise across ELLP countries, while in London there will be a centre focusing on financial services risk and regulation.

Richard Bennison, ELLP Chief Operating Officer, said: "2010 was a year of significant achievement for KPMG Europe LLP, and we now have a base for significant future growth. At a time when businesses are becoming more global, capital markets are converging, regulation is becoming more complex, and economic power is shifting rapidly from West to East, our ability to make connections - irrespective of national borders - sets us apart in the marketplace."

Highlights in 2010:
Three non-executives appointed with the key role of enhancing governance and transparency, strengthening the capital markets' confidence in quality, and extending communications with stakeholders Business students ranked KPMG second among the 'world's most attractive employers' - ahead of other 'Big Four' firms KPMG community programmes - supporting education, employability enterprise and the environment - amounted to a total community investment of €15.3 million
More than 6,000 people across ELLP firms volunteered 58,500 hours of time supporting community programmes. ELLP firms reduced their CO2 emissions by 36 percent - including a 17
percent reduction in air and car travel

Outlook:
Looking ahead, John Griffith-Jones and Rolf Nonnenmacher said: "2011 is likely to be another year of gradual, and probably uneven, recovery for the global economy. Our clients will need to continue to focus on improving their financial, risk and operating processes to prepare themselves for better times. Our new brand position - "cutting through complexity" - sends out a strong message to out clients that the support we provide is now sharper, more focused, more useful and increasingly valuable. It also says that, despite the immediate economic challenges the world continues to face, we see many good reasons to be optimistic."

Abdullah Al Fozan, Chairman of the Saudi firm, added: "Our growth and recognition would not have been achieved without the support and investment by KPMG. Joining ELLP is a natural move which will benefit our clients and our people by making available a very large pool of talent and opportunity."

- Ends -

About KPMG Europe LLP
In the year to September 30 2010, the ELLP Group comprised of KPMG interests in the UK, Germany, the Netherlands, Switzerland, Spain, Belgium, Luxembourg, Turkey, and six Commonwealth of
Independent States countries, including Russia. In October 2010, the members of ELLP voted to accept
the merger into the Group of the KPMG member firms in Norway and Saudi Arabia.

KPMG is the global network of professional services firms affiliated with KPMG International
Cooperative ("KPMG International"), a Swiss entity, that provide audit, tax and advisory services. KPMG Europe LLP, a UK limited liability partnership, is the legal entity which effectively controls the member firms of the KPMG network that have elected to merge with it ("'KPMG Europe LLP firms").

KPMG Europe LLP and KPMG International provide no client services. KPMG Europe LLP firms operate in 16 countries across Europe with over 30,000 partners and staff. The "KPMG Europe LLP group" means KPMG Europe LLP, and KPMG Europe LLP firms. The KPMG Europe LLP group recorded consolidated revenues of €4.07 billion and pro-forma revenues for the 16 countries for 2010 totalled €4.4 billion.

For more information, please contact:
Gavin Houlgate
Director of Communications for KPMG in the UK
gavin.houlgate@kpmg.co.uk
Tel (0044) 207 694 3902
Mobile (0044) 7795 290855

Turki Al-Theyeb
Senior Marketing & Communication Officer
KPMG in Saudi Arabia
taltheyeb@kpmg.com
Tel: (00966-3) 887 7241
Mobile: (00966-5) 05538833

© Press Release 2010