TeleTech Announces Agreement to Acquire Direct Alliance Corporation

TeleTech Holdings, Inc., a leading global business process outsourcing (BPO) provider, today announced a definitive agreement to acquire Direct Alliance Corporation, a wholly-owned subsidiary of Insight Enterprises, Inc., a large information technology provider.

Throughout its 13-year history, Direct Alliance has enabled some of the world's best-known hardware, software, and electronics manufacturers to expand market reach and increase revenue using Internet systems that allow customers to transact business in a collaborative eCommerce environment. The company offers outsourced sales and account management services that help the Fortune 500 efficiently target small and midsize businesses, a segment expected to reach $400 billion in 2006. In addition, Direct Alliance enables its customers to penetrate disparate divisions of large commercial and government accounts. Direct Alliance also improves sales and streamlines channel costs through proprietary systems and solutions to provide account management and relationship services to customers in the U.S. and abroad.

This acquisition further strengthens TeleTech's commitment to growth and its focus on providing outsourced marketing, sales, and customer management solutions to large multinational clients. Such growth is a key component of TeleTech's vision to integrate sales, service, support, and technology across the customer management lifecycle for its existing and future customer base.

"Direct Alliance is a logical strategic fit for TeleTech," said Kenneth Tuchman, chairman and chief executive officer of TeleTech. "Our existing clients, primarily Global 1000 organizations, face numerous challenges when serving the small and midsize business market and selling across divisions in large multinational corporations and government agencies. By enhancing our extensive portfolio of BPO capabilities with Direct Alliance's inside sales, account management, and sophisticated distribution resource planning technology, we can create meaningful growth opportunities for all of TeleTech's current and prospective clients."

"We are thrilled that TeleTech will provide the platform to expand our vertical industry presence and our product offerings, and we are excited at the prospect of leveraging TeleTech's global footprint," said James Kebert, president of Direct Alliance. "Direct Alliance has developed an excellent reputation as an effective business process outsourcing provider for our clients, and we look forward to offering these capabilities to TeleTech's clients as well. We are confident this integration will enable us to leverage our respective strengths quickly in order to grow our combined businesses."

For 2005, Direct Alliance generated revenue of $77.4 million. TeleTech will acquire 100 percent of the common stock of Direct Alliance and believes the all-cash acquisition will be slightly accretive to GAAP earnings during the first 12 months of combined operations. The transaction is expected to close on or before June 30, 2006.

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