Pricewaterhousecoopers 2007 revenues rise 10.5% to USD 25.2 billion

1 October 2007 - PricewaterhouseCoopers 2007 revenues rise 10.5% to USD 25.2 billion

• Growth continues in all major regions and territories
• Tax business up 15.1%
• Advisory business up 14.6%
• With 22.4% growth, Central and Eastern Europe is the fastest growing region

PricewaterhouseCoopers today reports that worldwide gross revenues of its network of firms increased 10.5% at constant exchange rates to a record USD 25.2 billion for the fiscal year ended 30 June 2007. At variable rates of exchange, growth was even higher at 14.4%.

Revenue figures are released along with PricewaterhouseCoopers’ 2007 Global Annual Review. The Review provides insights into the strategies, operations, and activities in the broader global community by the PwC worldwide network.

“Revenues for the PwC international network remained strong in FY 2007, reflecting strong economic conditions, our strategic focus on key growth markets, and the increasing scale and scope of our tax and advisory businesses,” says PricewaterhouseCoopers' Global CEO Samuel A. DiPiazza, Jr. “Our network has again achieved healthy growth across the globe in each of our lines of service, as we continue to capitalise on the strength of our brand and the quality of our people and services.”

The PricewaterhouseCoopers network performed well in all major geographic markets in FY2007. Developing markets continued to show particularly strong growth. Revenues increased by 22.4% in Central and Eastern Europe, 19.1% in South and Central America, and 20.8% in the Middle East and Africa. Revenues from North America and the Caribbean were up 7.8%; in Asia, revenues rose 18.8%. Western Europe and Australia and the Pacific Islands also continued to perform well with revenues up 9.4% and 10.3%, respectively.

“Our long term effort to build up and strengthen the PwC network within the CEE region and to act as one regional firm has clearly been a success. And not only from the clients’ perspective: The number of outbound assignments of our staff within the region increased by some 200% over the past four years. In the Czech Republic itself, the number of people on foreign assignments grew by ten times to some 30 people being currently abroad,” said Stephen B. Booth, managing partner of PricewaterhouseCoopers Czech Republic.

On 1 July 2007, Mr. Booth replaced Mike Hackworth, who had been PwC managing partner in the Czech Republic for ten years. Mr. Booth considers the key priority for PwC to be attracting the right people and helping them develop.

“In FY 20007, we had around 100 university students as interns and hired over 70 graduates in the Czech Republic alone. Each professional received a minimum of 40 hours of training, and, altogether, our people spent over 3000 days in training. It is a huge investment, and we are committed to go on,” explained Mr. Booth. “We are also proud partners of several key universities in the country, such as the University of Economics in Prague or the Faculty of Economics and Administration of Masaryk University in Brno.”

Revenues for PwC's global Advisory service line increased 14.6% in FY2007 to USD 5.7 billion driven by a large volume of deal-based activity and strategic emphasis on priority services and clients. Global Tax revenues increased by 15.1% to USD 6.3 billion, again boosted by growth from M&A-related activities. Despite lower demand for work related to adoption of International Financial Reporting Standards, Sarbanes-Oxley related business and the more mature nature of the assurance market for PwC in developed economies around the world, worldwide assurance revenues were up 6.7% to USD 13.1 billion.

"We believe the prospects for continued growth remain good, despite the current dip in worldwide business confidence caused by subprime credit concerns in the United States. For PwC, the long-term challenge is to maintain our leading position in the world's developed countries and, at the same time, build on the healthy growth we are producing in fast developing economies," says Mr. DiPiazza.

In the 2007 Global Annual Review, Mr. DiPiazza says that the accounting profession has made an effective transition to a regulated business, based on continuous efforts to improve the quality of its people, its technical advice, and its client service. He calls for convergence of overlapping regulatory systems, including registration, inspections, and discipline to cut complexity and costs without reducing protection for investors.

Mr. DiPiazza also calls for "far reaching and radical reform" of corporate reporting to allow for better international comparability of company results.

END

Notes:

1. A copy of the PricewaterhouseCoopers 2007 Global Annual Review can be downloaded at www.pwc.com/annualreview. The review contains a detailed breakdown of the revenues for FY2007 and a range of facts and figures about the PricewaterhouseCoopers worldwide organisation.

The review also features comments by PricewaterhouseCoopers’ Global CEO Samuel A. DiPiazza Jr. and other PwC leaders on a number of key issues facing PwC’s clients around the world as well as examples of how PricewaterhouseCoopers' people around the world collaborate in community activities.

2. Other PwC press releases, publications, surveys and expert articles can be found at http://www.pwc.com/cz/eng/press.

The RSS feed with press releases is available at http://www.pwc.com/cz/eng/about/press-rm/2007/rss.xml.

3. PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax, and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 146,000 people in 150 countries across our network share their thinking, experience, and solutions to develop fresh perspectives and practical advice.

“PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.

4. Charts containing the 20007 revenue breakdown, by service line and geography, follow:
   
   
   

Aggregated Revenues of PricewaterhouseCoopers Firms by Service Line (USD millions)

	FY2007 at FY2007 exchange rates	FY2006 at FY2006 exchange rates	% change	% change at constant exchange rate
Assurance	13,112	11,897	10.2%	6.7%
Advisory	5,745	4,819	19.2%	14.6%
Tax	6,293	5,270	19.4%	15.1%
Total Gross Revenues	25,150	21,986	14.4%	10.5%

Aggregated Revenues of PricewaterhouseCoopers Firms by Geography (USD millions)

FY07 revenues are expressed in US dollars at average FY07 exchange rates. FY06 revenues are shown at average FY06 exchange rates. Gross revenues are inclusive of expenses billed to clients. Fiscal year ends 30 June.