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Ernst & Young Announces Significant Globalization Moves


    Ernst & Young today announces that its Global Executive and the
    Global Advisory Council approved the proposed integration of all of
    its 87 country practices in Western and Eastern Europe, the Middle
    East, India and Africa into a new EMEIA Area. It also confirmed that
    more than 700 partners in the Far East had supported a similar
    integration across 15 countries and territories.

    The EMEIA Area will operate as a single unit, led by a single
    executive team and, where allowed by laws and regulations, be
    underscored by formal combinations of practices. The new Area will be
    a US$11.2 billion organization with more than 60,000 people. The 3,300
    partners of EMEIA will vote on the integration by the end of May. The
    new EMEIA Area will be effective from 1 July 2008.

    The integration of the Far East Area creates a US$1.2 billion
    organization, with more than 20,000 people. The new structure will
    also be effective from 1 July 2008.

    Mark Otty, currently the head of our UK practice, has been
    nominated to be the EMEIA Area Managing Partner, while David Sun and
    Jim Hassett were confirmed as Far East co-Area Managing Partners.

    Chairman and CEO Jim Turley said: "Ernst & Young has for years had
    the most comprehensive and implemented global integration of its
    practices. The combinations we are announcing today are bold and
    exciting developments that dramatically further this integration. We
    are setting a new standard for professional services. Together with
    the integration of the 29 countries of our Americas practices, which
    we announced in 2006, we remain the most globally integrated
    professional services firm."

    He added: "At Ernst & Young, our thinking always starts externally
    - about the world around us - and about all the potential that exists
    everywhere. The moves we announced today reflect the increasingly
    global nature of our borderless business environment, which is
    changing the expectations of both our clients and our people, and
    which requires nothing less than a truly global approach from our
    organization. With these changes, I am confident we will provide
    greater opportunities for our people to achieve their potential as
    well as superior service to our many clients. We will also strengthen
    our unique, diverse international culture."

    Chief Operating Officer John Ferraro said: "We committed ourselves
    to the effective global integration of our business several years ago

    and we have created the structures necessary to achieve this. Feedback
    from our clients and the market tells us that this is the right
    approach. These latest developments in Europe, the Middle East, India
    and Africa, and in the Far East, will significantly strengthen our
    business, and allow us to best serve our clients in the global
    economy."

    Jim Turley added: "The European 8th Directive provides a new
    regulatory environment to support the closer integration of our
    European operations, and this has enabled us to accelerate our
    thinking around our globalization plans. EMEIA integration will have
    many benefits. Our clients want us to mirror the way they behave in
    these markets and to have access to bigger and more experienced teams.
    Our people want and expect us to operate across borders and cultures
    with the increased client experience, career diversity and mobility
    that will bring. And we want to improve our operational effectiveness

    to improve our capacity to invest in the development of market leading
    services, as well as in the important emerging markets around the
    world."

    Said John Ferraro: "The Far East integration received the
    overwhelming support of the Ernst & Young partners. This integration
    is part of our long term investment in Asia´s rapidly growing markets.
    By even more closely integrating these practices, we will further
    improve our ability to serve the businesses of the Far East, as well
    as those global businesses which are taking an increasingly active
    presence in many Far East markets, including China. This milestone is
    a key building block in responding to the business imperative to
    provide seamless, consistent, high-quality client service, worldwide."

    "These are significant developments that reflect the fact that our
    world is changing rapidly and increasingly acts without boundaries,"
    concluded Jim Turley. "I am personally very enthusiastic we are taking
    these steps, and from my discussions with clients, regulators and our
    people, I believe they share this enthusiasm."

    About Ernst & Young

    Ernst & Young is a global leader in assurance, tax, transaction
    and advisory services. Worldwide, our 130,000 people are united by our
    shared values and an unwavering commitment to quality. We make a
    difference by helping our people, our clients and our wider
    communities achieve potential.

    For more information, please visit www.ey.com.

    Ernst & Young refers to the global organization of member firms of
    Ernst & Young Global Limited, each of which is a separate legal
    entity. Ernst & Young Global Limited, a UK company limited by
    guarantee, does not provide services to clients. This news release has
    been issued by EYGM Limited, a member of the global Ernst & Young
    organization that also does not provide any services to clients.