Sykes Enterprises, Incorporated Announces Two IT Support Centers In Kentucky

TAMPA, July 5, 1999 – Sykes Enterprises, Incorporated (“Sykes”) (Nasdaq:SYKE), a global leader in providing vertically integrated, technology-based solutions worldwide, today announced that it will build two IT support centers in Kentucky. The Company’s 16th and 17th U.S. technical support call centers will be located in Hazard and Pikeville in Eastern Kentucky.

This brings the total number of new centers opened or announced in the last six months to eight with a total seating capacity in excess of 3,700 new seats. Based upon past experiences, eight such call centers when operating at single shift capacity would generate in excess of $150 million in annualized revenues. The new 42,500 square foot, state-of-the art call centers are being constructed consistent with the Company’s continued projected growth and are expected to be fully operational in the fourth quarter of 1999. Each center will add capacity of 432 seats on one shift to the information technology Company’s approximate 10,000 seats worldwide. The Company’s Scottsbluff, Nebraska IT support center, announced in March 1999, is nearing completion and will open this month at near capacity.

Sykes has an existing presence in Kentucky with SHPS, Incorporated, a wholly owned subsidiary based in Louisville and a Sykes professional services office in Lexington. In March 1999, the Company announced plans for the construction of a new 450,000 square foot corporate campus in Louisville for the operations and headquarters of SHPS.

“Due to the significant continued increase in client demand for technical support, we have chosen Kentucky to locate our two newest technical call support centers, ” commented David L. Grimes, President and Chief Operating Officer of Sykes. “We studied several different Kentucky communities and Pike and Perry Counties closely met our criteria and were the best fit. The caliber and work ethic of the people in Eastern Kentucky were major factors in establishing the call centers in this area.”

“Both counties are ideal site locations for us due to their demographic profile and the large percentage of the under employed working population ,” Grimes added. “The types of jobs that Sykes brings to the area will make a difference and are in the fastest growing sector of the computer marketplace.”

The Honorable Paul E. Patton, Governor of Kentucky, stated, “This is extremely good news for eastern Kentucky as these jobs will contribute to the economic revitalization of the area. These announcements show that companies realize a good, trainable workforce exists in eastern Kentucky. This truly is a great day for the new Appalachia.”

Sykes, with approximately 12,000 employees, is a global leader in providing vertically integrated, technology-based solutions worldwide. By utilizing its IT support centers and e-commerce platform, Sykes is able to provide services at all stages in the life cycle of its clients’ products and services, including initial development, documentation and localization, customer product services and end-user support. Sykes, headquartered in Tampa, Florida, currently operates 31 technical call centers (with two additional centers under construction), nine e-commerce centers and 25 offices throughout the United States, Canada, Europe, Africa and the Philippines. SHPS, Incorporated, a wholly owned subsidiary based in Louisville, Kentucky, provides on-line clinical managed care services, medical protocol products and employee benefit administration and support services. Visit the Sykes web site at http://www.sykes.com.

The statements contained in this press release that are not purely historical, including statements regarding Sykes’ objectives, expectations, hopes, intentions, beliefs or strategies regarding the future, are “forward-looking” statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934. It is important to note that Sykes’ actual results could differ materially from those in such forward-looking statements, and undue reliance should not be placed on such statements. Among the important factors that could cause such actual results to differ materially are:  construction delays of new call centers;  failure to successfully implement its acquisition strategy;  difficulties in managing growth;  rapid technological change;  loss of a significant customer;  risks inherent in conducting business abroad;  changes in legislation;  fluctuations in business conditions and the economy; Sykes’ ability to attract and retain key management personnel;  and the risk factors listed from time to time in Sykes’ registration statements and reports as filed with the Securities Exchange Commission.