Sykes Announces Expansion of Customer Care Business in the Technology and Communications Industries

• New Business to Utilize Available Capacity, Adding 1,200 Customer Care Agents
• Sykes Reaffirms Its Third Quarter Business Outlook

TAMPA, Fla.–(BUSINESS WIRE)–Oct. 18, 2001–Sykes Enterprises, Incorporated (Nasdaq:SYKE), a global leader in providing outsourced customer management solutions and services, today announced expanded customer care business with several leading companies in the technology and communications markets.

The additional business is expected to add approximately 1,200 customer care agents in the U.S., which would increase the Company’s seat capacity utilized in the Americas from 63 percent at June 30, 2001 to approximately 76 percent, once the agents are fully trained and supporting Sykes’ clients. On a worldwide basis, the Company’s utilized seat capacity is expected to increase from 66 percent at June 30, 2001 to approximately 73 percent with the addition of the 1,200 agents.

This expansion of business highlights Sykes established position in the technology sector and the continued efforts to broaden its reach into the communications vertical, a target market. Sykes’ revenues generated from clients in the communications industry have more than doubled since 1999 from 10 percent to 26 percent of total revenues in the first half of 2001. Sykes provides an array of support services in the communications market including technical support and customer service for ISP and broadband technologies as well cellular phone support services.

“These new, expanded relationships underscore not only the business value, but also the competitive edge our customers gain from outsourcing. Sykes is uniquely positioned to provide today’s leading companies with consistent, quality technical support and customer service for their customers, anytime and anywhere,” said John H. Sykes, Chairman and CEO of Sykes Enterprises.

In connection with the additional business, the Company expects to incur approximately $1.2 million in incremental agent training and ramp-up costs principally in the fourth quarter of 2001. The Company does not expect to realize a significant amount of revenues associated with the additional business until the 2002 fiscal year.

Mr. Sykes added, “As we fill our available capacity and the revenues grow from this expanded business, Sykes will gain significant benefits by leveraging the operational and technological infrastructure that has already been built into the Company’s global model.”

Business Outlook

The Company reaffirms its previously provided guidance for the third quarter of 2001. As previously stated, the Company anticipates its third quarter revenues to be in the range of $105 million to $115 million and net income in the range of $0.03 to $0.05 per fully diluted share.

The Company will announce results for its third quarter ended September 30, 2001 and comment on its fourth quarter business outlook on Monday, October 29, 2001. The Company will also conduct a conference call regarding the content of its October 29th release on Tuesday, October 30, 2001 at 10:00 a.m. Eastern Time. The conference call will be carried live on the Internet. Instructions for listening to the call over the Internet are available on the Investors page of the Sykes’ website at http://www.sykes.com. A replay will be available at this location for two weeks.

About Sykes Enterprises, Incorporated

Sykes (http://www.sykes.com) is a global leader in providing customer management solutions and services to technology-enabled companies primarily within the technology, communications, and financial services markets. Sykes’ Business Services group provides customer support outsourcing services with an emphasis on technical support and customer service. These services are delivered through multiple communication channels encompassing phone, e-mail, web, and chat. Sykes’ Business Solutions group provides professional services in e-commerce and customer relationship management (CRM) with a focus on business strategy development, project management, business process redesign, change management, knowledge management, education, training, and web development. Headquartered in Tampa, Florida, Sykes operates 41 customer support centers and five e-commerce fulfillment centers throughout North America, Europe, Latin America, Asia and Africa.

Forward-Looking Statements

This press release may contain “forward-looking statements,” including Sykes’ estimates of future business prospects or financial results, statements regarding Sykes’ objectives, expectations, intentions, beliefs or strategies, or statements containing words such as “believe,” “estimate,” “project,” “expect,” “intend,” “may,” “anticipate,” “plans,” “seeks,” or similar expressions. 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 (i) the timing of significant orders for Sykes’ products and services, (ii) variations in the terms and the elements of services offered under Sykes’ standardized contract for future bundled service offerings, (iii) changes in applicable accounting principles or interpretations of such principles, (iv) difficulties or delays in implementing Sykes’ bundled service offerings, (v) failure to achieve sales, marketing and other objectives, (vi) construction delays of new technical and customer support centers, (vii) delays in the Company’s ability to develop new products and services and market acceptance of new products and services, (viii) rapid technological change, (ix) loss of significant customers, (x) risks inherent in conducting business abroad, (xi) currency fluctuations, (xii) fluctuations in business conditions and the economy, (xiii) Sykes’ ability to attract and retain key management personnel, (xiv) the marketplace’s continued acceptance of Sykes’ bundled service offerings, (xv) Sykes’ ability to continue the growth of its support service revenues through additional technical & customer service centers, (xvi) Sykes’ ability to further penetrate into vertically integrated markets, (xvii) Sykes’ ability to expand its global presence through strategic alliances and selective acquisitions, (xviii) Sykes’ ability to continue to establish a competitive advantage through sophisticated technological capabilities, (xix) the ultimate outcome of pending class action lawsuits, (xx) Sykes’ ability to recognize deferred revenue through delivery of products or satisfactory performance of services; and (xxi) other risk factors listed from time to time in Sykes’ registration statements and reports as filed with the Securities and Exchange Commission. All forward-looking statements included in this press release are made as of the date hereof, and Sykes undertakes no obligation to update any such forward-looking statements.