Kronos(R) Announces Agreement to Acquire Unicru; Combination of Workforce Management and Talent Management Solutions Provides Foundation for Broader HCM Offering and Global Growth

Kronos(R) Incorporated (Nasdaq: KRON), a leadingprovider of software and services that empower organizations worldwideto effectively manage their workforce, and Unicru, Inc., a leadingprovider of talent management solutions, today announced a definitiveagreement for Kronos to acquire privately held Unicru. Under the termsof the agreement, Kronos will pay approximately $150 million in cashfor Unicru. Acquiring Unicru marks a significant milestone in theexecution of Kronos' strategy to broaden its offerings in humancapital management. Kronos believes that the combination of Unicru'sexpertise in selecting and hiring the highest quality people withKronos' expertise in deploying and managing the workforce will enablecustomers, for the first time, to integrate employee selectionstrategy with actual labor performance and tie labor planning tosourcing and hiring. The acquisition is expected to close in thefourth quarter of Kronos' Fiscal 2006, subject to customary closingconditions and regulatory approvals. The deal will be financed with acombination of existing cash and debt.

"Kronos views this strategic acquisition as fundamentally changingthe landscape of workforce management, bringing together tremendousexpertise -- people, products and technology -- which we believe willfurther bolster our leadership in the broader human capital managementmarket," said Aron Ain, Kronos CEO. "Importantly, this acquisitionmoves us significantly closer to our goal of becoming the first $1billion software company focused exclusively on meeting the humancapital management needs of both large enterprises and small- andmedium-size organizations on a worldwide basis."

Unicru is a leading provider of on-demand talent managementsolutions focused on improving workforce quality and productivitywithin the nation's leading employers. Unicru's solutions are designedto integrate hiring management, selection science, and workforceanalytics in a continuous improvement model. Deep industry expertise,extensive client experience, and knowledge gleaned from processingover 50 million job applications combine for a solution thatintegrates hiring automation, employee selection programs, andperformance analytics to drive measurable business results. Asuccessful software-as-a-service (SaaS) provider, Unicru has delivereddouble-digit revenue growth for seven years running, and is expectedto contribute total revenue of approximately $50 million in Fiscal2007. Kronos expects this transaction to be accretive on a GAAP basisin Fiscal 2008. Excluding charges for the amortization of intangibleassets, the transaction is expected to be accretive in Fiscal 2007.

Unicru is currently deployed in more than 29,000 hiring locationsnationwide for over 140 leading companies and brands, includingSuperValu, Kroger, Toys "R" Us, Best Buy, CVS, Borders, Lowe's,Marriott, Uno's Restaurants, Caribou Coffee, and Marquis Healthcare.Founded in 1987, Unicru is headquartered just outside of Portland,Oregon.

"We believe that our acquisition of Unicru is potentially agame-changing development for Kronos and the market," said Paul Lacy,President of Kronos. "First, it continues to set Kronos apart from thecompetition as we expand our solutions to address our customers'needs, as well as appeal to a broader spectrum of customers worldwide.Secondly, it will provide our customers with new capabilities with thepotential for them to drive customer service to a new level and createunique competitive advantage."

According to Rob Garf of AMR Research, "Kronos has taken asignificant step toward a holistic HCM approach -- helping companiesacquire, manage, and measure employees in a single application andworkflow. Its demand-driven workforce management message is stridesahead now with Unicru, as it has the tools to respond to demand fornew workers."

"Kronos' innovation and leadership in Workforce Management isbroadly recognized. They are experts," said Chris Marsh, President andCEO of Unicru. "This acquisition will make for a powerhousecombination. We share Kronos' vision for empowering organizations tobetter manage their workforce so that they can make better decisionsand improve performance. The Unicru Total Workforce Acquisitionsolution is a perfect complement to Kronos' Workforce Central suite,as it is designed to allow organizations to put the right person, inthe right place, at the right time, reducing employee turnover whileenhancing customer satisfaction. The natural synergies between the twocompanies will make for a compelling value proposition to our combinedcustomers and prospects. Acquiring Unicru greatly broadens the playingfield for Kronos and offers the customers of both organizations thebenefits of a combined workforce acquisition and workforce managementsolution to optimize workforce performance. We believe this will be aperfect match and a huge win for our combined customers."

Upon completion of the acquisition, Unicru will operate as Kronos'Talent Management Division, headquartered in Beaverton, Oregon. ChrisMarsh will join Kronos as Division President to lead the TalentManagement Division.

With regard to this transaction, Needham & Company, LLC andTremont Associates are acting as advisors to Kronos; Montgomery & Co.,LLC is acting as an advisor to Unicru.

Conference Call and Webcast Information

Kronos will host a conference call and webcast today at 9:30 a.m.Eastern to discuss the pending acquisition of Unicru. To participatein the call, dial (719) 457-2638. In addition, the teleconference willbe recorded and available for replay for two days following the call.To access the replay, dial (719) 457-0820 and enter passcode 5467493.The conference call will also be webcast live athttp://www.kronos.com/invest and will be available for replay purposesuntil Friday, July 21, 2006 at 5:00 p.m. Eastern.

About Kronos Incorporated

Kronos Incorporated empowers organizations around the world toeffectively manage their workforce. At Kronos, we are experts who aresolely focused on delivering software and services that enableorganizations to reduce costs, increase productivity, improve employeesatisfaction, and ultimately enhance the level of service theyprovide. Kronos serves customers in more than 50 countries through itsnetwork of offices, subsidiaries, and distributors. Widely recognizedas a market and thought leader in managing the workforce, Kronos hasunrivaled reach with more than 30 million people using a Kronossolution every day. Learn more about Kronos at www.kronos.com.

About Unicru, Inc.

Unicru is the leading provider of talent management solutionsfocused on improving workforce quality and productivity within thenation's leading employers. Deep industry expertise, extensive clientexperience and knowledge gleaned from processing over 50 million jobapplications combine for a proven solution that integrates hiringautomation, employee selection programs and performance measurement todrive measurable business results. Unicru is currently deployed inmore than 29,000 hiring locations nationwide for over 140 leadingcompanies and brands. For more information, visit www.unicru.com.

Safe Harbor Statement

This press release contains statements about the businessprospects and estimates of Kronos' financial results for futureperiods that are forward-looking statements that involve a number ofrisks and uncertainties, including the performance estimates andstatements relating to earnings and revenue growth and profitability,Kronos' ability to realize the anticipated benefits of the pendingUnicru acquisition, the ability to close potential product salestransactions, the ability to realize revenues from the sales pipelineand backlog, market acceptance of our new products and enhancements,including those formerly offered by Unicru and AD OPT Technologies,our ability to monitor and manage discretionary costs, growth in themarket for our products and within the economy generally, andpotential acquisitions. These statements are based on management'sexpectations of future events as of the date of this press release,and Kronos assumes no obligation to update any forward-lookingstatements as a result of new information or future events ordevelopments. Actual results could differ materially from management'sexpectations. Among the important factors that could cause actualoperating results to differ materially from those indicated by suchforward-looking statements are delays in product development,including enhancements to existing products, product performanceissues, competitive pressures, general economic conditions, possibledisruption in commercial activities caused by terrorist activity andarmed conflict, such as changes in logistics and security arrangementand the risk factors detailed in the company's Annual Report on Form10-K filed with the SEC on December 9, 2005 and its quarterly reporton Form 10-Q filed with the SEC on May 11, 2006. The timing of therelease of new products or product enhancements will take place if andwhen available and at the sole discretion of Kronos.

(C) 2006 Kronos Incorporated. Kronos, Workforce Central, and theKronos logo are registered trademarks of Kronos Incorporated or arelated company. All other product and company names mentioned areused for identification purposes only and may be trademarks of theirrespective owners.