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Convergys Reports Second Quarter Results

  Convergys Reports Second Quarter Results

Business Wire

CINCINNATI -- July 30, 2013

Convergys Corporation (NYSE: CVG), a global leader in customer management,
today announced its financial results for the second quarter of 2013.

The Company also announced that it completed real estate transactions related
to corporate simplification actions initiated in prior years.

Second Quarter Summary

  *Revenue of $504 million, up three percent compared with prior year;
  *Adjusted EBITDA of $61 million, up six percent compared with $58 million
    in the prior year;
  *Adjusted EPS from continuing operations of $0.25, compared with $0.19 in
    the prior year; GAAP EPS from continuing operations of $0.20, including
    expected pension settlement and real estate sale-related corporate
    simplification impacts;
  *Repurchased 1.5 million Convergys shares for $25 million, or $16.43 per
    share;
  *$587 million cash and short term investments on balance sheet at quarter
    end;
  *Confirmed expectations for revenue growth and profit improvement in 2013.

“We delivered steady improvement in revenue, EBITDA and EPS in the second
quarter as we execute our plan for sustained growth and margin expansion,”
said Andrea Ayers, president and CEO. “Our winning business model is driving
predictable, consistent performance through a unique combination of global
quality delivery, comprehensive solutions and close client engagement. We had
another quarter of strong new business signings, and are confirming our
full-year guidance.”

Ayers added, “As a well-capitalized market leader we are able to both invest
in strategic growth and return capital to investors. We acquired Datacom’s
Asia contact center operations for approximately $20 million, paid a $6
million dividend and repurchased $25 million of stock in the quarter, and will
remain disciplined with our capital deployment strategy.”

Second Quarter Results – Continuing Operations

Revenue – Revenue was $504 million, a three percent increase compared with
$491 million in the same period last year.

Operating Income – Adjusted operating income was $39 million, a 12 percent
increase compared with adjusted operating income of $35 million in the same
period last year. GAAP operating income was $30 million including the
corporate simplification impacts discussed below. Prior-year GAAP operating
loss of $61 million included Information Management sale and corporate
simplification impacts.

Adjusted operating margin was 7.7 percent, up 70 basis points compared with
7.0 percent in the same period last year.

Adjusted EBITDA – Adjusted EBITDA was $61 million, a six percent increase
compared with $58 million in the same period last year. Adjusted EBITDA
excludes the corporate simplification impacts discussed below.

Adjusted EBITDA margin was 12.2 percent, up 50 basis points compared with 11.7
percent in the same period last year.

Net Income – Adjusted net income from continuing operations was $27 million,
or $0.25 per diluted share, compared with $23 million, or $0.19 per diluted
share, in the same period last year. GAAP net income from continuing
operations was $22 million, or $0.20 per diluted share, including the
corporate simplification impacts discussed below. Prior-year net loss from
continuing operations of $54 million, or $0.47 per share, included Information
Management sale and corporate simplification impacts in the same period last
year.

Share Repurchase – Convergys repurchased 1.5 million shares in the second
quarter at a cost of $25 million. The remaining authorization to purchase
outstanding shares is $192 million.

Quarterly Dividend – Convergys paid a $6 million quarterly dividend in July to
holders of record at the close of business on June 21, 2013. The next dividend
payment of $0.06 per share is scheduled to be made on October 4, 2013, to
shareholders of record at the close of business on September 20, 2013.

Free Cash Flow – Free cash flow was $35 million compared with $13 million in
the same period last year.

Net Cash and Short Term Investments – At June 30, 2013, cash and short term
investments were $587 million, debt maturing in one year was $1 million and
long term debt was $60 million. Net cash and short term investments totaled
$526 million at June 30, 2013, compared with $542 million at March 31, 2013,
and $696 million at the end of the second quarter last year.

Corporate Simplification Impacts – GAAP second-quarter 2013 results include an
expected $8 million non-cash pension settlement charge and $1 million net loss
related to real estate transactions initiated in prior years. In July, the
Company received cash proceeds of $47 million from the real estate sales. GAAP
second-quarter 2012 results include $89 million of goodwill and asset
impairment charges and $6 million of restructuring charges related to the
Information Management sale and corporate simplification measures.

Reconciliation tables of GAAP to non-GAAP results are attached.

2013 Business Outlook

Convergys continues to expect revenue growth and profit improvement in 2013,
including:

  *Revenue to exceed $2,055 million;
  *Adjusted EBITDA to exceed $248 million;
  *Diluted shares outstanding to approximate 109 million;
  *Adjusted EPS to exceed $1.05.

This full-year guidance includes the impact of restructuring charges in the
third quarter of approximately $5 million related to the Company’s on-going
efforts to further simplify the business and reduce costs.

Not included in this guidance is the impact of any future strategic
acquisitions or share repurchase activities. Also not included in this
guidance are results classified within discontinued operations related to the
sale of the Information Management business as well as other impacts from
corporate simplification actions initiated in prior years such as non-cash
pension settlement charges.

Forward-Looking Statements Disclosure and "Safe Harbor" Note

This news release contains statements, estimates, or projections that
constitute "forward-looking statements" as defined under U.S. federal
securities laws. In some cases, one can identify forward looking statements by
terminology such as "will," "expect," "estimate," "think," "forecast,"
"guidance, "outlook," "plan," "lead," "project" or other comparable
terminology. Forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from our
historical experience and our present expectations or projections. These risks
include, but are not limited to: (i) the loss of a significant client or
significant business from a client; (ii) the future financial performance of
major industries that we serve; (iii) our inability to protect personally
identifiable data against unauthorized access or unintended release; (iv) our
inability to maintain and upgrade our technology and network equipment in a
timely manner; (v) international business and political risks, including
economic weakness and operational disruption as a result of natural events,
political unrest, war, terrorist attacks or other civil disruption; (vi) the
failure to meet expectations regarding the tax treatment of the Information
Management transaction; (vii) higher than expected costs of providing
transition services and other support to the Information Management business
and (viii) those factors contained in our periodic reports filed with the SEC,
including in the "Risk Factors" section of our most recent Annual Report on
Form 10-K and Quarterly Report on Form 10-Q. The forward-looking information
in this document is given as of the date of the particular statement and we
assume no duty to update this information. Our filings and other important
information are also available on the investor relations page of our web site
at www.convergys.com.

Non-GAAP Financial Measures

This news release contains non-GAAP financial measures as defined by the
Securities and Exchange Commission Regulation G; pursuant to the requirements
of this regulation, reconciliations of these non-GAAP measures to their
comparable GAAP measures are included in the attached financial tables. To
assess the underlying operational performance of the continuing operations of
the business for the quarter and to have a basis to compare underlying
operating results to prior and future periods, management uses 2013 and 2012
operating income, net income from continuing operations and diluted earnings
per share from continuing operations metrics excluding asset impairment
charges, corporate restructuring costs, certain Information Management-related
costs, interest expense for debt reduction, net non-cash post-employment
benefit plan charges, and tax benefits from certain discrete and other
adjustments.

These charges are relevant in evaluating the overall performance of the
business. Limitations associated with the use of these non-GAAP measures
include that these measures do not include all of the amounts associated with
our results as determined in accordance with GAAP. Management compensates for
these limitations by using the non-GAAP measures, operating income, income
from continuing operations, net of tax and diluted earnings per share from
continuing operations excluding the items above, and the GAAP measures,
operating income, income from continuing operations, net of tax and diluted
earnings per share, in its evaluation of performance. There is no material
purpose for which we use these non-GAAP measures beyond those described above.

The Company presents the non-GAAP financial measures EBITDA and Adjusted
EBITDA because management uses these measures to monitor and evaluate the
performance of the business and believes the presentation of these measures
will enhance the investors' ability to analyze trends in the business and
evaluate the Company's underlying performance relative to other companies in
the industry.

Management uses the non-GAAP metric free cash flow to assess the financial
performance of the Company. Convergys' management believes that free cash flow
is useful to investors because it relates the operating cash flow of the
Company to the capital that is spent to continue and improve business
operations, such as investment in the Company's existing businesses. Further,
free cash flow facilitates management's ability to strengthen the Company's
balance sheet, to repurchase the Company's stock, and to repay the Company's
debt obligations. Management also believes the presentation of this measure
will enhance the investors' ability to analyze trends in the business and
evaluate the Company's underlying performance relative to other companies in
the industry. Limitations associated with the use of free cash flow include
that it does not represent the residual cash flow available for discretionary
expenditures as it does not incorporate certain cash payments including
payments made on capital lease obligations or cash payments for business
acquisitions. Management compensates for these limitations by using both the
non-GAAP measure, free cash flow, and the GAAP measure, cash flow from
operating activities, in its evaluation of performance. There is no material
purpose for which we use these non-GAAP measures beyond the purposes described
above.

These non-GAAP measures should be considered supplemental in nature and should
not be considered in isolation or be construed as being more important than
comparable GAAP measures. The non-GAAP financial information that we provide
may be different from that provided by our competitors or other companies.

Webcast Presentation:

Convergys will hold its Second Quarter Financial Results webcast presentation
at 9:00 a.m., Eastern time, Wednesday, July 31. It will feature its President
and CEO Andrea Ayers and CFO Andre Valentine. The webcast presentation will
take place live and will then be available for replay at this link -
http://tinyurl.com/2Q13ConferenceCall. This link will replay the webcast
presentation through August 31. You may also access the webcast or the
recording via the Convergys website, www.convergys.com. Click “Company,” then
“Investor Relations,” then “Events and Webcasts.”

Supporting Resources:

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About Convergys

As a leader in customer management for over 30 years, Convergys is uniquely
focused on helping companies find new ways to enhance the value of their
customer relationships and deliver consistent customer experiences across all
channels and geographies. Every day, over 80,000 employees help our clients
balance the demands of increasing revenue, improving customer satisfaction,
and reducing overall cost using an optimal mix of agent, technology, and
analytics  solutions. Our actionable insight stems from handling billions of
customer interactions annually for our clients. Visit www.convergys.com to
learn more.

(Convergys and the Convergys logo are registered trademarks of Convergys
Corporation.)

                                                                         
                                                                                    
CONVERGYS CORPORATION
Consolidated Statements of Income
(Unaudited)
                                                                                    
                                                                                    
                       For the Three Months               For the Six Months
                       Ended Jun 30,           %          Ended Jun 30,             %
(In millions
except per             2013        2012        Change     2013        2012          Change
share amounts)
                                                                                    
Revenues:
Communications           301.1       295.2     2            593.9       590.4       1
Technology               47.6        42.6      12           92.2        84.4        9
Financial                45.5        52.5      (13  )       91.6        105.1       (13  )
Services
Other                   110.1     100.8    9           220.1     208.7      5
Total Revenues         $ 504.3     $ 491.1     3          $ 997.8     $ 988.6       1
                                                                                    
Costs and
Expenses:
Cost of
Providing                327.3       316.5     3            645.5       634.2       2
Services and
Products Sold
Selling,
General and              119.9       114.1     5            234.5       238.8       (2   )
Administrative
Research and
Development              2.2         2.5       (12  )       4.3         6.4         (33  )
Costs
Depreciation             21.2        20.5      3            42.1        40.8        3
Amortization             1.4         1.8       (22  )       2.6         3.7         (30  )
Restructuring            1.1         7.6       NM           1.1         7.6         (86  )
Charges
Asset                   1.1       88.6     NM          1.1       88.6       (99  )
Impairment
Total Costs             474.2     551.6    (14  )      931.2     1,020.1    (9   )
and Expenses
                                                                                    
Operating                30.1        (60.5 )   NM           66.6        (31.5   )   NM
Income (Loss)
                                                                                    
Other Income,            0.0         0.7       (100 )       2.3         2.1         10
net
Interest                (2.9  )    (4.4  )   (34  )      (5.8  )    (8.0    )   (28  )
Expense
                                                                                    
Income (Loss)
Before Income
Taxes and                27.2        (64.2 )   NM           63.1        (37.4   )   NM
Discontinued
Operations
                                                                                    
Income Tax
Expense                 5.2       (10.5 )   NM          10.9      (5.1    )   NM
(Benefit)
                                                                                    
Income (Loss)
from
Continuing               22.0        (53.7 )   NM           52.2        (32.3   )   NM
Operations,
net of tax
Income (Loss)
from
Discontinued
Operations,
net of tax
benefits of
$1.1 and $4.0,
for the three
months ended            1.4       68.3     NM          (3.7  )    73.0       NM
June 30, 2013
and 2012,
respectively
and $4.0 and
$1.0 for the
six months
ended June 30,
2013 and 2012,
respectively
                                                                                    
Net Income             $ 23.4     $ 14.6     60          48.5      40.7       19
                                                                                    
Basic Earnings
(Loss) Per
Common Share
Continuing             $ 0.21      $ (0.47 )              $ 0.50      $ (0.28   )
Operations
Discontinued           $ 0.02     $ 0.59                $ (0.04 )   $ 0.63    
Operations
Net Basic
Earnings Per           $ 0.23     $ 0.13                $ 0.46     $ 0.35    
Common Share
                                                                                    
Diluted
Earnings
(Loss) Per
Common Share
Continuing             $ 0.20      $ (0.47 )              $ 0.48      $ (0.28   )
Operations
Discontinued           $ 0.02     $ 0.59                $ (0.04 )   $ 0.63    
Operations
Net Diluted
Earnings Per           $ 0.22     $ 0.13                $ 0.44     $ 0.35    
Common Share
                                                                                    
Weighted
Average Common
Shares
Outstanding
Basic                    103.8       115.4                  104.7       115.7
Diluted                  108.1       115.4                  109.3       115.7
                                                                                    
Market Price
Per Share
High                   $ 18.66     $ 14.82                $ 18.66     $ 14.82
Low                    $ 15.56     $ 12.40                $ 15.05     $ 12.13
Close                  $ 17.43     $ 14.77                $ 17.43     $ 14.77
                                                                                    

                                                              
                                                                     
CONVERGYS CORPORATION
Reconciliation of GAAP EPS from Continuing Operations to non-GAAP EPS from
Continuing Operations
(In Millions Except Per Share Amounts)
                                                                     
                                                       Three Months
                                                       Ended Jun 30,
                                                       2013          2012
                                                                     
Revenue                                                $ 504.3       $ 491.1
                                                                     
Operating income (loss) as reported under U.S.         $ 30.1        $ (60.5 )
GAAP
                                                                     
Operating Margin                                         6.0   %       -12.3 %
Net pension and other post employment benefit            7.5           (2.7  )
plan charges ^(a)
Asset impairment ^(b)                                    1.1           88.6
Restructuring ^(c)                                       -             6.4
Information Management costs not qualifying as          -           2.8   
Discontinued Operations ^(d)
Total charges                                           8.6         95.1  
                                                                     
Adjusted operating income (a non-GAAP measure)         $ 38.7       $ 34.6  
                                                                     
Adjusted Operating Margin                                7.7   %       7.0   %
                                                                     
Income (Loss) Before Income Taxes and
Discontinued Operations as reported under U.S.         $ 27.2        $ (64.2 )
GAAP
                                                                     
Total operating charges from above                       8.6           95.1
Orlando financing fees ^(e)                             -           1.1   
Total charges (benefits)                                8.6         96.2  
                                                                     
Adjusted Income Before Income Taxes and                $ 35.8       $ 32.0  
Discontinued Operations (a non-GAAP measure)
                                                                     
Income from continuing operations, net of tax,         $ 22.0        $ (53.7 )
as reported under U.S. GAAP
                                                                     
Total operating charges from above, net of tax           5.4           75.5
Orlando financing fees of $1.1, net of tax              -           0.7   
^(f)
                                                                     
Adjusted net income from continuing                    $ 27.4       $ 22.5  
operations, net of tax (a non-GAAP measure)
                                                                     
Diluted EPS from continuing operations as              $ 0.20        $ (0.47 )
reported under U.S. GAAP
                                                                     
Net impact of total charges included in                 0.05        0.66  
continuing operations
                                                                     
Adjusted diluted EPS from continuing                   $ 0.25       $ 0.19  
operations (a non-GAAP measure)
                                                                             

(a) During the three months ended June 30, 2013 and 2012, the Company recorded
net pension and other post employment benefit plan charges (benefits) of $7.5
and ($2.7), respectively. The 2013 charge consists of a pension plan
settlement charge while the 2012 net benefit includes $4.1 of curtailment
credits from pension and other post employment benefits plans and $1.4 of
post-retirement benefits costs related to changes in the executive management
team.

(b) During the three months ended June 30, 2012, the Company recorded an
impairment charge of $46.0 for the goodwill of the Customer Interaction
Technology reporting unit. In addition, as the result of a decision to
monetize certain real estate assets, these assets were reclassified to Held
for Sale and the Company recorded an impairment charge of $1.1 and $42.6 for
the three months ended June 30, 2013 and 2012, respectively, to reduce the
carrying value to estimated fair value less cost to sell.

(c) The results for the three months ended June 30, 2012 include $6.4 of
restructuring charges within Corporate and Other consisting of severance
charges related to the change in the Company's executive team and streamlining
of operations as a result of the sale of the Information Management business.

(d) In March 2012, the Company signed a definitive agreement to sell the
Information Management business and the sale substantially closed in May 2012.
The results of operations of this business met the criteria for presentation
as discontinued operations and therefore are presented on this basis for all
periods presented. Certain costs previously allocated to the Information
Management business do not qualify for discontinued operations accounting
treatment and are required to be reported as costs within continuing
operations. The Company classified $2.8 of these costs, which previously would
have been presented within the Information Management segment, within
continuing operations for the three months ended June 30, 2012.

(e) In the second quarter of 2012, the Company exercised its option to
purchase its leased office facility in Orlando, Florida by discharging the
related lease financing obligation in the aggregate principal amount of $55.0.
In connection with the purchase, the Company expensed $1.1 of previously
deferred financing fees as interest expense.

Management uses operating income, income from continuing operations, net of
tax and earnings per share from continuing operations excluding the above
items to assess the underlying operational performance of the continuing
operations of the business for the year and to have a basis to compare
underlying operating results to prior and future periods. These charges and
credits are relevant in evaluating the overall performance of the business.

Limitations associated with the use of these non-GAAP measures include that
these measures do not include all of the amounts associated with our results
as determined in accordance with GAAP. Management compensates for these
limitations by using the non-GAAP measures, operating income, income from
continuing operations, net of tax and diluted earnings per share excluding the
charges, and the GAAP measures, operating income, income from continuing
operations, net of tax and diluted earnings per share, in its evaluation of
performance. There are no material purposes for which we use these non-GAAP
measures beyond those described above.

                                                              
                                                                     
CONVERGYS CORPORATION
Reconciliation of GAAP EPS from Continuing Operations to non-GAAP EPS from
Continuing Operations
(In Millions Except Per Share Amounts)
                                                                     
                                                       For the Six Months
                                                       Ended Jun 30,
                                                       2013          2012
                                                                     
Revenue                                                $ 997.8       $ 988.6
                                                                     
Operating income (loss) as reported under U.S.         $ 66.6        $ (31.5 )
GAAP
                                                                     
Operating Margin                                         6.7   %       -3.2  %
Net pension and other post employment benefit            7.5           (2.7  )
plan charges ^(a)
Asset impairment ^(b)                                    1.1           88.6
Restructuring ^(c)                                       -             6.4
Information Management costs not qualifying as          -           8.8   
Discontinued Operations ^(d)
Total charges                                           8.6         101.1 
                                                                     
Adjusted operating income (a non-GAAP measure)         $ 75.2       $ 69.6  
                                                                     
Adjusted Operating Margin                                7.5   %       7.0   %
                                                                     
Income (Loss) Before Income Taxes and
Discontinued Operations as reported under U.S.         $ 63.1        $ (37.4 )
GAAP
                                                                     
Total operating charges from above                       8.6           101.1
Orlando financing fees ^(e)                             -           1.1   
Total charges (benefits)                                8.6         102.2 
                                                                     
Adjusted Income Before Income Taxes and                $ 71.7       $ 64.8  
Discontinued Operations (a non-GAAP measure)
                                                                     
Income (Loss) from continuing operations, net          $ 52.2        $ (32.3 )
of tax, as reported under U.S. GAAP
                                                                     
Total operating charges from above, net of tax           5.4           80.3
Orlando financing fees of $1.1, net of tax              -           0.7   
^(e)
                                                                     
Adjusted income from continuing operations,            $ 57.6       $ 48.7  
net of tax (a non-GAAP measure)
                                                                     
Diluted EPS from continuing operations as              $ 0.48        $ (0.28 )
reported under U.S. GAAP
                                                                     
Net impact of total charges included in                 0.05        0.69  
continuing operations
                                                                     
Adjusted diluted EPS from continuing                   $ 0.53       $ 0.41  
operations (a non-GAAP measure)
                                                                     

(a) During the six months ended June 30, 2013 and 2012, the Company recorded
net pension and other post employment benefit plan charges (benefits) of $7.5
and ($2.7), respectively. The 2013 charge consists of a pension plan
settlement charge while the 2012 net benefit includes $4.1 of curtailment
credits from pension and other post employment benefits plans and $1.4 of
post-retirement benefits costs related to changes in the executive management
team.

(b) During the six months ended June 30, 2012, the Company recorded an
impairment charge of $46.0 for the goodwill of the Customer Interaction
Technology reporting unit. In addition, as the result of a decision to
monetize certain real estate assets, these assets were reclassified to Held
for Sale and the Company recorded an impairment charge of $1.1 and $42.6 for
the three months ended June 30, 2013 and 2012, respectively, to reduce the
carrying value to estimated fair value less cost to sell.

(c) The results for the six months ended June 30, 2012 include $6.4 of
restructuring charges within Corporate and Other consisting of severance
charges related to the change in the Company's executive team and streamlining
of operations as a result of the sale of the Information Management business.

(d) In March 2012, the Company signed a definitive agreement to sell the
Information Management business and the sale substantially closed in May 2012.
The results of operations met the criteria for presentation as discontinued
operations and therefore are presented on this basis for all periods
presented. Certain costs previously allocated to the Information Management
segment do not qualify for discontinued operations accounting treatment and
are required to be reported as costs within continuing operations. The Company
classified $8.8 of these costs, which previously would have been presented
within the Information Management segment within continuing operations for the
six months ended June 30, 2012.

(e) In the second quarter of 2012, the Company exercised its option to
purchase its leased office facility in Orlando, Florida by discharging the
related lease financing obligation in the aggregate principal amount of $55.0.
In connection with the purchase, the Company expensed $1.1 of previously
deferred financing fees as interest expense.

Management uses operating income, income from continuing operations, net of
tax and earnings per share data excluding the items above to assess the
underlying operational performance of the continuing operations of the
business for the year and to have a basis to compare underlying operating
results to prior and future periods. These charges and credits are relevant in
evaluating the overall performance of the business.

Limitations associated with the use of these non-GAAP measures include that
these measures do not include all of the amounts associated with our results
as determined in accordance with GAAP. Management compensates for these
limitations by using the non-GAAP measures, operating income, income from
continuing operations, net of tax and diluted earnings per share excluding the
charges, and the GAAP measures, operating income, income from continuing
operations, net of tax and diluted earnings per share, in its evaluation of
performance. There are no material purposes for which we use these non-GAAP
measures beyond those described above.

                                                                     
                                                                                
CONVERGYS CORPORATION
Reconciliation of Net Income (Loss) from Continuing Operations to Adjusted EBITDA
(Unaudited)
                                                                                
                                                                                
                      For the Three Months              For the Six Months
                      Ended Jun 30,          %          Ended Jun 30,           %
(In millions)         2013       2012        Change     2013        2012        Change
                                                                                
Income (Loss)
from
Continuing            $ 22.0     $ (53.7 )   NM         $ 52.2      $ (32.3 )   NM
Operations,
net of tax
Depreciation
and                     22.6       22.3      1            44.7        44.5      0
Amortization
Interest                2.9        4.4       (34  )       5.8         8.0       (28  )
expense
Income tax             5.2      (10.5 )   NM          10.9      (5.1  )   NM
expense
EBITDA (a
non-GAAP              $ 52.7     $ (37.5 )   NM           113.6       15.1      NM
measure)
                                                                                
                                                                                
Asset
impairment              1.1        88.6      NM           1.1         88.6      NM
charges
Restructuring           -          6.4       NM           -           6.4       NM
Information
Management
costs not               -          2.8       NM           -           8.8       NM
qualifying as
Discontinued
Operations
Net pension
and other
post                   7.5      (2.7  )   NM          7.5       (2.7  )   NM
employment
benefit plan
charges
                                                                                
Adjusted
EBITDA (a             $ 61.3    $ 57.6     6          $ 122.2    $ 116.2    5
non-GAAP
measure)
                                                                                
EBITDA Margin           10.5 %     -7.6  %                11.4  %     1.5   %
                                                                                
Adjusted                12.2 %     11.7  %                12.2  %     11.8  %
EBITDA Margin
                                                                                

The Company presents the non-GAAP financial measures EBITDA and Adjusted
EBITDA because management uses these measures to monitor and evaluate the
performance of the business and believes the presentation of these measures
will enhance the investors' ability to analyze trends in the business and
evaluate the Company's underlying performance relative to other companies in
the industry.

These non-GAAP measures should not be considered in isolation or as a
substitute for income from continuing operations, net of tax or other income
statement data prepared in accordance with GAAP and our presentation of these
measures may not be comparable to similarly-titled measures used by other
companies. Management uses both these non-GAAP measures and the GAAP measure,
income from continuing operations, net of tax, in evaluation of its underlying
performance. There are no material purposes for which we use these non-GAAP
measures beyond the purposes described above. These non-GAAP measures should
be considered supplemental in nature and should not be considered in isolation
or be construed as being more important than comparable GAAP measures.

                                                          
                                                                 
CONVERGYS CORPORATION
Consolidated Balance Sheets
(Unaudited)
                                                                 
                                                                 
                                                   Jun. 30,      Dec. 31,
(In millions)                                      2013          2012
                                                                 
Assets
                                                                 
Cash and Cash Equivalents                          $ 515.2       $ 554.7
Short Term Investments                               72.2          83.8
Receivables - Net                                    319.5         319.8
Other Current Assets                                 102.3         107.7
Current Assets - Held for Sale                       47.2          34.6
Property and Equipment - Net                         251.8         279.2
Other Assets                                        662.5        658.1
Total Assets                                       $ 1,970.7     $ 2,037.9
                                                                 
                                                                 
Liabilities and Shareholders' Equity
                                                                 
Debt Maturing in One Year                          $ 0.9         $ 0.7
Other Current Liabilities                            257.0         285.8
Other Liabilities                                    316.3         319.6
Long-Term Debt                                       60.1          59.9
Common Shareholders' Equity                         1,336.4      1,371.9
Total Liabilities and Shareholders' Equity         $ 1,970.7     $ 2,037.9
                                                                 

                                                             
                                                                      
Convergys Corporation
Summarized Statement of Cash Flow
(Unaudited)
                                                                      
                                                                      
                   For the Three Months               For the Six Months
                   Ended Jun 30,                      Ended Jun 30,
(In                2013            2012               2013            2012
millions)
                                                                      
Net cash
provided
by                 $ 49.5          $ 39.7             $ 72.2          $ 51.6
operating
activities
                                                                      
Net cash
used in              (23.4 ) (a)     391.8    (a)       (36.0 ) (b)     371.8
investing
activities
                                                                      
Net cash
used in             (35.9 )        (123.2 )          (75.7 )        (126.4 )
financing
activities
                                                                      
Net
decrease           $ (9.8  )       $ 308.3           $ (39.5 )       $ 297.0  
in cash
                                                                               

(a) Includes  $14.2 and $27.0 of capital expenditures, net of proceeds for
disposals, for the three months ended June 30, 2013 and 2012, respectively.

(b) Includes  $26.3 and $47.0 of capital expenditures, net of proceeds for
disposals, for the six months ended June 30, 2013 and 2012, respectively.

                                                            
                                                                     
CONVERGYS CORPORATION
Reconciliation of Cash Provided by Operating Activities to Free Cash Flow
(Unaudited)
                                                                     
                                                                     
                               For the Three Months      For the Six Months
                               Ended Jun 30,             Ended Jun 30,
(In millions)                  2013        2012          2013        2012
                                                                     
Net cash provided by           $ 49.5      $ 39.7        $ 72.2      $ 51.6
operating activities
                                                                     
Capital expenditures,          (14.2 )    (27.0 )      (26.3 )    (47.0 )
net
                                                                     
Free cash flow (a              $ 35.3     $ 12.7       $ 45.9     $ 4.6   
non-GAAP measure)
                                                                     

Management uses free cash flow to assess the financial performance of the
Company. Convergys' Management believes that free cash flow is useful to
investors because it relates the operating cash flow of the Company to the
capital that is spent to continue and improve business operations, such as
investment in the Company’s existing businesses. Further, free cash flow
facilitates Management’s ability to strengthen the Company’s balance sheet, to
repay the Company’s debt obligations and to repurchase the Company’s common
shares. Management also believes the presentation of this measure will enhance
the investors' ability to analyze trends in the business and evaluate the
Company's underlying performance relative to other companies in the industry.

Limitations associated with the use of free cash flow include that they do not
represent the residual cash flow available for discretionary expenditures as
they do not incorporate certain cash payments including payments made on
capital lease obligations or cash payments for business acquisitions.
Management compensates for these limitations by using both the non-GAAP
measure, free cash flow, and the GAAP measure, cash from operating activities,
in its evaluation of performance. There are no material purposes for which we
use this non-GAAP measure beyond the purposes described above. This non-GAAP
measure should be considered supplemental in nature and should not be
considered in isolation or be construed as being more important than
comparable GAAP measures.

Contact:

Convergys Corporation
David Stein, Investor Relations, +1 513-723-7768
investor@convergys.com
or
Krista Boyle, Public/Media Relations, +1 513-723-2061
krista.boyle@convergys.com