Towers Watson to Acquire Aliquant to Expand Health and Welfare Outsourcing Business

NEW YORK, December 20, 2010 — Towers Watson (NYSE, NASDAQ:TW), a leading global professional services company, today announced it has signed a definitive agreement to acquire Aliquant, a privately held, full-service health and welfare benefits administration outsourcing firm. This acquisition reinforces Towers Watson's ongoing commitment to remain the benefits administration provider of choice for organizations seeking high-quality outsourcing services.

The completion of the transaction, expected before the end of the year, is subject to customary closing conditions, including regulatory approvals. This acquisition is expected to be slightly accretive to Towers Watson's adjusted diluted earnings per share in the fiscal year ending June 30, 2011, but does not change the company's financial expectations for the fiscal year.

"Bringing Aliquant into Towers Watson combines two great teams that share a commitment to delivering the best possible service to leading organizations," said Pat Amendola, North America leader of Towers Watson's Technology and Administration Solutions business. "This agreement strengthens Towers Watson's position as a premier provider of health and welfare outsourcing, and provides greater economies of scale to help us maintain our service quality while supporting our longer-term growth goals."

Aliquant was founded in 1985 in Milford, CT, to develop software for the administration of health and welfare benefit plans. Today, Aliquant has more than 200 employees. The company's clients — which number more than 75 and range in size from 1,000 to 100,000 employees — span a variety of industries. In addition to core administration services, Aliquant's offerings include employee customer service call centers, FSA and COBRA administration, direct billing and hardcopy and electronic total compensation statements. For the fiscal year ended September 30, 2010, Aliquant had revenues of approximately $32 million.

Over the past decade, Aliquant has become a well-regarded provider of health and welfare benefits administration. However, after a careful analysis of the marketplace, we concluded that the combination with Towers Watson was the right step for our clients and our employees," said Aliquant founder and CEO Faisal Saleh. "Towers Watson and Aliquant complement each other strategically, and I'm confident that our clients will continue to experience excellent service while gaining access to a broader set of solutions and a commitment to technological innovation."

Amendola and Saleh said that the two companies share similar "clients first" cultures and complementary business strengths and added that Towers Watson plans to work closely with Aliquant clients to preserve continuity of client teams and service.

About Aliquant

Aliquant is a privately held, full-service health and welfare benefits administration outsourcing firm. The company has been in business for 25 years and currently services more than 75 clients across many industries, which range in size from 1,000 to 100,000 employees. Headquartered in Milford, CT, the company was originally started as a software company known as BeneSoft, with a mission to develop software for the administration of health and welfare benefit plans. Aliquant is located on the web at aliquant.com.

About Towers Watson

Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. The company offers solutions in the areas of employee benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the web at www.towerswatson.com.

Forward-Looking Statements

This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this document by words such as "may," "will," "would," "expect," "anticipate," "believe," "estimate," "plan," "intend," "continue," or similar words, expressions or the negative of such terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of Towers Watson's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the risk that the Towers Perrin and Watson Wyatt businesses will not be integrated successfully; the risk that anticipated cost savings and any other synergies from the merger of Towers Perrin and Watson Wyatt may not be fully realized or may take longer to realize than expected; the ability to successfully make and integrate profitable acquisitions; the risk that the recently announced acquisition of EMB or the Aliquant acquisition are not profitable or are not otherwise successfully integrated; the ability to successfully address issues surrounding the number of company shares that will become freely tradable on January 1, 2011; the ability to recruit and retain qualified employees, particularly given the company's recent changes in employee compensation plans; and to retain client relationships, particularly in the executive compensation business, given recent Securities and Exchange Commission (SEC) and other regulatory actions; the risk that the company fails to adequately respond to rapid technological changes; and the risk that a significant or prolonged economic downturn could have a material adverse effect on Towers Watson's business, financial condition and results of operations. Additional risks and factors are identified under "Risk Factors" in Towers Watson's Annual Report on Form 10-K filed on September 7, 2010 with the SEC.

You should not rely upon forward-looking statements as predictions of future events because these statements are based on assumptions that may not come true and are speculative by their nature. Towers Watson does not undertake an obligation to update any of the forward-looking information included in this document, whether as a result of new information, future events, changed expectations or otherwise.