NEW YORK - Hudson Highland Group, Inc. (Nasdaq: HHGP) today announced that the company and its chief financial officer have been notified that the Staff of the Enforcement Division of the SEC intends to recommend that the SEC bring an injunctive action for alleged failures to properly disclose the company's North American state sales tax liability in various SEC filings for periods from June 30, 2006 through March 31, 2007. The total amount of the company's past due sales tax liabilities for the seven-year period from 2001 to 2007 was less than US$3.9 million. Company clients reimbursed the company for approximately US$450,000 of such liabilities. All taxes due to the various states have been paid. The company and its chief financial officer disagree with the SEC Staff's recommendation, but continue to cooperate with the SEC Staff with respect to its investigation.