IRVINE, Calif., March 26, 2008 - Resources Connection, Inc. (NASDAQ: RECN), a multinational professional services firm that provides to clients - through its operating subsidiary, Resources Global Professionals (“Resources”) - accomplished professionals in accounting and finance, risk management and internal audit, information management, human capital, supply chain management and legal services, today announced financial results for its fiscal third quarter ended February 29, 2008.

Total revenue for the third quarter of fiscal 2008 improved 8.2% to $202.8 million from $187.5 million for the same quarter in fiscal 2007. Revenues in the U.S. were up 3.5% quarter-over-quarter while international revenues increased 22.9% (13.5% on a constant dollar basis). Revenue for the third quarter of fiscal 2008 includes revenue of $4.2 million from Domenica B.V., a leading Netherlands-based provider of actuarial services to pension and life insurance companies, acquired by Resources on December 18, 2007.

Gross margin for the third quarter of fiscal 2008 was 37.3% of revenue compared to 38.2% for the same quarter in fiscal 2007. Selling, general and administrative expenses, which include stock compensation expense, were 28.4% of revenue for the third quarter of fiscal 2008 versus 25.9% for the same quarter in fiscal 2007. The increase in selling, general and administrative expenses primarily results from our investments in new offices and additional client facing personnel for our higher growth offices as well as an increase of over $1 million in the calculated cost of stock options (a non-cash expense).

Net income determined in accordance with generally accepted accounting principles (“GAAP”) for the third quarter ended February 29, 2008, was $8.7 million, or $0.19 per diluted share, including non-cash stock-based compensation expense of $4.8 million net of tax. This compares with GAAP net income for the third quarter ended February 28, 2007, of $13.1 million, or $0.26 per diluted share, including non-cash stock-based compensation expense of $4.0 million net of tax.

Net income determined in accordance with GAAP for the nine months ended February 29, 2008, was $33.3 million, or $0.67 per diluted share, including non-cash stock-based compensation expense of $13.7 million net of tax. This compares with GAAP net income for the nine months ended February 28, 2007, of $38.7 million, or $0.77 per diluted share, including non-cash stock-based compensation expense of $12.1 million net of tax.

Resources Global Professionals, the operating subsidiary of Resources Connection, Inc. (NASDAQ: RECN), is a multinational professional services firm that helps business leaders execute internal initiatives. Partnering with business leaders, we drive internal change across all parts of a global enterprise - finance and accounting, information management, internal audit, human capital, legal services and supply chain management.

Certain statements in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “should,” or “will” or the negative of these terms or other comparable terminology. These forward-looking statements include the Company’s statement that it will continue to focus on executing its business strategy and serving its clients and growing its revenue. Such statements and all phases of Resources Connection’s operations are subject to known and unknown risks, uncertainties and other factors, including seasonality, overall economic conditions and other factors and uncertainties as are identified in our most recent Annual Report on Form 10-K and our other public filings made with the Securities and Exchange Commission (File No. 0-32113). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Resources Connection’s, and its industry’s, actual results, levels of activity, performance or achievements may be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The Company undertakes no obligation to update the forward-looking statements in this press release.

The Non-GAAP Income Statement in this release excludes stock-based compensation expense from the following non-GAAP line items: non-GAAP selling, general and administrative expenses, non-GAAP operating income before amortization and depreciation, non-GAAP operating income, non-GAAP income before provision for income taxes, non-GAAP provision for income taxes, non-GAAP net income, non-GAAP net income per diluted share, and non-GAAP diluted shares used in net income per share calculation.

These non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures and the Non-GAAP Income Statement are not based on any comprehensive set of accounting rules or principles. Resources believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Resources’ results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Resources’ results of operations in conjunction with the corresponding GAAP measures.

Resources believes that the presentation of non-GAAP selling, general and administrative expenses, non-GAAP operating income before amortization and depreciation, non-GAAP operating income, non-GAAP income before provision for income taxes, non-GAAP provision for income taxes, non-GAAP net income, non-GAAP net income per diluted share and non-GAAP diluted shares used in net income per share calculation, when presented in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and results of operations.

For its internal budgeting process, Resources’ management uses financial statements that do not include stock-based compensation expense related to employee stock options and employee stock purchases, and the income tax effects thereof. Resources’ management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Resources.

Revenue	$	202,803		$	187,464		$	603,561		$	535,375

Direct costs of services		127,252			115,938			374,908			326,009

Gross profit		75,551			71,526			228,653			209,366

Selling, general and administrative expenses (1)		57,518			48,577			166,061			140,033

Operating income before amortization and depreciation (1)		18,033			22,949			62,592			69,333

Amortization of intangible assets		211			318			549			1,080

Depreciation expense		2,200			1,563			6,082			4,363

Operating income (1)		15,622			21,068			55,961			63,890

Interest income		(952	)		(2,401	)		(5,123	)		(6,323	)

Income before provision for income taxes (1)		16,574			23,469			61,084			70,213

Provision for income taxes (2)		7,909			10,370			27,801			31,506

*Net income (1) (2)*	$	8,665		$	13,099		$	33,283		$	38,707

Diluted net income per share	$	0.19		$	0.26		$	0.67		$	0.77

Diluted shares		46,547			51,087			49,952			50,565

(1)

Includes $6,052 and $5,018 of expense for the three months ended February 29, 2008 and February 27, 2007, respectively, and $17,314 and $14,381 of expense for the nine months ended February 29, 2008 and February 28, 2007, respectively, related to the mandatory requirement to recognize compensation expense for employee stock option grants and employee stock purchases.

(2)

The Company’s effective tax rate, absent the impact of the requirement to recognize compensation expense related to employee stock option grants and employee stock purchases, was 40.4% and 40.0% for the three months ended February 29, 2008 and February 28, 2007, respectively and 40.1% and 40.0% for the nine months ended February 29, 2008 and February 28, 2007, respectively. The Company’s effective tax rate, including the impact of the requirement to recognize compensation expense related to employee stock option grants and employee stock purchases, was 47.7% and 44.2% for the three months ended February 29, 2008 and February 28, 2007, respectively and 45.5% and 44.9% for the nine months ended February 29, 2008 and February 28, 2007, respectively. The Company cannot recognize a potential tax benefit for certain stock option grants until and unless the holder exercises his or her option and sells the shares. In addition, the Company can only recognize a potential tax benefit for employees’ acquisition and subsequent sale of shares purchased through the Company’s Employee Stock Purchase Plan if the sale occurs within a certain defined period. Further, under SFAS 123(R), certain potential tax benefits associated with incentive stock options fully vested at the time of adoption of SFAS 123(R) will be recognized as additional paid in capital when and if those options are exercised.

Revenue	$	202,803		$	187,464		$	603,561		$	535,375

Direct costs of services		127,252			115,938			374,908			326,009

Gross profit		75,551			71,526			228,653			209,366

Selling, general and administrative expenses (1)		51,466			43,559			148,747			125,652

Operating income before amortization and depreciation (1)		24,085			27,967			79,906			83,714

Amortization of intangible assets		211			318			549			1,080

Depreciation expense		2,200			1,563			6,082			4,363

Operating income (1)		21,674			26,086			73,275			78,271

Interest income		(952	)		(2,401	)		(5,123	)		(6,323	)

Income before provision for income taxes (1)		22,626			28,487			78,398			84,594

Provision for income taxes (2)		9,138			11,395			31,446			33,837

*Net income (1) (2)*	$	13,488		$	17,092		$	46,952		$	50,757

Diluted net income per share	$	0.29		$	0.33		$	0.93		$	0.99

Diluted shares (3)		46,663			51,996			50,331			51,306

(1) Excludes $6,052 and $5,018 of expense for the three months ended February 29, 2008 and February 28, 2007, respectively, and $17,314 and $14,381 of expense for the nine months ended February 29, 2008 and February 28, 2007, respectively, related to the mandatory requirement to recognize compensation expense related to employee stock option grants and employee stock purchases.

(2) Excludes tax benefits related to stock-based compensation of $1,229 and $1,025 for the three months ended February 29, 2008 and February 28, 2007, respectively and $3,645 and $2,331 for the nine months ended February 29, 2008 and February 28, 2007, respectively. Please refer to footnote (2) on the GAAP Income Statement for further detail.

(3) Includes 116 and 909 shares for the three months ended February 29, 2008 and February 28, 2007, respectively and 379 and 741 for the nine months ended February 29, 2008 and February 28, 2007, respectively, presumed to be repurchased in accordance with the requirements of SFAS 123(R) and SFAS 128 for GAAP computation of diluted number of shares.

Following is a reconciliation of net income under GAAP to non-GAAP net income:

	(in thousands, except per share amounts)

	Three months ended February 29, 2008			Three months ended February 28, 2007			Nine months ended February 29, 2008			Nine months ended February 28, 2007

GAAP net income	$	8,665		$	13,099		$	33,283		$	38,707

Stock-based compensation included in SG&A		6,052			5,018			17,314			14,381

Effect of stock-based compensation on provision for income taxes		(1,229	)		(1,025	)		(3,645	)		(2,331	)

Net effect of stock-based compensation		4,823			3,993			13,669			12,050

Non-GAAP net income	$	13,488		$	17,092		$	46,952		$	50,757

Following is a reconciliation of shares used in the calculation of GAAP to non-GAAP diluted net income per share:

		Three months ended February 29, 2008			Three months ended February 28, 2007			Nine months ended February 29, 2008			Nine months ended February 29, 2007

Diluted number of shares used - GAAP		46,547			51,087			49,952			50, 565

Impact of SFAS 123R		116			909			379			741

Diluted number of shares used -non-GAAP		46,663			51,996			50,331			51,306

Following is a reconciliation of GAAP diluted net income per share to non-GAAP diluted net income per share:

	Three months ended February 29, 2008		Three months ended February 28, 2007		Nine months ended February 29, 2008		Nine months ended February 28, 2007

GAAP diluted net income per share	$	0.19	$	0.26	$	0.67	$	0.77

Net effect of stock-based compensation on diluted net income per share	$	0.10	$	0.07	$	0.26	$	0.22

Non-GAAP diluted net income per share	$	0.29	$	0.33	$	0.93	$	0.99


	February 29, 2008		May 31, 2007
	(unaudited)
Cash, cash equivalents, short-term investments and long-term marketable securities	$	99,626	$	223,095

Accounts receivable, less allowances	$	120,140	$	105,146

Total assets	$	389,898	$	464,461

Current liabilities	$	78,961	$	87,683

Total stockholders’ equity	$	300,056	$	363,299