Exhibit 99.1

Towers Watson Reports Third Quarter Earnings

• Revenues increased 4% over prior year
• Diluted EPS of $0.95, an increase of 1% over prior year
• Adjusted Diluted EPS of $1.39, an increase of 2% over prior year

Increases Expected Fiscal 2012 Adjusted Diluted EPS Range to $5.14 to $5.19

NEW YORK--(BUSINESS WIRE)--May 7, 2012--Towers Watson (NYSE, NASDAQ: TW), a leading global professional services company, today announced financial results for the third quarter of fiscal year 2012, which ended March 31, 2012.

Revenues were $902 million for the quarter, an increase of 4% (5% constant currency) from $866 million for the third quarter of fiscal 2011. On an organic basis which excludes the impact of changes in foreign currency exchange rates, acquisitions and divestitures, revenues increased 4% from the prior-year third quarter.

Adjusted EBITDA for the third quarter of fiscal 2012 was $180 million, or 19.9% of revenues, versus $178 million, or 20.5% of revenues, for the prior-year third quarter. Adjusted EBITDA excludes transaction and integration expenses, non-cash stock-based compensation arising from the merger and a change in accounting method for pension.

Net income attributable to controlling interests for the third quarter of fiscal 2012 was $68 million, as compared to $69 million for the prior-year third quarter. For the quarter, diluted earnings per share were $0.95 and adjusted diluted earnings per share were $1.39. Adjusted diluted earnings per share increased 2% from the prior-year third quarter. Adjusted diluted earnings per share include a normalized income tax rate and exclude transaction and integration costs, non-cash stock-based compensation arising from the merger, amortization of merger accounting intangible assets, change in accounting method for pension and non-recurring other income. The normalized tax rate for the quarter was 37%.

“The Company continued to perform well this quarter and I am pleased with our results,” said John Haley, chief executive officer. “Our leadership faced several challenges this quarter: continued uncertainty in the European markets, building on the strong revenue growth of last year’s third quarter, and balancing the investments necessary to maintain our growth plans while maintaining margin stability. We remain committed to building on our strong foundation so that we can continue to serve the needs of our clients now and in the future.”

Third Quarter Company Highlights

Benefits

For the quarter, the Benefits segment had revenues of $520 million, an increase of 2% (3% organic) from $509 million in the prior-year third quarter. Retirement revenues remained flat year over year. The Americas Region revenues were up modestly and EMEA revenues were down modestly. Technology and Administration Solutions grew in all regions as a result of increased client activity. Health and Group Benefits had strong double digit revenue growth due to an increase in strategy work. The Benefits segment had a Net Operating Income (“NOI”) margin of 37% in the third quarter of fiscal 2012.

Risk and Financial Services

For the quarter, the Risk and Financial Services segment had revenues of $220 million, an increase of 6% (2% organic) from $208 million in the prior-year third quarter. Growth in Risk Consulting and Software was due to the acquisition of EMB, which was acquired in January 2011. Brokerage led the segment in growth and had double digit growth in the Americas. Investment revenue grew by double digits for the second consecutive quarter in the Americas, while Asia Pacific continued to experience revenue growth and revenues declined slightly in EMEA. The Risk and Financial Services segment had an NOI margin of 30% in the third quarter of fiscal 2012.

Talent and Rewards

For the quarter, the Talent and Rewards segment had revenues of $131 million, an increase of 6% (7% organic) from $124 million in the prior-year third quarter. Rewards, Talent and Communication and Data, Surveys and Technology had double digit growth in the Americas and Asia Pacific. Both of these lines of business experienced declines in EMEA in part due to some softness in the marketplace, and the strong third quarter fiscal year 2011 results. Executive Compensation revenues grew in the Americas but revenues dropped off in EMEA. The Talent and Rewards segment had an NOI margin of 13% in the third quarter of fiscal 2012. The first half of the year typically has stronger margins due to the seasonality of the business.

Outlook for Fiscal 2012

For fiscal 2012, the company expects to report revenues around $3.45 billion and adjusted diluted earnings per share in the range of $5.14 to $5.19. Adjusted diluted earnings per share include a normalized income tax rate and exclude transaction and integration costs, non-cash stock-based compensation arising from the merger, amortization of merger accounting intangible assets, change in accounting method for pension and non-recurring other income. This guidance assumes an average exchange rate of 1.59 U.S. dollars to the British Pound and 1.37 U.S. dollars to the Euro for fiscal 2012.

For the fourth quarter of fiscal 2012, the company expects to report revenues in the range of $855 million to $870 million and adjusted diluted earnings per share in the range of $1.20 to $1.25. Adjusted diluted earnings per share include a normalized income tax rate and exclude transaction and integration costs, non-cash stock-based compensation arising from the merger, amortization of merger accounting intangible assets, change in accounting method for pension and non-recurring other income.

Conference Call

The company will host a live webcast and conference call to discuss the financial results for the third quarter of fiscal 2012. It will be held on Monday, May 7, 2012, beginning at 9:00 a.m. Eastern Time, and can be accessed via the Internet at www.towerswatson.com. The replay of the call will be available shortly after the live call for a period of three months. A telephonic replay will also be available for one week after the call by dialing 617-801-6888 and using confirmation number 58909166.

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.

Use of Non-GAAP Measures

In order to assist readers of our financial statements in understanding the company’s core operating results, we present (1) Adjusted EBITDA, (2) Adjusted Net Income Attributable to Controlling Interests, and (3) Adjusted Diluted Earnings Per Share (which are all non-U.S. GAAP measures), to eliminate the effect of acquisition-related expenses from the financial results of our operations. The company’s management uses these measures to evaluate the performance of the business and for financial planning. The company defines Adjusted EBITDA as net income before non-controlling interests adjusted for provision for income taxes, interest, depreciation and amortization, transaction and integration expenses, merger related stock-based compensation, change in accounting method for pension and other non-operating income. We use Adjusted Net Income Attributable to Controlling Interests (the numerator) for the purpose of calculating Adjusted Diluted Earnings Per Share. The company believes that Adjusted EBITDA and Adjusted Diluted Earnings Per Share are relevant and useful measures widely used by analysts, investors and other interested parties in our industry to provide a baseline for evaluating and comparing our operating results.

Since the merger in January 2010, we have incurred significant acquisition-related expenses related to the transaction and integration activities necessary to combine Watson Wyatt and Towers Perrin. These acquisition-related expenses include transaction and integration costs, severance costs, non-cash charges for amortization of intangible assets, change in accounting method for pension and stock-based compensation costs from the issuance of merger-related restricted shares. Adjusted EBITDA and Adjusted Diluted Earnings Per Share are important in illustrating what our operating results would have been had we not incurred these acquisition-related expenses. We consider Adjusted EBITDA and Adjusted Diluted Earnings Per Share to be important financial measures, which we use to internally evaluate and assess our core operations, and benchmark our operating results against our competitors. We use Adjusted EBITDA to evaluate and measure our performance-based compensation plans.

Reconciliations of net income before non-controlling interests to Adjusted EBITDA and Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share are included in the accompanying tables to today’s press release.

Each of these non-U.S. GAAP measures are not defined in the same manner by all companies, and may not be comparable to other similarly titled measures of other companies. Non-U.S. GAAP measures should be considered in addition to, and not as a substitute for, the information contained within our financial statements.

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 acquisitions of EMB or Aliquant Corporation 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, 2013; our ability to respond to rapid technological changes; 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; 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 most recent Annual Report on Form 10-K filed with the SEC, as supplemented in its Quarterly Reports on Form 10-Q.

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.

CONTACT:
Towers Watson
Aida Sukys, 703-258-8033
Aida.Sukys@towerswatson.com