Exhibit 99.1

Towers Watson Reports Fourth Quarter Earnings

• Diluted EPS of $0.91, an increase of 52% over prior year
• Adjusted Diluted EPS of $1.25, an increase of 18% over prior year

Fiscal Year 2012 Adjusted Diluted EPS of $5.18, an increase of 16% over prior year

NEW YORK--(BUSINESS WIRE)--August 14, 2012--Towers Watson (NYSE, NASDAQ: TW), a leading global professional services company, today announced financial results for the fourth quarter of fiscal year 2012, which ended June 30, 2012.

Revenues were $826 million for the quarter, a decrease of 3% (flat constant currency) from $851 million for the fourth quarter of fiscal 2011. On an organic basis which excludes the impact of changes in foreign currency exchange rates, acquisitions and divestitures, revenues were flat as compared to the prior-year fourth quarter. For the fiscal year, revenues were $3.42 billion, an increase of 5% from $3.26 billion in fiscal 2011.

Adjusted EBITDA for the fourth quarter of fiscal 2012 was $161 million, or 19.5% of revenues, an increase from $159 million, or 18.7% of revenues, for the prior-year fourth quarter. For the fiscal year, Adjusted EBITDA was $674 million or 19.7% of revenues. 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 fourth quarter of fiscal 2012 was $65 million, an increase from $44 million for the prior-year fourth quarter. For the fiscal year, net income attributable to controlling interests was $260 million. For the quarter, diluted earnings per share were $0.91 and adjusted diluted earnings per share were $1.25. Adjusted diluted earnings per share increased 18% from the prior-year fourth quarter. For the fiscal year, diluted earnings per share were $3.59 and adjusted diluted earnings per share were $5.18. 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, a change in accounting method for pension and non-recurring other income. The normalized tax rate for the quarter was 34%.

“This concludes a very successful fiscal year overall, with 5% revenue growth and strong profit growth. While the fourth quarter was challenging in terms of revenue performance, I continue to be confident about our long-term growth strategy,” said John Haley, chief executive officer. “There were a couple of factors that contributed to the revenue shortfall: the impacts of our ERP deployment stabilization activities in North America and weaker results from Talent and Rewards, driven by Europe. Otherwise, we continue to see overall positive net momentum in the business. We remain committed to our disciplined management approach, our growth strategies, and most importantly, helping our clients navigate through these uncertain times.”

Fourth Quarter Company Highlights

Benefits

For the quarter, the Benefits segment had revenues of $473 million, a decrease of 2% (1% increase organic) from $483 million in the prior-year fourth quarter. Retirement constant currency revenues were down slightly, driven by the ERP billing transition challenges. Technology and Administration Solutions grew on a constant currency basis in all regions as a result of increased client activity with the EMEA region leading the growth with a constant currency increase of 9% due to new business wins. Health and Group Benefits increased constant currency revenues by mid-single digits. The Benefits segment had a Net Operating Income (“NOI”) margin of 31% in the fourth quarter of fiscal 2012.

Risk and Financial Services

For the quarter, the Risk and Financial Services (RFS) segment had revenues of $199 million, an increase of 3% (6% organic) from $194 million in the prior-year fourth quarter. Risk Consulting and Software constant currency revenues increased by 5%, driven by software sales and consulting revenues. Brokerage had a mid-single digit constant currency revenue increase, led by growth in the Americas. Brokerage has posted constant currency revenue increases for five consecutive quarters. Investment led constant currency revenue growth for RFS with a double digit increase with growth in all regions. The Risk and Financial Services segment had an NOI margin of 22% in the fourth quarter of fiscal 2012.

Talent and Rewards

For the quarter, the Talent and Rewards segment had revenues of $130 million, a decrease of 4% (flat organic) from $136 million in the prior-year fourth quarter. Rewards, Talent and Communication grew constant currency revenues by 4%. On a constant currency basis, the Americas had mid-single digit growth, EMEA revenues decreased by 10% due to a drop in our clients’ discretionary spend and Asia Pacific increased by 23% driven by project work in China and Southeast Asia. Data, Surveys and Technology constant currency revenues decreased in all regions. Executive Compensation constant currency revenues grew in the high single digits with growth in all regions. The Talent and Rewards segment had an NOI margin of 12% in the fourth quarter of fiscal 2012. The second half of the fiscal year typically has weaker margins due to the seasonality of the business.

Exchange Solutions

As of May 29, 2012, the company acquired Extend Health, Inc., which operates the largest private Medicare exchange in the United States and created a new reportable segment. Exchange Solutions is led by Bryce Williams, Co-Founder and CEO of Extend Health, and has more than 300 full-time employees and an exchange that currently works with public and private sector clients, including more than 30 Fortune 500 employers and more than 200,000 retirees. For the quarter, the Exchange Solutions segment had revenues of $4 million.

Outlook for First Quarter of Fiscal 2013

For the first quarter of fiscal 2013, the company expects to report revenues in the range of $805 million to $825 million, reflecting constant currency revenue growth in the range of 2% to 4%, and adjusted diluted earnings per share in the range of $1.05 to $1.10. This guidance assumes an average exchange rate of 1.55 U.S. dollars to the British Pound and 1.25 U.S. dollars to the Euro.

Full fiscal 2013 guidance will be provided at Towers Watson’s Analyst Day on September 14, 2012.

Conference Call

The company will host a live webcast and conference call to discuss the financial results for the fourth quarter of fiscal 2012. It will be held on Tuesday, August 14, 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 13082830.

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 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 performance under 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 acquisition of Extend Health is not profitable or is 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; the risk that potential changes in federal and state health care regulations, or future interpretation of existing regulations, may have a material adverse impact on our business; the risk that our newly-acquired Extend Health business fails to maintain good relationships with insurance carriers, becomes dependent upon a limited number of insurance carriers or fails to develop new insurance carrier relationships; the risk that changes and developments in the health insurance system in the United States could harm our business; 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