KPMG Netherlands is poised to join KPMG Europe, reversing a
decision to pass on the merger last year. Dutch partners will soon
team up with colleagues in the UK, Germany, Switzerland and Spain
to create the largest fully integrated firm in Europe.

Over the coming months, the firm will begin its accession to
KPMG Europe with a formal announcement expected in December.

KPMG Netherlands chairman Herman Dijkhuizen said the combination
was motivated by the increasing internationalisation of clients and
the need for a seamless, cross-border service.

Dijkhuizen said joining KPMG Europe would benefit the firm’s
employees by providing opportunities for staff to work in other
countries and learn about different cultures.

KPMG partners in the Netherlands narrowly voted against joining
KPMG Europe last September. At the time, former KPMG Netherlands
leader Ben van der Veer noted that merger discussions were by no
means over and the proposal could be revisited in due course.

Dijkhuizen told the International Accounting Bulletin
in August that the firm wanted to expand geographically. Sources
from within KPMG predict more European firms will join in the
future.

KPMG Netherlands is the third-largest firm in the country with
fee income of €681 million ($912.7 million) in the year ended
September 2007. The firm will add about 2,700 professionals to KPMG
Europe.

This month, KPMG Switzerland effectively merged with KPMG Europe
shortly after the Swiss firm was registered by the Federal Audit
Oversight Authority.

KPMG Switzerland had previously stated its intention to join the
pan-European firm but execution of the merger had been held up by
the introduction of a new Swiss regulatory regime this year.

2007 fiscal year