Analysts International Announces New Plan to Restore the Company to Profitability

MINNEAPOLIS, MN, Jan 22 (MARKET WIRE) --
Analysts International (NASDAQ: ANLY), a diversified IT services company,
has announced its new plan, designed to restore the Company to profitability
and increase shareholder value. This plan is the result of four months of
assessment of the Company and was developed under the direction of Elmer
Baldwin, the Company's new president and CEO and approved by the Board of
Directors.

The objectives of the plan include increasing revenue, improving margins and
adding personnel in sales and recruiting in higher-margin businesses; expanding
business and service offerings in key geographic markets; and reducing
corporate expenses through consolidation of back-office and other corporate
overhead functions. Other key initiatives will include exiting non-strategic,
non-core business lines and increasing efficiency through process and
productivity improvements.

"We are very serious about removing corporate costs and improving overall
performance. Our number one objective is to increase shareholder value," stated
Baldwin. "Our highest priority is changing how we run this business and
creating
efficiencies across the organization in order to restore profitability. The
first step in our plan is to permanently remove certain costs so that the
Company
achieves sustainable profitability."

To support the plan, Analysts International is implementing the
following
measures:

-- Adding headcount in key functional areas, including sales, recruiting,
project management and consulting, in order to respond to customer demand.

-- Expanding its solutions services by launching project-oriented IT
consulting practices in its largest U.S. markets, most notably Minnesota,
Michigan, Colorado and Kentucky; in 2009 it plans to expand in at least
five additional markets.

-- Exiting businesses that are non-core and non-strategic to its new plan
and aligning the Company to focus on its core, IT-related competencies and
clients.

-- Reducing operating expenses through consolidation of back-office
administrative and other corporate overhead functions.

-- Investing in its own information technology systems in order to
simplify, streamline and automate business processes.

"We're rolling out a plan that strategically realigns the Analysts
International team to focus on our strong geographic markets with our best
staffing and technology service capabilities," said Baldwin. "Specific measures
of
our plan also include management team changes that are in effect
immediately."

Management Changes

To support the strategic initiatives, new senior management appointments
include:
Robert Woods, Senior Vice President General Counsel and Secretary; Michael
Vacanti,
Vice President - Professional Services Central Region; Craig Andrie, Vice
President - Professional Services Western Region; and Brittany McKinney, Vice
President Planning and Operations. New management bios are available on
Analysts
International's Web site, www.analysts.com.

"We've adopted an aggressive approach to installing a proven, talented and
experienced management team capable of executing our plan," stated
Baldwin."We have increased the probability of success of our new plan by
attractingindividuals who have the expertise in returning companies to
profitability."

As part of the change in senior leadership, David Steichen, CFO, and Colleen
Davenport, Legal Counsel, are leaving Analysts International. Steichen has
agreed to
remain with the Company through the year-end 2007 audit and while Analysts
International executes its search for a new CFO. Davenport's previously
announced departure will become effective in the first quarter of 2008.
Steichen and Davenport are working with management to implement the new plan,
and
will assist with the transition of their responsibilities.

Financial Impact

As a result of the new plan and other factors, Analysts International
announced that it
is likely to take a one-time charge in the fourth quarter of 2007 for the
impairment of goodwill and other tangible and intangible assets. The Company
will
complete the process of evaluation prior to releasing fourth-quarter 2007
financial results, and believes an impairment charge of up to $17 million could
be
possible.

The Company also announced a permanent reduction of approximately 70
corporate overhead positions eliminated during the fourth quarter of 2007 and
the first half of 2008. Additional financial impact from the plan is:

-- One-time special charges for severance-related and real estate-related
consolidation or closing costs of approximately $2.1 million in the fourth
quarter of 2007 and between $1.2 million and $1.5 million in the first half
of 2008, with a majority of the 2008 charges occurring in the first
quarter.

-- Additional transition costs of between $1.0 million and $1.5 million
related to the costs of outside services and the cost to recruit and
transition personnel.

-- Capital expenditures in 2008 of between $2.0 million to $3.0 million
to support investments in technology and systems upgrades.

"With the implementation of our plan, we believe that we have
positionedthe Company for future success and profitability," said Baldwin.
"Through our
back-office consolidation and cost-management initiatives we anticipate a $4
million
benefit in 2008 and an annualized benefit of $6 million thereafter. Coupled
with
our strategic investments, further cost management and focus on our key,
higher margin businesses we believe we will restore profitability in the
second half of 2008. I look forward to updating our investors on our
progress as we continue to implement our plan to deliver a new Analysts
International focused on creating shareholder value."

Conference Call Tomorrow at 10 a.m. CST

Analysts International will hold a conference call on Wednesday, Jan. 23,
2008, at 10 a.m. CST. Participants may access the call by dialing (800)
762-8779, or (480) 248-5081 for international participants, a few minutes before
the scheduled start time. The call may also be accessed via the internet at
www.analysts.com, where it will be archived. Interested parties can listen to a
replay of the call from 1 p.m. CST Jan. 23, 2008 until 10:59 p.m. CST on Jan.
30, 2008 by dialing (800) 406-7325, or (303) 590-3030 for international
participants, and entering access code 3831259.

About Analysts International

Headquartered in Minneapolis, Analysts International Corporation (ANLY) is a
diversified IT services company. With sales and customer support offices in the
United States and Canada, Analysts International provides information technology
solutions and staffing services, including: Technology Solutions, which provides
network services, infrastructure, application integration, IP telephony and
hardware
solutions to the middle market; Professional Services, which provides highly
skilled, project managers, business analysts, developers and other IT
consultants
to assist its clients with strategic change; and IT Resources Staffing, which
provides
best value, best response supply of resources to high-volume clients. For more
information, visit www.analysts.com.

Cautionary Statement for the Purpose of Safe Harbor Provisions of the
Private
Securities Litigation Reform Act of 1995

This Press Release contains forward-looking statements within the meaning of
the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
In some cases, forward-looking statements can be identified by words such as
"believe," "expect," "anticipate," "plan," "potential," "continue" or similar
expressions. Forward-looking statements also include the assumptions underlying
or relating to any of the foregoing statements. Such forward-looking statements
are
based upon current expectations and beliefs and are subject to a number of
factors and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. Statements made in
the Press Release for the conference call by the Company, or its President
and CEO, Elmer Baldwin, regarding: (i) expectations that the Company will be
profitable in fiscal year 2008 and that profitability will be sustainable; (ii)
our plan to improve operating results by, including but not limited to,
decreasing our non-sales overhead costs, consolidating administrative
back-offices and their functions, improving our gross margin, expanding
business at existing clients and exiting non-core or non-strategic areas of our
business; (iii) planned investments in additional sales, recruiting, project
management and consulting personnel; (iv) plans to expand our solutions
consultingpractices in four cities in 2008 and five cities in 2009; (v) planned
process
improvement through investments in information technology systems; (vi) our
estimate of the annual savings provided by headcount reductions, back-office
consolidation and cost-management initiatives; and (vii) our estimate of the
charges for severance-related costs, real-estate consolidation costs, additional
transition costs, expected capital expenditures in 2008 and potential impairment
charges, are forward-looking statements. These statements are not guarantees of
future
performance,involve certain risks, uncertainties and assumptions that are
difficult to
predict, and are based upon assumptions as to future events that may not
prove accurate. Therefore, actual outcomes and results may differ materially
from what is expressed herein. In any forward-looking statement in which the
Company or Mr. Baldwin expresses an expectation or belief as to future
results, such expectation or belief is expressed in good faith

and believed to have a reasonable basis, but there can be no assurance
thatthe statement or expectation or belief will result or be achieved or
accomplished. The following factors, among others, could cause actual results
to differ materially from those described in the forward-looking statements:
(i) the
risk that management may not fully or successfully implement planned
investments, cost
reductions and productivity improvements; (ii) lack of success in or
advisability of
efforts to capture growth opportunities, including geographic expansion of our
solutionsservice offerings or expansion of more desirable areas of our business;
(iii) the
risk that we will be unable to exit non-core or less desirable areas of the
business in a timely manner or on favorable terms; (iv) market conditions in the
IT services industry, including intense competition for billable technical
personnel at competitive rates and strong pricing pressures from many of our
largest clients and difficulty in identifying, attracting and retaining
qualified
billable technical personnel; (v) our success at reducing employee-related
costs without unduly disrupting the operations of our business; (vi)
significant rapid growth in, or a significant loss, of our business, or
significant lengthening of payment terms with a major client that create a need
for additional working capital; (vii) the occurrence of additional costs for
severance-relatedcosts, real-estate consolidation, additional transition costs,
expected capital
expenditures in 2008 and potential impairment charges; and (viii) and other
economic, business, market, financial, competitive and/or regulatory factors
affecting the Company's business generally, including those set forth in the
Company's filings with the SEC, including its Annual Report on Form 10-K for its
most recent fiscal year, especially in the Management's Discussion and
Analysis section, its most recent Quarterly Report on Form 10-Q and its Current
Reports on Form 8-K. All forward-looking statements included in this Press
Release are based on information available to the Company on the date of the
Press Release. The Company undertakes no obligation (and expressly disclaims
any such obligation) to update forward-looking statements made in the
conferencecall to reflect events or circumstances after the date of the Press
Releaseor to update reasons why actual results would differ from those
anticipatedin such forward-looking statements.

Media Contacts:
Al Galgano
Marian Briggs
Padilla Speer Beardsley
(612) 455-1700

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