COMFORCE Corporation Announces Fourth Quarter 2008 and Full Year Results

- Company reports record sales for fourth quarter and full year 2008

- Record full year income from continuing operations before income taxes

- Interest expense declines $879,000 for quarter and $3.3 million for full
year

WOODBURY, N.Y., March 24 /PRNewswire-FirstCall/ -- COMFORCE Corporation (NYSE
Amex: CFS), a leading provider of outsourced staffing management services,
specialty staffing and consulting services, today reported results for the
fourth quarter ended December 28, 2008.

Revenues for the quarter rose 6.6% to $154.2 million, compared to $144.7
million for the fourth quarter of last year. The increase in revenues was
primarily due to the continued growth at the Company's Human Capital
Management segment, consisting of PRO(R) Unlimited, where revenues increased
$9.7 million or 10.9% over the fourth quarter of 2007. In addition, PRO
reported gross profit for the quarter of $13.7 million, compared to $12.1
million for the fourth quarter of 2007. Staff Augmentation revenues increased
by $191,000 due primarily to an increase in services provided to Information
Technology customers which was partially offset by a decrease in services
provided to Technical Services customers.

COMFORCE's gross profit for the fourth quarter of 2008 was $24.7 million, or
16.0% of sales, compared to $24.0 million, or 16.6% of sales in the fourth
quarter of 2007.

Operating income for the fourth quarter was $4.6 million, compared to
operating income of $4.0 million in the fourth quarter of 2007.

Interest expense was $869,000 in the fourth quarter of 2008, compared to $1.7
million in the prior year's fourth quarter. This decrease was primarily due
to the Company's retirement and redemption of $22.9 million of 12% Senior
Notes since the beginning of 2007, including the final redemption of $5.2
million principal amount of Senior Notes in August 2008.

Other expense, net, for the fourth quarter of 2008 of $442,000 principally
consists of losses on foreign currency exchanges, as compared to other
expense, net, for the fourth quarter of 2007 of $59,000 also, principally
consisting of losses on foreign currency exchanges.

Income from continuing operations before income taxes was $3.3 million for the
fourth quarter of 2008, compared to $2.2 million for the same period last
year.

The Company recorded a tax provision of $1.4 million in the fourth quarter of
2008, compared to a tax provision of $977,000 in the fourth quarter of 2007.

Net income for the fourth quarter was $1.9 million, or $0.10 per basic and
$0.06 per diluted share, compared to net income of $2.2 million, including
$1.0 million from discontinued operations, or $0.11 per basic share and $0.07
per diluted share for the fourth quarter of 2007.

Full Year Results

COMFORCE reported revenues of $606.6 million for the fiscal year ended
December 28, 2008, compared to revenues of $586.7 million for the fiscal year
ended December 30, 2007, an increase of 3.4%. The Company's revenues for the
full year continued to be favorably impacted by the performance of PRO
Unlimited, where revenues increased $25.8 million or 7.1%. PRO recorded gross
profit of $51.7 million for the full year of 2008, compared to $47.9 million
for the full year of 2007.

The Company's gross profit for fiscal year 2008 was $96.4 million, or 15.9% of
revenues, compared to $92.6 million, or 15.8% of revenues for fiscal year
2007.

Operating income for the year was $16.2 million, compared to operating income
of $15.8 million for 2007.

Interest expense for fiscal 2008 was $4.4 million, compared to $7.7 million
for the prior year period, principally due to the repurchase and redemption of
the 12% Senior Notes mentioned above.

Other expense, net, for full year 2008 of $1.1 million, principally consists
of losses on foreign currency exchanges, as compared to other income of
$644,000, principally consisting of gains on foreign currency exchanges for
the same period in 2007.

COMFORCE reported income from continuing operations before income taxes for
fiscal 2008 of $10.4 million, compared to $8.3 million for fiscal 2007. The
Company recorded a tax provision of $4.5 million in fiscal 2008, compared to a
tax provision of $3.3 million for the same period last year.

The Company reported net income of $5.9 million, or $0.28 per basic share and
$0.18 per diluted share for fiscal 2008, compared to net income of $6.0
million, including $1.0 million from discontinued operations, or $0.29 per
basic share and $0.19 per diluted share for fiscal 2007.

Comments from Management

John Fanning, Chairman and Chief Executive Officer of COMFORCE commented, "We
are most pleased with our performance for the quarter and full year,
especially given the increasing severity of the current economic environment
over the course of the year. PRO Unlimited continued to be a major factor in
our growth primarily due to the increase in services provided to new
customers. We also remain enthusiastic about our Healthcare Support division
which includes RightSourcing(R). Revenues in this segment increased 10.7% for
the full year.

"Over the past decade we have seen a trend for companies to rely increasingly
on providers of human capital management, such as those provided by PRO and
RightSourcing and believe they continue to represent excellent growth
potential."

Mr. Fanning concluded, "I am sure most of us will agree that there is
virtually no visibility as to when we might begin to see an improving economy.
We, like most other companies in the U.S. and worldwide, are experiencing to
various degrees the spreading effects of this environment, and we are not
immune to the distress in the labor markets. As a conservatively managed
company, we have taken and continue to take steps to position COMFORCE to
withstand bad times and prosper in good times, including the extinguishment of
our public debt, the containment of costs and the focus of our business on
areas we believe will continue to grow and be in demand, such as PRO Unlimited
and RightSourcing.

COMFORCE Corporation will hold an investor conference call to discuss the
Company's financial and operational results at 2:00 p.m. Eastern Time on March
24, 2009. Investors will have the opportunity to listen to the conference
call through the Internet at www.fulldisclosure.com. To listen to the live
call, please go to the web site at least 15 minutes before the start of the
call. For those who cannot listen to the live broadcast, a replay will be
available beginning approximately one hour after the call and continuing for
90 days at the above web site. We expressly disclaim any responsibility for
updating the information in the broadcast during the period it remains
available for replay.

About COMFORCE

COMFORCE Corporation is a leading provider of outsourced staffing management
services that enable Fortune 1000 companies and other large employers to
consolidate, automate and manage staffing, compliance and oversight processes
for their contingent workforces. We also provide specialty staffing,
consulting and other outsourcing services to Fortune 1000 companies and other
large employers for their healthcare support, technical and engineering,
information technology, telecommunications and other staffing needs. We
operate in three segments -- Human Capital Management Services, Staff
Augmentation and Financial Outsourcing Services. The Human Capital Management
Services segment provides consulting services for managing the contingent
workforce through its PRO Unlimited subsidiary. The Staff Augmentation
segment provides Healthcare Support Services, including RightSourcing Vendor
Management Services, Technical, Information Technology and Other Staffing
Services. The Financial Outsourcing Services segment provides funding and
back office support services to independent consulting and staffing companies.

To view the Company's web page visit www.comforce.com.

We have made statements in this release, including the comments from
management that are forward-looking statements such as projections of our
future financial performance, our anticipated growth strategies and
anticipated trends in our business and industry. These statements are only
predictions based on our current expectations and projections about future
events. Although we believe the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee our future results,
particularly in light of the current global economic crisis that has been
marked by dramatic and rapid shifts in market conditions and government
responses, nor will we undertake any obligation to update any of these
statements. Factors which may cause our actual results to differ materially
from those expressed or implied by the forward-looking statements include the
following:

-- unfavorable global, national or local economic conditions that cause
our
customers to defer hiring contingent workers or reduce spending on the
human capital management services and staffing that we provide;
-- the current banking crisis has created a tightening of the credit
markets coupled with increasing interest rates, which, if these
conditions persist or deteriorate, could significantly increase our
interest expense and make it more difficult and costly for us to
refinance or extend our credit facility at its maturity in July 2010;
-- significant increases in the effective rates of any payroll-related
costs that we are unable to pass on to our customers;
-- increases in the costs of complying with the complex federal, state
and
foreign laws and regulations under which we operate, or our inability
to
comply with these laws and regulations;
-- our inability to collect fees due to the bankruptcy of our customers,
including the amount of any wages we have paid to our employees for
work
performed for these customers;
-- our inability to keep pace with rapid changes in technology in our
industry;
-- in that we place our employees in other workplaces, losses incurred by
reason of our employees' misuse of customer proprietary
information, misappropriation of funds, discrimination, harassment,
theft of property, accidents, torts or other claims;
-- our inability to successfully develop new services or enhance our
existing services as the markets in which we compete grow more
competitive;
-- unfavorable developments in our business may result in the necessity
of
writing off goodwill in future periods;
-- as a result of covenants and restrictions in the documents governing
our
bank credit facility, or any future debt instruments, our inability to
use available cash in the manner management believes will maximize
shareholder value;
-- unfavorable press or analysts' reports concerning our industry or
our company could negatively affect the perception investors have of
our
company and our prospects; or
-- any of the other factors described under "Risk Factors" in
Item 1A of the Company's annual report on Form 10-K for the year
ended December 30, 2007 and our quarterly report on Form 10-Q for the
quarter ended September 28, 2008 (copies of which may be accessed
through www.sec.gov or www.comforce.com).

- Financial Tables Follow -

COMFORCE CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Income
(in thousands, except per share amounts)

Three Months Ended Twelve Months Ended
December 28, December 30, December 28, December 30,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Net sales of
services $154,235 $144,719 $606,636 $586,685
-------- -------- -------- --------

Costs and expenses:
Cost of services 129,537 120,705 510,188 494,104
Selling, general
and
administrative
expenses 19,151 19,214 77,129 74,012
Depreciation and
amortization 919 785 3,156 2,803
-------- -------- -------- --------

Total costs and
expenses 149,607 140,704 590,473 570,919
-------- -------- -------- --------

Operating income 4,628 4,015 16,163 15,766
-------- -------- -------- --------

Other (expense) income:
Interest expense (869) (1,748) (4,400) (7,669)
Loss on debt
extinguishment - (19) (278) (443)
Other (expense)
income, net (442) (59) (1,064) 644
-------- -------- -------- --------
(1,311) (1,826) (5,742) (7,468)

Income from continuing
operations before
income taxes 3,317 2,189 10,421 8,298
Provision for income
taxes 1,369 977 4,535 3,309
-------- -------- -------- --------

Income from
continuing
operations 1,948 1,212 5,886 4,989
-------- -------- -------- --------

Income from
discontinued
operations, net - 1,000 - 1,000

-------- -------- -------- --------
Net income $1,948 $2,212 $5,886 $5,989
-------- -------- -------- --------

Dividends on preferred
stock 251 251 1,005 1,005
-------- -------- -------- --------

Net income
available to
common
stockholders $1,697 $1,961 $4,881 $4,984
======== ======== ======== ========

Basic income per
common share:

Income from
continuing
operations $0.10 $0.06 $0.28 $0.23
Income from
discontinued
operations - 0.05 - 0.06
-------- -------- -------- --------
Basic income per
common share $0.10 $0.11 $0.28 $0.29
======== ======== ======== ========

Diluted income per
common share:

Income from
continuing
operations $0.06 $0.04 $0.18 $0.16
Income from
discontinued
operations - 0.03 - 0.03
-------- -------- -------- --------
Diluted income per
common share $0.06 $0.07 $0.18 $0.19
======== ======== ======== ========

Weighted average
common shares
outstanding, basic 17,388 17,388 17,388 17,385
======== ======== ======== ========
Weighted average
common shares
outstanding, diluted 33,147 32,433 32,580 31,870
======== ======== ======== ========

COMFORCE CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets
December 28, 2008 and December 30, 2007
(in thousands, except share and per share amounts)

December 28, December 30,
Assets 2008 2007
------------ ------------

Current assets:
Cash and cash equivalents $6,137 6,654
Accounts receivable, less
allowance of $92 in 2008 and
$129 in 2007 140,763 118,163
Funding and service fees receivable,
less allowance of $20 in 2008
and $44 in 2007 8,941 13,101
Prepaid expenses and other
current assets 3,014 4,408
Deferred income taxes, net 353 388
--- ---
Total current assets 159,208 142,714

Deferred income taxes, net - 164
Property and equipment, net 10,057 7,723
Deferred financing costs, net 213 480
Goodwill 32,073 32,073
Other assets, net 185 230
--- ---

Total assets $201,736 183,384
======== =======

Liabilities and Stockholders' Deficit

Current liabilities:
Accounts payable $2,675 2,376
Short-term debt (related party) 1,778 -
Accrued expenses 131,441 105,825
------- -------
Total current liabilities 135,894 108,201

Long-term debt (including related
party debt of $1,644 in 2007) 68,200 83,858
Deferred income taxes, net 1,074 -
Other liabilities 401 828
--- ---

Total liabilities 205,569 192,887
------- -------

Commitments and contingencies

Stockholders' deficit:
Common stock, $.01 par value;
100,000,000 shares
authorized, 17,387,560 and 17,387,553
shares issued and outstanding in
2008 and 2007, respectively 174 174
Convertible preferred stock,
$.01 par value:
Series 2003A, 6,500 shares
authorized, 6,148 shares
issued and outstanding
at December 28, 2008
and December 30, 2007,
with an aggregate
liquidation preference
of $8,850 at December 28, 2008
and $8,389 at December 30, 2007 4,304 4,304
Series 2003B, 3,500 shares
authorized, 513 shares
issued and outstanding
at December 28, 2008
and December 30, 2007,
with an aggregate
liquidation preference
of $714 at December 28, 2008
and $676 at December 30, 2007 513 513
Series 2004A, 15,000 shares
authorized, 6,737 shares
issued and outstanding
at December 28, 2008
and December 30, 2007,
with an aggregate
liquidation preference
of $8,790 at December 28, 2008
and $8,284 at December 30, 2007 10,264 10,264
Additional paid-in capital 48,406 48,356
Accumulated other
comprehensive loss (522) (256)
Accumulated deficit (66,972) (72,858)
------- -------

Total stockholders' deficit (3,833) (9,503)
------ ------

Total liabilities and
stockholders' deficit $201,736 183,384
======== =======

SOURCE COMFORCE Corporation

Bob Ende, Senior Vice President - Finance of COMFORCE Corporation,
+1-516-437-3300, bende@comforce.com; or General Info, Marilynn Meek,
+1-212-827-3773, or Investors, Scott Eckstein, +1-212-827- 3776, both of
Financial Relations Board, for COMFORCE Corporation