Westaff, Inc., Announces the Sale of Westaff UK, Ltd.

Mon Mar 31, 2008 9:01pm EDT
 
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WALNUT CREEK, Calif.--(Business Wire)--
Westaff, Inc. (NASDAQ:WSTF), a leading provider of staffing
services, announced that the company completed the sale of its United
Kingdom operations on March 31, 2008, to a privately held company for
cash. The sale included Westaff's U.K. headquarters in Gloucester, GL,
and the Company's 25 U.K. offices.

   Westaff CEO and Chairman Michael T. Willis commented, "This sale
is one of a series of positive steps that management has taken and
expects to continue to take relating to Westaff's operations. Based on
the current market, we received an excellent price for our U.K.
operations of just over six times EBITDA." Willis continued, "This is
a timely transaction for Westaff. We did not view the U.K. as a
long-term strategic fit for the company. The proceeds from this sale
should strengthen our ability to expand our current operations."

   About Westaff

   Westaff provides staffing services and employment opportunities
for businesses in global markets. Westaff annually employs in excess
of 125,000 people and services more than 20,000 client accounts from
179 offices located throughout the United States, Australia and New
Zealand. For more information, please visit our Web site at
www.westaff.com.

   This press release contains forward-looking statements within the
meaning of U.S. securities laws. Forward-looking statements in this
release are generally identified by words such as "expects,"
"believes," "will," "should" and similar expressions that are intended
to identify forward-looking statements. You are cautioned not to place
undue reliance on these forward-looking statements, which speak only
as of the date hereof. All forward-looking statements are qualified in
their entirety by this cautionary statement. Forward-looking
statements contained herein include, but are not limited to,
statements regarding steps that the company may take with respect to
its operations in the future and the company's ability to expand its
current operations and to develop and launch new business lines and
services. The forward-looking statements contained herein involve a
number of assumptions, risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by these
forward-looking statements. Many of these risk and uncertainties
cannot be controlled by the Company. These risks and uncertainties
include, but are not limited to: risks related to control by a
significant shareholder, an intensely priced competitive market, our
significant working capital needs and our ability to borrow to meet
those needs, our ability to borrow under our credit facilities and our
compliance with their debt covenants, variability of the amount of
collateral that we are required to maintain to support our workers'
compensation obligation, the sufficiency of our workers' compensation
claims reserve, variability of employee-related costs, including
workers' compensation liabilities, possible adverse effects of
fluctuations in the general economy, our ability to collect on our
accounts receivable, risks related to franchise agent operations,
risks related to international operations and fluctuating exchange
rates, reliance on executive management and key personnel, our ability
to attract and retain the services of qualified temporary personnel,
the ability of our customers to terminate our service agreement on
short notice, variability of the cost of unemployment insurance for
our temporary employees, any difficulty with our information
technology system, government regulation, potential exposure to
employment-related claims, the volatility of the Company's stock
price, increased regulatory compliance costs and litigation and other
claims. Additional information concerning the risks and uncertainties
listed above, and other factors you may wish to consider, is contained
in the Company's filings with the Securities and Exchange Commission,
including the Company's most recent Form 10-K for the year ended
November 3, 2007.

   Forward-looking statements are based on the beliefs and
assumptions of the Company's management and on currently available
information. The Company undertakes no responsibility to publicly
update or revise any forward-looking statement except as required by
applicable laws and regulations.

Westaff, Inc.
Stacy Spivack, 925-952-2521
Senior Marketing Manager
sspivack@westaff.com
or
KRT Marketing for Westaff, Inc.
Rachel Loya, 925-284-6255
rachel@krtmarketing.com

Copyright Business Wire 2008

 

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