Westaff, Inc., Secures New Credit Agreement for $50 Million

WALNUT CREEK, Calif.--(Business Wire)--
Westaff (USA), Inc. (NASDAQ:WSTF), a leading provider of staffing
services, announced that on Feb. 28, it finalized a new five-year $50
million credit facility syndicated through U.S. Bank National
Association (U.S. Bank) and Wells Fargo Bank. The facility is
available for general corporate purposes, working capital needs and
acquisitions. The agreement consists of a $50 million credit facility
with a $35 million sub-limit for stand-by letters of credit. The
borrowings are secured based upon a percentage of certain eligible
billed and unbilled accounts receivables.

"One of our goals is to grow and bring innovative new services to
the industry," said Dawn M. Jaffray, senior vice president and chief
financial officer of Westaff. "This new facility from U.S. Bank and
Wells Fargo provides Westaff with the financing structure that will
meet both short-term and long-term financial objectives. Westaff will
be able to focus its efforts on strengthening its sales organization,
increasing market share and enhancing its service delivery. We are
pleased with the level of interest in our facility and see it as a
clear sign of confidence in Westaff's business strategy. We wish to
thank our bank partners for their participation."

The total $50 million five-year facility is replacing Westaff's
existing revolving credit facility with GE Capital and Bank of
America, N.A.

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
204 offices located throughout the United States, the United Kingdom,
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," 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 expected delivery of improved performance during
fiscal 2008, domestic revenues in the first quarter of fiscal 2008,
continued gross margins, and first quarter net income for fiscal 2008.
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.
Jill Kinney, 925-930-5300
Vice President, Marketing
jkinney@westaff.com

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