Staffline Regulatory News (STAF)

5 January 2011

STAFFLINE GROUP PLC

("Staffline" or "the Group")

Acquisition

Staffline Group plc ("Staffline" or "the Group"), a national outsourcing organisation providing people and operational expertise to industry, today announces the acquisition of the trade and assets of Kelburn Industrial, a Newcastle-based provider of recruitment solutions.

The acquisition is in line with Staffline's business strategy of making selective acquisitions to broaden its revenue streams, thereby strengthening its position as a provider of value added business services in the human resource arena.

Kelburn Industrial is based in Newcastle and is a specialist in supplying temporary industrial labour. The Directors believe that the business model and customer base is highly complementary to Staffline.

Commenting, Andy Hogarth, Staffline's Chairman and Chief Executive, said:

"This is a fantastic opportunity for the business going forward and Kelburn Industrial is an excellent fit with Staffline. We will continue to look for similar opportunities to enhance the Group."

- Ends -

About Staffline

Staffline Group plc is a recruitment organisation specializing in food processing, manufacturing, e-retail and logistics. Staffline provides and manages industrial workforces and uses training and business improvement techniques to ensure increased levels of efficiency to give their clients a significant commercial advantage. Operating from 150 locations in the UK Staffline supply up to 20,000 blue collar workers each day. Brands include Staffline Express, the High Street branch operation, OnSite based on clients premises, Peter Rowley a national training and consultancy organisation and OSP a specialist volume recruitment call centre.

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