Staffline Regulatory News (STAF)

STAFFLINE GROUP PLC

("Staffline" or "the Group")

Acquisition of Brightwork Limited

Staffline, the Staffing and Employability organisation, today announces the acquisition of Brightwork Limited ("Brightwork"), a recruitment business based in Scotland specialising in temporary and permanent jobs in the drinks, warehousing, manufacturing and distribution sectors.

Brightwork has a long and successful history as a multi-sector recruiter for clients across Scotland from offices based in Edinburgh and Glasgow. As previously indicated, the Group has been developing its business in Scotland. The acquisition therefore represents an attractive strategic opportunity to increase footprint in this area, strengthening the Group's geographic reach across the UK, as well as bringing a blue-chip client base. Derek May, Chief Executive of Brightwork, will continue in his role to lead the business

The acquisition is expected to be earnings neutral in the current year and is being funded out of Staffline's existing resources.

Andy Hogarth, Chief Executive of Staffline, commented:

"Staffline is delighted to announce the acquisition of Brightwork. We have been increasing our capability in Scotland in recent years and this acquisition will accelerate the growth of both businesses as it provides scale, as well as greater geographic coverage and value added services. We can offer our clients a greater national service. We very much look forward to working with all the team at Brightwork and to building a great future together".

About Staffline

Staffline is a leading outsourcing organisation providing services, mainly in the UK, to both Government and commercial customers. The Staffing division supplies up to 51,000 workers per day to more than 1,500 clients. Using the skills we have developed and learned within Staffing we have developed a second division, PeoplePlus, and have become a leading provider to both Central and Local Government, offering a wide range of services to help and support in the Employability (Welfare to Work), Communities and Skills arenas.

Staffing Services

Specialising in providing complete labour solutions in agriculture, food processing, manufacturing, e-retail, driving and the logistics sectors, the recruitment business operates from over 350 locations in the UK, Eire and Poland.

The Staffing brands include:

· Staffline OnSite, based on clients' premises and providing both blue and white collar, out-sourced, temporary workforces

· Driving Plus, providing HGV drivers to the driving industry

· Staffline Agriculture, providing workers to the UK farming and horticulture sectors

· Staffline Express, a high street branch based operation

· Select Appointments, a high street branch-based operation providing white collar office staff, operated entirely on a franchised basis by independent business owners

PeoplePlus (previously Employability)

Trading under the PeoplePlus brand, Government contracts include:

· Work Programme, prime contractor in nine regions and sub-contractor in three regions in England

· New Enterprise Allowance (business start-up support), prime contractor in three regions (England) and a sub-contractor in Wales

· Steps to Success, prime contractor in Northern Ireland

· Youth Guarantee (MyGo Centre), supporting youth employment in the Ipswich area

· Youth Promise Plus, supporting youth employment in Birmingham

· Youth Employment Gateway, supporting youth employment in the Wirral

· Building Employment through Education, working in Schools in Northern Ireland

Training services:

· Skillspoint, a procurement consultancy specialising in helping employers benefit from government-funded, work-based training

· Prime contractor to the Education and Skills Funding Agency, Welsh Government and Skills Development Scotland, delivering Apprenticeships and Adult Education across the UK.

Community services:

· Ministry of Justice, Transforming Rehabilitation in Warwickshire and West Mercia, helping to transform rehabilitation and probation services

· OLASS, delivery of training to prisoners in nine prisons in the East of England

· Independent Living Services, supporting 3,500 disabled people lead independent lives

· Visitor Centers for the Northern Ireland Prison Service

· Careers Hubs in Stoke and Staffordshire