Staffline Regulatory News (STAF)

For immediate release 19 October 2011

STAFFLINE GROUP PLC

("Staffline" or "the Group")

Staffline secures additional Welfare to Work contracts

Staffline, a national outsourcing organisation providing people and operational expertise to industry, today announces that EOS, a wholly owned subsidiary of Staffline, has been awarded two European Social Fund contracts, in the West Midlands and in Yorkshire & Humberside.

The new contracts, which come into effect in December 2011, will see EOS expand its existing footprint from Birmingham, Solihull and the Black Country further strengthening the Group's presence in the Midlands and the North. These contracts, awarded by the Department for Work and Pensions, will involve working alongside the relevant Local Authorities to support the members of long term unemployed families overcome multiple barriers to securing employment.

These two contracts are expected to generate revenue of approximately £53m over a three-year period and will be earnings neutral for the first year and earnings enhancing thereafter.

Staffline also today confirms that earnings for the current year are expected to be in line with market expectations.

Andy Hogarth, Chief Executive of Staffline commented:

"We are delighted to have secured these additional contracts from the Department for Work and Pensions and look forward to working with the Local Authorities across the West Midlands and Yorkshire & Humberside. EOS remains an exciting growth driver within our portfolio of activities across the employment spectrum."

About Staffline

Staffline Group plc is a recruitment organisation specialising 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 over 150 locations in the UK, Staffline supply over 22,500 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, EOS a Welfare to Work supplier and OSP a specialist volume recruitment call centre.