Staffline Regulatory News (STAF)

For immediate release 27 October 2017

STAFFLINE GROUP PLC

("Staffline" or "the Group")

Grant of Options under 2017 Share Scheme

Staffline, the Staffing and Employability organisation, announces the grant of options to employees as part of its Save As You Earn ("SAYE") share scheme for 2017. The scheme is open to all permanent employees who have completed at least six months continuous service, giving them the opportunity to participate in the future growth of the Group via share option arrangements.

Eligible employees were invited to subscribe for options over Staffline's ordinary shares of 10p each ("Ordinary Shares") with an exercise price of £9.32, a 20% discount to the closing middle market price on the trading day before the invitation to participate was made. The options have a contract start date of 1 December 2017 and are exercisable between 1 December 2020 and 31 May 2021.

A total of 290 employees elected to participate, and, pursuant to these elections, a total of 148,276 options over Ordinary Shares were granted on 26 October 2017, equating to 0.53% of the current issued share capital of 27,849,389 shares. These shares will be issued to participants from the 2,220,400 Ordinary 10p Shares currently held by the Employee Benefit Trust, issued by the Group in accordance with Joint Share Ownership Plans ("JSOP") on 6 September 2010 and 4 July 2013.

Andy Hogarth, Chief Executive Officer, and Christopher Pullen, Chief Financial Officer, are participants in the Company's SAYE scheme and are included in the total figures above. Their individual option grant pursuant to this year's SAYE scheme is 1,931 shares and 1,931 shares respectively. As a result of these option grants, their interest in Staffline's Ordinary 10p Shares is as follows:

Details of each transaction can be found in the Annex pages that follow.

About Staffline

Staffline is a leading outsourcing organisation providing services, mainly in the UK and Eire, 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 nearly 400 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, our high street branch based operation

· Brightwork, a recruitment business based in Scotland specialising in temporary and permanent jobs to the drinks industry as well as industrial recruitment

· Diamond Recruitment, the largest provider of recruitment services in Northern Ireland

PeoplePlus

Trading under the PeoplePlus brand, Government contracts include:

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

· New Enterprise Allowance (business start-up support), prime contractor in three regions of 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:

· Prime contractor to the Education and Skills Funding Agency, Welsh Government as well as Skills Development Scotland,

· Delivering Apprenticeships and Adult Education across the UK - funded by both the Skills Funding Agency and private commercial organisations.

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 Centres for the Northern Ireland Prison Service

· Careers Hubs in Stoke and Staffordshire

ANNEX

The following notifications are intended to satisfy the Company's obligations under Article 19(3) of EU Regulation No 596/2014 (the Market Abuse Regulation).

 Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

 Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them