Staffline Regulatory News (STAF)

For immediate release 18 June 2010

STAFFLINE GROUP PLC

("Staffline" or "the Group")

Trading Update

Staffline, a leading provider of recruitment and outsourced HR services to industry, today announces that following a number of new business wins and the impact of recent acquisitions together with increased demand from existing clients the Board now expects earnings for both the first half and full financial year to be significantly ahead of current expectations.

Whilst the benefit of the acquisitions and business wins can be expected to continue to benefit the Group in the future the strong demand from existing clients has, in part, been due to the current uncertain economic climate leading to the use of more temporary labour. This increase in demand with existing customers has continued into June and whilst encouraging, should not be considered to represent a consistent upward trend as trading conditions continue to be highly competitive and margins remain under pressure.

Commenting, Andy Hogarth, Chairman and Chief Executive, said:

"We have had a strong start to trading this year and we are benefitting from recent acquisitions and a number of new business wins. Our strong trading performance provides us with the confidence to continue to actively seek acquisition opportunities to invest further in our expansion."

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