ACQUISITION OF MAGNA RECRUITMENT

STAFFLINE GROUP PLC

("Staffline" or "the Group")

ACQUISITION OF MAGNA RECRUITMENT

Staffline Group, the national outsourcing organisation providing people and operational expertise to industry, today announces the acquisition of Magna Recruitment ('Magna'), a specialist recruitment business with two separate divisions providing Driving and Industrial staffing services.

Based in Lutterworth, Leicestershire, Magna has established a strong regional footprint across the Midlands during 20 years of operation. The acquisition is in line with Staffline's existing strategy to expand the Group's driving division, an area of recruitment where Magma has developed a solid market presence and blue chip customer base.

The acquisition will be earnings neutral this year and is being funded from the Groups' existing bank facility.

Andy Hogarth, Chief Executive of Staffline commented:

"This acquisition fits our strategy of selective bolt-on acquisitions and will broaden our customer base as well as accelerate the development of our driving division, which has already gained good market traction. We look forward to working with Magna and working towards meeting our strategic objectives through further organic and acquisitive growth."

About Staffline

Staffline Group plc is a recruitment organisation specializing in food processing, manufacturing, e-retail, driving 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 200 locations in the UK, Staffline supplies up to 30,000 blue collar workers each day. Brands include Select Appointments, providing white collar staff and Staffline Express, both High Street branch operations, OnSite based on clients' premises, Elpis Training a national training and consultancy organisation, OSP a specialist volume recruitment call centre and EOS, a Welfare to Work provider.