AGM Trading Update

STAFFLINE GROUP PLC

("Staffline" or "the Group")

AGM Trading Update

Staffline (AIM: STAF), the Staffing services, outsourcing, training and Employability organisation, providing people and operational expertise to industry will hold the Group's Annual General Meeting at 10.00am this morning.

At the meeting Andy Hogarth, Chief Executive of the Group, will make the following statement on current trading:

"The Group has had a busy period since the release of our Preliminary Results in January. In particular, in April, we completed our largest acquisition to date, of A4e Limited, for a total consideration of £34.5m. This acquisition has resulted in Staffline becoming one of the largest Work Programme providers in the UK, a key milestone in the growth of the Group, strengthening our position around future bidding contracts including Work Programme Plus. The newly formed PeoplePlus ("formerly Employability") division has made a positive start with encouraging results already being seen.

As previously indicated, the Staffing business has also seen a very strong start to the year with a record 30 Onsite wins so far this year and with an excellent new business pipeline across new and existing customers underpinned by the continued drive for efficiency, particularly amongst retailers.

The Group therefore confirms that current trading remains in line with market expectations with the recent acquisition further supporting our growth aspirations."

About Staffline

Staffline is a leading outsourcing organisation providing Staffing services to industry, supplying up to 35,000 workers every day to more than 1,300 clients. The Group is also leading provider of services in to the Government funded Welfare to Work and Skills arena across the UK.

The business comprises two key areas:

Staffing Services

Specialising in providing complete labour solutions in agriculture, food processing, manufacturing, e-retail, driving and the logistics sectors, the Staffing business operates from well over 250 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

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

· Staffline Express, a high street branch based operation

· Driving Plus, providing HGV drivers to the driving industry

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

Employability

PeoplePlus is one of the largest Prime Contractors of the Work Programme in the UK with over 150 locations nationwide. Contracts include:

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

· Steps to Success, prime contractor in Northern Ireland

· Skills Funding Agency - managing the Offender's Learning and Skills Service ("OLASS 4")

· The Money Advice Service ("TMAS")

· Independent Living Services

· New Enterprise Allowance scheme - supporting people to become self-employed

· Suffolk County Council MyGo centre supporting youth employment

· Ministry of Justice Transforming Rehabilitation in Warwickshire and West Mercia Transforming Rehabilitation

The Group also provides training services through:

· Elpis, a national training consultancy,

· Learning Plus, an e-learning platform

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