Stratus Services Group, Inc. Announces Termination Of Management Agreement with ALS, LLC


MANALAPAN, N.J., March 31, 2005 (PRIMEZONE) -- Stratus Services Group, Inc., the SMARTSolutions(tm) Company (OTCBB:SSVG), announced today that it has agreed with ALS, LLC to terminate the Management Agreement between the parties that went into effect on February 21, 2005, and to reinstate and amend certain terms of the Outsourcing Agreement which Stratus and ALS entered into in August 2004.

The Outsourcing Agreement, as originally in effect, provided for ALS to perform outsourcing services for the Company's California employees. The amended agreement extends the scope of the outsourcing services to certain employees in New Jersey, Delaware, Pennsylvania, Maryland, New York, Massachusetts and Texas. As a result of the termination of the Management Agreement, management functions related to the Company's revenue generating business units will be retained by the Company and the Company's potential obligation to pay fees related to the management services will be eliminated.

Joseph J. Raymond, Sr., the Company's President and CEO stated, "This is an acceptable compromise based upon the pressure of certain interested parties to terminate the Management Agreement. This enables us to focus on the growth and the return to profitability of Stratus."

Stratus is a national provider of business productivity consulting and staffing services through a network of twenty-nine offices in seven states. Through its SMARTSolutions(tm) technology, Stratus provides a structured program to monitor and reduce the cost of a customer's labor resources. Through its Stratus Technology Services, LLC joint venture, the Company provides a broad range of information technology staffing and project consulting.

This news release includes forward-looking statements within the meaning of the federal securities laws that are subject to risks and uncertainties. Factors that could cause the Company's actual results and financial condition to differ from the Company's expectations include, but are not limited to, a change in economic conditions that adversely affects the level of demand for the Company's services, competitive market and pricing pressures, the availability of qualified temporary workers, the ability of the Company to manage growth through improved information systems and the training and retention of new staff, and government regulations.



            

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