CINCINNATI, June 1, 2006 (PRIMEZONE) -- Resolve Staffing, Inc. (OTCBB:RSFF) today announces that it has completed the acquisition of Star Personnel. As previously reported, Star Personnel (www.starpersonnel.com), headquartered in Cincinnati, Ohio, is a provider of diversified staffing services with four offices in the Cincinnati/tri-state market. With approximately $20 million in annual sales and $1.5 million in pretax profit, Star Personnel offers a variety of staffing services including light industrial and office/clerical support. Consideration for the transaction included $2 million in cash and a $500,000 note. No stock was issued as a result of the transaction. Moreover, the acquisition will be accretive to earnings.
Ron Heineman, CEO of Resolve, stated, "The acquisition of Star Personnel will further establish Resolve as a premier staffing company, both nationally and in the Cincinnati and tri-state markets. As we have continued to demonstrate, Resolve will pursue aggressive growth both organically and through strategic acquisition opportunities throughout the U.S. Star brings a solid history and reputation and I am pleased with both the cultural fit and the future business benefits we will jointly achieve. With $20 million in annual sales, Star Personnel will bring us to $100 million in annual staffing revenue. Resolve has built a scalable infrastructure capable of supporting our continued growth."
About Resolve Staffing, Inc.
Resolve Staffing is a national provider of outsourced human resource services. With 61 offices reaching from New York to California, the Company provides a full range of supplemental staffing and outsourced solutions, including solutions for temporary, temporary-to-hire, or direct hire staffing in the medical, trucking, garment, clerical, office administration, customer service, professional and light industrial categories. For additional information on Resolve Staffing visit our website www.resolvestaffing.com.
This press release contains forward-looking statements covered within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. Our expectations regarding future revenues depend upon our ability to develop and supply products and services that we may not produce today and that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in pervasive markets. These risks and uncertainties may cause the actual results of the Company to be materially different from any future results expressed or implied. Factors that could affect future results include economic conditions in the Company's service areas, the effect of changes in the Company's mix of services on gross margin, the Company's ability to successfully integrate acquired businesses with its existing operations, future workers' compensation claims experience, the effect of changes in the workers' compensation regulatory environment in one or more of our primary markets, and collectibility of accounts receivable among others. Other important factors that may affect the Company's future prospects are described in the Company's 2004 Annual Report on Form 10-K. Although forward-looking statements help to provide complete information about the Company, readers should keep in mind that forward-looking statements may be less reliable than historical information. The Company undertakes no obligation to update or revise forward-looking statements in this release to reflect events or changes in circumstances that occur after the date of this release.