Corporate Resource Services, Inc. Agrees to Acquire Summit Software

  Corporate Resource Services, Inc. Agrees to Acquire Summit Software

Business Wire

NEW YORK -- January 31, 2013

Corporate Resource Services, Inc. (OTCBB: CRRS), a diversified staffing,
recruiting, and consulting services firm providing managed services and
trained employees in the areas of Insurance, Information Technology,
Accounting, Legal, Engineering, Science, Healthcare, Life Sciences, Creative
Services, Hospitality, Retail, General Business and Light Industrial work,
today announced the completion of negotiations to purchase the Summit Software
division of Tri-Tel Communications, Inc. The acquisition is expected to close
once the customary approval requirements and closing conditions have been met.

“With the acquisition of Summit Software, we are taking an important step in
executing Corporate Resource Services’ strategic plan,” said John Messina, the
Company’s CEO. “Summit is one of the premier software companies focused on the
PEO industry. Professional employer organizations (PEOs) enable clients to
cost-effectively outsource the management of human resources, employee
benefits, payroll and workers' compensation. With healthy profit margins and
excellent opportunities for growth, Summit’s technology touches millions of
people through more than 270 PEO and other clients and their base of
customers. While maintaining the privacy of those customers and all of their
respective employees, we believe that we can partner with our clients to
transform Summit’s application into a predictable marketing channel and create
another revenue stream.”

“I am excited about CRS’ strategic vision and the role Summit will play in its
execution,” said Sean Flanagan, President of Summit Software. “We have begun
our development efforts to refine the software and its demographic criteria as
well as create the technology to send and track offers from our marketing
partners. We are confident that we can have a working prototype of this system
in the first half of 2013.”

“The improvement in our profit margins is a key factor in our strategic plan,”
said Mike Golde, CFO of Corporate Resource Services. “We have invested in our
professional services business, particularly in accounting, finance and IT,
and we are experiencing superior growth of these services as a result. This
business typically generates margins comparable to those reported by some of
our well-known public competitors such as Robert Half International Inc.
(NYSE:RHI). However, we also believe that there are excellent growth
opportunities for all of our areas of specialty, including light industrial
work, which typically generates lower margins. While we will continue to focus
on adding higher-margin business and shift our overall business mix as a
result, we don’t want to sacrifice the growth we are experiencing in light
industrial and managed services. We agree with the views expressed by some
financial commentators that the Affordable Care Act (commonly known as
“Obamacare”) will drive demand for temporary services. We believe that the
growth generated by Obamacare compliance will likely be significant with
respect to lower-skilled labor.”

Golde went on to describe the expected impact of the Summit acquisition on
CRS’ results. “With gross margins above 60% and operating margins above 30%,
Summit’s results should certainly improve our overall profit margins. More
importantly, the ability to derive additional revenue streams from our
lower-margin businesses will allow us to compete more effectively on price for
the benefit of our clients, yet generate the profitability our investors are

The acquisition of Summit Software is expected to be accretive to Corporate
Resource Services’ 2013 net income, but the impact on the first quarter of
2013 is expected to be negligible as Summit’s operations are integrated.

About Summit Software, Inc.:

Founded in 1982 and based in Little Rock, Arkansas, Summit Software provides
enterprise software applications for the PEO and staffing industries. Included
in its suite of products is the Summit APEX payroll processing system,
StaffSoft candidate tracking system and client contact management, general
ledger and web self-service modules. Summit’s applications allow clients to
customize a comprehensive plan for their clients that alleviates the burden of
business and human resource management. The company’s client base ranges in
size from start up firms to those managing tens of thousands of employees.

About Corporate Resource Services, Inc.:

Corporate Resource Services, Inc. provides diversified staffing, recruiting,
and consulting services and offers trained employees in the areas of
Insurance, Information Technology, Accounting, Legal, Engineering, Science,
Healthcare, Life Sciences, Creative Services, Hospitality, Retail, General
Business and Light Industrial work. The company’s blended staffing solutions
are tailored to our customers’ needs and can include customized employee
pre-training and testing, on-site facilities management, vendor management,
risk assessment and management, market analyses and productivity/occupational
engineering studies.

The Company’s ability to deliver broad-based solutions provides its customers
a “one stop shop” to fulfill their staffing needs from professional services
and consulting to clerical and light industrial positions. Depending on the
size and complexity of an assignment, Corporate Resource Services can create
an on-site facility for recruiting, training and administration at the
customers’ location. Company recruiters have the latest state of the art
recruiting resources available to help customers secure the best candidates in
today's ever-changing marketplace. CRS’s national network of recruiters has
staffing experts that get excellent results by focusing within their areas of

The Company operates 205 staffing and on-site facilities in 37 states and the
District of Columbia and it offers its services to a wide variety of clients
in many industries, ranging from sole proprietorships to Fortune 1000
companies. To learn more, visit

This press release contains forward-looking statements, which are subject to
risks and uncertainties. Such statements are based on assumptions and
expectations which may not be realized and are inherently subject to risks and
uncertainties, many of which cannot be predicted with accuracy and some of
which might not even be anticipated. Future events and actual results,
financial and otherwise, may differ from the results discussed in the
forward-looking statements. A number of these risks and other factors that
might cause differences, some of which could be material, along with
additional discussion of forward-looking statements, are set forth in the
Company's Annual Report on Form 10-K filed with the Securities and Exchange


Corporate Resource Services, Inc.
Michael J. Golde, 646-443-2380
Chief Financial Officer
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