Pacel Corp. Year End Strategic Update & Reorganization

Pacel Corp. Year End Strategic Update & Reorganization 


CHARLOTTE, N.C., Jan. 26  /PRNewswire-FirstCall/ -- Pacel Corporation
(OTC:PCOR) (BULLETIN BOARD: PCOR)  announced today that is has achieved its
initial strategic goal in conjunction with its financing partner, Wall
Street-based Compass Capital Group. This Group utilizing a combination of debt
and equity financing has provided Pacel Corp with $4.2 Million during 2004.
These funds allowed the company to implement a strategic plan of mergers and
acquisitions that established a strong base for future growth within the PEO
Industry and reorganized their additional talents into separate companies with
Niche Specialties that will provide each organization the opportunity to become
a stand-alone profitable company.

Gary Musselman, President of Pacel, stated, "the funds that Compass Capital
Group provided, allowed us to close our last acquisition, Rossar, LLC, and fund
our corporate reorganization.  This reorganization established Asmara Benefit
Services, Inc. as our licensed insurance agency, Piedmont HR, Inc., as our Risk
Management and Safety Analysis, and The Resourcing Solutions Group, Inc, as a
PEO/ASO company that will shortly be directly competing with leaders in the PEO
industry. This capital infusion has allowed the company to proceed with our
plan become a leading force in the Human Resources Outsourcing Industry."

PEO companies are growing at a rate of greater than 30% and most experts
predict this rate of growth can be sustained for 5-10 years as PEO's/ASO's &
HRO's respond to the growing need for their services. The Small Business
Administration estimates there are nearly 6 million businesses with fewer than
100 employees. These small to mid-sized businesses employ over 52 million
employees with an aggregate payroll of over $1.1 trillion. It is estimated the
PEO industry currently has between 2-3 million worksite employees with annual
payrolls greater than $18 billion. With just 2% of the market, the growth in
PEO services is unlimited.

With an average annual growth rate of 30%, more and more business owners are
turning to the Professional Employer Industry to provide them with the tools
they need to increase productivity and profits.

About Pacel Corp.

Pacel Corporation provides Human Resource Outsourcing services, including
benefits administration, payroll administration, governmental compliance, risk
management, unemployment administration and benefits administration to small
and medium-sized businesses in the United States.

The statements contained in this press release that are not historical facts
are forward-looking statements that involve a number of risks and
uncertainties. Therefore, the actual results of future events described in such
forward-looking statements could differ materially from those stated in such
forward-looking statements. Among the factors that could cause actual results
to differ materially are: (i) regulatory and tax developments; (ii) the
effectiveness of the Company's sales and marketing efforts; (iii) changes in
the competitive environment of the industry; (iv) changes in general economic
conditions; (v) changes in the Company's direct costs and operating expenses;
(vi) the estimated costs and effectiveness of capital projects and investments
in technology and infrastructure. (vii) Management's ability to effectively
implement its business strategy. These factors are described in further detail
in filings with the Securities and Exchange Commission. 

DATASOURCE: Pacel Corporation



CONTACT:  John Hopf of Wall Street Financial Network, LLC,

[phone], or  

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