Westaff, Inc., Signs New Forbearance Agreement with U.S. Bank National Association and Wells Fargo Bank, National Association

Westaff, Inc. (NASDAQ:WSTF), a leading provider of staffing services, today announced that it has entered into a third-amended and restated forbearance agreement with U.S. Bank National Association and Wells Fargo Bank, National Association effective February 18, 2009. Subject to the continuing satisfaction of the terms and conditions of this new forbearance agreement, the banks have agreed to forbear from exercising any of their default rights and remedies during the period from February 13, 2009 and ending on April 7, 2009 with regard to the existing events of default for the fiscal period ended on April 19, 2008 and for each applicable fiscal period ending on or before April 7, 2009.

About Westaff

Westaff provides staffing services and employment opportunities for businesses through its network of Company-owned and franchise agent offices. Westaff annually employs more than 100,000 people and services thousands of client accounts throughout the United States. For more information, please visit the company Web site at www.westaff.com.

This press release contains forward-looking statements within the meaning of the U.S. securities laws. Forward-looking statements in this release are generally identified by words such as "expects," "believes," "will," "should" and similar expressions that are intended to identify forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement. Forward-looking statements contained herein include, but are not limited to, statements regarding the new forbearance agreement. The forward-looking statements contained herein involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Many of these risks and uncertainties cannot be controlled by Westaff. These risks and uncertainties include, but are not limited to: our ability to continue to satisfy the terms and conditions of the new forbearance agreement. Additional information concerning the risks and uncertainties listed above, and other factors you may wish to consider, is contained in Westaff's filings with the Securities and Exchange Commission (the “SEC”), including Westaff's most recent Annual Report on Form 10-K for the year ended November 1, 2008 filed with the SEC on February 13, 2009 and Westaff’s Current Report on Form 8-K filed on February 20, 2009.

Forward-looking statements are based on the beliefs and assumptions of Westaff's management and on currently available information. Westaff undertakes no responsibility to publicly update or revise any forward-looking statement except as required by applicable laws and regulations.