Westaff Receives Proposal from Select Staffing

  
    
  
  
    
      Westaff, Inc. (NASDAQ:WSTF), a leading provider of staffing services, 
      announced today that it has received a proposal from Koosharem 
      Corporation (as Select Staffing) under which Select Staffing would 
      acquire all of the outstanding shares of Westaff common stock not owned 
      by DelStaff, LLC for $1.25 per share in cash and all of the shares owned 
      by DelStaff, LLC (which shares represent approximately 49.3% of the 
      outstanding shares of Westaff common stock) for first lien debt issued 
      by Select Staffing having a value roughly equivalent to $1.25 per share. 
      Select Staffing’s proposal is subject to significant conditions, 
      including the completion of due diligence and the satisfactory 
      negotiation and execution of definitive transaction documents. There can 
      be no assurance that Select Staffing’s proposal will result in a 
      transaction. Westaff has agreed to an exclusive period of negotiation 
      with Select Staffing through January 14, 2009 in order to consider and 
      negotiate the proposed acquisition. Westaff continues to evaluate other 
      alternatives including continuing its operations as an independent 
      company.
    
    
      About Westaff
    
    
      Westaff provides staffing services and employment opportunities for 
      businesses in global markets. 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,” “would,” “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 
      (i) Westaff’s exploration of alternatives including continuing its 
      operations as an independent company and (ii) Select Staffing’s proposal 
      for an acquisition of all of the outstanding shares of Westaff common 
      stock. 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 (i) the risk that the conditions to Select Staffing’s 
      proposal might not be satisfied, and (ii) the risk that Select 
      Staffing’s proposal might not result in definitive transaction documents 
      or a transaction. 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, including the Westaff’s most recent Annual Report on 
      Form10-K for the year ended November 3, 2007 and Quarterly Report on 
      Form 10-Q for the quarterly period ended July 12, 2008.
    
    
      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.