Labor Ready Acquires Skilled Services Corporation

  
    
  
  
    
      Labor Ready, Inc. (NYSE:LRW) completed the acquisition of Skilled 
      Services Corporation (“SSC”) 
      effective today.
    
    
      Founded in 1993, SSC is a skilled construction trades staffing provider 
      with 21 locations in Florida, Texas, Arizona, California, Colorado, and 
      North Carolina.
    
    
      Labor Ready entered the skilled construction trades staffing market with 
      its acquisition of CLP Resources in 2005. “Since 
      that time, CLP has done an outstanding job delivering better than 
      expected top- and bottom-line results. They have also experienced 
      significant growth by adding 21 new branches to the 51 branches 
      originally purchased,” said Labor Ready CEO 
      Steve Cooper. “The SSC acquisition accelerates 
      CLP’s expansion by increasing the total number 
      of branches to 93 and adding SSC’s talented 
      management team.”
    
    
      According to Cooper, SSC President Mark Curtiss will continue to head 
      SSC operations and will report to CLP Resources CEO Noel Wheeler. 
      Wheeler has been the CEO of CLP Resources since 1999 and has more than 
      35 years of experience in the staffing industry.
    
    
      Cooper added, “Mark and his team have built an 
      impressive company with a great track record. The addition of the SSC 
      team will add significant depth to our skilled construction trades 
      management team. This transaction puts us another step closer to 
      becoming the leading national provider of skilled construction trades 
      staffing.”
    
    
      Since the SSC transaction is expected to add about $30 million of 
      revenue for 2007, Labor Ready has updated guidance for the second 
      quarter and updated its outlook for 2007. For the second quarter, the 
      company estimates revenue in the range of $342 million to $345 million 
      and net income per diluted share between $0.33 and $0.35. For the year, 
      the company estimates revenue in the range of $1.38 to $1.40 billion and 
      net income per diluted share between $1.40 and $1.45.
    
    
      SSC was purchased for approximately $25.5 million in cash.
    
    
      This news release contains forward-looking statements, such as 
      statements about the ranges of revenues, gross margins and net income 
      anticipated for future periods, improvements in safety and workers’ 
      compensation claims and costs, strategies for increasing revenue and net 
      income, and other factors that may affect Labor Ready’s 
      financial results and operations in the future. Labor Ready’s 
      actual results are, however, subject to a number of risks, including 
      without limitation the following: 1) national and global economic 
      conditions; 2) Labor Ready’s ability to 
      continue to attract and retain customers and maintain profit margins in 
      the face of new and existing competition; 3) potential new laws and 
      regulations that could have a materially adverse effect on Labor Ready’s 
      operations and financial results; 4) significant labor disturbances 
      which could disrupt industries Labor Ready serves; 5) increased costs 
      and collateral requirements in connection with Labor Ready’s 
      insurance obligations, including workers’ 
      compensation insurance; 6) the adequacy of Labor Ready’s 
      financial reserves; 7) Labor Ready’s 
      continuing ability to comply with financial covenants in its lines of 
      credit and other financing agreements; 8) Labor Ready’s 
      ability to attract and retain competent employees in key positions or to 
      find temporary employees or skilled trade workers to fulfill the needs 
      of our customers; 9) Labor Ready’s ability to 
      successfully complete and integrate acquisitions that it may make from 
      time to time; 10) Labor Ready’s ability to 
      timely execute strategies for acquired companies; and 11) other risks 
      described in Labor Ready’s filings with the 
      Securities and Exchange Commission, including its most recent Form 10-K 
      and Form 10-Q filings.
    
    
      About Labor Ready
    
    
      Labor Ready is an international provider of temporary employees for 
      manual labor, light industrial and skilled construction trades, 
      operating under the brand names of Labor Ready, Labour Ready, Workforce, 
      Spartan Staffing, and CLP Resources. Labor Ready’s 
      customers are primarily small to mid-sized businesses in the 
      construction, warehousing, hospitality, landscaping, transportation, 
      light manufacturing, retail, wholesale, facilities and sanitation 
      industries. Annually, Labor Ready serves more than 300,000 customers and 
      puts approximately 600,000 people to work through its more than 900 
      branch offices in the United States, Canada, and the United Kingdom. For 
      additional information, visit Labor Ready’s 
      website at www.laborready.com.