Admission to AIM

Staffline Recruitment Group plc
08 December 2004


8 December 2004

    Not for publication, distribution or release in the US, Canada, Japan or
                                   Australia

                        STAFFLINE RECRUITMENT GROUP PLC
                         ('Staffline' or 'the Company')

             Admission to the Alternative Investment Market ('AIM')

                             First Day of Dealings

Staffline Recruitment Group plc, a leading provider of recruitment and
outsourced human resource services to industry, today announces the completion
of its admission to AIM and the commencement of dealings in its Ordinary Shares.

Placing and Admission Highlights

   • The Company has raised approximately £7.3 million through a placing of
    9,191,813 shares at 80 pence per share. Existing Shareholders have not sold
    shares in the Placing.


   • On Admission, the Company has a market capitalisation of approximately
    £16.7 million.


   • Oriel Securities Limited, nominated adviser and broker to Staffline, has
    placed all of these shares with institutional and other investors.



   • The Company intends to use the £6.7m net proceeds from the Placing to
    finance the acquisition of Staffline Recruitment Limited and to repay debt,
    which the Directors believe will strengthen the balance sheet and provide
    additional flexibility to support future growth and development.


   • The Directors also believe that Admission will help Staffline attract
    and retain high quality staff, raise the status and market profile of the
    Company and promote further awareness of its business, which the Directors
    believe will help it in developing the business and attracting new
    customers.

Placing Statistics:

Placing Price                                                              80p

Number of Placing Shares to be issued                                9,191,813

Number of Ordinary Shares in issue immediately following
Admission                                                           20,824,463

Percentage of the Company's enlarged issued ordinary share
capital being placed                                                      44.1%

Estimated net proceeds of the Placing (1)                                 £6.7m

Market capitalisation immediately following Admission at the
Placing Price                                                            £16.7m

Note:

(1) Net proceeds are stated after the deduction of estimated expenses of
approximately £0.6 million.


Andy Hogarth, Managing Director, commented:

'We are delighted to be joining AIM today. The funds raised and the additional
profile following the listing will assist us in developing our business as we
aim to become the leading provider of outsourced human resource and labour
services in blue-collar sectors in the UK. Indeed, we have already received
highly positive responses to the listing from both existing and potential
customers.

'We look forward to building upon our proven ability to deliver profitable
growth, strong operational cashflow and long term customer relationships by
taking advantage of the significant growth opportunities presented by our highly
scaleable on-site operation.'

For further information, please contact:              www.staffline.co.uk

Staffline Recruitment Group plc                       0115 950 0885

Andy Hogarth, Managing Director                       07931 175775
Marshall Evans, Operations Director

Oriel Securities Limited                              020 7710 7600
Andrew Edwards/Natalie Fortescue

Smithfield                                            020 7360 4900
Reg Hoare/Katie Hunt/Annabelle Smith

Oriel Securities Limited, which is regulated in the United Kingdom by the
Financial Services Authority, is acting exclusively for Staffline Recruitment
Group plc and no-one else in the connection with the Placing and Admission and
will not be responsible to any person other than Staffline Recruitment Group plc
for providing the protections afforded to clients of Oriel Securities Limited or
for providing advice in relation to the transactions and arrangements detailed
in this announcement. Oriel Securities Limited is not making any representation
or warranty, express or implied, as to the contents of this announcement.

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Notes to editors:

   • Staffline is a leading provider of recruitment and outsourced human
    resource services to industry which specialises in supplying temporary and
    permanent blue-collar industrial workers, via both a traditional network of
    21 branches and 33 on-site operations located in clients' premises. In
    addition, its Techsearch division specialises in temporary and permanent
    placements in the engineering and fast moving consumer goods sectors.


   • Staffline provides workers to a range of non-cyclical and non-seasonal
    sectors including food production, manufacturing, warehouse and logistics
    and engineering, providing over 4,000 fully vetted temporary workers to
    nearly 400 clients each week, including Sainsbury's, Hozelock, Jacob's and
    Allied Bakeries.


   • The Board constitutes Derek Mapp, Non Executive Chairman, Andy Hogarth,
    Managing Director, Marshall Evans, Operations Director, Andrew Walsh,
    Finance Director and Nicholas Keegan, Non Executive Director.


                      This information is provided by RNS
            The company news service from the London Stock Exchange