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Barrett Business Services, Inc. Announces Agreement to Acquire Skills Resource Training Center

12/4/2003 Print Version

PORTLAND, Ore., Dec. 4 /PRNewswire-FirstCall/ -- Barrett Business

Services, Inc. (Nasdaq: BBSI) today announced that it has reached an agreement

in principle to acquire Skills Resource Training Center ("SRTC") headquartered

in Pasco, Washington pursuant to an asset purchase agreement effective

January 1, 2004. Consideration for the transaction, valued at approximately

$5.0 million, includes $3.0 million in cash due upon closing and approximately

$2.0 million in common stock of BBSI based on current market price. The

ultimate number of shares to be issued, if any, will be based upon the level

of financial performance achieved by the SRTC offices during calendar 2004.

Barrett anticipates that this acquisition will increase 2004 earnings by

approximately 10 cents to 16 cents per share.

SRTC, a privately-held staffing services company, operates nine offices in

Central Washington, Eastern Oregon and Southern Idaho. SRTC's staffing

services have served the agricultural, food packing and processing industries

for the past 17 years. SRTC's revenues for calendar 2004 are expected to

approximate $20 to $25 million.

William W. Sherertz, BBSI's President and Chief Executive Officer,

commented, "We are very pleased with the opportunity to expand and diversify

our business in these market areas through such a quality organization, which

we expect to produce significant operating synergies with our existing

Northwest staffing offices."

Barrett Business Services, Inc. is a human resource management company

with offices in seven states, which serve customers in approximately

15 states.

Statements in this release about future events or performance, including

earnings and revenue expectations for 2004, are forward-looking statements,

which involve known and unknown risks, uncertainties and other factors that

may cause the actual results of the Company to be materially different from

any future results expressed or implied by such forward-looking statements.

Factors that could affect future results include economic conditions in the

Company's service areas, the effect of changes in the Company's mix of

services on gross margin, the Company's ability to successfully integrate

acquired businesses with its existing operations, future workers' compensation

claims experience, collectibility of accounts receivable, and availability of

funding for working capital purposes, among others. Other important factors

that may affect the Company's future prospects are described in the Company's

2002 Annual Report on Form 10-K. Although forward-looking statements help to

provide complete information about the Company, readers should keep in mind

that forward-looking statements may be less reliable than historical

information. The Company undertakes no obligation to update or revise

forward-looking statements in this release to reflect events or changes in

circumstances that occur after the date of this release.

SOURCE Barrett Business Services, Inc.