2007 Press Releases

Workstream Inc. Revises Fiscal 2008 First Quarter Results to Account for the Treatment of Recently Issued Warrants

Revision reflects revised interpretation of recent accounting guidelines as it relates to warrants issued in connection with the recent financing during the first quarter

Burlingame, CA, October 15, 2007 - On October 3, 2007, Workstream Inc. (NASDAQ – WSTM), a leading provider of on-demand compensation, performance and talent management solutions, issued a press release announcing its fiscal 2008 first quarter results for the period ended August 31, 2007. In connection with Workstream’s anticipated filing today of its Quarterly Report on Form 10-Q for the first quarter of fiscal 2008, Workstream has revised the financial results contained in the press release issued on October 3, 2007 to reflect our revised interpretation of recent accounting guidelines as it relates to warrants issued in connection with the recent financing during the first quarter. The revisions are due to an updated calculation of the fair market value of the special warrants based on the company's stock price which created an increase in interest income of approximately $1.5 million for the first quarter. The impact resulting from these changes is an increase in interest income for the quarter on the statement of operations as well as a reduction of the common stock warrant liability and additional paid-in capital on the balance sheet. There is no cash effect or impact on business operations due to these revisions. The revised financial results are included below.

Notes:

EBITDA and EBITDA per share are non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. EBITDA is commonly defined as earnings before interest, taxes, depreciation and amortization. We believe that EBITDA provides useful information to investors as it excludes transactions not related to the core cash operating business activities. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations. All companies do not calculate EBITDA in the same manner, and EBITDA as presented by Workstream may not be comparable to EBITDA presented by other companies. Workstream defines EBITDA as earnings or loss before interest, taxes, depreciation amortization, non-cash equity compensation and non-recurring goodwill impairment, if applicable. Following the financial statements attached is a reconciliation of net loss to EBITDA loss and EBITDA per share that should be read in conjunction with the financial statements.

About Workstream

Workstream provides on-demand compensation, performance and talent management solutions and services that help companies manage the entire employee lifecycle - from recruitment to retirement. including Recruitment, Performance, Compensation, Development and Transition. Access to TalentCenter is offered on a monthly subscription basis under an on-demand software delivery model to help companies build high performing workforces, while controlling costs. With offices across North America, Workstream services customers including Chevron, Kaiser Permanente, and Wells Fargo. For more information visit www.workstreaminc.com or call toll free 1-866-470-WORK.

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Workstream's management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: inability to grow our client base and revenue because of the number of competitors and the variety of sources of competition we face; client attrition; inability to offer services that are superior and cost effective when compared to the services being offered by our competitors; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to enter into successful strategic relationships and other risks detailed from time to time in filings with the Securities and Exchange Commission.

Contact:
Phil Oreste
Workstream Inc.
Tel: 866-953-8800 ext. 888
investorrelations@workstreaminc.com