2008 Press Releases

Major U.S. Commercial Airline Extends Use of Workstream to Manage Compensation Planning

Extension of Industry Leading On-Demand Solution to Four Years and 10,000 Additional Employees Will Drive Effectiveness and Impact of World-wide Merit-Increase Process

Burlingame, CA – January 24, 2008 - Workstream Inc. (NASDAQ: WSTM), a leading provider of on-demand compensation, performance, and talent management solutions, today announced that a major U.S. commercial airline has extended its agreement to use the Workstream on-demand compensation management solution. The four-year extension to include 10,000 additional employees will enable the airline to continue using Workstream to manage compensation planning for thousands of employees worldwide.

The airlines’ decision to extend its use of Workstream for compensation planning coincides with recent and significant industry recognition for Workstream. In a comprehensive study of leading talent management suites published this month by Bersin & Associates, a research and advisory firm, Workstream earned top marks for its compensation management capabilities. More information about this achievement can be found at http://www.workstreaminc.com/company/pr2008/prjan23_08.asp.

"Workstream continues to show its leadership in on-demand talent management through this significant extension of service with one of the top five U.S.-based airlines," said Deepak Gupta, CEO for Workstream. "The potential for a slowdown in the economy drives the need for organizations to implement improved compensation practices and integrated pay-for-performance processes."

Workstream Compensation 7.0 is the most flexible and globally capable set of on-demand compensation solutions on the talent management market. The combined products enable end-to-end management of all types of enterprise compensation, including salary, merit increases, variable pay, stock awards and non-cash incentives. Compensation 7.0 leverages Workstream TalentCenter’s single, unified user experience and integrated knowledge-management capabilities to ensure a strategic total compensation solution. In addition, the Compensation 7.0 products can be implemented separately or together, allowing organizations to achieve the goal of realizing a flexible pay-for-performance philosophy at their own pace.

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. Workstream's TalentCenter provides a unified view of all Workstream products and services 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 1-888-221-4005.

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.

For more information contact:

Gary Damiano
Workstream Inc.
Tel: 650-340-4076
Email: gary.damiano@workstreaminc.com