WorkStream Announces Restructuring

August 20, 2010 – Workstream Inc., a provider of on-demand compensation, performance and talent management software, has announced expansion of its management, appointment of a new board of directors, new capital structure and additional capital. John Long, former CEO of First Advantage Corporation, will take over as CEO of Workstream, replacing Michael Mullarkey, founder and current CEO, who will remain with the company. Under Mr. Long's watch, First Advantage Corporation grew from a small division of First American Corporation to a stand-alone publicly traded company with over a billion dollar market cap. Members of the new board of directors are: Jeffrey Moss, chairman of the board and chief of enterprise growth of Educational Testing Service (ETS); Biju Kulathakal, chairman and CEO of Trading Block Holdings; and Denis E. Sutton, senior vice president of human resources at MTS Allstream. Joining Mr. Long as part of the management team are David Kennedy, COO, and Ezra Schneier, corporate development officer. Both worked in similar roles at First Advantage Corporation. Workstream also announced that it had completed a capital restructuring pursuant to which the holders of its senior secured debt exchanged such debt (totaling approximately $22.4 million) for a total of 682,852,374 common shares in Workstream. In addition, certain of such note holders as well as members of the company's new management team agreed to invest in the company by purchasing an aggregate $1.25 Million of Workstream's common shares in a private placement. “This new capital structure allows us to focus on growth and innovation without being burdened by a heavy debt load,” said Mr. Long. “Our strategy is to be the preferred vendor for our clients and bring them the solutions they need to manage a variety of human capital requirements. In this regard, we will look to acquire companies that have top-shelf services and technology that are complementary to the Workstream solutions.”

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