ClearPoint Provides Update on Strategic Initiatives

ClearPoint intends to increase focus on iLabor technology and expanding margins
ClearPoint initiates substantial debt reduction strategy
ClearPoint to outsource workmen’s compensation program to focus on iLabor and enhance predictability of earnings stream

ClearPoint Business Resources, Inc. (Nasdaq: CPBR) (“ClearPoint”), a provider of innovative workforce management solutions and services, today provided an update on certain strategic initiatives.

Mike Traina, CEO of ClearPoint, commented, “The transactions described below allow us to broaden and strengthen our iLabor network and at the same time achieve our 2008 debt reduction strategy. As a technology-based company, we have found over the years that payroll processing and funding and direct staffing as a core business detracted from our strategic corporate direction. These strategic initiatives significantly reduce our debt, eliminate our need for providing workmen’s compensation policies, and make our earnings stream more predictable.”

As an overview, ClearPoint’s iLabor platform provides a virtual marketplace for the purchasing of temporary labor. Historically, the Company has provided direct staffing services, payroll funding, and other support services for its suppliers, who provide the temporary staff. Although, the Company will continue to offer these services to its suppliers, ClearPoint will not provide them directly, instead using outsourced services. ClearPoint has developed partnership relationships to offer these services to its supplier base. Through its outsourced partners, ClearPoint’s staffing suppliers may access payroll funding, workmen’s compensation, payroll processing and information technology.

As part of ClearPoint’s strategy, ClearPoint has also outsourced its provision of workmen’s compensation to a professional employer organization (PEO) and no longer provides workmen’s compensation directly to employees. “This move away from the provision of workmen’s compensation will relieve the Company of substantial capital burdens of funding a policy which will free up capital to be reinvested in iLabor development and our marketing efforts,” commented Mr. Traina. “Additionally, it should have the effect of making our earnings stream more predictable and not subject to the fluctuations of the Company’s workmen’s compensation payout experience which has no bearing on the strategy of the business.”

ClearPoint has begun transferring the fulfillment of temporary staffing to its affiliates and franchisees. As part of ClearPoint’s strategy to reduce its debt levels, ClearPoint intends to require its franchisees and affiliates to individually fund their own receivables and carry the associated debt. Consistent with this initiative, certain customer contracts were sold to one of its iLabor Network suppliers (the “Buyer”) in return for a minority ownership position in the stock of the Buyer and the Buyer will assume the financing requirements of providing the services on the contracts purchased.

Mr. Traina also notes that “ClearPoint has taken steps to reduce the Company’s debt and we anticipate that the majority of our revolving credit facility will be repaid by the end of this fiscal year which will strengthen our balance sheet. We have effectively removed significant costs and associated debt from the organization and established a more consistent revenue stream based on royalties from a larger iLabor network.”

In addition, ClearPoint signed a new exclusive iLabor agreement with the Buyer that adopts iLabor as its preferred software for procurement of all of its contingent labor and to pay ClearPoint a royalty percentage of future total gross revenue on a perpetual basis.

In connection with this transaction, the Company is evaluating any financial statement impact including, but not limited to, the potential for write downs on certain assets.

In order to facilitate the above transactions on a timely basis, Mike Traina and Chris Ferguson provided interim financing of $800,000 to ClearPoint. This financing was in the form of a subordinated promissory note.

iLabor

The iLabor Network, which was introduced in the third quarter of 2007, is a proprietary technology platform that provides ClearPoint with the ability to offer its customers a comprehensive web-based portal to streamline the process involved in procurement and management of contingent workforces through a network of franchisees and affiliates of ClearPoint. The product offering provides the customer with one contract and one contact point to order temporary staff on a national scale, without the requirement to implement costly systems integration. The iLabor Network is a novel method of staffing a contingent workforce, reflecting a major shift in the industry, which has been well received by major corporations who are significant users of temporary staffing.

Forward-Looking Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements involve risks and uncertainties that could cause results or outcomes to differ materially from those expressed in the forward-looking statements. Forward-looking statements may include, without limitation, statements relating to ClearPoint’s plans, strategies, objectives, expectations and intentions and are intended to be made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “should,” “could,” “seek,” “intends,” “plans,” “estimates,” “anticipates” or other comparable terms. The risks and uncertainties discussed in the section “Risk Factors” included in the reports filed by ClearPoint with the SEC should be considered in evaluating ClearPoint’s forward-looking statements. Such risk factors could cause actual results to differ materially from those in the forward-looking statements. You should not place undue reliance on ClearPoint’s forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and ClearPoint undertakes no obligation to update or revise any forward-looking statements.

About ClearPoint

ClearPoint Business Resources, Inc. is a leading Workforce Management Solutions provider to clients ranging from small businesses to Fortune 500 companies. Its iLabor technology-based workforce management platform and its network of franchisees and affiliates provide customized workforce solutions with performance-based deliverables, creating increased productivity. The Company’s services can streamline and optimize the complex processes involved in the procurement and management of a contingent workforce. ClearPoint’s proprietary suite of technology provides a cutting edge human capital portal that allows companies to manage their workforce in one click. This unique approach, which is being adopted rapidly by corporate customers, puts ClearPoint at the forefront of the rapidly evolving Human Capital industry.

For more information about ClearPoint, visit http://www.clear-point.com.

Contacts

ClearPoint Business Resources, Inc.
Mike Traina, CEO, 215-997-7710
MTraina {at} clear-point(.)com