KELYA Kelly Services Inc

TROY, Mich., Dec. 4 /PRNewswire-FirstCall/ -- Kelly Services, Inc., a global provider of staffing services, today announced that the Company's board of directors has authorized the sale of its Staff Leasing business unit to Oasis Outsourcing Holdings, Inc. (Logo: http://www.newscom.com/cgi-bin/prnh/19991208/KELLYLOGO ) The Company also announced that it had purchased an additional 1.6% interest in Tempstaff, the second largest staffing firm in the Japanese market, bringing its total investment to approximately 4.9%. The sale of the Staff Leasing business unit will generate cash proceeds of $6.5 million, and will result in a one time pretax gain of approximately $3.8 million. On an after tax basis, the transaction will result in a gain of approximately $2.3 million. The transaction is anticipated to close in the fourth quarter of 2006. The Staff Leasing business unit is expected to report net revenue of approximately $33 million for the full year of 2006. The sale is not expected to have a material impact on 2007 earnings or cash flows. Carl T. Camden, President and Chief Executive Officer commented, "The sale of the Staff Leasing business unit is an important part of our strategy of reviewing our existing operations, selectively divesting non-core assets and reinvesting the proceeds in strategic growth initiatives. Although our staff leasing business is successful and profitable, we will concentrate our resources on growth opportunities more consistent with our large global customer strategy. We're pleased that this transaction provides our staff leasing customers with access to a wide range of professional employer organization services through Oasis Outsourcing, a recognized leader in that industry." The acquisition of the additional 1.6% interest in Tempstaff was made through open market purchases totaling approximately $16 million, and brings the Company's total investment in Tempstaff to approximately 4.9% of the outstanding shares. The Company has no present intention of increasing its investment beyond the 4.9% threshold. Mr. Camden concluded, "Our additional investment in Tempstaff further strengthens our important strategic alliance with the second largest staffing firm in the Japanese market, and enhances our ability to serve global customers." This release contains statements that are forward-looking in nature and accordingly, are subject to risks and uncertainties. These factors include: competition, changing market and economic conditions, currency fluctuations, changes in laws and regulations, including tax laws, and other factors discussed in this release and in the company's filings with the Securities and Exchange Commission. Actual results may differ materially from any projections contained herein. About Kelly Services Kelly Services, Inc. (NASDAQ:KELYANASDAQ:KELYB) is a Fortune 500 company headquartered in Troy, Mich., offering staffing solutions that include temporary staffing services, outsourcing, vendor on-site and full-time placement. Kelly operates in 30 countries and territories. Kelly provides employment to more than 700,000 employees annually, with skills including office services, accounting, engineering, information technology, law, science, marketing, light industrial, education, health care, and home care. Revenue in 2005 was $5.3 billion. Visit http://www.kellyservices.com/ . About Oasis Outsourcing Oasis Outsourcing is a Florida-based Professional Employer Organization (PEO) serving more than 65,000 employees and 2,000 clients nationwide. It specializes in providing human resources services, employee benefits, payroll and tax administration, risk management services, and staffing solutions to small and medium-sized businesses throughout the United States. The company operates under the names of Oasis Outsourcing and Oasis Staffing. For more information about Oasis Outsourcing, visit http://www.oasisadvantage.com/ . http://www.newscom.com/cgi-bin/prnh/19991208/KELLYLOGO DATASOURCE: Kelly Services, Inc. CONTACT: ANALYST CONTACT: James Polehna, +1-248-244-4586, , or MEDIA CONTACT: Renee Walker, +1-248-244-5362, , both of Kelly Services, Inc. Web site: http://www.kellyservices.com/ http://www.oasisadvantage.com/

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