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COMFORCE Corporation Announces Final Redemption Of 12% Senior Notes

2008-07-28 08:45:00

COMFORCE Corporation Announces Final Redemption Of 12% Senior Notes

    WOODBURY, N.Y., July 28 /EMWNews/ -- COMFORCE Corporation

(Amex: CFS), a leading provider of outsourced staffing management services,

specialty staffing and consulting services, today reported that it has

requested Wilmington Trust to send a notice of redemption in order to

redeem, on August 25, 2008, all of its outstanding 12% Senior Notes due

December 1, 2010 at a redemption price equal to 102% of the outstanding

principal amount of the Senior Notes ($5,216,000), plus accrued interest

from June 1, 2008 to the scheduled redemption date. The total redemption

price, including accrued interest and the 2% premium, will be $5,466,368.



    COMFORCE expects to utilize loan proceeds under its bank credit

facility to effect this redemption of its Senior Notes on the scheduled

redemption date. Upon completion of this redemption, none of our 12% Senior

Notes will remain outstanding.



    COMMENTS FROM MANAGEMENT



    "We are pleased to be in a position to complete the redemption of all

of our 12% Senior Notes," said John Fanning, Chairman and Chief Executive

Officer of COMFORCE. "Subject to satisfying all conditions under our bank

credit facility, we will use proceeds under the facility to eliminate our

remaining public debt, which stood at $138.8 million in June 2000. Our

management team has been patient and diligent in seeking opportunities to

reduce our higher interest rate public debt, and I commend our team in

helping the Company to achieve significant interest savings and improve its

capital structure."



    About COMFORCE



    COMFORCE Corporation is a leading provider of outsourced staffing

management services that enable Fortune 1000 companies and other large

employers to consolidate, automate and manage staffing, compliance and

oversight processes for their contingent workforces. We also provide

specialty staffing, consulting and other outsourcing services to Fortune

1000 companies and other large employers for their healthcare support,

technical and engineering, information technology, telecommunications and

other staffing needs. We operate in three segments -- Human Capital

Management Services, Staff Augmentation and Financial Outsourcing Services.

The Human Capital Management Services segment provides consulting services

for managing the contingent workforce through its PRO(R) Unlimited

subsidiary. The Staff Augmentation segment provides healthcare support

services, including RightSourcing(R) Vendor Management Services, Technical,

Information Technology and Other Staffing Services. The Financial

Outsourcing Services segment provides funding and back office support

services to independent consulting and staffing companies.



    To view the Company's web page visit http://www.comforce.com



    We have made statements in this release, including the comments from

management that are forward-looking statements such as projections of our

future financial performance, our anticipated growth strategies and

anticipated trends in our business and industry. These statements are only

predictions based on our current expectations and projections about future

events. Although we believe the expectations reflected in the

forward-looking statements are reasonable, we cannot guarantee our future

results, nor will we undertake any obligation to update any of these

statements. Factors which may cause our actual results to differ materially

from those expressed or implied by the forward-looking statements include

the following:



    -- unfavorable global, national or local economic conditions that cause

our customers to defer hiring contingent workers or reduce spending on the

human capital management services and staffing that we provide;



    -- significant increases in the effective rates of any payroll-related

costs that we are unable to pass on to our customers;



    -- increases in the costs of complying with the complex federal, state

and foreign laws and regulations under which we operate, or our inability

to comply with these laws and regulations;



    -- our inability to collect fees due to the bankruptcy of our

customers, including the amount of any wages we have paid to our employees

for work performed for these customers;



    -- our inability to keep pace with rapid changes in technology in our

industry;



    -- in that we place our employees in other workplaces, losses incurred

by reason of our employees' misuse of customer proprietary information,

misappropriation of funds, discrimination, harassment, theft of property,

accidents, torts or other claims;



    -- increases in interest rates, which could significantly increase our

interest expense under our bank credit facility;



    -- our inability to successfully develop new services or enhance our

existing services as the markets in which we compete grow more competitive;



    -- unfavorable developments in our business may result in the necessity

of writing off goodwill in future periods;



    -- as a result of covenants and restrictions in the documents governing

our Senior Notes and bank credit facility, or any future debt instruments,

our inability to use available cash in the manner management believes will

maximize shareholder value;



    -- unfavorable press or analysts' reports concerning our industry or

our company could negatively affect the perception investors have of our

company and our prospects; or



    -- any of the other factors described under "Risk Factors" in Item 1A

of the Company's annual report on Form 10-K for the year ended December 30,

2007 (a copy of which may be accessed through http://www.sec.gov or

http://www.comforce.com).





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