2007 Press Releases

Workstream Inc. Announces Fiscal 2008 First Quarter Results

Company Grows Year-Over-Year Revenues and Raises $20 Million in Working Capital to Expand Operations

Burlingame, CA, October 3, 2007 - Workstream Inc. (NASDAQ - WSTM), a leading provider of on-demand compensation, performance and talent management solutions, today announced its fiscal 2008 first quarter results for the period ended August 31, 2007. All figures are in U.S. dollars.

Total revenue for the first quarter was $7.4 million compared to $6.9 million in the prior year's period, an increase of $0.5 million or 7%. EBITDA loss for the first quarter of fiscal 2008 was $(3.0) million, or $(0.06) per share, compared to an EBITDA loss of $(1.1) million, or $(0.02) per share, in the first quarter of fiscal 2007. The Company's net loss for the quarter ended August 31, 2007 was $(6.9) million, or $(0.13) per share, compared to a net loss of $(2.9) million, or $(0.06) per share, in last year's comparable quarter.

Commenting on the results, Deepak Gupta, President and Chief Executive Officer said, "We continue to execute on our business plan by making investments in sales and marketing as well as expanding into new revenue opportunities and strategic partnerships, to drive future revenue growth."

2008 First Quarter Highlights:

The following highlights were announced or occurred since Workstream Inc.'s last quarterly earnings statement:

• Workstream completed a $20 million capital raise of new working capital to retire existing debt and drive sales growth
• Workstream launched the new mid-market offering, Workstream Professional, for companies with less than 2,500 employees
• PPG Industries was signed as a new customer for Workstream TalentCenter
• Aspen Skiing Company was signed as a new customer for Workstream Professional
• EMS/Satcom was signed as a new customer for Workstream Recruiting
• Gartner rated Workstream as "Promising" in their 2007 Market Scope Report
• Workstream continued to add key industry experienced senior executives to its management team
• Workstream added additional experienced resources to both enterprise and mid-market sales teams

Management will host a conference call at 5:00 p.m. ET on Wednesday, October 3, 2007. The dial-in number to participate in the call is 866-226-1799 for North American participants and 800-8989-6323 for those outside of North America. The instant replay number for the call will be available until October 10, 2007 by calling 800-408-3053 using access code 3237062#.

EBITDA and EBITDA per share are non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. EBITDA is commonly defined as earnings before interest, taxes, depreciation and amortization. We believe that EBITDA provides useful information to investors as it excludes transactions not related to the core cash operating business activities. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations. All companies do not calculate EBITDA in the same manner, and EBITDA as presented by Workstream may not be comparable to EBITDA presented by other companies. Workstream defines EBITDA as earnings or loss before interest, taxes, depreciation amortization, non-cash equity compensation and non-recurring goodwill impairment, if applicable. Following the financial statements attached is a reconciliation of net loss to EBITDA loss and EBITDA per share that should be read in conjunction with the financial statements.

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, The Gap, Home Depot, Kaiser Permanente, Motorola, Nordstrom, VISA and Wells Fargo. For more information visit www.workstreaminc.com or call toll free 1-866-470-WORK.

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:
Phil Oreste
Workstream Inc.
Tel: 866-953-8800 ext. 888
Email: investorrelations@workstreaminc.com