M&A activity is beginning to rebound in the staffing industry according to Investment Banking firm

Statistics compiled by De Bellas & Co., a leading specialty Investment Banking firm, indicate that 41 staffing businesses were sold or merged in the second quarter of 2002. This compares favorably to the 28 announced transactions in the first quarter of 2002 and is the highest level of announced M&A activity in the staffing industry since the fourth quarter of 2000. Healthcare staffing continues to lead the way with
7 announced transactions during the quarter, several large opportunities in the market, and buyer interest continuing to sizzle.

"M&A activity is beginning to rebound in the staffing industry," commented John Niehaus, a Managing Director of De Bellas & Co. "We are seeing a modest increase in the number of buyers interested in staffing industry acquisitions again."

"Of particular interest are mature firms specializing in healthcare staffing, as the outlook for this niche continues to be favorable and buyers are seeking to either strategically enter the industry or expand their presence," continued Mr. Niehaus. "However, the window of opportunity for sellers will not last indefinitely. As we saw in the other specialty areas of staffing, buyer interest will inevitably wane as the most aggressive buyers satisfy their appetite for new acquisitions."

The top five public staffing buyers during the second quarter of 2002 accounted for 13 of the 41 publicly announced transactions. These buyers included Vedior Holding NV; Adecco SA (NYSE: ADO); ATC Healthcare, Inc. (Amex: AHN); CGI Group (NYSE: GIB); and AMN Healthcare, Inc. (NYSE: AHS). Well-capitalized private acquirers also continue to be active in pursuing transactions, accounting for 37% of the staffing industry deals announced in the second quarter. These private buyers include both strategic acquirers with access to capital and the private equity groups.

De Bellas & Co. monitors nationwide consolidation activity to support its Investment Banking specialty as an advisor in all facets of M&A for its Staffing Services clients. For more information about De Bellas & Co. and a complete summary of recent staffing M&A activity, please visit our website at www.debellas.com