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Corporate Resource Services Enters into a $12 Million Debt Conversion Agreement

Corporate Resource Services Enters into a $12 Million Debt Conversion Agreement

 Corporate Resource Services, Inc. has announced today that it entered into a Conversion Agreement dated as of March 30, 2012 (the "Agreement") with TS Employment, Inc. and its affiliates (collectively, "TSEI"). Pursuant to the Agreement, TSEI converted $12 million of debt owed to it by the Company in exchange for 25,962,788 shares of the Company's common stock, par value $0.0001 per share (the "Shares"). The number of Shares was determined based upon the value of the Shares as of the date of the Agreement, which was accepted as $0.4622 per Share based upon the assessment of an independent business valuation firm that took into consideration, among other things, the Shares' lack of liquidity, the concentration of ownership of the Shares and other information provided by the Company's management. As of December 30, 2011, the Company owed TSEI approximately $12.5 million.

"This debt conversion significantly strengthens CRS's balance sheet and we continue to evaluate other steps to enhance shareholder value," said Jay Schecter, Chief Executive Officer of the Company.

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