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<SEC-DOCUMENT>0000892917-07-000144.txt : 20070809
<SEC-HEADER>0000892917-07-000144.hdr.sgml : 20070809
<ACCEPTANCE-DATETIME>20070808194127
ACCESSION NUMBER:		0000892917-07-000144
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20070630
FILED AS OF DATE:		20070809
DATE AS OF CHANGE:		20070808

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BARRETT BUSINESS SERVICES INC
		CENTRAL INDEX KEY:			0000902791
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-HELP SUPPLY SERVICES [7363]
		IRS NUMBER:				520812977
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	033-61804
		FILM NUMBER:		071037398

	BUSINESS ADDRESS:	
		STREET 1:		8100 NE PARKWAY DRIVE
		STREET 2:		SUITE 200
		CITY:			VANCOUVER
		STATE:			WA
		ZIP:			98662
		BUSINESS PHONE:		(800) 494-5669

	MAIL ADDRESS:	
		STREET 1:		8100 NE PARKWAY DRIVE
		STREET 2:		SUITE 200
		CITY:			VANCOUVER
		STATE:			WA
		ZIP:			98662
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>bbsi10q0807.htm
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>
<DIV STYLE="WIDTH:600">
<BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, D.C. 20549</FONT></P>

<P><HR NOSHADE WIDTH=120 size=1>

<P ALIGN=CENTER ><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>FORM
10-Q</B></FONT></P>

<P><HR NOSHADE WIDTH=120 size=1>

<P ALIGN=CENTER><FONT SIZE=2 FACE=WINGDINGS>x</FONT>
<FONT Face="Times New Roman, Times, Serif" SIZE=2>QUARTERLY REPORT PURSUANT TO SECTION 13<BR>
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>For the
Quarterly Period Ended June 30, 2007<BR>
Commission File No. 0-21886</FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>BARRETT BUSINESS SERVICES,
INC.<BR><BR></B>(Exact name of registrant as specified in its charter)</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="49%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="49%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Maryland</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>52-0812977</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>(State or other jurisdiction of</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>(IRS Employer</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>incorporation or organization)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Identification No.)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>8100 NE Parkway Drive, Suite 200</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Vancouver, Washington</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>98662</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>(Address of principal executive offices)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>(Zip Code)</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>(360) 828-0700</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>(Registrant&#146;s telephone number, including area code)</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Indicate by
check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes <FONT FACE=WINGDINGS size=2>x</FONT>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No <FONT FACE=WINGDINGS size=2>o</FONT></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Indicate by
check mark whether the registrant is a large accelerated filer, accelerated
filer, or non-accelerated filer (as defined in Rule 12b-2 of the Exchange Act).</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="36%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="29%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="33%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Large accelerated filer <FONT FACE=WINGDINGS size=2>o</FONT></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Accelerated filer <FONT FACE=WINGDINGS size=2>x</FONT></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Non-accelerated filer <FONT FACE=WINGDINGS size=2>o</FONT></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Indicate by
check mark whether the registrant is a shell company (as defined in Rule 12b-2
of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes</FONT> <FONT FACE=WINGDINGS size=2>o</FONT>
<FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</font> <FONT FACE=WINGDINGS size=2><B>x</B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Number of
shares of common stock, $.01 par value, outstanding at July 31, 2007 was
11,269,984 shares.</FONT></P>

<P STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE><BR>


<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>INDEX</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="69%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A1">Part
  I - Financial Information</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Page</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A2">Item
  1.</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A2">Unaudited
  Interim Consolidated Financial Statements</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A3">Consolidated
  Balance Sheets &#150; June 30, 2007 and December 31, 2006</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A4">Consolidated
  Statements of Operations - Three Months Ended June 30, 2007 and 2006</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A5">Consolidated
  Statements of Operations - Six Months Ended June 30, 2007 and 2006</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A6">Consolidated
  Statements of Cash Flows - Six Months Ended June 30, 2007 and 2006</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A7">Notes
  to Unaudited Interim Consolidated Financial Statements</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A8">Item
  2.</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A8">Management&#146;s
  Discussion and Analysis of Financial Condition and Results of Operations</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>14&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A9">Item
  3.</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A9">Quantitative
  and Qualitative Disclosures About Market Risk</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>23&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A10">Item
  4.</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A10">Controls
  and Procedures</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>23&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A11">Part
  II - Other Information</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A12">Item
  1A.</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A12">Risk
  Factors</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>25&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A13">Item
  4.</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A13">Submission
  of Matters to a Vote of Security Holders</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>25&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A14">Item
  6.</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A14">Exhibits</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>25&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A15">Signatures</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>26&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><A HREF="#A16">Exhibit
  Index</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>27&nbsp;&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 2 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><A NAME=A1></A><FONT Face="Times New Roman, Times, Serif" SIZE=2>Part I - Financial
Information</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 1.</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><A NAME=A2></A><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Financial Statements</B> </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.<BR>
<A NAME=A3></A>Consolidated Balance Sheets<BR>
(Unaudited)<BR>
(In thousands, except per share amounts)</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
<TR style="font-size:1px" >
<TD WIDTH="70%" VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>June 30,
<FONT Face="Times New Roman, Times, Serif" SIZE=2><BR>
  2007</FONT></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>

<TD COLSPAN="4" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>December
  31,<BR>
  <FONT Face="Times New Roman, Times, Serif" SIZE=2>2006</FONT></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>

<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;   TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=2><B>ASSETS</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Current assets:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Cash and cash
equivalents</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>71,025</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>69,874 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Marketable
securities</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,625</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,159 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Trade accounts
receivable, net</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>36,906</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>31,328 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Prepaid
expenses and other</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,109</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,940 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Deferred
income taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,182</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,699 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146;
compensation receivables for
  insured claims</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>225</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>225 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total current
assets</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>118,072</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>111,225 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Marketable securities</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>411</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>406 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Goodwill, net</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>28,036</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>27,536 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Intangibles, net</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>62</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>75 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Property, equipment and
software, net</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>13,279</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>13,502 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Restricted marketable
securities and
  workers&#146; compensation deposits</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,656</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,616 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Other assets</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,893</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,143 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146; compensation
receivables for
  insured claims</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,295</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,678 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>168,704</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>162,181 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;   TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>LIABILITIES
AND STOCKHOLDERS&#146; EQUITY</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Current liabilities:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Accounts
payable</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,327</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,545 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Accrued
payroll, payroll taxes and related
  benefits</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>34,788</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>33,372 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Income taxes
payable</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>847</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Other accrued
liabilities</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>937</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>516 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146;
compensation claims liabilities</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,253</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,843 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146;
compensation claims liabilities
  for insured claims</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>225</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>225 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Safety
incentives liability</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7,815</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7,519 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total current
liabilities</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>49,192</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>47,020 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Customer deposits</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>689</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>817 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Long-term workers&#146;
compensation claims
  liabilities</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,976</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,295 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Long-term workers&#146;
compensation claims
  liabilities for insured claims</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,931</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,011 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Deferred income taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,449</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,545 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Deferred gain on sale and
leaseback</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>732</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>793 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Commitments and
contingencies</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Stockholders&#146;
equity:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Preferred
stock, $.01 par value; 500,000
  shares authorized; no shares issued and outstanding</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Common stock,
$.01 par value; 20,500
  shares authorized, 11,268 and 11,253 shares issued and outstanding</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>113</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>112 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Additional
paid-in capital</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>40,801</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>40,647 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Other
comprehensive loss</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(395</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(244</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Retained
earnings</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>68,216</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>63,185 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>108,735</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>103,700 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR  BGCOLOR="#EAF9E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>168,704</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>162,181 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>The accompanying notes are an integral part of these consolidated
financial statements.</FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 3 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.<BR>
<A NAME=A4></A>Consolidated Statements of Operations<BR>
(Unaudited)<BR>
(In thousands, except per share amounts)</FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="600">
<TR style="font-size:1px" >
<TD WIDTH="72%" VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Three
  Months Ended<BR>
  June 30,</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Revenues:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Staffing
services</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>29,747</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>30,567 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Professional
employer service fees</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>34,139</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>34,088 </FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total
revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>63,886</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>64,655 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Cost of revenues:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Direct payroll
costs</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>22,416</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>22,831 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Payroll taxes
and benefits</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>20,542</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>20,437 </FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146;
compensation</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,964</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7,198 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total cost of
revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>48,922</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>50,466 </FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Gross
margin</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>14,964</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>14,189 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Selling, general and
administrative
  expenses</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7,727</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7,882 </FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Depreciation and
amortization</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>316</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>329 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Income from
operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6,921</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,978 </FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Other income
(expense):</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Interest
expense</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(18</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Investment
income, net</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>808</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>705 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=2>Other</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(18</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(17</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Other income
(expense)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>790</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>670 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Income before provision for
income taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7,711</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6,648 </FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Provision for income
taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,830</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,460 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Net
income</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,881</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,188 </FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Basic earnings per
share</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>.43</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>.37 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Weighted average number of
basic shares
  outstanding</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,263</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,203 </FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Diluted earnings per
share</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>.42</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>.36 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Weighted average number of
diluted shares
  outstanding</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,690</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,683 </FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>The accompanying notes are an integral part of these consolidated
financial statements.</FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 4 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">BARRETT BUSINESS SERVICES, INC.<BR>
<A NAME=A5></A>Consolidated Statements of Operations<BR>(Unaudited)<BR>
(In thousands, except per share amounts) </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="78%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Six Months
Ended </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">June 30,</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2007 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2006 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Revenues:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Staffing
services</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>57,762</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>57,228</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Professional
employer service fees</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>66,712</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>65,712</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total
revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>124,474</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>122,940</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Cost of revenues:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Direct payroll
costs</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>43,558</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>42,682</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Payroll taxes
and benefits</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>44,453</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>43,274</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146;
compensation</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,808</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>13,752</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total cost of
revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>99,819</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>99,708</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Gross
margin</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>24,655</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>23,232</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Selling, general and
administrative expenses</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>15,115</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>15,102</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Depreciation and
amortization</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>665</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>630</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Income from
operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>8,875</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7,500</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Other income
(expense):</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Interest
expense</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(2</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(40</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Investment
income, net</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,587</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,350</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=2>Other</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(10</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(8</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Other income
(expense)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,575</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,302</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Income before provision for
income taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>10,450</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>8,802</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Provision for income
taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,841</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,257</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Net
income</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6,609</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,545</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Basic earnings per
share</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>.58</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>.50</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Weighted average number of
basic shares outstanding</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,259</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,140</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Diluted earnings per
share</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>.57</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>.48</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Weighted average number of
diluted shares outstanding</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,686</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,672</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>The accompanying notes are an integral part of these consolidated
financial statements.</FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 5 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">BARRETT BUSINESS SERVICES, INC.<BR>
<A NAME=A6></A>Consolidated Statements of Cash Flows <BR>
(Unaudited)<BR>
(In thousands) </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR style="font-size:1px">
<TD WIDTH="78%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM >
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD>
<P>&nbsp;</P>
</TD>
<TD>
<P>&nbsp;</P>
</TD>
<TD WIDTH="17%" COLSPAN="5" VALIGN=BOTTOM nowrap>
<P ALIGN=CENTER><FONT SIZE="2"> Six Months Ended<BR>
June 30, </FONT></P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>

<TR>
<TD WIDTH="78%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="17%" COLSPAN="5" VALIGN=BOTTOM nowrap>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2007 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2006 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Cash flows from operating
  activities:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Net
income</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6,609</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,545</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=2>Reconciliations of net income to net cash provided by (used in)
  operating activities:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Depreciation
and amortization</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>665</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>630</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Losses (gains)
recognized on marketable securities</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>8</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(38</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Purchase of
marketable securities</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(2</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Gain
recognized on sale and leaseback</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(61</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(60</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Deferred
income taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,523</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(107</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Changes in
certain assets and liabilities, net of amounts purchased in
  acquisitions:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Trade
accounts receivable, net</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(5,578</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(6,695</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Prepaid
expenses and other</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(169</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(2,024</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Accounts
payable</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(218</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>445</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Accrued
payroll, payroll taxes and related benefits</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,416</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,274</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Income taxes
payable</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>847</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Other accrued
liabilities</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>421</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,597</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146;
compensation claims liabilities</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,606</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,286</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Safety
incentives liability</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>296</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>177</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Customer
deposits and other assets, net</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>122</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,395</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Net cash
provided by operating activities</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,273</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,063</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Cash flows from investing
  activities:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Cash paid for
acquisition, including other direct costs</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(500</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(3,963</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Purchase of
property and equipment, net of amounts purchased in
  acquisition</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(429</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,166</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Proceeds from
sales of marketable securities</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>110</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Purchase of
marketable securities</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(729</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Proceeds from
maturities of restricted marketable securities</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,807</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,711</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Purchase of
restricted marketable securities</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,847</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(2,017</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Net cash used
in investing activities</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,698</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(5,325</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Cash flows from financing
  activities:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Proceeds from
credit-line borrowings</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,202</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Payments on
credit-line borrowings</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(5,202</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Payments on
long-term debt</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,442</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Proceeds from
the exercise of stock options</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>25</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>511</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Dividends
paid</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,577</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Tax benefit of
stock option exercises</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>128</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,436</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Net cash (used
in) provided by financing activities</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(1,424</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>505</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Net increase
(decrease) in cash and cash equivalents</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,151</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(3,757</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Cash and cash equivalents,
  beginning of period</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>69,874</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>61,361</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Cash and cash equivalents,
  end of period</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>71,025</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>57,604</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Supplemental schedule of
  noncash investing activities:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Acquisition of
other businesses:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Cost of
acquisition in excess of fair market value of net assets
  acquired</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>500</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,020</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Intangible
assets acquired</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>100</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Tangible
assets acquired</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>10</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Less stock
issued in connection with acquisition</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(167</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Net cash paid
for acquisition</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>500</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,963</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">The
accompanying notes are an integral part of these consolidated financial
statements. </FONT> </P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- 6 - </FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.<BR>
<A NAME=A7></A>Notes to Consolidated Financial Statements (Unaudited)</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Note 1 - Basis of Presentation of Interim
Period Statements</B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
accompanying consolidated financial statements are unaudited and have been
prepared by Barrett Business Services, Inc. (&#147;Barrett&#148;, &#147;BBSI&#148; or the
&#147;Company&#148;), pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and note disclosures typically
included in financial statements prepared in accordance with accounting
principles generally accepted in the United States of America have been
condensed or omitted pursuant to such rules and regulations. In the opinion of
management, the consolidated financial statements include all adjustments,
consisting only of normal recurring adjustments, necessary for a fair statement
of the results for the interim periods presented. The preparation of financial
statements in conformity with generally accepted accounting principles (&#147;GAAP&#148;)
requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results may
differ from such estimates and assumptions. The consolidated financial
statements should be read in conjunction with the audited financial statements
and notes thereto included in the Company&#146;s 2006 Annual Report on Form 10-K at
pages F1 - F25. The results of operations for an interim period are not
necessarily indicative of the results of operations for a full year. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
January 1, 2007, the Company formed a wholly owned captive insurance company,
Associated Insurance Company for Excess (&#147;AICE&#148;). AICE is a fully licensed
captive insurance company holding a certificate of authority from the Arizona
Department of Insurance. The purpose of AICE is twofold: (1) to provide access
to more competitive and cost effective insurance markets and (2) to provide
additional flexibility in cost effective risk management. The captive will
handle only workers&#146; compensation claims occurring on or after January 1, 2007.
During the second quarter of 2007, AICE began to provide general liability
insurance coverage for BBSI on a very select and limited basis.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Allowance for doubtful accounts</B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company had an allowance for doubtful accounts of $74,000 and $316,000 at
June&nbsp;30, 2007 and December 31, 2006, respectively. The decline in the
allowance was due to the write off of three customer account balances that were
previously accrued as potentially uncollectible. The Company must make
estimates of the collectibility of accounts receivables. Management analyzes
historical bad debts, customer concentrations, customer creditworthiness,
current economic conditions and changes in customers&#146; payment trends when
evaluating the adequacy of the allowance for doubtful accounts. The Company
deems an account balance uncollectible only after it has pursued all available
assets of the customer and, where applicable, the assets of the personal
guarantor.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Workers&#146; compensation claims</B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is a self-insured employer with respect to workers&#146; compensation
coverage for all of its employees (including employees subject to Professional
Employer Organization (&#147;PEO&#148;) contracts) working in California, Oregon,
Maryland and Delaware. In the state of Washington, state law allows only the
Company&#146;s staffing services and management employees to be covered under the
Company&#146;s self-insured workers&#146; compensation program. To manage our financial
exposure, in the event of catastrophic injuries or fatalities, we maintain
excess workers&#146; compensation insurance (through our captive insurance company)
with a per </FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 7 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.<BR>
Notes to Consolidated Financial Statements (Unaudited) <I>(Continued)</I></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Note 1 - Basis of Presentation of Interim
Period Statements (Continued)</B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Workers&#146; compensation claims (continued)</B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>occurrence
retention of $5.0 million, except in Maryland, where our per occurrence
retention is $1.0 million effective January 1, 2007. AICE maintains excess
workers&#146; compensation insurance coverage with AIG between $5.0 million and $15.0
million  per occurrence, except in Maryland,
where coverage with AIG is between $1.0 million and $25.0 million
per occurrence. Prior to January 1, 2007, our self-insured retention was $1.0
million for all our self-insured states.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The Company
has
provided a total of $10.4 million and $12.4 million at June 30, 2007 and
December&nbsp;31, 2006, respectively, as an estimated future liability for
unsettled workers&#146; compensation claims liabilities. Included in the foregoing
liabilities are insured claims that will be paid by the Company&#146;s excess workers&#146;
compensation insurer and for which the Company has reported a receivable from
the insurer for the insured claims liability. Insured claims totaled $2.9
million and $3.0 million at June 30, 2007 and December 31, 2006, respectively.
The estimated liability for unsettled workers&#146; compensation claims represents
management&#146;s best estimate, which includes an evaluation of information
provided by the Company&#146;s internal claims adjusters, third-party administrators
for workers&#146; compensation claims and to a limited extent, an annual actuarial
analysis from an independent actuary. Included in the claims liabilities are
case reserve estimates for reported losses, plus additional amounts based on
projections for incurred but not reported claims, anticipated increases in case
reserve estimates and additional claims administration expenses. These
estimates are continually reviewed and adjustments to liabilities are reflected
in current operating results as they become known.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Safety incentives liability</B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Safety
incentives represent cash incentives paid to certain PEO client companies for
maintaining safe-work practices in order to minimize workplace injuries,
thereby meeting certain established loss objectives. The Company has provided
$7.8 million and $7.5 million at June&nbsp;30, 2007 and December
31, 2006, respectively, as an estimated
future liability for safety incentives. The incentive is based on a percentage
of annual payroll and is paid annually to customers who meet predetermined
workers&#146; compensation claims cost objectives. Safety incentive payments are
made only after closure of all workers&#146; compensation claims incurred during the
customer&#146;s contract period. The liability is estimated and accrued each month
based upon the incentive earned less the then-current amount of the customer&#146;s
estimated workers&#146; compensation claims reserves as established by the Company&#146;s
internal and third-party claims administrators.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Comprehensive income (loss)</B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive
income (loss) includes all changes in equity during a period except those that
resulted from investments by or distributions to a company&#146;s stockholders.
Other comprehensive income (loss) refers to revenues, expenses, gains and
losses that under GAAP are included in comprehensive income (loss), but are excluded
from net income as these amounts are recorded directly as an adjustment to
stockholders&#146; equity. The Company&#146;s other comprehensive income (loss) is
comprised of unrealized holding gains and losses on its publicly-traded
marketable securities designated as &#147;available-for-sale&#148;, net of realized gains
included in net income.</FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 8 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.<BR>
Notes to Consolidated Financial Statements (Unaudited) <I>(Continued)</I></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Note 2 - Recent Accounting Pronouncements </B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
July 2006, the Financial Accounting Standards Board (&#147;FASB&#148;) issued FASB
Interpretation (&#147;FIN&#148;) No. 48, &#147;Accounting for Uncertainty in Income Taxes&#148;
(&#147;FIN 48&#148;). FIN 48 is an interpretation of Statement of Financial Accounting
Standards (&#147;SFAS&#148;) No. 109, &#147;Accounting for Income Taxes.&#148; FIN 48 provides
interpretive guidance for the financial statement recognition and measurement of a tax position taken, or
expected to be taken, in a tax return. FIN 48 requires the affirmative
evaluation that it is more-likely-than-not, based on the technical merits of a
tax position, that an enterprise is entitled to economic benefits resulting
from positions taken in income tax returns. If a tax position does not meet the
&#147;more-likely-than-not&#148; recognition threshold, the benefit of that position is
not recognized in the financial statements. FIN 48 also requires companies to
disclose additional quantitative and qualitative information in their financial
statements about uncertain tax positions. FIN 48 is effective for fiscal years
beginning after December 15, 2006, and the cumulative effect of applying FIN 48
shall be reported as an adjustment to the opening balance of retained earnings
for that fiscal year. Effective January 1, 2007, we formed AICE, a wholly owned
captive insurance subsidiary. We recognize AICE as an insurance company for
federal income tax purposes, with respect to our consolidated federal income
tax return. In the event the Internal Revenue Service (&#147;IRS&#148;) determines that
AICE does not qualify as an insurance company, we could be required to make
accelerated income tax payments to the IRS that we otherwise would have
deferred until future periods. The adoption of FIN 48 has not had a material
effect on our consolidated financial statements.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
September 2006, the FASB issued SFAS No. 157, &#147;Fair Value Measurements&#148; (&#147;SFAS
157&#148;). SFAS 157 defines fair value, establishes a framework for measuring fair
value in GAAP, and expands disclosures about fair value measurements. SFAS 157
is effective for financial statements issued for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. We will be
required to adopt SFAS 157 in the first quarter of 2008. Our management is
currently evaluating the requirements of SFAS 157 and has not yet determined
the impact on our consolidated financial statements. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
September 2006, the Securities and Exchange Commission Staff issued Staff
Accounting Bulletin No. 108, &#147;Considering the Effects of Prior Year
Misstatements when Quantifying Misstatements in the Current Year Financial
Statements&#148; (&#147;SAB No. 108&#148;). SAB No. 108 requires the use of two alternative
approaches in quantitatively evaluating materiality of misstatements. If the
misstatement, as quantified under either approach, is material to the current
year financial statements, the misstatement must be corrected. If the effect of
correcting the prior year misstatements, if any, in the current year income
statement is material, the prior year financial statements should be corrected.
In the year of adoption (fiscal years ending after November 15, 2006, or
calendar year 2006 for us), the misstatements may be corrected as an accounting
change by adjusting opening retained earnings rather than including the
adjustment in the current year income statement. Upon completing our evaluation
of the requirements of SAB No. 108, we determined it did not affect our
consolidated financial statements. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
February 2007, the FASB issued SFAS No. 159, &#147;The Fair Value Option for
Financial Assets and Financial Liabilities,&#148; (&#147;SFAS 159&#148;). This statement
provides the Company the option to elect to carry certain financial assets and
liabilities at fair value with change in fair value recorded in earnings. SFAS
159 is effective for the Company beginning January 1, 2008. The Company is
currently evaluating the potential impact of this statement.</FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 9 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC. <BR>
Notes to Consolidated Financial Statements (Unaudited) <I>(Continued)</I></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Note 3 - Acquisitions
</B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Effective
January 1, 2006, we acquired
certain assets of Pro HR, LLC, a privately held PEO company with offices in
Boise and Rexburg, Idaho and Grand Junction, Colorado. We paid $4.0 million in
cash for the assets of Pro HR and the selling shareholders&#146; noncompete
agreements and agreed to pay up to $1.5 million additional cash based upon the
level of financial performance achieved by the Pro HR offices during calendar
2006. The transaction resulted in $5.4 million of goodwill, $100,000 of
intangible assets and $10,000 of fixed assets. In October 2006, we paid $1.0
million in cash in partial satisfaction of the contingent consideration of this
acquisition based upon the financial performance of Pro HR for the first six
months of 2006. Effective February, 28, 2007, we paid $500,000 in cash in final
satisfaction of the contingent consideration based upon the financial
performance of Pro HR for the full 2006 year. The Company&#146;s consolidated income
statements for the six months ended June 30, 2007 and 2006 include Pro HR&#146;s
results of operations since January 1, 2006. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Note 4 - Basic and
Diluted Earnings Per Share </B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Basic
earnings per share are computed based
on the weighted average number of common shares outstanding during the period.
Diluted earnings per share reflect the potential effects of the exercise of
outstanding stock options. Basic and diluted shares outstanding are summarized
as follows: </FONT></P>

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<P>&nbsp;</P>
</TD>
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<P>&nbsp;</P>
</TD>
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</TD>
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<P>&nbsp;</P>
</TD>
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</TD>
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</TD>
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</TD>
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<P>&nbsp;</P>
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<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Three Months Ended <BR>
June 30, </FONT> </P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Six Months Ended <BR>
June 30, </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2007 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2006 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2007 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2006 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Weighted average number of
basic shares outstanding</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,262,664</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,202,800</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,258,870</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,139,475</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Stock option plan shares to be
issued at prices ranging from $0.97 to
  $17.50 per share</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>729,713</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>789,577</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>733,507</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>847,799</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Less: Assumed purchase at
average market price during the period using
  proceeds received upon exercise of options and purchase of stock, and using
  tax benefits of compensation due to premature dispositions</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(301,961</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(309,008</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(306,864</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(315,227</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Weighted average number of
diluted shares outstanding</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,690,416</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,683,369</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,685,513</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,672,047</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 10 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.<BR>
Notes to Consolidated Financial Statements (Unaudited) <I>(Continued)</I></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Note 5 &#150; Stock
Incentive Plans and Stock-Based Compensation </B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The
Company&#146;s 2003 Stock Incentive Plan (the
&#147;2003 Plan&#148;), which provides for stock-based awards to Company employees,
non-employee directors and outside consultants or advisors, was approved by
shareholders on May 14, 2003. No options have been issued to outside
consultants or advisors. The number of shares of common stock reserved for
issuance under the 2003 Plan is 600,000. No new grants of stock options may be
made under the Company&#146;s 1993 Stock Incentive Plan (the &#147;1993 Plan&#148;). At June
30, 2007, there were option awards covering 265,547 shares outstanding under
the 1993 Plan, which, to the extent they are terminated unexercised, will be
carried over to the 2003 Plan as shares authorized to be issued under the 2003
Plan. Outstanding options under both plans generally expire ten years after the
date of the grant. They were generally exercisable in four equal annual
installments beginning one year after the date of grant; however, effective
with the close of business on December 30, 2005, the compensation committee of
the board of directors accelerated the vesting of all outstanding stock
options. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>In December
2004, the FASB issued SFAS No.
123R, &#147;Share-Based Payment&#148; (&#147;SFAS 123R&#148;), which revised SFAS 123, &#147;Accounting
for Stock-Based Compensation&#148; (&#147;SFAS 123&#148;), and superseded Accounting
Principles Board Opinion No. 25, &#147;Accounting for Stock Issued to Employees&#148;
(&#147;APB 25&#148;) and related interpretations. SFAS 123R requires the grant-date fair
value of all share-based payment awards, including employee stock options, to
be recognized as employee compensation expense over the requisite service
period. We adopted SFAS 123R on January 1, 2006 and applied the modified
prospective transition method. Under this transition method, we (1) did not
restate any prior periods and (2) will recognize compensation expense for all
future share-based payment awards. We have not granted options since the
adoption of SFAS 123R and, as of June 30, 2007, there were no unvested options
outstanding. Therefore, we did not recognize compensation expense under SFAS
123R during the six-month periods ended June 30, 2007 and 2006.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table summarizes options activity in 2007: </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width=480 style="margin-left:4%">
<TR style="font-size:1px">
<TD WIDTH="50%" VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="12%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Number <BR>
of Options </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Grant Prices </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Outstanding at December 31,
2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>739,303</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>0.97</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>to</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>17.50</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P ><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Options granted</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Options exercised</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(15,409</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>0.97</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>to</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>9.27</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Options cancelled or
expired</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Outstanding at June 30,
2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>723,894</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2.00</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>to</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>17.50</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P ><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Exercisable at June 30,
2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>723,894</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Available for grant at June
30, 2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>93,877</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 11 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.<BR>
Notes to Consolidated Financial Statements (Unaudited) <I>(Continued)</I></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Note 5 &#150; Stock Incentive Plans and
Stock-Based Compensation (Continued) </B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>The following table presents
information on stock options outstanding for the periods shown: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="52%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Three Months Ended </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM nowrap>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Six Months Ended </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">June 30, </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">June 30, </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>(in
  thousands, except share data)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2007 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2006 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2007 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2006 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<tr>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Intrinsic value of options
exercised in the period</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM colspan=2>
<P ALIGN=center><FONT Face="Times New Roman, Times, Serif" SIZE=2>$ 243</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM colspan=2>
<P ALIGN=center><FONT Face="Times New Roman, Times, Serif" SIZE=2>$ 3,259</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM colspan=2>
<P ALIGN=center><FONT Face="Times New Roman, Times, Serif" SIZE=2>$ 323</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM colspan=2>
<P ALIGN=center><FONT Face="Times New Roman, Times, Serif" SIZE=2>$ 4,118</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">As of June 30, </FONT> </P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2007 </FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2006 </FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR >
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Stock options fully vested and
currently exercisable:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"
SIZE=2>Number</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>723,894</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>747,053</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Weighted
average exercise price</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7.19</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7.06</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Aggregate
intrinisic value</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>13,491</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>8,437</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR >
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Weighted
average contractual term of options</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6.26
  years</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7.23
  years</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Note 6 &#150; Workers&#146; Compensation  </B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>The following
table summarizes the aggregate
workers&#146; compensation reserve activity: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="36%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="19" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Three Months Ended June 30, </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="19" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="9" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2007 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="9" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2006 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="9" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="9" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">BBSI </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">AICE </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Consolidated<BR>
Total </FONT> </P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">BBSI </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">AICE </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Consolidated<BR>
Total </FONT> </P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Balance at April 1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146;
compensation claims liabilities</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>9,607</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1,772</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11,379</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>16,571</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>16,571</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Claims expense
accrual</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,002</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,002</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,116</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,116</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Claims payments related
to:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Current
year</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>735</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>735</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>623</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>623</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Prior
years</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,261</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,261</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,090</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,090</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total
paid</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,261</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>735</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,996</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,713</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2,713</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Balance at June 30</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146;
compensation claims liabilities</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7,346</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,039</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>10,385</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>15,974</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>15,974</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR  SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 12 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.<BR>
Notes to Consolidated Financial Statements (Unaudited) <I>(Continued)</I></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Note 6 &#150; Workers&#146; Compensation (Continued) </B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="37%" VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="19" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Six Months Ended June 30, </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="19" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="9" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2007 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="9" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2006 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="9" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="9" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">BBSI </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">AICE </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Consolidated<BR>
Total </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">BBSI </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">AICE </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Consolidated<BR>
Total </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Balance at January 1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146;
compensation claims liabilities</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>12,374</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P   style="margin-right:10px" ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>12,374</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>17,369</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P style="margin-right:10px" ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>17,369</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Claims expense
accrual</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P  ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,811</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P style="margin-right:10px" ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,811</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,878</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P style="margin-right:10px" ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,878</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Claims payments related
to:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Current
year</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>772</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P style="margin-right:10px" ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>772</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>771</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P style="margin-right:10px" ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>771</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Prior
years</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,028</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P style="margin-right:10px" ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,028</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,502</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P style="margin-right:10px" ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4,502</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR style="margin-right:10px" SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR style="margin-right:10px" SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total
paid</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,028</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>772</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P style="margin-right:10px" ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,800</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,273</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P style="margin-right:10px" ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5,273</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR style="margin-right:10px" SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR style="margin-right:10px" SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Balance at June 30</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146;
compensation claims liabilities</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7,346</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3,039</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P style="margin-right:10px" ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>10,385</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>15,974</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P style="margin-right:10px" ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>15,974</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR style="margin-right:10px" SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR style="margin-right:10px" SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Note 7 &#150; Subsequent Event </B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
July 2, 2007, the Company acquired certain assets of Strategic Staffing, Inc, a
privately held staffing services company with five offices in Utah and one
office in Colorado Springs, Colorado. The Company paid $12.0 million in cash
for the assets of Strategic Staffing and the selling shareholders&#146; noncompete
agreements and agreed to pay additional consideration contingent upon the first
12 months of financial performance. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company entered into a new credit agreement (the &#147;Credit Agreement&#148;) with its
principal bank effective July 1, 2007. The Credit Agreement provides for an
unsecured revolving credit facility of up to $4.0 million, which includes a
subfeature under the line of credit for standby letters of credit up to $4.0
million. The interest rate on advances, if any, will be, at the Company&#146;s
discretion, either (i) equal to the prime rate or (ii) LIBOR plus 1.50%. The
financial covenants, which are slightly less restrictive than the prior credit
agreement, require the Company to maintain an annual net income of one dollar
and a quarterly pre-tax profit of one dollar. </FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 13 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="89%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 2.<A NAME=A8></A></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Management&#146;s Discussion and Analysis of Financial Condition and
  Results of Operations </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Overview
</U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Barrett
Business Services, Inc. (&#147;Barrett&#148;, the &#147;Company&#148; or &#147;we&#148;), a Maryland
corporation, offers a comprehensive range of human resource management services
to help small and medium-sized businesses manage the increasing costs and
complexities of a broad array of employment-related issues. The Company&#146;s
principal services, professional employer organization (&#147;PEO&#148;) services and
staffing services, assist its clients in leveraging their investment in human
capital. The Company believes that the combination of these two principal
services enables it to provide clients with a unique blend of services not
offered by the Company&#146;s competition. Barrett&#146;s platform of outsourced human
resource management services is built upon expertise in payroll processing,
employee benefits and administration, workers&#146; compensation coverage, effective
risk management and workplace safety programs and human resource
administration. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
provide PEO services to a client, the Company enters into a contract to become
a co-employer of the client&#146;s existing workforce and Barrett assumes
responsibility for some or all of the client&#146;s human resource management
responsibilities. PEO services are normally used by organizations to satisfy
ongoing human resource management needs and typically involve contracts with a
minimum term of one year, renewable annually, which cover all employees at a
particular work site. Staffing services include on-demand or short-term
staffing assignments, long-term or indefinite-term contract staffing and
comprehensive on-site management. The Company&#146;s staffing services also include
direct placement services, which involve fee-based search efforts for specific
employee candidates at the request of PEO clients, staffing customers or other
companies. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s ability to offer clients a broad mix of services allows Barrett to
effectively become the human resource department and a strategic business
partner for its clients. The Company believes its approach to human resource
management services is designed to positively affect its clients&#146; business
results by: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>

<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>&#149;</B></FONT></P>
</TD>


<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>allowing clients to focus
  on core business activities instead of human resource matters;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>


<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>&#149;</B></FONT></P>
</TD>



<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>increasing clients&#146;
  productivity by improving employee satisfaction and generating greater
  employee retention;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>



<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>&#149;</B></FONT></P>
</TD>




<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>reducing overall payroll
  expenses due to lower workers&#146; compensation and health insurance costs; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>&#149;</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>assisting clients in
  complying with complex and evolving human resource-related regulatory and tax
  issues.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company serves a growing and diverse client base of small and medium-sized
businesses in a wide variety of industries through a network of branch offices
in California, Oregon, Washington, Idaho, Arizona, Utah, Colorado, Maryland,
Delaware and North Carolina. Barrett also has several smaller recruiting
offices in its general market areas, which are under the direction of a branch
office. </FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 14 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 2.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Management&#146;s Discussion and Analysis of Financial Condition and
  Results of Operations (Continued) </B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Results
of Operations </U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth the percentages of total revenues represented by
selected items in the Company&#146;s Consolidated Statements of Operations for the
three and six months ended June 30, 2007 and 2006. </FONT></P>

<TABLE   BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=600>
<TR style="font-size:1px" >
<TD WIDTH="62%" VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;   TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;   TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="11" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Percentage of Total Revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;   TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="11" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;   TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Three Months Ended<BR>
  June 30,</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Six Months Ended<BR>
  June 30,</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;   TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;   TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;   TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Revenues:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Staffing
services</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>46.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>47.3</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>46.4</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>46.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>%</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Professional
employer service fees</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>53.4</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>52.7</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>53.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>53.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total
revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>100.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>100.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>100.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>100.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Cost of revenues:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Direct payroll
costs</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>35.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>35.3</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>35.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>34.7</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Payroll taxes
and benefits</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>32.2</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>31.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>35.7</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>35.2</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146;
compensation</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>9.3</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11.2</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>9.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>11.2</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total cost of
revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>76.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>78.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>80.2</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>81.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Gross margin</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>23.4</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>21.9</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>19.8</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>18.9</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Selling, general and
administrative expenses</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>12.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>12.2</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>12.2</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>12.3</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Depreciation and
amortization</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>0.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>0.4</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>0.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>0.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Income from
operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>10.8</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>9.3</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Other income</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1.2</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1.3</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>1.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Pretax income</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>12.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>10.3</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>8.4</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Provision for income
taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4.4</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3.8</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>3.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>2.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Net
income</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>6.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>5.3</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>4.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>%</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
report PEO revenues in accordance with the requirements of EITF No. 99-19 which
requires us to report such revenues on a net basis because we are not the
primary obligor for the services provided by our PEO clients to their customers
pursuant to our PEO contracts. We present for comparison purposes the gross
revenues and cost of revenues information set forth in the table below.
Although not in accordance with GAAP, management believes this information is
more informative as to the level of our business activity and more illustrative
of how we manage our operations, including the preparation of our internal
operating forecasts, and because it presents our PEO services on a basis
comparable to our staffing services. </FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 15 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="12%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</tr>
<tr>
<TD VALIGN=top>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 2.</b></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Management&#146;s Discussion and Analysis
of Financial Condition and Results of Operations (Continued)</B></FONT></P>
</td>
</tr>
</table>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Results
of Operations (Continued)</U></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="56%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>(in
  thousands)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM nowrap>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Unaudited<BR>
  Three Months Ended<BR>
  June 30,</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Unaudited<BR>
  Six Months Ended<BR>
  June 30,</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2007 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2006 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2007 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2006 </FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Revenues:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Staffing services</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>29,747</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>30,567</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>57,762</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>57,228</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Professional employer
services</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>237,957</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>226,845</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>467,470</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>435,519</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>267,704</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>257,412</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>525,232</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>492,747</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Cost of revenues:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Direct payroll costs</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>224,605</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>214,247</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>441,233</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>410,212</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Payroll taxes and
benefits</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>20,542</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>20,437</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>44,453</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>43,274</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Workers&#146; compensation</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>7,593</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>8,539</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>14,891</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>16,029</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total cost of
revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>252,740</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>243,223</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>500,577</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>469,515</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Gross margin</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>14,964</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>14,189</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>24,655</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>23,232</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
reconciliation of non-GAAP gross PEO revenues to net PEO revenues is as
follows: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="31%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="17" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Unaudited<BR>
  Three Months Ended June 30,</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="17" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>(in thousands)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Gross
  Revenue<BR>
  Reporting Method</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Reclassification</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Net Revenue<BR>
  Reporting Method</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Revenues:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Staffing
services</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>29,747</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>30,567</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>29,747</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>30,567</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Professional
employer services</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>237,957</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>226,845</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(203,818</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(192,757</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>34,139</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>34,088</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total
revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>267,704</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>257,412</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(203,818</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(192,757</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>63,886</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>64,655</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Cost of revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>252,740</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>243,223</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(203,818</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(192,757</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>48,922</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>50,466</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 16 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="12%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="88%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</tr>
<tr>
<TD VALIGN=top>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 2.</b></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Management&#146;s Discussion and Analysis
of Financial Condition and Results of Operations (Continued)</B></FONT></P>
</td>
</tr>
</table>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Results
of Operations (Continued)</U></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="26%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="17" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Unaudited<BR>
  Six Months Ended June 30,</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="17" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>(in
  thousands)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Gross Revenue<BR>
  Reporting Method</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Reclassification</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>Net Revenue<BR>
  Reporting Method</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Revenues:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Staffing
services</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>57,762</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>57,228</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>57,762</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>57,228</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Professional
employer services</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>467,470</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>435,519</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(400,758</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(369,807</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>66,712</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>65,712</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif"   SIZE=2>Total
revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>525,232</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>492,747</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(400,758</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(369,807</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>124,474</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>122,940</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Cost of revenues</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>500,577</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>469,515</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(400,758</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>(369,807</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>99,819</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>99,708</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#EAF9E8">
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=2 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B><I>Three months ended June 30, 2007 and 2006 </I></B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
income for the second quarter of 2007 amounted to $4.9 million, an improvement
of 16.7% or $693,000 over net income of $4.2 million for the second quarter of
2006. The improvement for the second quarter of 2007 was primarily due to
higher gross margin dollars as a result of cost savings in workers&#146;
compensation expense. Diluted earnings per share for the second quarter of 2007
was $.42 compared to $.36 for the comparable 2006 period. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
for the second quarter of 2007 totaled $63.9 million, a decrease of approximately
$769,000 or 1.2%, which reflects a decline in the Company&#146;s staffing services
revenue, offset in part by a slight increase in PEO service fee revenue.
Staffing services revenue decreased approximately $820,000 or 2.7% from the
comparable 2006 quarter primarily due to the decline in business with existing
customers which was attributable to general economic conditions. Management
expects demand for the Company&#146;s staffing services will continue to reflect
overall economic conditions in its market areas. PEO service fee revenue
increased approximately $51,000 or 0.1% over the 2006 second quarter primarily
due to the net effect from the addition of new client companies nearly offset
in part by a decline in business with existing PEO customers. General economic
conditions are having a softening effect on the business levels of our existing
PEO customer base. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross
margin for the second quarter of 2007 totaled approximately $15.0 million,
which represented an increase of $775,000 or 5.5% over the second quarter of
2006, primarily due to the 17.1% decrease in workers&#146; compensation expense. The
gross margin percent increased from 21.9% of revenues for the second quarter of
2006 to 23.4% for the second quarter of 2007. The increase in the gross margin
percentage was due to lower workers&#146; compensation expense and
slightly lower direct payroll costs, offset in part by higher payroll taxes and
benefits, all expressed as a percent of revenues. Workers&#146; compensation
expense, as a percent of revenues, declined from 11.2% in the second quarter of
2006 to 9.3% in the second quarter of 2007. Workers&#146; compensation expense for
the second quarter of 2007 totaled $6.0 million, compared to $7.2 million for
the second quarter of 2006. This decrease was due to lower insurance premiums
in states where the Company is not self-insured and to </FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 17 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 2.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Management&#146;s Discussion and Analysis of
  Financial Condition and Results of Operations (Continued)</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Results of Operations (Continued)</U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B><I>Three
months ended June 30, 2007 and 2006 (Continued)</I></B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>cost savings
provided by AICE, the Company&#146;s wholly owned captive insurance company. The
potential annual savings from AICE could total up to $3.0 million (pre-tax)
arising principally from more cost effective excess insurance premiums due to
an increase in the Company&#146;s self-insured retention from $1.0 million to $5.0
million in the majority of states where the Company is self-insured. Management
expects that its claims expense accrual methodology will remain unchanged, as AICE has
adopted generally accepted accounting principles rather than statutory
accounting principles. Beginning with the second quarter of 2007, the Company
became self-administered for certain workers&#146; compensation claims. The
Company&#146;s third-party administrator for all other workers&#146; compensation claims
also provides total software and administrative support for all claims.
Management expects a modest savings in claims administration fees by
self-administering certain claims. The decrease in direct payroll costs, as a
percentage of revenues, from 35.3% for the second quarter of 2006 to 35.1% for
the second quarter of 2007 reflects the shift in the overall mix of services
from staffing services to PEO services in the Company&#146;s customer base and the
effect of each customer&#146;s unique mark-up percent. The increase in payroll taxes
and benefits, as a percentage of revenues, from 31.6% for the second quarter of
2006 to 32.2% for the second quarter of 2007, was largely due to the effect of
growth in PEO services, offset in part by lower effective state unemployment
tax rates in various states in which the Company operates as compared to the
second quarter of 2006. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling,
general and administrative (&#147;SG&amp;A&#148;) expenses for the second quarter of 2007
amounted to approximately $7.7 million, a decrease of $155,000 or 2.0% from the
second quarter of 2006. The small decrease from the second quarter of 2006 was
primarily attributable to slight decreases in branch operating expenses
resulting from the similar level of business in the second quarter of 2007
compared to the same quarter of 2006. SG&amp;A expenses, as a percentage of
revenues, declined from 12.2% in the second quarter of 2006 to 12.1% in the
second quarter of 2007.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
January 1, 2006, we adopted SFAS 123R, which requires the grant-date fair value
of all share-based payment awards, including employee stock options, to be
recorded as employee compensation expense over the requisite service period.
Effective with the close of business on December 30, 2005, the Company
accelerated the vesting of all outstanding stock options to eliminate future
compensation expense under SFAS 123R. As a result of the accelerated vesting,
during the second quarter of 2007 and 2006, we recorded no incremental
compensation expense. The Company has not determined if future awards under its
2003 Stock Incentive Plan will be made. For additional information about the
adoption of SFAS 123R, refer to Note 5 of the Notes to Consolidated Financial
Statements included herein.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
income for the second quarter of 2007 was $790,000 compared to $670,000 for the
second quarter of 2006. The increase in other income for the second quarter of
2007 was primarily attributable to increased investment income earned on the
Company&#146;s higher cash balances. </FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 18 -</FONT></P>

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<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 2.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Management&#146;s Discussion and Analysis of
  Financial Condition and Results of Operations (Continued)</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Results of Operations (Continued)</U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B><I>Six months ended June 30, 2007 and 2006 </I></B></FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
income for the six months ended June 30, 2007 amounted to $6.6&nbsp;million, an
improvement of 19.2% or $1.1 million over net income of $5.5 million for the
first six months of 2006. The improvement for the first six months of 2007 was
primarily due to higher gross margin dollars as a result of cost reductions
in workers&#146; compensation expense and higher investment income. Diluted earnings
per share for the first six months of 2007 was $.57 compared to $.48 for the
comparable 2006 period. </FONT> </P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
for the six months ended June 30, 2007 totaled $124.5 million, an
increase of approximately $1.5 million or 1.2%, which reflects growth in both
the Company&#146;s staffing services revenue and in PEO service fee revenue.
Staffing services revenue increased approximately $534,000 or 0.9% over the
comparable 2006 period primarily due to market share gains with new customers
exceeding the decline in business with existing or former customers. PEO
service fee revenue increased approximately $1.0 million or 1.5% over the 2006
period primarily due to the net effect from the addition of new client
companies. Growth in the Company&#146;s PEO business has slowed due to general
economic conditions.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross
margin for the six months ended June 30, 2007 totaled
approximately $24.7 million, which represented an increase of $1.4 million or
6.1% over the comparable period of 2006, primarily due to the 14.1% decrease in
workers&#146; compensation expense. The gross margin percent increased from 18.9% of
revenues for the first six months of 2006 to 19.8% for the first six months of
2007. The increase in the gross margin percentage was due to lower workers&#146;
compensation expense, offset in part by higher direct payroll costs and higher
payroll taxes and benefits, all expressed as a percent of revenues. Workers&#146;
compensation expense, as a percent of revenues, declined from 11.2% for the
first six months of 2006 to 9.5% for the first six months of 2007. Workers&#146;
compensation expense for the first six months of 2007 totaled $11.8 million,
which compares to $13.8 million for the first six months of 2006. This decrease
was due to lower insurance premiums in states where the Company is not
self-insured and to cost savings provided by AICE, the Company&#146;s wholly owned
captive insurance company, which is a component of the Company&#146;s self-insured
workers&#146; compensation program. The increase in direct payroll costs, as a
percentage of revenues, from 34.7% for the first six months of 2006 to 35.0%
for first six months of 2007 reflects the shift in the overall mix of services
from staffing services to PEO services in the Company&#146;s customer base and the
effect of each customer&#146;s unique mark-up percent. The increase in payroll taxes
and benefits, as a percentage of revenues, from 35.2% for the first six months
of 2006 to 35.7% for the first six months of 2007, was largely due to the
effect of growth in PEO services, offset in part by lower effective state
unemployment tax rates in various states in which the Company operates. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SG&amp;A
expenses for the six months ended June&nbsp;30, 2007 amounted to approximately
$15.1 million, an increase of $13,000 over the similar period of 2006. The
similar level of expense is primarily attributable to the comparable level of
business activity during the first six months of 2007 and 2006. </FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 19 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 2.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Management&#146;s Discussion and Analysis of
  Financial Condition and Results of Operations (Continued)</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Results of Operations (Continued)</U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B><I>Six months ended June 30, 2007 and 2006
(Continued)</I></B></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
income for the six months ended June 30, 2007 was $1.6 million compared to
other income of $1.3 million for the comparable period of 2006. The 23.0%
increase in other income for the first six months of 2007 over 2006 was
primarily attributable to increased investment income earned on the Company&#146;s
higher cash balances. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Factors Affecting Quarterly Results</U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has historically experienced significant fluctuations in its quarterly
operating results and expects such fluctuations to continue in the future. The
Company&#146;s operating results may fluctuate due to a number of factors such as
seasonality, wage limits on statutory payroll taxes, claims experience for
workers&#146; compensation, demand and competition for the Company&#146;s services and
the effect of acquisitions. The Company&#146;s revenue levels may fluctuate from
quarter to quarter primarily due to the impact of seasonality on its staffing
services business and on certain of its PEO clients in the agriculture, food
processing and construction-related industries. As a result, the Company may
have greater revenues and net income in the third quarter of its fiscal year.
Revenue levels in the fourth quarter may be affected by many customers&#146;
practice of operating on holiday-shortened schedules. Payroll taxes and
benefits fluctuate with the level of direct payroll costs, but tend to
represent a smaller percentage of revenues and direct payroll later in the
Company&#146;s fiscal year as federal and state statutory wage limits for
unemployment and social security taxes are exceeded on a per employee basis.
Workers&#146; compensation expense varies with both the frequency and severity of
workplace injury claims reported during a quarter and the estimated future
costs of such claims. Adverse loss development of prior period claims during a
subsequent quarter may also contribute to the volatility in the Company&#146;s
estimated workers&#146; compensation expense.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Liquidity and Capital Resources</U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s cash position for the six months ended June 30, 2007 increased by
$1.2 million over December 31, 2006, which compares to a decrease of $3.8
million for the comparable period in 2006. The increase in cash at June 30,
2007 as compared to December&nbsp;31, 2006, was primarily due to net cash
provided by operating activities, offset in part by dividends paid of $1.6 million,
purchases of marketable securities of $729,000 and $500,000 of cash used for
the final payment of the Pro HR, LLC acquisition.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
cash provided by operating activities for the six months ended June 30, 2007
amounted to $4.3 million, as compared to $1.1 million for the comparable 2006
period. For the six months ended June 30, 2007, cash flow was principally
provided by net income of $6.6 million, together with a deferred income tax
benefit of $1.5 million and an increase in accrued payroll and related benefits
of $1.4 million, offset in part by an increase of $5.6 million in trade
accounts receivable and a decrease of $1.6 million in workers&#146; compensation
claims liabilities.</FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 20 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 2.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Management&#146;s Discussion and Analysis of
  Financial Condition and Results of Operations (Continued)</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Liquidity and Capital Resources (Continued)</U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
cash used in investing activities totaled $1.7 million for the six months ended
June&nbsp;30, 2007, compared to $5.3 million for the similar 2006 period. For
the 2007 period, the principal uses of cash for investing activities were the
purchase of marketable securities of $729,000 and the final payment of the
contingent consideration of $500,000 in connection with the acquisition of Pro
HR, LLC. The remaining uses of cash for investing activities were purchases of
restricted marketable securities of $1.8 million, offset by proceeds totaling
$1.8 million from maturities of restricted marketable securities. The
transactions related to restricted marketable securities were scheduled
maturities and the related replacement of such securities held for workers&#146;
compensation surety deposit purposes. The Company presently has no material
long-term capital commitments.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
cash used in financing activities for the six-month period ended June 30, 2007
was $1.4 million compared to net cash provided by financing activities of
$505,000 for the similar 2006 period. For the 2007 period, the principal use of
cash for financing activities was the payment of regular quarterly cash
dividends of $1.6 million paid to holders of the Company&#146;s Common Stock.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
disclosed in Note 3 to the consolidated financial statements included in this
report, the Company acquired certain assets of Pro HR, LLC, a privately held
PEO company with offices in Boise and Rexburg, Idaho and Grand Junction,
Colorado, effective January 1, 2006. As consideration for the acquisition, the
Company paid $4.0 million in cash and agreed to pay up to $1.5 million additional
cash based upon the level of financial performance achieved by the Pro HR
offices during calendar 2006. The contingent consideration of $1.5 million was
placed in escrow pursuant to the purchase agreement. In October 2006, the
Company paid $1.0 million in cash in partial satisfaction of the contingent
consideration for this acquisition and on February 28, 2007 paid the remaining
$500,000 in full satisfaction of the remaining contingent consideration.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s business strategy continues to focus on growth through the expansion
of operations at existing offices, together with the selective acquisition of
additional personnel-related business, both in its existing markets and other
strategic geographic markets. The Company periodically evaluates proposals for
various acquisition opportunities, but there can be no assurance that any
additional transactions will be consummated. As discussed in Note 7 to the
consolidated financial statements included in this report, we completed the
acquisition of Strategic Staffing, Inc. effective July 2, 2007. For 2006,
Strategic Staffing&#146;s revenues were approximately $38 million and management
expects revenues for 2007 to be approximately $48 million. Management
anticipates that this acquisition will increase earnings by approximately 8 to
9 cents per diluted share for the second half of 2007.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company was in compliance with all covenants at June 30, 2007 for the bank
credit agreement that expired on the same date. The Company entered into a new credit
agreement (the &#147;Credit Agreement&#148;) with its principal bank effective July 1,
2007. The Credit Agreement provides for an unsecured revolving credit facility
of up to $4.0 million, which includes a subfeature under the line of credit for
standby letters of credit up to $4.0 million. The interest rate on advances, if
any, will be, at the Company&#146;s discretion, either (i) equal to the prime rate
or (ii) LIBOR plus 1.50%. The Credit Agreement expires July&nbsp;1, 2008. </FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 21 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 2.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Management&#146;s Discussion and Analysis of
  Financial Condition and Results of Operations (Continued)</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Liquidity and Capital Resources (Continued)</U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the Credit Agreement, the Company is required to maintain compliance with
the following covenants: (1) net income after taxes not less than $1.00 (one dollar) on an
annual basis, determined as of each fiscal year end, and (2) pre-tax profit of
not less than $1.00 (one dollar) on a quarterly basis, determined as of each fiscal quarter
end. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
expects that current liquid assets, the funds anticipated to be generated from
operations and credit available under the Credit Agreement will be sufficient
in the aggregate to fund the Company&#146;s working capital needs for the
foreseeable future.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Inflation</U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inflation
generally has not been a significant factor in the Company&#146;s operations during
the periods discussed above. The Company has taken into account the impact of
escalating medical and other costs in establishing reserves for future expenses
for self-insured workers&#146; compensation claims.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Forward-Looking Information</U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements
in this report which are not historical in nature, including discussion of
economic conditions and favorable trends in the Company&#146;s market areas and
effect on revenue growth, the potential for and effect of past and future
acquisitions, the effect of changes in the Company&#146;s mix of services on gross
margin, the adequacy of the Company&#146;s workers&#146; compensation reserves and allowance
for doubtful accounts, the effect of the Company&#146;s becoming self-insured for
certain business risks, the effectiveness of the Company&#146;s management
information systems, payment of future dividends and the availability of
financing and working capital to meet the Company&#146;s funding requirements, are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of the Company or industry to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors with
respect to the Company include difficulties associated with integrating
acquired businesses and clients into the Company&#146;s operations, economic trends
in the Company&#146;s service areas, material deviations from expected future
workers&#146; compensation claims experience, the effect of changes in the workers&#146;
compensation regulatory environment in one or more of the Company&#146;s primary
markets, collectibility of accounts receivable, the carrying values of deferred
income tax assets and goodwill, which may be affected by the Company&#146;s future
operating results and the availability of capital or letters of credit
necessary to meet state-mandated surety deposit requirements for maintaining
the Company&#146;s status as a qualified self-insured employer for workers&#146;
compensation coverage, among others. The Company disclaims any obligation to
update any such factors or to publicly announce the result of any revisions to
any of the forward-looking statements contained herein to reflect future events
or developments.</FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 22 -</FONT></P>

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<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 3.<A NAME=A9></A></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Quantitative and Qualitative Disclosures
  About Market Risk</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s exposure to market risk for changes in interest rates primarily
relates to its investment portfolio of liquid assets. As of June 30, 2007, the
Company&#146;s investment portfolio consisted principally of approximately $48.3
million in tax-exempt municipal bonds with an average maturity of 121 days,
$21.6 million in a tax-exempt money market fund and approximately $3.9 million in bond funds and
corporate bonds. Based on the Company&#146;s overall interest exposure at June 30,
2007, a 100 basis point increase in market interest rates would not have a
material effect on the fair value of the Company&#146;s investment portfolio of
liquid assets or its results of operations because of the predominantly short
maturities of the securities within the investment portfolio. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 4.<A NAME=A10></A></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Controls and Procedures</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Disclosure Controls and Procedures</U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company
carried out an evaluation, under the supervision and with the participation of
the Company&#146;s management, including the Company&#146;s Chief Executive Officer and
Chief Financial Officer, of the effectiveness of the Company&#146;s disclosure
controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the
Securities Exchange Act of 1934. Based on that evaluation, the Chief Executive
Officer and Chief Financial Officer concluded that the Company&#146;s disclosure
controls and procedures as of June 30, 2007, continued to be ineffective in
providing a reasonable level of assurance that information required to be disclosed by the Company in reports that it files or submits under the
Securities Exchange Act of 1934 is recorded, processed, summarized and reported
within the time periods specified in the Securities and Exchange Commission&#146;s rules
and forms, as a result of the material weakness identified as of December 31,
2006, the nature of which is summarized below. </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Internal Control Over Financial Reporting</U></FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
our assessment of the effectiveness of our internal control over financial
reporting as of December 31, 2006, a material weakness was identified and is
summarized as follows: </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s information technology (&#147;IT&#148;) general controls over program
development, program changes, computer operations, and access to programs and
data were ineffectively designed as of December&nbsp;31, 2006. Formal written
policies and procedures and consistent practices, as well as formal
documentation demonstrating the performance of key controls, did not exist for
most areas within the aforementioned IT general controls. In addition, numerous
and pervasive deficiencies were identified related to the absence of restricted
access and segregation of duties, testing and authorization of system changes,
and logging of system processing interruptions. These deficiencies, and their
associated reflection on the control environment, when aggregated with other
deficiencies affecting the control environment, resulted in more than a remote
likelihood that a material misstatement of the Company&#146;s annual or interim
financial statements would not be prevented or detected.</FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 23 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 4.</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Controls and Procedures (Continued)</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><U>Internal Control Over Financial Reporting
(Continued)</U></FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to address the material weakness in our information technology systems
described above, management has taken the following remedial actions in the six
months ended June 30, 2007:</FONT></P>

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<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>1.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Initiated
  its implementation of policies and procedures to ensure consistent practices
  for managing access and changes to the financial systems;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>2.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Made
  significant progress toward restricting access to the financial system
  transactions and data;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>3.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Identified,
  and continued to address, standards for logging, testing, and authorizing
  changes with potential to impact the financial systems. The Company will
  continue to address this issue more fully throughout 2007.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
believes that these measures, when fully implemented, will address the material
weakness described above. The Audit Committee of the Board of Directors and
management will continue to monitor the implementation of these remedial
measures and the effectiveness of our internal controls and procedures on an
ongoing basis. As noted below, due to the ongoing nature of the implementation
of these remedial measures, the changes in our internal control over financial
reporting completed during the quarter ended June 30, 2007, did not have a
material affect on such internal control.</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were
no changes in our internal control over financial reporting that occurred
during the quarter ended June 30, 2007, that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.</FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 24 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT BUSINESS SERVICES, INC.</FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><A NAME=A11></A>Part II &#150; Other Information </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 1A.<A NAME=A12></A></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Risk Factors</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
have been no material changes in our risk factors from those disclosed in our
2006 Annual Report on Form 10-K.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 4.<A NAME=A13></A></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Submission of Matters to Vote of Security
  Holders</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company held its 2007 annual meeting of stockholders on May 17, 2007. The
following directors were elected at the annual meeting:</FONT></P>


<div align=center>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>For</font></p> </td>
        <td width="37" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Withheld</font></p> </td>
        <td width="108" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="37" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="108" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Thomas J. Carley</font></p> </td>
        <td width="25" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,306,352</font></p> </td>
        <td width="37" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>312,645</font></p> </td>
        <td width="108" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>James B. Hicks, Ph.D. </font></p> </td>
        <td width="25" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,306,660</font></p> </td>
        <td width="37" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>312,337</font></p> </td>
        <td width="108" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Roger L. Johnson</font></p> </td>
        <td width="25" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,445,347</font></p> </td>
        <td width="37" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>173,650</font></p> </td>
        <td width="108" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Jon L. Justesen </font></p> </td>
        <td width="25" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,447,394</font></p> </td>
        <td width="37" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>171,603</font></p> </td>
        <td width="108" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Anthony Meeker</font></p> </td>
        <td width="25" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,404,468</font></p> </td>
        <td width="37" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>214,529</font></p> </td>
        <td width="108" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>William W. Sherertz</font></p> </td>
        <td width="25" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,378,273</font></p> </td>
        <td width="37" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="75" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>240,724</font></p> </td>
        <td width="108" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Item 6.<A NAME=A14></A></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Exhibits</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>The exhibits
  filed with this report are listed in the Exhibit Index following the
  signature page of this report.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 25 -</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5><P STYLE='PAGE-BREAK-AFTER: ALWAYS'></P><PAGE><BR>

<P ALIGN=CENTER><A NAME=A15></A><FONT Face="Times New Roman, Times, Serif" SIZE=2>SIGNATURES</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="59%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="40%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>BARRETT
  BUSINESS SERVICES, INC.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>(Registrant)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Date: August
  8, 2007</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>/s/ Michael
  D. Mulholland</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" color=gray ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Michael D.
  Mulholland</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Vice
  President - Finance</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>(Principal
  Financial Officer)</FONT></P>
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<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>- 26 -</FONT></P>

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<P ALIGN=CENTER><A NAME=A16></A><FONT Face="Times New Roman, Times, Serif" SIZE=2>EXHIBIT
INDEX</FONT></P>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><font size=2>Exhibit</font></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.1</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Amendment to Credit Agreement entered into as of July 1, 2007, between the Company and Wells Fargo Bank, N.A. (&#147;Wells Fargo&#148;).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.2</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Revolving Line of Credit Note dated July 1, 2007, in the amount of $4,000,000 issued by the Company in favor of Wells Fargo.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>31.1</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Certification of the Chief Executive Officer under Rule 13a-14(a).</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>31.2</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Certification of the Chief Financial Officer under Rule 13a-14(a).</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>32</font></p> </td>
        <td  valign=top style='padding:10.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Certification pursuant to 18 U.S.C. Section 1350.</font></p> </td> </tr></table>
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<DESCRIPTION>EXHIBIT 10.1
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><B><font SIZE=2>EXHIBIT 10.1</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SECOND AMENDMENT TO CREDIT AGREEMENT</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>THIS AMENDMENT TO CREDIT AGREEMENT (this &#147;Amendment&#148;) is entered into as of July 1, 2007, by and between BARRETT BUSINESS SERVICES, INC., a Maryland corporation (&#147;Borrower&#148;), and WELLS FARGO BANK, NATIONAL ASSOCIATION (&#147;Bank&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><U><font SIZE=2>RECITALS</font></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS, Borrower is currently indebted to Bank pursuant to the terms and conditions of that certain Credit Agreement between Borrower and Bank dated as of July 1, 2005, as amended from time to time (&#147;Credit Agreement&#148;).</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>WHEREAS, Bank and Borrower have agreed to certain changes in the terms and conditions set forth in the Credit Agreement and have agreed to amend the Credit Agreement to reflect said changes.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree that the Credit Agreement shall be amended as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.1 (a) is hereby amended by deleting &#147;July 1, 2007&#148; as the last day on which Bank will make advances under the Line of Credit, and by substituting for said date &#147;July 1, 2008,&#148; with such change to be effective upon the execution and delivery to Bank of a promissory note dated as of July 1, 2007 (which promissory note shall replace and be deemed the Revolving Line of Credit Note defined in and made pursuant to the Credit Agreement) and all other contracts, instruments and documents required by Bank to evidence such change.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td width="545" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Section&nbsp;5.2 is hereby deleted in its entirety, and the following substituted therefor:</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.54in;text-align:left;'><font size=2> &#147;SECTION 5.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTHER INDEBTEDNESS. Create, incur, assume or permit to exist any indebtedness or liabilities resulting from borrowings, loans or advances, whether secured or unsecured, matured or unmatured, liquidated or unliquidated, joint or several, except (a) the liabilities of Borrower to Bank, (b)&nbsp;any other liabilities of Borrower existing as of, and disclosed to Bank prior to, the date hereof, and (c) purchase money indebtedness for equipment, not to exceed $100,000.00 on an annual basis.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td width="545" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Section&nbsp;5.6 is hereby deleted in its entirety, and the following substituted therefor:</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&#147;SECTION 5.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PLEDGE OF ASSETS. Mortgage, pledge, grant or permit to exist a security interest in, or lien upon, all or any portion of Borrower&#146;s assets now owned or hereafter acquired, except any of the foregoing in favor of Bank or which is existing as of, and disclosed to Bank in writing prior to, the date hereof, except as allowed to secure purchase money security interest securing purchase money indebtedness, not to exceed $100,000.00 on an annual basis.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as specifically provided herein, all terms and conditions of the Credit Agreement remain in full force and effect, without waiver or modification. All terms defined in the Credit Agreement shall have the same meaning when used in this Amendment. This Amendment and the Credit Agreement shall be read together, as one document.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower hereby remakes all representations and warranties contained in the Credit Agreement and reaffirms all covenants set forth therein. Borrower further certifies that as of the date of this Amendment there exists no Event of Default as defined in the Credit Agreement, nor any condition, act or event which with the giving of notice or the passage of time or both would constitute any such Event of Default.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY BANK CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER&#146;S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY BANK TO BE ENFORCEABLE.</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the day and year first written above.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font SIZE=2>BARRETT BUSINESS SERVICES, INC.</font></p> </td>
        <td width="44" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom >
            <p  style=' page-break-after:avoid'><font SIZE=2>WELLS FARGO BANK,</font><br> <font size=2>&nbsp;&nbsp;NATIONAL ASSOCIATION</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="32" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" valign=bottom >
            <p style='margin-left:.75pt;text-indent:-.75pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>By:&nbsp;</font></p> </td>
        <td width="250" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><br> <font size=2>/s/ Michael D. Mulholland</font></p> </td>
        <td width="44" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" valign=bottom >
            <p style='margin-left:1.5pt;text-indent:-1.5pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>By:&nbsp;</font></p> </td>
        <td width="249" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><br> <font size=2>/s/ Julie Wilson</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="25" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Michael D. Mulholland,</font><br> <font size=2>Vice President-Finance and</font><br> <font size=2>Chief Financial Officer</font></p> </td>
        <td width="44" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Julie Wilson, Vice President</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>-</font><font size=1>2</font><font size=2>-</font></p> </td>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><B><font SIZE=2>EXHIBIT 10.2</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>REVOLVING LINE OF CREDIT NOTE</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$4,000,000.00</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Portland, Oregon</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>July 1, 2007</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>FOR VALUE RECEIVED, the undersigned BARRETT BUSINESS SERVICES, INC. (&#147;Borrower&#148;) promises to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (&#147;Bank&#148;) at its office at 1300 S. W. Fifth Avenue, Portland, Oregon, or at such other place as the holder hereof may designate, in lawful money of the United States of America and in immediately available funds, the principal sum of Four Million Dollars ($4,000,000.00), or so much thereof as may be advanced and be outstanding, with interest thereon, to be computed on each advance from the date of its disbursement as set forth herein.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>DEFINITIONS:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.52in;text-align:left;'><font size=2>As used herein, the following terms shall have the meanings set forth after each, and any other term defined in this Note shall have the meaning set forth at the place defined:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Business Day&#148; means any day except a Saturday, Sunday or any other day on which commercial banks in Oregon are authorized or required by law to close.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Fixed Rate Term&#148; means a period commencing on a Business Day and continuing for 1, 2, 3, or 6 months, as designated by Borrower, during which all or a portion of the outstanding principal balance of this Note bears interest determined in relation to LIBOR; provided however, that no Fixed Rate Term may be selected for a principal amount less than Two Hundred Fifty Thousand Dollars ($250,000.00); and provided further, that no Fixed Rate Term shall extend beyond the scheduled maturity date hereof. If any Fixed Rate Term would end on a day which is not a Business Day, then such Fixed Rate Term shall be extended to the next succeeding Business Day.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;LIBOR&#148; means the rate per annum (rounded upward, if necessary, to the nearest whole 1/8 of 1%) and determined pursuant to the following formula:</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font SIZE=2>LIBOR =</font></p> </td>
        <td width="258" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Base LIBOR</font></p> </td>
        <td width="187" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="193" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="258" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>100% - LIBOR Reserve Percentage</font></p> </td>
        <td width="187" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Base LIBOR&#148; means the rate per annum for United States dollar deposits quoted by Bank as the Inter-Bank Market Offered Rate, with the understanding that such rate is quoted by Bank for the purpose of calculating effective rates of interest for loans making reference thereto, on the first day of a Fixed Rate Term for delivery of funds on said date for a period of time approximately equal to the number of days in such Fixed Rate Term and in an amount approximately equal to the principal amount to which such Fixed Rate Term applies. Borrower understands and agrees that Bank may base its quotation of the Inter-Bank Market Offered Rate upon such offers or other market indicators of the Inter-Bank Market as Bank in its discretion </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>deems appropriate including, but not limited to, the rate offered for U.S. dollar deposits on the London Inter-Bank Market.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;LIBOR Reserve Percentage&#148; means the reserve percentage prescribed by the Board of Governors of the Federal Reserve System (or any successor) for &#147;Eurocurrency Liabilities&#148; (as defined in Regulation D of the Federal Reserve Board, as amended), adjusted by Bank for expected changes in such reserve percentage during the applicable Fixed Rate Term.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Prime Rate&#148; means at any time the rate of interest most recently announced within Bank at its principal office as its Prime Rate, with the understanding that the Prime Rate is one of Bank&#146;s base rates and serves as the basis upon which effective rates of interest are calculated for those loans making reference thereto, and is evidenced by the recording thereof after its announcement in such internal publication or publications as Bank may designate.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>INTEREST:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Interest</font></u><font size=2>. The outstanding principal balance of this Note shall bear interest (computed on the basis of a 360-day year, actual days elapsed) either (i) at a fluctuating rate per annum equal to the Prime Rate in effect from time to time, or (ii) at a fixed rate per annum determined by Bank to be one and one half percent (1.50%) above LIBOR in effect on the first day of the applicable Fixed Rate Term. When interest is determined in relation to the Prime Rate, each change in the rate of interest hereunder shall become effective on the date each Prime Rate change is announced within Bank. With respect to each LIBOR selection hereunder, Bank is hereby authorized to note the date, principal amount, interest rate and Fixed Rate Term applicable thereto and any payments made thereon on Bank&#146;s books and
records (either manually or by electronic entry) and/or on any schedule attached to this Note, which notations shall be prima facie evidence of the accuracy of the information noted.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:1.05in;text-align:left;'><font size=2> (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Selection of Interest Rate Options</font></u><font size=2>. At any time any portion of this Note bears interest determined in relation to LIBOR, it may be continued by Borrower at the end of the Fixed Rate Term applicable thereto so that all or a portion thereof bears interest determined in relation to the Prime Rate or to LIBOR for a new Fixed Rate Term designated by Borrower. At any time any portion of this Note bears interest determined in relation to the Prime Rate, Borrower may convert all or a portion thereof so that it bears interest determined in relation to LIBOR for a Fixed Rate Term designated by Borrower. At such time as Borrower requests an advance hereunder or wishes to select a LIBOR option for all or a portion of the outstanding principal balance hereof, and at the end of each Fixed Rate Term, Borrower
shall give Bank notice specifying: (i) the interest rate option selected by Borrower; (ii)&nbsp;the principal amount subject thereto; and (iii) for each LIBOR selection, the length of the applicable Fixed Rate Term. Any such notice may be given by telephone (or such other electronic method as Bank may permit) so long as, with respect to each LIBOR selection, (A) if requested by Bank, Borrower provides to Bank written confirmation thereof not later than three (3) Business Days after such notice is given, and (B) such notice is given to Bank prior to 10:00 a.m. on the first day of the Fixed Rate Term, or at a later time during any Business Day if Bank, at it&#146;s sole option but without obligation to do so, accepts Borrower&#146;s notice and quotes a fixed rate to Borrower. If Borrower does not immediately accept a fixed rate when quoted by Bank, the quoted rate shall </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>-2-</font></p> </td>
        <td width="295" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=2>expire and any subsequent LIBOR request from Borrower shall be subject to a redetermination by Bank of the applicable fixed rate. If no specific designation of interest is made at the time any advance is requested hereunder or at the end of any Fixed Rate Term, Borrower shall be deemed to have made a Prime Rate interest selection for such advance or the principal amount to which such Fixed Rate Term applied.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (c)</font><u><font size=2>Taxes and Regulatory Costs</font></u><font size=2>. Borrower shall pay to Bank immediately upon demand, in addition to any other amounts due or to become due hereunder, any and all (i) withholdings, interest equalization taxes, stamp taxes or other taxes (except income and franchise taxes) imposed by any domestic or foreign governmental authority and related in any manner to LIBOR, and (ii) future, supplemental, emergency or other changes in the LIBOR Reserve Percentage, assessment rates imposed by the Federal Deposit Insurance Corporation, or similar requirements or costs imposed by any domestic or foreign governmental authority or resulting from compliance by Bank with any request or directive (whether or not having the force of law) from any central bank or other governmental authority and related in any manner to LIBOR to the extent they are not included in
the calculation of LIBOR. In determining which of the foregoing are attributable to any LIBOR option available to Borrower hereunder, any reasonable allocation made by Bank among its operations shall be conclusive and binding upon Borrower.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Payment of Interest</font></u><font size=2>. Interest accrued on this Note shall be payable on the 1st day of each month, commencing August 1, 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Default Interest</font></u><font size=2>. From and after the maturity date of this Note, or such earlier date as all principal owing hereunder becomes due and payable by acceleration or otherwise, the outstanding principal balance of this Note shall bear interest until paid in full at an increased rate per annum (computed on the basis of a 360-day year, actual days elapsed) equal to four percent (4%) above the rate of interest from time to time applicable to this Note.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>BORROWING AND REPAYMENT:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Borrowing and Repayment</font></u><font size=2>. Borrower may from time to time during the term of this Note borrow, partially or wholly repay its outstanding borrowings, and reborrow, subject to all of the limitations, terms and conditions of this Note and of any document executed in connection with or governing this Note; provided however, that the total outstanding borrowings under this Note shall not at any time exceed the principal amount stated above. The unpaid principal balance of this obligation at any time shall be the total amounts advanced hereunder by the holder hereof less the amount of principal payments made hereon by or for any Borrower, which balance may be endorsed hereon from time to time by the holder. The outstanding principal balance of this Note shall be due and payable in full on July 1, 2008.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Advances</font></u><font size=2>. Advances hereunder, to the total amount of the principal sum stated above, may be made by the holder at the oral or written request of (i) William W. Sherertz or Michael D. Mulholland, any one acting alone, who are authorized to request advances and direct the disposition of any advances until written notice of the revocation of such authority is received by the holder at the office designated above, or (ii) any person, with respect to advances deposited to the credit of any deposit account of any Borrower, which advances, when so </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="66" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>-3-</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>deposited, shall be conclusively presumed to have been made to or for the benefit of each Borrower regardless of the fact that persons other than those authorized to request advances may have authority to draw against such account. The holder shall have no obligation to determine whether any person requesting an advance is or has been authorized by any Borrower.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Application of Payments</font></u><font size=2>. Each payment made on this Note shall be credited first, to any interest then due and second, to the outstanding principal balance hereof. All payments credited to principal shall be applied first, to the outstanding principal balance of this Note which bears interest determined in relation to the Prime Rate, if any, and second, to the outstanding principal balance of this Note which bears interest determined in relation to LIBOR, with such payments applied to the oldest Fixed Rate Term first.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>PREPAYMENT:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Prime Rate</font></u><font size=2>. Borrower may prepay principal on any portion of this Note which bears interest determined in relation to the Prime Rate at any time, in any amount and without penalty.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><U><font SIZE=2>LIBOR</font></U><font size=2>. Borrower may prepay principal on any portion of this Note which bears interest determined in relation to LIBOR at any time and in the minimum amount of Two Hundred Fifty Thousand Dollars ($250,000.00); provided however, that if the outstanding principal balance of such portion of this Note is less than said amount, the minimum prepayment amount shall be the entire outstanding principal balance thereof. In consideration of Bank providing this prepayment option to Borrower, or if any such portion of this Note shall become due and payable at any time prior to the last day of the Fixed Rate Term applicable thereto by acceleration or otherwise, Borrower shall pay to Bank immediately upon demand a fee which is the sum of the discounted monthly differences for each month from the month of prepayment
through the month in which such Fixed Rate Term matures, calculated as follows for each such month:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="51" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Determine</font></u><font size=2> the amount of interest which would have accrued each month on the amount prepaid at the interest rate applicable to such amount had it remained outstanding until the last day of the Fixed Rate Term applicable thereto.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.25in; text-indent:-1.25in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Subtract</font></u><font size=2> from the amount determined in (i) above the amount of interest which would have accrued for the same month on the amount prepaid for the remaining term of such Fixed Rate Term at LIBOR in effect on the date of prepayment for new loans made for such term and in a principal amount equal to the amount prepaid.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1.25in; text-indent:-1.25in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(iii)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>If the result obtained in (ii) for any month is greater than zero, discount that difference by LIBOR used in (ii) above.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Each Borrower acknowledges that prepayment of such amount may result in Bank incurring additional costs, expenses and/or liabilities, and that it is difficult to ascertain the full extent of </font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>-4-</font></p> </td>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>such costs, expenses and/or liabilities. Each Borrower, therefore, agrees to pay the above-described prepayment fee and agrees that said amount represents a reasonable estimate of the prepayment costs, expenses and/or liabilities of Bank. If Borrower fails to pay any prepayment fee when due, the amount of such prepayment fee shall thereafter bear interest until paid at a rate per annum two percent (2.00%) above the Prime Rate in effect from time to time (computed on the basis of a 360-day year, actual days elapsed). Each change in the rate of interest on any such past due prepayment fee shall become effective on the date each Prime Rate change is announced within Bank.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>EVENTS OF DEFAULT:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.52in;text-align:left;'><font size=2>This Note is made pursuant to and is subject to the terms and conditions of that certain Credit Agreement between Borrower and Bank dated as of July 1, 2005, as amended from time to time (the &#147;Credit Agreement&#148;). Any default in the payment or performance of any obligation under this Note, or any defined event of default under the Credit Agreement, shall constitute an &#147;Event of Default&#148; under this Note.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>MISCELLANEOUS:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Remedies</font></u><font size=2>. Upon the occurrence of any Event of Default, the holder of this Note, at the holder&#146;s option, may declare all sums of principal and interest outstanding hereunder to be immediately due and payable without presentment, demand, notice of nonperformance, notice of protest, protest or notice of dishonor, all of which are expressly waived by each Borrower, and the obligation, if any, of the holder to extend any further credit hereunder shall immediately cease and terminate. Each Borrower shall pay to the holder immediately upon demand the full amount of all payments, advances, charges, costs and expenses, including reasonable attorneys&#146; fees (to include outside counsel fees and all allocated costs of the holder&#146;s in-house counsel), expended or incurred by the holder in connection
with the enforcement of the holder&#146;s rights and/or the collection of any amounts which become due to the holder under this Note, and the prosecution or defense of any action in any way related to this Note, including without limitation, any action for declaratory relief, whether incurred at the trial or appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Bank or any other person) relating to any Borrower or any other person or entity.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Obligations Joint and Several</font></u><font size=2>. Should more than one person or entity sign this Note as a Borrower, the obligations of each such Borrower shall be joint and several.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.55in;text-align:left;'><font size=2> (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>Governing Law</font></u><font size=2>. This Note shall be governed by and construed in accordance with the laws of the State of Oregon.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><U><B><font SIZE=2>UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY BANK CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR </font></B></U><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td width="277" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>-5-</font></p> </td>
        <td width="295" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>SECURED SOLELY BY THE BORROWER&#146;S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY BANK TO BE ENFORCEABLE.</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.51in;text-align:left;'><font size=2>IN WITNESS WHEREOF, the undersigned has executed this Note as of the date first written above.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="275" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font SIZE=2>BARRETT BUSINESS SERVICES, INC.</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="25" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>By:&nbsp;</font></p> </td>
        <td width="250" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><br> <font size=2>/s/ Michael D. Mulholland</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="25" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="250" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Michael D. Mulholland,</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Vice President-Finance and </font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Chief Financial Officer</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse'>
    <tr >
        <td width="277" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="66" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>-6-</font></p> </td>
        <td width="295" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>4
<FILENAME>bbsi10q0807ex31-1.htm
<DESCRIPTION>EXHIBIT 31.1
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>
<DIV STYLE="WIDTH:600">
<BR>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Certification of the Chief Executive Officer
under Rule 13a-14(a) </B></FONT></P>

<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 31.1 </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>I, William W.
Sherertz, certify that: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>1.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>I have
  reviewed this Quarterly Report on Form 10-Q of Barrett Business Services,
  Inc.;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>2.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Based on my
  knowledge, this quarterly report does not contain any untrue statement of a
  material fact or omit to state a material fact necessary to make the
  statements made, in light of the circumstances under which such statements
  were made, not misleading with respect to the period covered by this
  quarterly report;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Based on my
  knowledge, the financial statements, and other financial information included
  in this quarterly report, fairly present in all material respects the
  financial condition, results of operations and cash flows of the Registrant
  as of, and for, the periods presented in this report;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>The
  Registrant&#146;s other certifying officer and I are responsible for establishing
  and maintaining disclosure controls and procedures (as defined in Exchange
  Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
  reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the
  Registrant and we have:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>a.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>designed
  such disclosure controls and procedures, or caused such disclosure controls and
  procedures to be designed under our supervision, to ensure that material
  information relating to the Registrant is made known to us by others within
  the company, particularly during the period in which this report is being
  prepared; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>b.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>designed
  such internal control over financial reporting, or caused such internal
  control over financial reporting to be designed under our supervision, to
  provide reasonable assurance regarding the reliability of financial reporting
  and the preparation of financial statements for external purposes in
  accordance with generally accepted accounting principles; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>c.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>evaluated
  the effectiveness of the Registrant&#146;s disclosure controls and procedures and
  presented in this report our conclusions about the effectiveness of the
  disclosure controls and procedures, as of the end of the period covered by
  this report, based on such evaluation; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>d.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>disclosed in
  this report any change in the Registrant&#146;s internal control over financial
  reporting that occurred during the registrant&#146;s most-recent fiscal quarter
  that has materially affected, or is reasonably likely to materially affect,
  the Registrant&#146;s internal control over financial reporting; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>The
  Registrant&#146;s other certifying officer and I have disclosed, based on our most
  recent evaluation of internal control over financial reporting, to the
  Registrant&#146;s auditors and the audit committee of the Registrant&#146;s board of
  directors (or persons performing the equivalent functions):</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>a.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>all
  significant deficiencies and material weaknesses in the design or operation
  of internal control over financial reporting which are reasonably likely to
  adversely affect the Registrant&#146;s ability to record, process, summarize and
  report financial information; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>b.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>any fraud,
  whether or not material, that involves management or other employees who have
  a significant role in the Registrant&#146;s internal control over financial
  reporting. </FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="47%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="50%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Date: August
  8, 2007</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>/s/ William
  W. Sherertz</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>William W.
  Sherertz</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Chief
  Executive Officer</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5>

</DIV>
</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>5
<FILENAME>bbsi10q0807ex31-2.htm
<DESCRIPTION>EXHIBIT 31.2
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>
<DIV STYLE="WIDTH:600">
<BR>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2><B>Certification of the Chief Financial Officer
under Rule 13a-14(a) </B></FONT></P>

<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2">EXHIBIT 31.2 </FONT> </P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>I, Michael D. Mulholland,
  certify that:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=95% style=margin-left:5%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>

</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>1.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>I have reviewed this
  Quarterly Report on Form 10-Q of Barrett Business Services, Inc.;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>2.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Based on my knowledge,
  this quarterly report does not contain any untrue statement of a material
  fact or omit to state a material fact necessary to make the statements made,
  in light of the circumstances under which such statements were made, not
  misleading with respect to the period covered by this quarterly report;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Based on my knowledge, the
  financial statements, and other financial information included in this
  quarterly report, fairly present in all material respects the financial
  condition, results of operations and cash flows of the Registrant as of, and
  for, the periods presented in this report;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Registrant&#146;s other
  certifying officer and I are responsible for establishing and maintaining
  disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
  and 15d-15(e)) and internal control over financial reporting (as defined in
  Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and we have:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>a.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>designed such disclosure
  controls and procedures, or caused such disclosure controls and procedures to
  be designed under our supervision, to ensure that material information
  relating to the Registrant is made known to us by others within the company,
  particularly during the period in which this report is being prepared;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>b.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>designed such internal
  control over financial reporting, or caused such internal control over
  financial reporting to be designed under our supervision, to provide
  reasonable assurance regarding the reliability of financial reporting and the
  preparation of financial statements for external purposes in accordance with
  generally accepted accounting principles;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>c.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>evaluated the
  effectiveness of the Registrant&#146;s disclosure controls and procedures and
  presented in this report our conclusions about the effectiveness of the
  disclosure controls and procedures, as of the end of the period covered by
  this report, based on such evaluation;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>d.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>disclosed in this report
  any change in the Registrant&#146;s internal control over financial reporting that
  occurred during the registrant&#146;s most-recent fiscal quarter that has
  materially affected, or is reasonably likely to materially affect, the
  Registrant&#146;s internal control over financial reporting;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>The Registrant&#146;s other
  certifying officer and I have disclosed, based on our most recent evaluation
  of internal control over financial reporting, to the Registrant&#146;s auditors
  and the audit committee of the Registrant&#146;s board of directors (or persons
  performing the equivalent functions):</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>a.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>all significant
  deficiencies and material weaknesses in the design or operation of internal
  control over financial reporting which are reasonably likely to adversely
  affect the Registrant&#146;s ability to record, process, summarize and report
  financial information; and  </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>b.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>any fraud, whether or not
  material, that involves management or other employees who have a significant
  role in the Registrant&#146;s internal control over financial reporting.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=80%>
<TR style="font-size:1px">
<TD WIDTH="15%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="20%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="25%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>

</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Date: August
  8, 2007</FONT></P>
</TD>

<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>


<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>/s/ Michael
  D. Mulholland</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="90%" NOSHADE  ALIGN=LEFT>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Michael D.
  Mulholland</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>

<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></P>
</TD>


<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Chief
  Financial Officer</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5>
</DIV>
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<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>6
<FILENAME>bbsi10q0807ex32.htm
<TEXT>
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<HEAD><TITLE></TITLE></HEAD>
<BODY>
<BR>
<DIV STYLE="WIDTH:600">
<P ALIGN=RIGHT><FONT Face="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 32 </FONT></P>

<P ALIGN=CENTER><FONT Face="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION PURSUANT TO<BR>
18 U.S.C. SECTION 1350</FONT></P>

<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>In connection with the
Quarterly Report of Barrett Business Services, Inc. (the &#147;Company&#148;) on Form
10-Q for the period ended June 30, 2007 as filed with the Securities and
Exchange Commission on the date hereof (the &#147;Report&#148;), the undersigned certify,
pursuant to 18 U.S.C. &#167; 1350, that: </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif"
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Report fully complies with the requirements of section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and </FONT></P>

<P><FONT Face="Times New Roman, Times, Serif"
SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="60%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="40%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>/s/ William W. Sherertz</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>/s/ Michael D. Mulholland</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="50%" NOSHADE  ALIGN=LEFT>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="60%" NOSHADE  ALIGN=LEFT>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>William W. Sherertz</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Michael D. Mulholland</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Chief Executive Officer</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>Chief Financial Officer</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>August 8, 2007</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT Face="Times New Roman, Times, Serif" SIZE=2>August 8, 2007</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=5>
</DIV>
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