American Red Cross Working with Workstream Compensation to Improve Operational Efficiencies and Eliminate Spreadsheets

Workstream Inc. today announced that the American Red Cross has entered into a contract for Workstream Compensation to seek to improve its management of compensation.

Ottawa, ON. - June 13, 2005 - Workstream Inc.(tm) (NASDAQ: WSTM), a provider of Enterprise Workforce Management software, today announced that the American Red Cross, a globally recognized non-profit charitable organization, has entered into a contract for Workstream Compensation to seek to improve its management of compensation at the American Red Cross National Headquarters operations.  

The American Red Cross was trying to manage its pay-for-performance system through manually-driven spreadsheets. The organization will work with Workstream's On-Demand approach to enterprise-wide deployment with the expectation that it will simplify the IT infrastructure required, reduce the time and resources spent on the annual merit award process, enable more effective pay decisions and optimize compensation expenditures while only paying for what is used.

"Workstream Compensation is a flexible and scaleable application that helps solve a variety of compensation challenges that impact most organizations," said Michael Mullarkey, CEO and Chairman of Workstream. "Companies depend on Workstream to help streamline compensation planning cycles, gain better visibility and control costs around managing their people." 

Workstream Compensation
Workstream Compensation is a comprehensive set of products that enable end-to-end management of all types of compensation information, including salary, variable pay and stock awards.  As many organizations are beginning to introduce more complex, formula-driven variable pay plans, Workstream features an Advanced Variable Pay module that provides the flexibility to use formula-based compensation plans and managerial discretion to reward the Company's high achievers.

All Workstream Compensation products are designed to provide managers and compensation professionals with the information and online decision support tools necessary to help them make more informed, policy-based pay decisions.  The compensation planning products can be implemented separately or together, allowing organizations to achieve the goal of realizing a pay-for-performance philosophy at their own pace.  Workstream Compensation products include:

·         Focal Planning, for annual salary, basic variable pay and stock evaluation across the enterprise, during a pre-determined planning window.

·         Anniversary Planning, for evaluating individual employees on their 'effective' hiring date throughout the year.

·         Advanced Variable Pay, for formulaic variable pay plans that are administered throughout the year.

·         Total Rewards Statements, an integrated, Web-based product for employees to access, view, model and manage all of their corporate-sponsored financial benefits. 

About Workstream Inc.
Workstream provides On-Demand Enterprise Workforce Management solutions and services that help companies manage the entire employee lifecycle - from recruitment to retirement. Workstream's TalentCenter provides a unified view of all Workstream products and services including Recruitment, Benefits, Performance, Compensation, Rewards and Transition. Access to TalentCenter is offered on a monthly subscription basis under an On-Demand software delivery model to help companies build high performing workforces, while controlling costs. With nine offices across North America, Workstream services over 400 customers including Chevron, Eli Lilly Canada, The Gap, Home Depot, Kaiser Permanente, Motorola, Nordstrom, Samsung, Sony Music Canada, VISA, and Wells Fargo. For more information visit www.workstreaminc.com or call toll free 1-866-470-WORK.

Contact:

Tammie Brown

Workstream Inc.

1-877-327-8483 ext. 263

tammie.brown[at]workstreaminc.com

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