Workstream TalentCenter Hosted Services Meet SAS 70 Standards for Data Security and Hosting Services; Third Party Assurance Assists Customers in Meeting Sarbanes-Oxley and Other Audit and Compliance Requirements

Business Wire, May 23, 2006

OTTAWA -- Workstream Inc. (NASDAQ: WSTM), a provider of On-Demand Enterprise Workforce Management software, today announced that the Company has successfully completed its SAS 70 Type 1 audit by the independent accounting and auditing firm of KPMG.

Issued under guidance provided by the American Institute of Certified Public Accountants (AICPA), SAS 70 Type 1 assurance means that the Company's description of certain relevant controls over information technology related to its data center and hosting operations is fairly presented and such controls have been suitably designed to achieve their specified control objectives.

The SAS 70 audit for Workstream involved the evaluation and benchmarking of nine distinct control objectives and related relevant controls, including restrictions on logical and physical access to system resources, change management, incident management, network and system monitoring, backup procedures and operations. Given the strategic importance of hosting to the Company's business, the rigorous review and evaluation of these objectives, and the resulting audit report, assists hosted customers in addressing regulatory guidelines and ensures that Workstream maintains the highest standards for quality and consistency in hosted processes and data management.

"Workstream is committed to providing secure, world-class HR services through our data center operations. Obtaining our SAS 70 assurance report just sets us apart from other suppliers who are new to providing on-demand services," stated Mike Gioja, Chief Information Officer at Workstream. "With the importance of security associated with hosting sensitive personnel and compensation information, and the requirements under Sarbanes-Oxley regulations, those hosted application providers that have not received third-party assurance under SAS 70 may be putting their customers at significant risk."

About Workstream Inc.

Workstream provides 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, Development and Transition. Access to TalentCenter is offered on a monthly subscription basis under an on-demand software delivery model to help companies build high performing workforces, while controlling costs. Workstream services customers including Chevron, 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.