Workstream Inc. to Acquire Icarian Inc.

Workstream Inc. (NASDAQ:WSTM), provider of Human Capital Management (HCM) Web-enabled solutions and professional services, today announced that it has signed a definitive agreement to acquire California-based Icarian Inc. The Icarian Recruitment Solution Suite leverages the power of the Internet to align workforce plans and talent acquisition with business imperatives, dramatically reducing hiring costs and increasing productivity.

I would like to welcome Icarian''s customers, employees, partners, and investors to the Workstream family. I''m pleased that Icarian has agreed to share our strategic vision of generating shareholder value through leveraging combined strengths. Icarian''s strong brand, best-of-breed Web-hosted applications and support services expand our HCM market coverage into the Fortune 2000 community, said Michael Mullarkey, Chairman & CEO, Workstream Inc. I am confident that this acquisition will prove to be an excellent springboard for revenue growth and shareholder value. Our combined customers will benefit from our expanded services suite providing superior return on investment.

Icarian''s Recruitment Management Suite is Web-native software, offered on an ASP basis, with a rich user interface that provides full functionality for management of the hiring process. Icarian''s Connectivity, Interactive Job Site and Reporting modules offers HR Professionals the capability to integrate with HRMS''s, candidate and campaign management, and strong reporting for both compliancy, metrics and cost, reporting for a corporation''s employee acquisition process.

The combined company will have a dominant industry position with service offerings targeting companies with 500 to 500,000 employees. The joint customer base includes AMD, Nike, Samsung, DuPont, Nordstrom, Schwab, Texas Instrument, Intuit, Visa International, Kaiser Permanente, E*Trade, Oxford Health, and many other blue-chip companies.

In addition to bringing new technologies, products, customers, partners and target markets to Workstream, Icarian further strengthens our management team and brings on board strategic investors with deep industry knowledge. I am very pleased to add Van Wagoner Capital Management, Kleiner Perkins Caufield & Byers, Apax Partners, TMP Worldwide, Fidelity Ventures, Sands Brothers and Wheatley Partners to our group of shareholders, continued Mullarkey.

We''re excited with the opportunity to join the Workstream family of companies, said Ed Koepfler, CEO of Icarian.
Workstream has a successful track record of integrating a growing suite of complementary products, services and technologies.

The all-stock transaction for the acquisition of Icarian Inc. has been approved by the Boards of both companies, and is subject to regulatory and Icarian shareholder approval that is expected to close shortly.

About Workstream Inc.

Workstream Inc. (NASDAQ: WSTM) is a leading provider of Web-enabled tools and professional services for Human Capital Management (HCM). Offering a diversified suite of high-tech and high-touch services to address the full lifecycle of the employer/employee relationship, Workstream ensures more effective management of corporate assets via automation and outsourcing. Workstream''s HCM technology backbone enables companies to streamline the management of enterprise human capital processes including recruitment, assessment, integration, deployment and outplacement. Workstream offers a full-range of HCM products and services through its 21 offices and over 220 dedicated human resource professionals across North America. The company''s expertise has motivated many blue-chip organizations such as Eli Lilly, Nike, Samsung, KPMG and Sony Music to select Workstream.