BPO Management Services Announces Completion of Blue Hill Data Services Acquisition.

Acquires Leading Data Center Outsourcing Services Company Focused on Middle Market; Third BPO Acquisition in 2007

ANAHEIM, Calif. -- BPO Management Services, Inc., (OTCBB:BPOM) "BPOMS", a full-service business process outsourcing company focused on serving middle-market enterprises, today announced that it has acquired Blue Hill Data Services, Inc., a privately-held, full-service data center outsourcing services company headquartered in Pearl River, New York, with close proximity to New York City. BPOMS plans to consolidate the operations of its existing Information Technology Outsourcing (ITO) business unit into the significantly larger Blue Hill Data Services facility to create additional capability for both new and existing customers and generate additional economic efficiencies.

BPOMS Chief Executive Officer Patrick Dolan stated, "Blue Hill Data Services will substantially augment our ITO business platform, which is an integral part of our delivery infrastructure. The additional technology and capacity will enable us to further grow and expand our footprint in mid-sized enterprises throughout North America."

Originally announced on October 4, the acquisition will expand the company's ITO offerings to existing customers as well as enable it to target new and larger enterprises, yielding important future growth opportunities with significantly larger contract values.

"This acquisition is an important milestone towards achieving our stated goal of becoming the premier BPO Service provider to the underserved middle market. Blue Hill has been recognized by industry analysts as a high quality provider of data center outsourcing services for middle market enterprises and we are very excited to add them to our portfolio of BPO service offerings," Dolan continued. "Additionally, we are pleased that the integration of our two previous acquisitions, DocuCom and HRMS, is tracking according to expectations," Dolan concluded.

Blue Hill Data Services, Inc. has been a growing and profitable company since 1994. As a quality provider of data center outsourcing services for middle-market enterprises, core services include enterprise-scale mainframe/server hosting, wide-area network management and dedicated business recovery solutions provided under long-term, recurring revenue based contracts. Services are delivered from its Class A, SAS70 Type II audited data center facility encompassing important support and high-availability features such as redundant feeds to utility power and telecom grids, virtually unlimited fiber-based telecom bandwidth, stand-alone back-up power generation and state-of-the-art security and environmental controls. The facility and 24/7 data center operation are fully compliant in supporting its customers' Sarbanes-Oxley and HIPAA requirements.

About BPO Management Services, Inc.

BPO Management Services (BPOMS) is a business process outsourcing (BPO) service provider that offers a diversified range of on-demand services, including human resources, information technology, enterprise content management, and finance and accounting, to support the back-office functions of middle-market enterprises on an outsourced basis. BPOMS supports middle-market businesses new to the BPO market, established businesses that already outsource, and businesses seeking to maximize return-on-investment from their in-house workforce. For more information, please visit www.bpoms.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

With the exception of historical or factual information, the matters discussed in this press release, including without limitation the acceptance of new technology by the general marketplace, the Company's future growth plans and the ability of the Company's common stock to trade or be quoted on various markets are forward-looking statements that involve risks and uncertainties. Actual results may differ. Factors that could cause or contribute to such differences in results include, but are not limited to, the availability of financing and changes in market and business conditions; and other risks and factors detailed from time to time in the Company's public statements and its periodic reports and other filings with the U.S. Securities and Exchange Commission.