Business Resource Group Confirms Fourth-Quarter Results; 81% Revenue Growth to $27.2 Million.

SAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 10, 1998--Business Resource Group (BRG) (Nasdaq:BRGP), a leading provider of total workspace solutions, today confirmed its financial results for the fourth quarter and fiscal year ended October 31, 1998, as announced in the news release of November 9, 1998.

BRG's total net revenues for the fourth quarter of fiscal 1998 were $27.2 million, an increase of $12.2 million, or 81%, over last year's fourth-quarter net revenues of $15.0 million. Revenues from Cisco Systems, the company's largest customer, were $9.8 million, while revenues from the remaining customer base were $17.4 million during the fourth quarter. Both represented significant increases over the same period of the prior year.

Net income for the fourth quarter of fiscal 1998 was $536,000, or $0.11 per share, an increase of $1,340,000, or $0.27 per share, over the net loss of ($804,000), or ($0.16) per share, reported for the fourth quarter of fiscal 1997.

Total net revenues for the fiscal year ended October 31, 1998 were $93.6 million, an increase of $20.9 million, or 29%, from the $72.7 million reported for fiscal 1997. Net income for the fiscal year ended October 31, 1998 was $1,503,000, or $0.30 per share, an improvement of $2,265,000, or $0.46 per share, over the net loss of ($762,000), or ($0.16) per share, reported for fiscal 1997.

"We are pleased to confirm the significant improvement in operating results for both the fourth quarter and the entire 1998 fiscal year," said John W. Peth, President and Chief Executive Officer of BRG. "We remain focused on programs that we believe will continue to improve operating performance and look forward to reporting on our progress during fiscal 1999," added Mr. Peth.

Business Resource Group

BRG provides comprehensive, single-sourced workspace product and service solutions, specializing in the cost-effective management of changes in business facilities. BRG's customer base includes industry leaders across multiple segments, such as Cisco Systems, CompUSA, Deloitte & Touche, Excel Communications, Fujitsu Computer Products, InfoSeek, Lincoln Properties, Motorola, National Semiconductor, Primeco Leasing, the San Jose Sharks, Silicon Valley Bank, and Sony Electronics. Headquartered in San Jose, California, BRG has additional offices in Dallas, Phoenix, San Diego and San Francisco.

The matters discussed in this press release include forward-looking statements within the meaning of the Securities Exchange Act of 1934, and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. Factors that could cause actual results to differ materially include, but are not limited to, the timely availability, delivery and acceptance of new products and services, the continued strength of sales to Cisco Systems (one of BRG's principal customers), the impact of competitive products, services and pricing, the management of growth and acquisitions, and other risks detailed in the Company's other reports filed with the Securities and Exchange Commission and news releases, copies of which are available from the company upon request. -0-

                       BUSINESS RESOURCE GROUP
                    CONDENSED STATEMENTS OF INCOME
               (in thousands, except per-share amounts)

                             Three months ended        Year ended
                                October 31,            October 31,
                               1998       1997        1998      1997

Net revenues:
 Workspace products        $  22,606  $  11,763   $  76,373  $ 58,303
 Workspace services            4,585      3,082      17,132    14,127
 Vendor commissions             --          134          60       271
     Total net revenues       27,191     14,979      93,565    72,701

Cost of net revenues:
 Workspace products           17,901      9,589      60,623    47,100
 Workspace services            3,337      2,277      12,611    10,330
     Total cost of net
      revenues                21,238     11,866      73,234    57,430

Gross profit                   5,953      3,113      20,331    15,271

Selling, general and
 administrative expenses       4,879      4,452      17,498    16,622
     Total operating expenses  4,879      4,452      17,498    16,622

Income (loss) from
 operations                    1,074     (1,339)       2,833   (1,351)

Other income (expense):
Interest income (expense)       (158)       (17)       (319)       66
Gain on sale of assets             5         --          55        --
     Total other income
      (expense)                 (153)       (17)       (264)       66

Income before income tax         921     (1,356)      2,569    (1,285)

Provision for income tax         385       (552)      1,066      (523)

Net income (loss)          $     536  ($    804)  $   1,503  ($   762)

Net income (loss) per
 basic EPS                 $    0.11  ($   0.16)  $    0.30  ($  0.16)

Shares used in basic
 EPS computation               5,023      4,934       4,965     4,902

                       BUSINESS RESOURCE GROUP
                       CONDENSED BALANCE SHEETS
                            (in thousands)

                                            October 31,
                                         1998        1997

ASSETS

Current assets:
 Cash and equivalents                 $   412    $   274
 Accounts receivable, net              10,662     13,764
 Inventory                              8,279      1,398
 Prepaids and other current assets      2,411      2,076
     Total current assets              21,764     17,512

Property and equipment, net             3,107      2,346
Other assets                            3,107        902
                                       ------     ------
                                       27,978     20,760

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
 Line of credit                         3,858       --
 Accounts payable                       3,369      3,997
 Accrued liabilities                    4,789      4,236
 Income taxes payable                     337       --
 Current notes and capital leases         336       --
     Total current liabilities         12,689      8,233

Note payable and capital lease
 obligations                              733       --
Deferred income tax liability             160         75

Shareholders' equity:
 Common stock                              50         49
 Additional paid-in capital            11,337     10,897
 Retained earnings                      3,009      1,506
     Total shareholders' equity        14,396     12,452
                                       ------     ------
                                      $27,978    $20,760