Workstream Announces New of State-of-the-Art Hosting Facility and Infrastructure.

Takes Delivery of Software as a Service and Application Hosting to a New Level

OTTAWA, Ontario -- Workstream Inc[TM] (NASDAQ: WSTM), a provider of On-Demand Enterprise Workforce Management software, today announced the rollout of a new, state-of-the-art data center and infrastructure to be used to host its Workstream TalentCenter suite of applications.

With the industry movement to Software-as-a-Service (SaaS) and the hosted model, an effective and secure control environment for the hosting and software infrastructure becomes a critical piece to effective solution delivery.

"Just as Workstream took the leadership role in advancing Software-as-a-Service in the Human Capital Management space, we believe it is critical that we take the leadership role in ensuring customers of a confident and successful transition to our hosted applications by making the necessary investments in the underlying infrastructure to support it," commented Michael Mullarkey, Chairman and CEO of Workstream.

Facilities: The new Workstream environment utilizes the very latest in infrastructure and technology. The primary North American data center site is a Bell Canada hosting center in Toronto, Canada. This facility received top honors as a "World Class Facility" by the independent, internationally acclaimed Uptime Institute. The facility boasts:

* 99.999% uptime,

* Multiple and redundant power supplies and networks,

* State-of-the-art fire detection and suppression,

* Industry leading physical and technical security and

* Advanced administrative control and monitoring processes.

Workstream will be using its current Ottawa-based hosting facility as its future disaster recovery site.

Hardware: To complement its new state-of-the-art facility, Workstream has also deployed the latest in hardware and software infrastructure. This includes the use of Sun Microsystems([TM]) Servers and Cisco([R]) networking infrastructure.

Security and Controls: With the growing focus on security, Workstream is taking a very aggressive approach in this area as well. In addition to the physical security of the hosting facility, other key Workstream security components include:

* State-of-the-art network security, including the deployment of multiple firewalls between the application, database and web tiers;

* Single Sign On (SSO) to support liberty alliance, federated security models;

* Third Brigade advanced host intrusion prevention([TM]);

* Recent completion of second year of Sarbanes-Oxley 404 compliance and

* Receipt of SAS 70 Type I certification and anticipating SAS 70 Type II certification by November 2006.

Virtualization: Workstream applications are being deployed using EMC's VMware([TM])virtualization, which provides for:

* Higher availability

* Faster provisioning of environments for production, development and testing;

* Greater consistency and manageability for operations staff;

* Improved and more cost effective scalability based on peaks in demand;

* Faster recovery and

* Greater deployment flexibility.

"Taken together, we believe these very sizeable company investments represent a major leap forward, and provide our customers with a highly reliable, secure and scalable infrastructure for their hosted applications," said Mike Gioja, CIO and EVP of Products and Services for Workstream.

Workstream representatives will be available to discuss the new facility and infrastructure in Booth #612 at the 9th Annual HR Technology Conference and Exposition being held at Chicago's Navy Pier on October 4-6. Workstream will also be previewing the latest release of its TalentCenter Suite at the Conference.

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, Employee Development, Knowledge Management and Transition. Access to the Workstream 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, 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.

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations or beliefs of Workstream's management and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: inability to grow our client base and revenue because of the number of competitors and the variety of sources of competition we face; client attrition; inability to offer services that are superior and cost effective when compared to the services being offered by our competitors; inability to further identify, develop and achieve success for new products, services and technologies; increased competition and its effect on pricing, spending, third-party relationships and revenues; as well as the inability to enter into successful strategic relationships and other risks detailed from time to time in filings with the Securities and Exchange Commission.