Labor SMART, Inc. Provides Shareholder Update

Company Experiences Continued Record Revenues and Increased Gross Margins

HIRAM, GA--(Marketwired - Nov 20, 2013) - Labor SMART, Inc. (OTCQB: LTNC) (the "Company") is pleased to recap third quarter and Year-To-Date progress and results.

As previously reported in the Company's 3rd quarter filing with the SEC, Labor SMART, Inc. produced revenues of $5,345,172 which reflected a 148% increase in revenues on a year over year comparison. Additionally, same branch operations with at least one year of maturity saw an aggressive 86% increase in revenue production on the same year over year comparison. Year-To-Date for the first nine months of 2013 realized $11,886,084 in revenues reflecting a very impressive increase of 136%.

Equally impressive, the Company saw gross margins improve by 12.79% in the 3rd quarter going from 15.09% in Q2 2013 to 17.02%. The company expects this trend to continue over the long term as they implement their strategic growth plan which projects the Company to hit a target of 22% gross margins by year end 2014.

The Company has also seen a 150% increase in branch expansion going from 6 to 15 branches in 2013 and an explosive increase in their client base.

Of the company's operating loss of $166,786 in Q3, approximately $69,000 was attributed to stock based compensation to employees and approximately $43,000 was depreciation and amortization. The Company ended their Q3 with approximately $238,000 in unrestricted cash.

The Company is also pleased to announce that this week Labor SMART has elected to prepay two Convertible Promissory Notes issued May 17, 2013 and May 20, 2013 for the principle amounts of $101,000 and $63,000 respectively.

In other related news, Labor SMART has for the last year, been participating in the Work Opportunity Tax Credit Program, which provides the Company with tax credits for employing veterans and economically challenged individuals. The Company was recently given notification and expects to receive its first tax credits from this program in Q4 2013. The company believes these credits will be needed to offset taxes on future profits, thereby reducing their effective tax rate and increasing Net Income as they reach their desired scale and become profitable. The Company is a proud participant in this program and has always recruited veterans whenever possible. Credits earned under this program can be carried forward for up to 20 years.

Ryan Schadel, Labor SMART's CEO, stated, "We are very pleased with our Q3 results. As predicted, we saw consistent and substantial increases in our revenue production and gross margins. This further enhances our belief in our strategic growth plan and its ability to show exponential growth and eventual profitability." He also stated, "We now look forward to focusing on our growth plan for 2014 and expect to see the same growth patterns with continued increases in gross margins and asset accumulation. Additionally, we are moving forward with our previously stated plans to prepare for an eventual up-listing to a national exchange. Part of this plan will require developing acceptable internal controls and an independent Board of Directors. Our auditors have determined that our previous board makeup could not be confirmed as independent. Labor SMART intends to fill the recently vacated board position with an independent, outside director. I expect to announce the appointment of our first outside, independent board member in the near future."

About Labor SMART, Inc.

Labor SMART, Inc. provides On-Demand temporary labor to a variety of industries. Our clients range from small businesses to fortune 100 companies. Labor SMART was founded to provide a reliable, dependable, and flexible resource for on-demand personnel to small and large businesses. Every day we provide manpower for jobs in construction, manufacturing, hospitality, events, restoration, warehousing, retail, disaster relief and more. As one of the fastest growing temporary labor providers, our goal is to become a nationwide resource and partner for our clients. We take pride in the belief that we can make a positive impact each and every day for the benefit of both our client and our temporary employees. Our mission is to be the provider of choice to our growing community of customers, with a service focused approach, that positions us as a resource and partner for their business.

Safe Harbor

This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Labor SMART, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Labor SMART, Inc.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Labor SMART, Inc.'s filings with the Securities and Exchange Commission.

Public Relations and Shareholder Information Joseph M. Vazquez Phone: (678) 279-5810 Email: shareholderrelations@laborsmart.com

Labor Smart (PK) (USOTC:LTNC)
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