Labor SMART, Inc. Secures New Terms Under Line of Credit

Amended LOC Provides Additional Liquidity to Company During Growth

HIRAM, GA--(Marketwired - Mar 5, 2014) - Labor SMART, Inc. (OTCQB: LTNC) (the "Company"), an emerging provider of on-demand blue collar staffing primarily in the southeastern United States, today announced that the company has secured more favorable terms in its agreement with Transfac Capital and as a result has amended the original agreement as disclosed in an 8k filed with the SEC. The amended agreement now provides an advance rate of 85% of receivables as compared to the previous 70% of receivables.

Ryan Schadel, Labor SMART's CEO stated, "This is a very important development for Labor SMART. The additional cash flow that this amendment provides will put our organization in a stronger cash position as we prepare for our busy season and continued expansion. Our revenues have continued to grow at high double and triple digits for well over a year now. As we exit the traditionally slow season for our industry, we expect revenue growth to hasten even further as newer branches mature and expansion branches for 2014 come on line. The more favorable terms from Transfac Capital will also add to our ability to execute potential acquisitions."

In the first two months of 2014, Labor SMART has reported revenue growth of 142%, achieving $3,290,800 in revenue compared to $1,359,304 one year ago. "This growth is primarily organic and among those offices that have been open for a year," stated Mr. Schadel.

About Labor SMART, Inc.

Labor SMART, Inc. provides On-Demand temporary labor to a variety of industries. The Company's clients range from small businesses to Fortune 100 companies. Labor SMART was founded to provide reliable, dependable and flexible resources for on-demand personnel to small and large businesses in areas that include construction, manufacturing, hospitality, event-staffing, restoration, warehousing, retailing, disaster relief and cleanup, demolition and landscaping. Labor SMART believes it can make a positive contribution each and every day for the benefit of its clients and temporary employees. The Company's mission is to be the provider of choice to its growing portfolio of customers with a service-focused approach that enables Labor SMART to be seen as a resource and partner to its clients.

Safe Harbor Statement

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 U.S. Securities and Exchange Commission.

Contact: Beverly Jedynak Martin E. Janis & Company, Inc. 312-943-1123 bjedynak@janispr.com

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