Smart-Tek Solutions, Inc. (OTCBB: STTN)

Smart-Tek Automated Services, Inc., Wholly Owned Subsidiary of Smart-Tek Solutions, Inc. (OTCBB: STTN)

Smart-Tek Automated Services, Inc. provides financial services to small and medium-size businesses, relieving clients from many of the day-to-day tasks that negatively impact their core business operations. As a new leader in the burgeoning industry of Professional Employee Organizations, or PEOs, Smart-tek deals with all employee issues, so management can focus on the development of the main business.

Started in early 2009 by Smart-Tek Solutions Inc., Smart-Tek Automated Services makes use of technologically advanced internet-based tools to rapidly deliver efficient administrative solutions.

The parent, Smart-Tek Solutions, Inc., historically generated revenue from the installation of security systems in construction projects. Its board is currently in negotiations to sell its original business and focus entirely on the PEO business of its wholly owned subsidiary, in order to achieve the best value for its shareholders.

Smart-Tek Automated Services Provides

• Payroll processing
• Human resources support
• Workers’ compensation insurance
• Safety programs
• Employee benefits
• Administrative

Other aftermarket services which are predominantly related to staffing – staff leasing, temporary staffing and co-employment are provided as well.

These services are integrated and cost-effective management solutions which screen and qualify long-term employees for specific company needs, providing both our client companies and the employees with a secure relationship which flexibly adjusts to the needs of the company.

Expanding Smart-Tek Revenue

Smart-Tek Automated Services, Inc. announced that it is poised to report projected gross billings of $130 million for calendar year 2010, with gross reportable revenue (in compliance with GAP) in excess of $18 million, subject to any adverse market changes. The projections, he said, are based on current signed contracts and anticipated growth expected in the marketplace. Brian Bonar, the Company’s CEO, is confidant that the billing and revenue targets are achievable, absent unforeseen market conditions beyond the company’s control.

Additionally, the Company noted gross revenue for January and February 2010 consolidated was announced to be approximately $10 million. Based on this sales rate, the revenues for the March quarter should reflect a 15 percent increase compared to the quarter ending December 31, 2009. This increase reflects actual sales in January and February 2010 and projected revenue in March 2010.

Contracts for $15M Gross Billing in 2010

Several contracts have recently been secured which will add $25 million in additional gross billings in 2010, with gross reportable revenue (in compliance with GAAP) in excess of $4 million, subject to any adverse market changes.

This revenue is attributed to the sales efforts of its newly opened Midwest Office located in Missouri. A small portion of this $25 million will be realized in the Quarter ending March 2010, with the majority of this revenue seen in the upcoming Quarters in 2010.

Expanding Smart-Tek Geography

Smart-Tek Solidifies Business Plan to Enter 48 Contiguous States

Smart long-term plan is to service clients in all 48 contiguous states. In support of the company’s strategy is to provide small-to-medium sized employers with payroll, staffing, risk management and benefit programsSmart-Tek has secured various insurance policies including covering workers compensation for Smart-Tek’s client employees.

This coverage will allow Smart-Tek to be highly competitive against similar staffing and PEO organizations nationwide providing seamless staffing services to clients who have employees in different states and in many cases can reduce the overall liability and cost associated with this business expense.

Expanding Smart-Tek Services

Payroll

Smart-Tek delivers payroll with a comprehensive and easy to use system that provides tremendous relief to clients’ payroll process. Smart-Tek populates and administers the client’s payroll data, giving them new levels of control and accuracy.

• Using web entry tool, clients can enter the employees’ hours online via the smart-tek payroll portal.
• Ability to view all the employee’s information, wage history, paychecks, and deducations, at any time.
• All payroll reports are distributed via PDF to reduce paper waste.
• Clients can create recurring employee deductions, payments, and timesheets.
• Tax forms, such as W-2, 941, and magnetic media, are easy to produce.
• Employee notes pop up in dialogs during transaction entry.

Workers Compensation

Workers Compensation is considered to be the crucial business component particularly if there is inherent risk associated with the work the employees perform.

In accord with best practice, and the law, a Return to Work Program, Safety Program, and a comprehensive Risk Management Program are prepared. Smart-Tek delivers the expertise and resources to be on top of workers’ comp and all of the ever-changing federal, state and local requirements.

Among the issues companies must focus upon are:

• The need to continually monitor the industry for the best deals and best coverage.
• Protection for fraudulent claims.
• Ensuring immediate medical attention to a hurt worker.

Smart-Tek’s workers compensation program includes:

• Cash flow friendly premiums – low rates and no deposit
• Professional claims administration
• State reports filing
• Risk management inspections
• OSHA requirements consultation
• Coverage for all employees
• Administer client paperwork
• Assist in back to work programs
• Certificate of insurance repository
• Drug testing program
• Partnered treatment centers
• Varied deductibles
• No annual audits
• Injury prevention programs
• Complete claims investigation

Benefits

Employer-sponsored benefits prescreen for:

• Best rates
• Best coverage
• Benefits that fit an organization’s needs
• Maximization of all of available pre-tax advantages

Smart-Tek designs, implements, and administers a custom tailored benefits program with the best coverage for the least possible cost in the marke.

Human Resources

• Versed in current labor law
• Up to date employee manual with all policies
• Best people for the job
• Preparation for handling: firing, harassment, and training

Safety and Risk Management

Safety and Risk Management Program appropriate for the company is delivered based on the professional services required to identify potentials for loss and control them in a cost-effective manner. All service programs are continually monitored to make sure that our clients’ needs are served.

Clients receive:

• Claims Investigation
• Site Evaluations
• Safety Manuals
• Machine Operation Training Materials
• Safety Training
• Illness Prevention Programs
• Update OSHA Logs

Green Technology Service

Smart-Tek will continue to provide it’s clients with green based technologies. The My Green Company program is filled with easy, practical solutions for any business. Greening a business will will save money and help save the planet.

The Green Technology Service:

• Sets practical, achievable goals for the right green initiative
• Streamlines operations
• Saves commuting time and office overhead
• Cuts fuel and energy costs
• Understands carbon credits and their value
• Makes products greener
• Delivers ideas for “Green” manufacturing, packaging, and shipping
• Delivers ideas for paperless marketing programs

Industry Outlook

American business is undergoing a fundamental change in human resource management, and the PEO industry is one response to market demands for change. The expertise required to manage the human resource elements of a small to mid sized business has outgrown the experience and training of many entrepreneurs who started these small businesses.

The PEO industry is demand driven as business owners seek solutions to the increasingly complex “business of employment.” Employee Leasing reflects the demands of a new business era, and a fundamental change in human resources.

All states recognize the PEO as the employer of worksite employees for purposes of providing workers’ compensation coverage.

PEOs provide worksite employees with coverage under the entire spectrum of employment laws and regulations, including ing federal, state, and local discrimination laws, Title VII of the 1964 Civil Rights Act, Age Discrimination in Employment Act, ADA, FMLA, HIPAA, Equal Pay Act, and COBRA. In some cases, these laws would not apply to workers at small businesses without the PEO relationship, since many statutes have exemptions based upon the number of workers in a work force. Once included in the PEO’s workforce, the workers are protected by these laws.

Management

Brian Bonar – Chief Executive Officer and Board Chairman
Mr. Bonar has over 18 years of experience with IBM in Europe, Asia and the USA and an additional 20 years in high growth companies both private and public in various locations in the USA and the United Kingdom.

From 2003 until 2006, Mr. Bonar was the Chairman and CEO of The Solvis Group, which provides staffing, PEO and ASO services to mainly the medical and call centre market segments.

From 2004 until 2009, Mr. Bonar was the Chairman and CEO of Dalrada Financial Corporation, a California based financial service corporation providing workers compensation, health insurance and various other insurance products directly to the end consumer and marketed via various PEO and staffing companies.

From September 2007 until 2009, Mr. Bonar was the President and a member of the board of directors of Allegiant Professional, a publicly traded company. Also from September 2007 until 2009, Mr. Bonar founded AMS Outsourcing, a PEO focusing mainly in the transport market place and also established an international presence in the Czech Republic and Mexico.

From 2004 to 2009, he was a member of the board of directors of the following companies and organizations: The Solvis Group, Warning Management Corporation, Dalrada Financial Corporation, American Marine LLC, Alliance National Insurance Company and The Boys and Girls Club of Greater San Diego. Mr. Bonar holds the Honorary title, Lord Bonar of Wilcrick, Cardiff, Wales United Kingdom. He received a BSC in Mechanical Engineering from the Strathclyde University, Glasgow Scotland and a MBA and a PHD in the field of International Business Development Studies from the Stafford University, England UK.

In May, 2009, he was appointed to the board of Smart-tek Solutions, Inc.

Kelly Mowrey – Chief Operating Officer
Ms. Mowrey was appointed in July, 2009. Prior to that, she was Vice President of Corporate Sales at Allegiant Professional Business Services, Inc since March 2008. Allegiant provides financial services to small and medium-size businesses, including payroll processing, human resources support and other administrative and aftermarket services predominantly related to staffing.

From 2005 to 2007 Ms. Mowrey served as Vice President of Sales at Dalrada Financial, a public company; DFCO; in the Human Resources industry. Mrs. Mowrey was educated at Stephens College 1995 — 1998, graduating Magna Cum Laude.

Contact:

Smart-Tek Solutions, Inc.
Brian Bonar, CEO and Board Chairman
1100 Quail Street
Suite 100
Newport Beach, CA 92660
Phone: 866.257.6675
Email: bbonar@smart-tekservices.com
Website:www.smart-tekservices.com