Labor SMART, Inc. Becomes Self Insured in 14 States

Company Expects Improved Cash Flow and Increased Gross Margins

HIRAM, GA--(Marketwired - Jun 19, 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 it has become substantially self-insured in 14 states. This marks the achievement of one of the company's long-stated goals.

"This is a significant positive for us," said Ryan Schadel, CEO of Labor SMART. "Our new large deductible worker's compensation insurance policy will improve cash flow and result in a lower cost of sales. We expect this program to add one to three hundred basis points to our gross profit margins almost immediately," he said. Schadel added that Labor SMART has had self-insurance for worker's comp as a primary goal since inception. "We are thrilled that we have been able to meet this goal earlier than we originally projected and with much less collateral than usually required. Attaining this coverage demonstrates the capability of our world class operations team and their ability to execute on our long term objectives."

About Labor SMART 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

Labor Smart (PK) (USOTC:LTNC)
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