Pacel Expands M&A Initiative.

Business Editors

MANASSAS, Va.--(BUSINESS WIRE)--May 28, 2003

Pacel Corporation (OTCBB:PACC) announced today that it is expanding its Mergers & Acquisition Initiative to include Temporary Staffing Companies. Previously, the company focused solely on Professional Employer

Pacel CEO Dave Calkins stated, "While doing our research for PEO acquisition targets we came across a significant number of smaller staffing companies that could be consolidated utilizing the same infrastructure that we developed for the PEOs. We obviously want to maximize the utilization of our resources while not venturing far from our primary business focus, as such we realized that expanding our operations into staffing will assist us to diversify several risk factors that are inherent to the PEO industry while allowing us to take full advantage of the 'buyer's market' that currently exists in Staffing. As with PEOs, we expect to be able to establish increased profit margins through consolidation."

The statements contained in this press release that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Therefore, the actual results of future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: (i) regulatory and tax developments; (ii) the effectiveness of the Company's sales and marketing efforts; (iii) changes in the competitive environment of the industry; (iv) changes in general economic conditions; (v) changes in the Company's direct costs and operating expenses; (vi) the estimated costs and effectiveness of capital projects and investments in technology and infrastructure; (vii) Management's ability to effectively implement its business strategy. These factors are described in further detail in filings with the Securities and Exchange Commission.