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Pacel Announces HQ Relocation
via COMTEX

December 30, 2003

MANASSAS, Va., Dec 30, 2003 (BUSINESS WIRE) --

Pacel Corporation (OTCBB:PACC), has announced that it is finalizing the move of its corporate headquarters operations to its Charlotte, North Carolina operations center effective January 1, 2004. This furthers the Company's program of consolidation of all administrative and operating functions into a single location for corporate activities as well as operations acquired in 2003 to improve efficiencies and reduce costs.

These actions include a work force reduction, reductions of leased space and other initiatives, which, when combined with other consolidation efficiencies should provide an estimated $250,000 of annual administrative savings. The Company will continue to staff its regional offices with sales, risk management and client service personnel while focusing all of its administrative activities in its Charlotte location. The Company currently maintains regional offices in Dallas, Texas and Jacksonville, Florida.

'These actions will enable the Company to more effectively address the needs of our business, strengthening our organization and decreasing costs across the organization. A result of recognized redundancies present between the Company's locations, these changes were made to leverage existing technology infrastructures and personnel experience. I believe that these actions will sharpen our focus and position Pacel for a solid performance in 2004 and beyond,' reported David Calkins, Chairman and CEO of Pacel.

Pacel Corporation is a leading provider of Human Resources Outsourcing solutions to small and medium-sized businesses in the United States. The company is currently pursuing the development of its HRO business through new accounts derived from strategic marketing initiatives and those accounts acquired through acquisition.

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 Pacel Corporation's filings with the Securities and Exchange Commission.

SOURCE: Pacel Corporation

KBK Ventures, Inc., Houston Investor Relations: David Bromberg, 713/624-7110

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