Business Editors / Human Resources Writers

CHARLOTTE, N.C.--(BUSINESS WIRE)--Jan. 3, 2005--
Pacel Corp (OTCBB:PCOR) announces that it has acquired
certain assets of Rossar HR LLC d/b/a YourStaff Solutions(TM)
(YourStaff Solutions(TM)), a Pennsylvanian limited liability company.
YourStaff Solutions(TM) is a Professional Employment Organization
(PEO) founded in 1987 originally as YourStaff Inc. by President and
CEO Marcia J. Sartoti. The company specializes in quality human
resource management services and guidance for small to mid-sized
businesses. The company has averaged billings of $11 million over the
last four years, making it an impressive industry leader. YourStaff
Solutions(TM) currently services 17 U.S. and International clients
which will add a significant number of work site employees to Pacel's
already growing employee base. Pacel now has clients in 11 states with
annual gross billings in excess of $30 million.
Ms. Marcia Sartoti, President of YourStaff Solutions(TM) stated,
"We believe becoming part of the Pacel family of superior Human
Resource Outsourcing companies allows us to broaden service to our
existing clients and add new clients."
Ms. Sartoti, a past recipient of the PEO industry's highest award,
will bring her 20 years of experience to the Pacel management team.
Ms. Sartoti joins Pacel as the Regional Director responsible for PEO
operations in the northern mid-Atlantic and mid-West.
"We are very excited about YourStaff Solutions(TM) and Marcia
Sartoti becoming part of the Pacel family of high quality Human
Resource Outsourcing companies. YourStaff Solutions(TM) significantly
strengthens Pacel's presence in mid-Atlantic region and strengthens
our management team as we continue to grow. The acquisition of
YourStaff Solutions(TM) is one example of how Pacel Corp. is dedicated
to increasing its revenue and market presence in the growing Human
Resource Outsourcing marketplace." stated Gary Musselman, President
and CEO of Pacel Corp.
PEO companies are growing at a rate of greater than 20% and most
experts predict this rate of growth can be sustained for 5-10 years as
PEO's respond to the growing need for their services. The Small
Business Administration estimates there are nearly 6 million
businesses with fewer than 100 employees. These small to mid-sized
businesses employ over 52 million employees with an aggregate payroll
of over $1.1 trillion. It is estimated the PEO industry currently has
between 2-3 million worksite employees with annual payrolls greater
than $18 billion. With just 2% of the market, the growth in PEO
services is unlimited. With an average annual growth rate of 20%, more
and more business owners are turning to the Professional Employer
Industry to provide them with the tools they need to increase
productivity and profits.

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 these 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; (iv) 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 filing with
the Securities and Exchange Commission.