National Council on Compensation Insurance Improves Labor SMART, Inc. Ratings

ATLANTA, GA--(Marketwired - May 3, 2016) - Labor SMART, Inc. (OTCQB: LTNC) (the "Company"), a leader in providing on-demand blue collar staffing primarily in the southeastern United States, today announced that it has been notified by the National Council on Compensation Insurance (NCCI) that its Experience Modification Rating (EMR) has been reduced by 31 basis points. The improved EMR will take effect on June 14, 2016.

"With our busy season getting under way and pending renewal of our large deductible workers compensation policy, news of a reduction in our EMR couldn't have come at a better time. The 31 basis point reduction represents a 21% decrease in our modification rate. This reduction is expected to have an extremely positive impact on our cost of sales and gross profit margins, which in turn will improve cash flow," stated Ryan Schadel, Chairman and CEO of Labor SMART, Inc. "The dramatic improvement in our EMR is a testament to the quality of our safety program and the dedicated field and corporate staff that administer it."

The National Council on Compensation Insurance (NCCI) gathers data, analyzes industry trends, and prepares objective insurance rate and loss cost recommendations. NCCI's Experience Modification Rating is an integral part of the final cost of workers compensation insurance.

About Labor SMART, Inc.
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.

Follow us on Twitter: @laborsmart
Investor Relations: @laborSMART_LTNC
CEO - Ryan Schadel: @CRyanSchadel

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.