5% Workers’ Compensation Rate Increase Ahead For January of 2009

1. 5% Workers’ Compensation Rate Increase Ahead For January of 2009

2. Primary Bullet Points Into A Rising Workers’ Comp Market • The WCIRB (Workers’ Compensation Insurance Rating Bureau) has proposed a 16% rate increase in pure premium rates effective January 1st of 2009 • The primary contributing factor to the proposed 16% increase is due to rising healthcare costs • A whopping 10.8% of the recommended 16% increaseis a direct result of elevating healthcare expenses • 5% of this increase has been adopted by Poizner Expected Trends For Workers’ Compensation Premiums • Increased premiums for workers’ compensation • Suspected Increases for January and July of 2009 • Continuous rising healthcare costs resulting in corresponding elevations in workers’ compensation premiums • Certain Insurance Carriers will no longer write new business in California • Certain Insurance Carriers will start to have financial issues, thus downgrading their financial ratings • The State-Wide cost for incurred workers’ compensation losses from 2005 to 2007 have increased year over year from $5BB to $6BB What Are The Current Trends Within The California Workers’ Compensation Marketplace?

3. How Can You As A Business Owner Control Your Workers’ Compensation Premium Best? There Is An Alternative Solution To The Traditional Problems Imagine The Following • Having the ability to control your costs regardless of the fluctuating California Workers’ Compensation Market • Not being at the mercy of an insurance line that is about to spike in 2009 • Having your company rated on your performance each year, not every 3 years as in the traditional market • Actually receiving money back for a zero or low injury year (up to 1/3 of your annual premium) • An Insurance Provider that delivers upon their promises because their money is on the line with yours • Locking in current rates which are at their lowest in 5 years for the life of your account with good loss history • Now imagine your competitors rising workers’ compensation costs and your costs sustained • How can you benefit your customers, steal market-share, and increase profitability with a lower operating cost? • Actually getting a return on your premium investment other than just workers’ compensation coverage • Having experts in HR, Safety & Risk, Payroll & Tax Filings at no additional charge above your current premium

4. Barrett Business Services Can Make The Imagined A Reality In A Broken Work Comp Atmosphere BBSI Has A Proven Solution • Through Barrett Business Services Co-Employment Agreement you can enjoy the advantages of Self-Insurance without the liability • As A Self-Insured Professional Employers Organization in business since 1951 and publicly traded since 1993, we have the resources and claims management expertise to sustain low costs to our clientele and provide consultative support at a reasonable expense • Our all-inclusive package provides you with expertise consulting in the form of Human Resource Management, Safety & Risk Consulting, Payroll Processing & Employer Tax Filings & Superior Workers’ Compensation Coverage along with Elite Claims Management • From a cost efficiency perspective, BBSI is Self-Insured in the State of California. As such, we can offer you a lower workers’ compensation premium due to our aggressive claims management which results in an average California loss ratio between 10% and 14%. • To give you an idea of standard market carriers, their loss ratio hovers anywhere between 50% and 75% on average. • The average time for a carrier to put surveillance on a suspected fraudulent filing employee is 4 weeks at best, BBSI will have surveillance up within 24 to 48 hours • You can avoid the adverse fluctuations in the marketplace as BBSI will determine your workers’ comp cost based solely on your performance. In addition it is in our best interest to keep your claims low as the more money you save, the more money we make.

5. Summary of Barrett Business’s Service Areas With No Additional Charge The Following Are Some Of The Highlights To The BBSI Program • Human Resource Management • HR Consultations with a dedicated HR Professional • Employee Handbooks and any needed written material • In person Trainings (Sexual Harassment, Etc.) • As needed day to day HR Advice • Safety & Risk Management • Site Visits and Surveys with follow up report • IIPP Development & OSHA 300 Log • In person Trainings & Training Topics • Expertise Solutions to Safety Issues • Workers’ Compensation Coverage • Competitive Workers’ Compensation coverage • 1/3 Safety Incentive Rebate Potential • Superior Claims Management • Aggressive Fraudulent Prosecution • Benefits • Competitive Health Benefits • COBRA Administration • Enrollment • Payroll Processing • Certified Payroll & Prevailing Wage • Job Costing • Tax Filings, EDD and Garnishment Assistance

6. What Does The Contractual Co-Employment Agreement Look Like? • Service contract between BBSI & Client • Employment relationship & responsibilities of BBSI • Shared employment relationship & responsibilities • Employment relationship & responsibilities of Client

7. What are the advantages of placing your business with BBSI? Highlights Of Partnering With Barrett Business Services • Barrett Business Services takes care of our customers as evident by our company-wide retention rate of roughly 97% • BBSI is a billion dollar public, self-insured company in business since 1951. • Our Workers’ Comp loss ratio generally hovers between 9% - 15% • We provide expertise resources in HR, Safety, Payroll, Benefits and Superior Claims Management • BBSI builds long term relationships with our customers and will assist you in growing and sustaining your business for years to come • In many cases we do not require a deposit for your workers’ compensation. • In our Self-Insured States we offer a safety incentive worth up to 1/3 of your annual premium. • We allow you to focus on driving your core competencies while our seasoned team ensures that your back end administrative requirements are met. • Control your own workers’ compensation costs and avoid the damaging workers’ compensation climate that is synonymous with California