| Delaware                                                                                   | 36-2262248                             |
|--------------------------------------------------------------------------------------------|----------------------------------------|
| (State      or other jurisdiction of incorporation or organization)                        | (IRS      Employer Identification No.) |
|                                                                                       |                                   |
| 415      Crossways Park Drive, P.O. Box 9006, Woodbury, New York                           | 11797                                  |
| (Address      of principal executive offices)                                              | (Zip      Code)                        |
|                                                                                       |                                   |
| (516)      437-3300                                                                        |
| Registrant’s      telephone number, including area code                              |
|                                                                                       |                                   |
| Not      Applicable                                                                        |
| Former      name, former address and former fiscal year, if changed since last      report |

| Class                             |   | Outstanding      at May 5, 2008 |
|-----------------------------------|--------|---------------------------------|
| Common      stock, $.01 par value |   | 17,387,554      shares          |

----

|          |                                                                                                                  | Page Number |
|---------------|-----------------------------------------------------------------------------------------------------------------------|------------------|
|          |                                                                                                                  |             |
| PART      I   | FINANCIAL      INFORMATION                                                                                            | 3                |
|          |                                                                                                                  |             |
| Item      1.  | Financial      Statements (unaudited)                                                                                 | 3                |
|          |                                                                                                                  |             |
|          | Condensed      Consolidated Balance Sheets at March 30, 2008 and December 30,      2007                               | 3                |
|          |                                                                                                                  |             |
|          | Condensed      Consolidated Statements of Income for the three months ended March 30,      2008 and April 1, 2007     | 4                |
|          |                                                                                                                  |             |
|          | Condensed      Consolidated Statements of Cash Flows for the three months ended March 30,      2008 and April 1, 2007 | 5                |
|          |                                                                                                                  |             |
|          | Notes      to Unaudited Condensed Consolidated Financial Statements                                                   | 6                |
|          |                                                                                                                  |             |
| Item      2.  | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                 | 11               |
|          |                                                                                                                  |             |
| Item      3.  | Quantitative      and Qualitative Disclosures about Market Risk                                                       | 16               |
|          |                                                                                                                  |             |
| Item      4.  | Controls      and Procedures                                                                                          | 16               |
|          |                                                                                                                  |             |
| PART      II  | OTHER      INFORMATION                                                                                                | 17               |
|          |                                                                                                                  |             |
| Item      1.  | Legal      Proceedings                                                                                                | 17               |
|          |                                                                                                                  |             |
| Item      1A. | Risk      Factors                                                                                                     | 17               |
|          |                                                                                                                  |             |
| Item      2.  | Unregistered      Sales of Equity Securities and Use of Proceeds                                                      | 17               |
|          |                                                                                                                  |             |
| Item      3.  | Defaults      Upon Senior Securities                                                                                  | 17               |
|          |                                                                                                                  |             |
| Item      4.  | Submission      of Matters to a Vote of Security Holders                                                              | 17               |
|          |                                                                                                                  |             |
| Item      5.  | Other      Information                                                                                                | 17               |
|          |                                                                                                                  |             |
| Item      6.  | Exhibits                                                                                                              | 17               |
|          |                                                                                                                  |             |
| SIGNATURES    | 18                                                                                                                    |

----

|                                                                                                                                                                                                                                          |   | March      30, 2008 |    |   | December      30, 2007 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
| Assets                                                                                                                                                                                                                                        |   |                |    |   |                   |   |
| Current      assets:                                                                                                                                                                                                                          |   |                |    |   |                   |   |
| Cash      and cash equivalents                                                                                                                                                                                                                |   | $                   | 13,804  |   |                   |   | 6,654 |   |
| Accounts      receivable, less allowance of $129 in 2008 and 2007                                                                                                                                                                             |   |                | 120,886 |   |                   |   | 118,163 |   |
| Funding      and service fees receivable, less allowance of $44 in 2008 and      2007                                                                                                                                                         |   |                | 10,440  |   |                   |   | 13,101 |   |
| Prepaid      expenses and other current assets                                                                                                                                                                                                |   |                | 3,980   |   |                   |   | 4,408 |   |
| Deferred      income taxes, net                                                                                                                                                                                                               |   |                | 368     |   |                   |   | 388 |   |
| Total      current assets                                                                                                                                                                                                                     |   |                | 149,478 |   |                   |   | 142,714 |   |
|                                                                                                                                                                                                                                          |   |                |    |   |                   |   |   |   |
| Deferred      income taxes, net                                                                                                                                                                                                               |   |                | 59      |   |                   |   | 164 |   |
| Property      and equipment, net                                                                                                                                                                                                              |   |                | 8,116   |   |                   |   | 7,723 |   |
| Deferred      financing costs, net                                                                                                                                                                                                            |   |                | 432     |   |                   |   | 480 |   |
| Goodwill                                                                                                                                                                                                                                      |   |                | 32,073  |   |                   |   | 32,073 |   |
| Other      assets, net                                                                                                                                                                                                                        |   |                | 218     |   |                   |   | 230 |   |
| Total      assets                                                                                                                                                                                                                             |   | $                   | 190,376 |   |                   |   | 183,384 |   |
|                                                                                                                                                                                                                                          |   |                |    |   |                   |   |   |   |
| Liabilities      and Stockholders’ Deficit                                                                                                                                                                                              |   |                |    |   |                   |
| Current      liabilities:                                                                                                                                                                                                                     |   |                |    |   |                   |   |   |   |
| Accounts      payable                                                                                                                                                                                                                         |   | $                   | 2,407   |   |                   |   | 2,376 |   |
| Accrued      expenses                                                                                                                                                                                                                         |   |                | 110,245 |   |                   |   | 105,825 |   |
| Total      current liabilities                                                                                                                                                                                                                |   |                | 112,652 |   |                   |   | 108,201 |   |
|                                                                                                                                                                                                                                          |   |                |    |   |                   |   |   |   |
| Long-term      debt (including related party debt of $1,644 in 2008 and    2007)                                                                                                                                                              |   |                | 85,358  |   |                   |   | 83,858 |   |
| Other      liabilities                                                                                                                                                                                                                        |   |                | 734     |   |                   |   | 828 |   |
| Total      liabilities                                                                                                                                                                                                                        |   |                | 198,744 |   |                   |   | 192,887 |   |
|                                                                                                                                                                                                                                          |   |                |    |   |                   |   |   |   |
| Commitments      and contingencies                                                                                                                                                                                                            |   |                |    |   |                   |   |   |   |
|                                                                                                                                                                                                                                          |   |                |    |   |                   |   |   |   |
| Stockholders’      deficit:                                                                                                                                                                                                             |   |                |    |   |                   |   |   |   |
| Common      stock, $.01 par value; 100,000,000 shares authorized; 17,387,554 and      17,387,553 shares issued and outstanding at March 30, 2008 and December      30, 2007, respectively                                                     |   |                | 174     |   |                   |   | 174 |   |
| Convertible      preferred stock, $.01 par value:                                                                                                                                                                                             |   |                |    |   |                   |   |   |   |
| Series      2003A, 6,500 shares authorized; 6,148 shares issued and outstanding at      March 30, 2008 and December 30, 2007, with an aggregate liquidation      preference of $8,504 at March 30, 2008 and $8,389 at December 30,      2007  |   |                | 4,304   |   |                   |   | 4,304 |   |
| Series      2003B, 3,500 shares authorized; 513 shares issued and outstanding at March      30, 2008 and December 30, 2007, with an aggregate liquidation preference      of $686 at March 30, 2008 and $676 at December 30, 2007             |   |                | 513     |   |                   |   | 513 |   |
| Series      2004A, 15,000 shares authorized; 6,737 shares issued and outstanding at      March 30, 2008 and December 30, 2007, with an aggregate liquidation      preference of $8,410 at March 30, 2008 and $8,284 at December 30,      2007 |   |                | 10,264  |   |                   |   | 10,264 |   |
| Additional      paid-in capital                                                                                                                                                                                                               |   |                | 48,333  |   |                   |   | 48,356 |   |
| Accumulated      other comprehensive income                                                                                                                                                                                                   |   |                | (90     | )      |                   |   | (256 | ) |
| Accumulated      deficit                                                                                                                                                                                                                      |   |                | (71,866 | )      |                   |   | (72,858 | ) |
| Total      stockholders’ deficit                                                                                                                                                                                                        |   |                | (8,368  | )      |                   |   | (9,503 | ) |
| Total      liabilities and stockholders’ deficit                                                                                                                                                                                        |   | $                   | 190,376 |   |                   |   | 183,384 |   |

----

|                                                     |   | Three      Months Ended |    |
|----------------------------------------------------------|--------|-------------------------|---------|
|                                                     |   | March      30, 2008     |    |   | April      1, 2007 |   |
|                                                     |   |                    |    |   |   |   |
| Net      sales of services                               |   | $                       | 150,210 |   |   |   | 141,603 |   |
|                                                     |   |                    |    |   |   |   |   |   |
| Costs      and expenses:                                 |   |                    |    |   |   |   |   |   |
| Cost      of services                                    |   |                    | 126,402 |   |   |   | 119,454 |   |
| Selling,      general and administrative expenses        |   |                    | 19,619  |   |   |   | 17,955 |   |
| Depreciation      and amortization                       |   |                    | 675     |   |   |   | 637 |   |
| Total      costs and expenses                            |   |                    | 146,696 |   |   |   | 138,046 |   |
|                                                     |   |                    |    |   |   |   |   |   |
| Operating      income                                    |   |                    | 3,514   |   |   |   | 3,557 |   |
|  Other      income (expense):                       |   |                    |    |   |   |   |   |   |
| Interest      expense                                    |   |                    | (1,439  | ) |   |   | (2,034 | ) |
| Other      (expense) income, net                         |   |                    | (283    | ) |   |   | 43 |   |
|                                                     |   |                    | (1,722  | ) |   |   | (1,991 | ) |
| Income      before income taxes                          |   |                    | 1,792   |   |   |   | 1,566 |   |
| Provision      for income taxes                          |   |                    | 800     |   |   |   | 652 |   |
| Net      income                                          |   | $                       | 992     |   |   |   | 914 |   |
|                                                     |   |                    |    |   |   |   |   |   |
| Dividends      on preferred stock                        |   |                    | 251     |   |   |   | 251 |   |
|                                                     |   |                    |    |   |   |   |   |   |
| Net      income available to common stockholders         |   | $                       | 741     |   |   |   | 663 |   |
|                                                     |   |                    |    |   |   |   |   |   |
| Basic      income per common share                       |   | $                       | 0.04    |   |   |   | 0.04 |   |
|                                                     |   |                    |    |   |   |   |   |   |
| Diluted      income per common share                     |   | $                       | 0.03    |   |   |   | 0.03 |   |
|                                                     |   |                    |    |   |   |   |   |   |
| Weighted      average common shares outstanding, basic   |   |                    | 17,388  |   |   |   | 17,382 |   |
| Weighted      average common shares outstanding, diluted |   |                    | 32,624  |   |   |   | 31,854 |   |

----

|                                                                                                  |   | Three      months Ended |   |
|-------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                                                  |   | March      30, 2008     |   |   | April      1, 2007 |   |
| Cash      flows from operating activities:                                                            |   |                    |   |   |   |   |
| Net      income                                                                                       |   | $                       | 992    |   |   |   | 914 |   |
|                                                                                                  |   |                    |   |   |   |   |   |   |
|                                                                                                  |   |                    |   |   |   |   |   |   |
| Adjustments      to reconcile net income to net cash provided by (used in) operating      activities: |   |                    |   |   |   |   |   |   |
| Depreciation      and amortization of property and equipment                                          |   |                    | 675    |   |   |   | 637 |   |
| Amortization      of deferred financing fees                                                          |   |                    | 48     |   |   |   | 51 |   |
| Net      recoveries of bad debts                                                                      |   |                    | -      |   |   |   | (6 | ) |
| Tax      benefit from stock option exercises                                                          |   |                    | -      |   |   |   | (4 | ) |
| Changes      in assets and liabilities:                                                               |   |                    |   |   |   |   |   |   |
| Accounts,      funding and service fees receivable                                                    |   |                    | (106   | ) |   |   | (13,961 | ) |
| Prepaid      expenses and other assets                                                                |   |                    | 435    |   |   |   | (565 | ) |
| Accounts      payable and accrued expenses                                                            |   |                    | 4,596  |   |   |   | 8,388 |   |
| Income      tax receivable                                                                            |   |                    | 4      |   |   |   | 499 |   |
| Net      cash provided by (used in) operating activities                                              |   |                    | 6,644  |   |   |   | (4,047 | ) |
|                                                                                                  |   |                    |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                            |   |                    |   |   |   |   |   |   |
| Purchases      of property and equipment                                                              |   |                    | (1,068 | ) |   |   | (1,780 | ) |
| Net      cash used in investing activities                                                            |   |                    | (1,068 | ) |   |   | (1,780 | ) |
|                                                                                                  |   |                    |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                            |   |                    |   |   |   |   |   |   |
| Net      repayments under capital lease obligations                                                   |   |                    | (57    | ) |   |   | (8 | ) |
| Net      borrowings under line of credit agreements                                                   |   |                    | 1,500  |   |   |   | 5,213 |   |
| Tax      benefit from stock option exercises                                                          |   |                    | -      |   |   |   | 4 |   |
| Proceeds      from exercise of stock options                                                          |   |                    | -      |   |   |   | 21 |   |
| Net      cash provided by financing activities                                                        |   |                    | 1,443  |   |   |   | 5,230 |   |
|                                                                                                  |   |                    |   |   |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                             |   |                    | 7,019  |   |   |   | (597 | ) |
| Effect      of exchange rates on cash                                                                 |   |                    | 131    |   |   |   | 14 |   |
| Cash      and cash equivalents at beginning of period                                                 |   |                    | 6,654  |   |   |   | 3,782 |   |
| Cash      and cash equivalents at end of period                                                       |   | $                       | 13,804 |   |   |   | 3,199 |   |
|                                                                                                  |   |                    |   |   |   |   |   |   |
| Supplemental      disclosures:                                                                        |   |                    |   |   |   |   |   |   |
| Cash      paid for:                                                                                   |   |                    |   |   |   |   |   |   |
| Interest                                                                                              |   | $                       | 1,054  |   |   |   | 1,062 |   |
| Income      taxes                                                                                     |   |                    | 227    |   |   |   | 162 |   |
|                                                                                                  |   |                    |   |   |   |   |   |   |
| Supplemental      schedule of significant non-cash financing activities:                              |   |                    |   |   |   |   |   |   |
| Capital      lease obligations incurred for the purchase of new    equipment                          |   | $                       | -      |   |   |   | 131 |   |

----

|   |                                                                                                                                                                                                                                                      |   | March      30, 2008 |   |   | December      30, 2007 |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
|   |                                                                                                                                                                                                                                                      |   |                |   |   |                   |   |
|   | 12%      Senior Notes, due December 1, 2010                                                                                                                                                                                                               |   | $                   | 11,714 |   |                   |   | 11,714 |   |
|   | 8%      Subordinated Convertible Note, due December 2, 2009                                                                                                                                                                                               |   |                | 1,644  |   |                   |   | 1,644 |   |
|   | Revolving      line of credit, due July 24, 2010, with interest payable at prime plus      0.5% and/or LIBOR plus 1.75% (1.50% beginning March 24, 2008) with a      weighted average rate of 4.75% at March 30, 2008, and 6.9% at December 30,      2007 |   |                | 72,000 |   |                   |   | 70,500 |   |
|   | Total      long-term debt                                                                                                                                                                                                                                 |   | $                   | 85,358 |   |                   |   | 83,858 |   |

----

|   | 2009  | $           1,644 |   |
|--------|-------|--------------------------------------------------------------------------|--------|
|   | 2010  | 83,714                                                                   |   |
|   | Total | $         85,358            |   |

| ·   | COI      does not grant a security interest in its assets or incur indebtedness,      except indebtedness incurred in accordance with the Indenture, which      permits indebtedness subordinated to and due later than the Senior Notes      and that meets other conditions in the Indenture, indebtedness on a parity      with the Senior Notes meeting specified conditions in the Indenture,      renewals or replacements of any bank credit facility, capital lease      obligations, securitization transactions, indebtedness within specified      dollar limitations and otherexceptions; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | COI      does not sell or dispose of its assets except in accordance with the      covenants and conditions in the Indenture, or issue shares of its capital      stock except in accordance with the covenants and conditions in the      Indenture; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      net proceeds from any permitted sale of COI’s capital stock or its assets      are applied to repay any bank credit facility, or, if not required by the      lender or such net proceeds are not reinvested in other assets, to redeem      Senior Notes or be applied for other specified proper      purposes; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | COI      does not enter into transactions with affiliates other than in accordance      with the Indenture; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | COI      does not invest in other businesses or engage in other business activities      unless permitted under theIndenture. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

----

|   | Fixed      charge coverage ratio*                          |   | Margin      (%) |   |
|--------|------------------------------------------------------------|--------|-----------------|--------|
|   |                                                       |   |            |   |
|   | greater      than 1.75:1.00                                |   |            | 1.50   |   |
|   | greater      than 1.50:1.00 to 1.75:1.00                   |   |            | 1.75   |   |
|   | greater      than 1.30:1.00 to 1.50:1.00                   |   |            | 2.00   |   |
|   | greater      than 1.05:1.00 to 1.30:1.00                   |   |            | 2.25   |   |
|   | equal      to or less than 1.05:1.00                       |   |            | 2.50   |   |
|   |                                                       |   |            |   |   |
|   | *as      defined in the PNC Credit Facility loan documents |   |            |   |   |

----

|                                            |   | Three      Months Ended |   |
|-------------------------------------------------|--------|-------------------------|--------|
|                                            |   | March      30, 2008     |   |   | April      1, 2007 |   |
| Basic      income per common share:             |   |                    |   |   |   |   |
| Net      income                                 |   | $                       | 992    |   |   |   | 914 |   |
| Deduct      dividends on preferred stock:       |   |                    |   |   |   |   |   |   |
| Series      2003A                               |   |                    | 115    |   |   |   | 115 |   |
| Series      2003B                               |   |                    | 10     |   |   |   | 10 |   |
| Series      2004A                               |   |                    | 126    |   |   |   | 126 |   |
|                                            |   |                    | 251    |   |   |   | 251 |   |
| Income      available to common stockholders    |   | $                       | 741    |   |   |   | 663 |   |
|                                            |   |                    |   |   |   |   |   |   |
| Weighted      average common shares outstanding |   |                    | 17,388 |   |   |   | 17,382 |   |
|                                            |   |                    |   |   |   |   |   |   |
| Basic      income per common share              |   | $                       | 0.04   |   |   |   | 0.04 |   |

| Diluted      income per common share:                                                                              |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Income      available to common stockholders                                                                       |   | $      | 741    |   |   |   | 663 |   |
| Add      dividends on preferred stock:                                                                             |   |   |   |   |   |   |   |   |
| Series      2003A                                                                                                  |   |   | 115    |   |   |   | 115 |   |
| Series      2003B                                                                                                  |   |   | 10     |   |   |   | 10 |   |
| Series      2004A                                                                                                  |   |   | 126    |   |   |   | 126 |   |
|                                                                                                               |   |   | 251    |   |   |   | 251 |   |
|                                                                                                               |   |   |   |   |   |   |   |   |
| Add      after tax equivalent of interest expense on 8% Subordinated Convertible      Note                         |   |   | 20     |   |   |   | 19 |   |
|                                                                                                               |   |   |   |   |   |   |   |   |
| Income      for purposes of computing diluted income per common share                                              |   | $      | 1,012  |   |   |   | 933 |   |
|                                                                                                               |   |   |   |   |   |   |   |   |
| Weighted      average common shares outstanding                                                                    |   |   | 17,388 |   |   |   | 17,382 |   |
| Dilutive      stock options                                                                                        |   |   | 147    |   |   |   | 264 |   |
|                                                                                                               |   |   |   |   |   |   |   |   |
| Assumed      conversion of 8% Subordinated Convertible Note                                                        |   |   | 974    |   |   |   | 900 |   |
| Assumed      conversion of Preferred Stock:                                                                        |   |   |   |   |   |   |   |   |
| Series      2003A                                                                                                  |   |   | 7,989  |   |   |   | 7,550 |   |
| Series      2003B                                                                                                  |   |   | 1,253  |   |   |   | 1,182 |   |
| Series      2004A                                                                                                  |   |   | 4,873  |   |   |   | 4,576 |   |
| Weighted      average common shares outstanding for purposes of computing diluted      income  per share |   |   | 32,624 |   |   |   | 31,854 |   |
| Diluted      income per common share                                                                               |   | $      | 0.03   |   |   |   | 0.03 |   |

----

|   |                                               |   | Three      Months Ended |    |
|--------|----------------------------------------------------|--------|-------------------------|---------|
|   |                                               |   | March      30, 2008     |    |   | April      1, 2007 |   |
|   | Net      sales of services:                        |   |                    |    |   |   |   |
|   | Human      Capital Management Services             |   | $                       | 96,009  |   |   |   | 86,987 |   |
|   | Staff      Augmentation                            |   |                    | 53,467  |   |   |   | 53,783 |   |
|   | Financial      Outsourcing Services                |   |                    | 734     |   |   |   | 833 |   |
|   |                                               |   | $                       | 150,210 |   |   |   | 141,603 |   |
|   | Operating      contribution:                       |   |                    |    |   |   |   |   |   |
|   | Human      Capital Management Services             |   | $                       | 3,620   |   |   |   | 3,860 |   |
|   | Staff      Augmentation                            |   |                    | 4,638   |   |   |   | 4,322 |   |
|   | Financial      Outsourcing Services                |   |                    | 689     |   |   |   | 699 |   |
|   |                                               |   |                    | 8,947   |   |   |   | 8,881 |   |
|   |                                               |   |                    |    |   |   |   |   |   |
|   | Consolidated      expenses:                        |   |                    |    |   |   |   |   |   |
|   | Corporate      general and administrative expenses |   |                    | 4,758   |   |   |   | 4,687 |   |
|   | Depreciation      and amortization                 |   |                    | 675     |   |   |   | 637 |   |
|   | Interest      and other, net                       |   |                    | 1,722   |   |   |   | 1,991 |   |
|   |                                               |   |                    | 7,155   |   |   |   | 7,315 |   |
|   | Income      before income taxes                    |   | $                       | 1,792   |   |   |   | 1,566 |   |
|   |                                               |   |                    |    |   |   |   |   |   |

|   |                                   |   | At      March 30, 2008 |    |   | At      December 30, 2007 |   |
|--------|----------------------------------------|--------|------------------------|---------|--------|---------------------------|--------|
|   | Total      assets:                     |   |                   |    |   |                      |   |
|   |                                   |   |                   |    |   |                      |   |
|   | Human      Capital Management Services |   | $                      | 94,914  |   |                      |   | 96,120 |   |
|   | Staff      Augmentation                |   |                   | 58,045  |   |                      |   | 54,116 |   |
|   | Financial      Outsourcing Services    |   |                   | 10,440  |   |                      |   | 13,101 |   |
|   | Corporate                              |   |                   | 26,977  |   |                      |   | 20,047 |   |
|   |                                   |   | $                      | 190,376 |   |                      |   | 183,384 |   |

----

|   |                                              |   | Three      Months Ended |   |
|--------|---------------------------------------------------|--------|-------------------------|--------|
|   |                                              |   | March      30, 2008     |   |   | April      1, 2007 |   |
|   |                                              |   |                    |   |   |   |   |
|   | Net      income                                   |   | $                       | 992    |   |   |   | 914 |   |
|   |                                              |   |                    |   |   |   |   |   |   |
|   | Foreign      currency translation adjustment, net |   |                    | 166    |   |   |   | (29 | ) |
|   | Total      comprehensive income                   |   | $                       | 1,158  |   |   |   | 885 |   |

|   |                                                |   | March      30, 2008 |    |   | December      30, 2007 |   |
|--------|-----------------------------------------------------|--------|---------------------|---------|--------|------------------------|--------|
|   |                                                |   |                |    |   |                   |   |   |   |
|   | Payroll,      payroll taxes and sub-vendor payments |   | $                   | 80,488  |   |                   |   | 85,043 |   |
|   | Book      overdrafts                                |   |                | 8,792   |   |                   |   | 11,322 |   |
|   | Other                                               |   |                | 20,965  |   |                   |   | 9,460 |   |
|   |                                                |   | $                   | 110,245 |   |                   |   | 105,825 |   |

----

----

|   |                                            | Payments      due by fiscal year (in thousands) |   |
|--------|-------------------------------------------------|-------------------------------------------------|--------|
|   |                                            |                                            | 2008   |   |   | 2009 |   |   | 2010 |   |   | 2011 |   |   | Thereafter |   |
|   |                                            |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Operating      Leases                           |                                            | $      | 2,272 |   |   | $ | 2,734 |   |   | $ | 1,737 |   |   | $ | 1,054 |   |   | $ | 708 |   |
|   | Employment      Agreements                      |                                            |   | 741 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   | PNC      Credit Facility*- principal repayments |                                            |   | - |   |   |   | - |   |   |   | 72,000 |   |   |   | - |   |   |   | - |   |
|   | Senior      Notes* - principal repayments       |                                            |   | - |   |   |   | - |   |   |   | 11,714 |   |   |   | - |   |   |   | - |   |
|   | Convertible      Note* - principal repayments   |                                            |   | - |   |   |   | 1,644 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   | Total                                           |                                            | $      | 3,013 |   |   | $ | 4,378 |   |   | $ | 85,451 |   |   | $ | 1,054 |   |   | $ | 708 |   |

----

----

| ·   | unfavorable      global, national or local economic conditions that cause our customers to      defer hiring contingent workers or reduce spending on the human capital      management services and staffing that we  provide; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | significant      increases in the effective rates of any payroll-related costs that we are      unable to pass on to our customers;  |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increases      in the costs of complying with the complex federal, state and foreign laws      and regulations in which we operate, or our inability to comply with these      laws and regulations; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      inability to collect fees due to the bankruptcy of our customers,      including the amount of any wages we have paid to our employees for work      performed for these customers; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      inability to keep pace with rapid changes in technology in our      industry; |
|--------------------|----------------------------------------------------------------------------------------|

| ·   | potential      losses relating to the placement of our employees in other workplaces,      including our employees’ misuse of customer proprietary information,      misappropriation of funds, discrimination, harassment, theft of property,      accidents, torts or other claims; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | increases      in interest rates, which could significantly increase our interest expense      under the PNC Credit Facility; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      inability to successfully develop new services or enhance our existing      services as the markets in which we compete grow more      competitive; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | unfavorable      developments in our business may result in the necessity of writing off      goodwill in future periods; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

| ·   | as      a result of covenants and restrictions in the agreements governing the      Senior Notes, the PNC Credit Facility or any future debt instruments, our      inability to use available cash in the manner management believes will      maximize stockholder value; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | unfavorable      press or analysts’ reports concerning our industry or our company could      negatively affect the perception investors have of our company and our      prospects; or |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | any      of the other factors described under “Risk Factors” in Item 1A of the      Company’s Annual Report on Form 10-K for the year ended December 30,      2007. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |                                                                                                                                |
|--------|-------------------------------------------------------------------------------------------------------------------------------------|
| 31.1   | Rule      13a-14(a) certification of chief executive officer in accordance with      section 302 of the Sarbanes-Oxley Act of 2002. |
|   |                                                                                                                                |
| 31.2   | Rule      13a-14(a) certification of chief financial officer in accordance with      section 302 of the Sarbanes-Oxley Act of 2002. |
|   |                                                                                                                                |
| 32.1   | Section      1350 certification of chief executive officer in accordance with section      906 of the Sarbanes-Oxley Act of 2002.   |
|   |                                                                                                                                |
| 32.2   | Section      1350 certification of chief financial officer in accordance with section      906 of the Sarbanes-Oxley Act of2002.    |

----

| COMFORCE      Corporation                                       |   |
|-----------------------------------------------------------------|--------|
|                                                            |   |
|                                                            |   |
| /s/      Harry V. Maccarrone                                    |   |
| Harry      V. Maccarrone                                        |   |
| Executive      Vice President and Chief Financial Officer  |   |
| Date:  May      7, 2008                               |   |