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|A Leader in Payroll / HR Outsourcing

June 2006

INVESTOR PRESENTATION
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|Statements expressing or indicating the beliefs and expectations of management regarding future performance are
forward-looking statements including, without limitation, favorable operating trends, anticipated revenue and earnings in
the first quarter of fiscal 2007 and for the fiscal year ending March 31, 2007, and any other plans, objectives,
expectations and intentions that are not historical facts.  These statements reflect our current views with respect to future
events and are based on assumptions and subject to risks and uncertainties.  These risks and uncertainties include,
without limitation, the preliminary nature of our estimates, which are subject to change as we collect additional
information and they are reviewed internally and by our external auditors, as well as the risks detailed in the company's
Form 10-K for the fiscal year ended March 31, 2006, under the caption "Risk Factors" in "Part I - Item 1," as well as (1)
the risk that our revenues from The Work Number may fluctuate in response to changes in certain economic conditions
such as interest rates and employment trends; (2) risks associated with our ability to prevent breaches of confidentiality
or inappropriate use of data as we perform large-scale processing of verifications; (3) risks associated with our ability to
maintain the accuracy, privacy and confidentiality of our clients' employee data; (4) risks related to our ability to increase
the size and range of applications for The Work Number database and to successfully market current and future services
and related to our dependence on third party providers to do so; (5) the risk of interruption of our computer network and
telephone operations, including potential slow-down or loss of business as potential clients review our operations; (6)
risks associated with potential challenges regarding the applicability of the Fair Credit Reporting Act or similar law; (7)
risks relating to the dependence of the market for The Work Number services on mortgage documentation requirements
in the secondary market and the risk that our revenues and profitability would be significantly harmed if those
requirements were relaxed or eliminated; (8) risks related to the applicability of any new privacy legislation or
interpretation of existing laws; 9) the risk that our revenues from unemployment tax management services may fluctuate
in response to changes in economic conditions; (10) risks related to changes in tax laws, including work opportunity , or
"WOTC," and welfare to work, or "WtW," tax credits; (11) the risk to our future growth due to our dependence on our
ability to effectively integrate acquired companies and capitalize on cross-selling opportunities; and (12) risks relating to
doing business with the federal government following our April 2006 acquisition of pan.  These risks, uncertainties and
other factors may cause our actual results, performance or achievements to be materially different from those expressed
or implied by our forward-looking statements.  We do not undertake any obligation or plan to update these forward-
looking statements, even though our situation may change.


Safe Harbor Statement
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|TALX is a leading Business Process Outsourcer (BPO) bringing
clients significant savings by replacing manual, paper-based
Payroll / HR methods with electronic-based outsourced services.



Business Model

Standard services and processes

Contractual and transaction-driven revenues

Recurring and predictable revenue stream



TALX Clients

Over 9,000 clients

Over 3/4 of the Fortune 500 use one or more TALX
services

A Leader in Payroll / HR Outsourcing
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|Key Investment Highlights

Market Leadership in Two Payroll and HR Areas

Employment and income verification

Unemployment cost management



Diversified Client Base (no one client > 10% of revenue)



Proven Business Model

Revenue growth

Earnings and EPS growth

Strong gross and operating margins

Strong operating cash flow ($39.4M in FY2006)
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|Revenue, EPS & Margin Growth (continuing operations)

$0.57

20.9%

Excluding SEC settlement charge

0.08

1.6%

SEC settlement charge

$0.49

19.3%

GAAP

Diluted

EPS

Operating

Margin



* FY 2005 includes $2.5MM SEC charge

$273 - $278

Fiscal Years Ended March 31,





$1.04 - $1.10

$0.06

2007

Guidance



 26.6%



 $0.89



$207.4

2006



19.3%*





$0.49*

$158.4

2005



17.1%

Operating Margin

   Prior to FAS123R

   Including FAS123R



$0.39


$124.4

2004

Diluted EPS

   Prior to FAS123R

   Including FAS123R

   Impact of stock-based comp


Revenue (millions)




3 Year

CAGR



16.8%



$0.35

$115.9

2003

21%

36%
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|Broad Range of Payroll Data-Based Solutions
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|Sales Teams are Aligned Into Regions and Tiers

Tier one:    20,000 employees and greater

Tier two:    3,500 to 20,000 employees

Tier three:    Less than 3,500 employees



Sales Approach Varies by Tier

Tier one:    Direct: Face-to-face    Indirect: HRO Alliances

Tier two:    Direct: Face-to-face    Indirect: HRO Alliances

Tier three:    Direct: Tele-sales   Indirect: Payroll Alliances



Human Resource Outsourcers (HRO) Market

Market as of November, 2005 - Approximately 4.0 million
employees served through Human Resource Outsourcers

Alliances in place with ACS, Convergys, Excellerate HRO,
Fidelity and Hewitt

Working on alliances with ADP COS, IBM And Accenture HR






Sales Approach
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|A Leader in Niche Payroll / HR Markets

The Work Number Services - 44% of FY06 Revenues

129.0 million records live on the database at March 31, 2006

7.3 million records in backlog

Our estimates indicate that

29% of our records represent current employees

28% of the non-agricultural U.S. workforce included on database

95% of companies that outsource use The Work Number



Tax Management Services - 55% of FY06 Revenues

Unemployment Tax Management

88% of FY06 Tax Management Services Revenues

We estimate about 35% of the market is not outsourced

Tax Credit and Incentive Services

12% of FY06 Tax Management Services Revenues

Entered business in October 2004

Strong cross-selling opportunities
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|The Work Number Services - Growth Initiatives

Add Records to the Database



Increase Database Penetration

Add new verifiers

New segments

Existing segments

REACH program



Add New Services

Verification of education

Confirmation direct



Regular Price Increases
        59    41
        56    44


44%

of TALX Revenue

(FY06)

The Work Number

Services Revenue
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|The Work Number Verification Process
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|The Work Number Services - Revenue History
        FY2001    FY2002    FY2003    FY2004    FY2005    FY2006
    1st Quarter    4.132    6.103    7.617    10.943    14.42    20.4
    2nd Quarter    4.531    6.659    8.573    11.627    14.19    21.9
    3rd Quarter    4.635    6.856    9.011    10.028    15.56    21.9
    4th Quarter    5.796    7.566    10.733    14.01    21.21    27.1


Revenue History (millions)
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|Revenue    Records    Mortgage index
    3/31/1999    1    1    1
    4/2/1999    1    1    1
    4/9/1999    1    1    0.98
    4/16/1999    1    1    1.07
    4/23/1999    1    1    1.03
    4/30/1999    1    1    1.07
    5/7/1999    1    1    1.04
    5/14/1999    1    1    0.93
    5/21/1999    1    1    0.97
    5/28/1999    1    1    0.97
    6/4/1999    1    1    0.75
    6/11/1999    1    1    0.96
    6/18/1999    1    1    0.86
    6/25/1999    1    1    0.85
    7/2/1999    1.07    1.03    0.87
    7/9/1999    1.07    1.03    0.61
    7/16/1999    1.07    1.03    0.76
    7/23/1999    1.07    1.03    0.74
    7/30/1999    1.07    1.03    0.78
    8/6/1999    1.07    1.07    0.75
    8/13/1999    1.07    1.07    0.72
    8/20/1999    1.07    1.07    0.71
    8/27/1999    1.07    1.07    0.74
    9/3/1999    1.07    1.18    0.64
    9/10/1999    1.07    1.18    0.54
    9/17/1999    1.07    1.18    0.65
    9/24/1999    1.07    1.18    0.63
    10/1/1999    1.2    1.25    0.69
    10/8/1999    1.2    1.25    0.65
    10/15/1999    1.2    1.25    0.6
    10/22/1999    1.2    1.25    0.62
    10/29/1999    1.2    1.25    0.67
    11/5/1999    1.2    1.29    0.65
    11/12/1999    1.2    1.29    0.62
    11/19/1999    1.2    1.29    0.71
    11/26/1999    1.2    1.29    0.44
    12/3/1999    1.2    1.36    0.58
    12/10/1999    1.2    1.36    0.57
    12/17/1999    1.2    1.36    0.54
    12/24/1999    1.2    1.36    0.39
    12/31/1999    1.2    1.36    0.37
    1/7/2000    1.41    1.39    0.52
    1/14/2000    1.41    1.39    0.61
    1/21/2000    1.41    1.39    0.58
    1/28/2000    1.41    1.39    0.68
    2/4/2000    1.41    1.41    0.76
    2/11/2000    1.41    1.41    0.69
    2/18/2000    1.41    1.41    0.68
    2/25/2000    1.41    1.41    0.66
    3/3/2000    1.41    1.52    0.78
    3/10/2000    1.41    1.52    0.78
    3/17/2000    1.41    1.52    0.78
    3/24/2000    1.41    1.52    0.83
    3/31/2000    1.41    1.52    0.77
    4/7/2000    1.57    1.54    0.83
    4/14/2000    1.57    1.54    0.79
    4/21/2000    1.57    1.54    0.79
    4/28/2000    1.57    1.54    0.79
    5/5/2000    1.57    1.6    0.68
    5/12/2000    1.57    1.6    0.65
    5/19/2000    1.57    1.6    0.71
    5/26/2000    1.57    1.6    0.65
    6/2/2000    1.57    1.69    0.6
    6/9/2000    1.57    1.69    0.56
    6/16/2000    1.57    1.69    0.57
    6/23/2000    1.57    1.69    0.57
    6/30/2000    1.57    1.69    0.59
    7/7/2000    1.72    1.74    0.55
    7/14/2000    1.72    1.74    0.61
    7/21/2000    1.72    1.74    0.58
    7/28/2000    1.72    1.74    0.57
    8/4/2000    1.72    1.8    0.6
    8/11/2000    1.72    1.8    0.59
    8/18/2000    1.72    1.8    0.56
    8/25/2000    1.72    1.8    0.57
    9/1/2000    1.72    1.85    0.59
    9/8/2000    1.72    1.85    0.62
    9/15/2000    1.72    1.85    0.61
    9/22/2000    1.72    1.85    0.6
    9/29/2000    1.72    1.85    0.62
    10/6/2000    1.76    1.9    0.6
    10/13/2000    1.76    1.9    0.62
    10/20/2000    1.76    1.9    0.62
    10/27/2000    1.76    1.9    0.65
    11/3/2000    1.76    1.95    0.66
    11/10/2000    1.76    1.95    0.69
    11/17/2000    1.76    1.95    0.64
    11/24/2000    1.76    1.95    0.63
    12/1/2000    1.76    1.99    0.7
    12/8/2000    1.76    1.99    0.74
    12/15/2000    1.76    1.99    0.68
    12/22/2000    1.76    1.99    0.64
    12/29/2000    1.76    1.99    0.54
    1/5/2001    2.2    2.03    0.87
    1/12/2001    2.2    2.03    1.26
    1/19/2001    2.2    2.03    1.08
    1/26/2001    2.2    2.03    0.99
    2/2/2001    2.2    2.06    1.18
    2/9/2001    2.2    2.06    1.14

The Work Number Services - Revenue Growth

Revenue Growth Outpaces Database Growth (percent)

Revenue

Records

Source: Mortgage Bankers Association

Mortgage Index
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|FY2003    FY2004    FY2005    FY2006
    Pre-employment    9.97    8    11.06    15.34
    Consumer Finance    5.27    7.49    13.65    22.7
    Social Services    1.87    3.59    5.95    8.2
    Other Verifications    1.24    2.19    2.63    1.55
    Mortgage    12.25    16.61    21.04    29.2
    Complementary Work Number Services*    5.33    7.51    11.04    14.31


The Work Number Services - Revenue Mix (annually)

*Complementary Work Number Services
include ePayroll, W-2 eXpress, FasTime
and HireXpress

Revenue Mix (millions by year)

$46.6

$65.4

$91.3
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|FY2005    FY2005            FY2006
    Pre-employment                                            2.6    2.7    2.8    2.97    3.88        3.78    4.08            3.77
    Consumer Finance                                            2.31    2.98    3.27    5.09    4.7        6.11    5.89            5.89
    Social Services                                            1.87    1.14    1.24    1.7    1.84        1.85    1.94            2.36
    Other Verifications                                            0.72    0.71    0.78    0.42    0.41        0.41    0.38            0.43
    Mortgage                                            5.05    4.82    5.45    5.73    6.95        7.52    7.17            7.55
    Complementary Work Number Services*                                            1.87    1.84    2.02    5.3    2.66        2.23    2.44            6.95



*Complementary Work Number

Services include ePayroll,

W-2 eXpress, FasTime

and HireXpress

The Work Number Services - Revenue Mix (quarterly)


Revenue Mix (millions by quarter)

+28%

Q4            Q1             Q2             Q3                              Q4

$21.2

$20.4

$21.9

$27.1

Fiscal Year 2006

Fiscal
Year
2005

$21.9
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|Unemployment Tax Services

Contract initiatives

Multi-year

Upfront fee increase

Ongoing fee escalations

Excess claims provisions

New pricing structures

Per Employee Per Year pricing
model

Tier 3 -packaged with The Work
Number

Unbundle standard services

New applications




Tax Management Services - Growth Initiatives
        Unemployment Tax Services    Tax Credits and Incentives
        100826    13594    93007


55%

of TALX Revenue

(FY06)

Tax Management

Services Revenue
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|Tax Credit and Incentive Services

Cross-selling to existing clients

Highlighting non-WOTC services

IEC (Indian Employment Credit)

State and local credits - using
our extensive database and
electronic tools

Increased WOTC compliance results
compared to competition

Roll-up opportunities



        Unemployment Tax Services    Tax Credits and Incentives
        100826    13594    93007


Tax Management

Services Revenue

Tax Management Services - Growth Initiatives

55%

of TALX Revenue

(FY06)
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|Assessment and Talent Management Services

Acquired Performance Assessment Network (pan)

in April 2006

Two key new services for TALX

Psychometric testing and assessments

Over 650 tests available

Thousands of testing centers

In-house experienced psychologists

Comprehensive talent management services

Tailored to a client's hiring process

Utilizes internally developed dashboard to allow
clients to electronically manage the hiring process

These services can be sold together or as separate
solutions


Assessment Services - Description
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|Assessment and Talent Management Services

Key is to cross-sell pan's services to our existing
corporate client base

Fits nicely with our existing hiring-related services:

Pay reporting and compliance, including I-9

Employment verification

Tax credit and incentive identification

Paperless new hire packet processing

Capitalize on pan's strong relationships with the Federal
Government






Assessment Services - Growth Initiatives
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|Acquisitions and Cross-selling - Growth Strategies

Acquisition Objectives

Accretive to earnings per share

Provide records for

The Work Number database

Same or complementary services

Strong management



Twelve Acquisitions Since 2002

Enhanced cross-selling opportunities
by adding clients and services

Fueled growth in

The Work Number services

All but first funded with cash




27% to 48%

Growth in percentage of Tier 1 and 2
clients utilizing more than one TALX
service since May 2003

Cross-selling success
        2 or More Services    1 Service
        33    67

        2 or More Services    1 Service
        48    52


May 2003

409 out of
1,500 Tier 1
and 2 clients











May 2006

983 out of
2,045 Tier 1
and 2 clients
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|FY2002    FY2003    FY2004    FY2005    FY2006
    Gross margin    0.611    0.548    0.572    0.591    0.629

        FY 2002    FY2003    FY2004    FY2005    FY2006
    The Work Number services    0.657    0.658    0.701    0.715    0.766
    Unemployment tax management        0.486    0.482    0.486    0.498
    Tax credits and incentives                0.738    0.654


Gross Margin

Total Company

Gross Margin

By Business Unit
    EPS    FY2003    FY2004    FY2005*    FY2006
        0.168    0.171    0.209    0.266


Operating Margin

Total Company

Margins

*Reconciliation for FY 2005   Operating
Margin
   GAAP   19.3%
   SEC settlement charge   1.6%
   Excluding SEC settlement charge   20.9%
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|REVENUE    FY2003    FY2004    FY2005    FY2006
        115.9    124.4    158.4    207.4

    EPS    FY2003    FY2004    FY2005    FY2006
        0.35    0.39    0.57    0.89


Diluted EPS
        FY 2002    FY2003     FY2004    FY2005    FY2006
        4.3    11.2    12.5    18.5    30


Earnings (millions)

Revenue and Earnings Growth (continuing operations)


Revenues (millions)

* Reconciliation for FY 2005   Diluted
EPS   Earnings
(millions)
   GAAP   $0.49   $16.0
   SEC settlement charge   0.08   2.5
   Excluding SEC settlement charge   $0.57   $18.5
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|A Leader in Payroll / HR Outsourcing

June 2006

INVESTOR PRESENTATION
|----------------------------------------------------------------------