##### 



Contacts:
    
    Joseph C. Tusa, Jr.
    
    David L. KerrSenior Vice President and
    
    Senior Vice President  Corporate DevelopmentChief Financial Officer
    
    713.386.1420713.386.1428
    
    dkerr@comsys.comjtusa@comsys.com
 COMSYS IT PARTNERS, INC. REPORTS SECOND QUARTER RESULTS




---



##### 



Third Quarter 2006 Financial Guidance
 Conference Call Information  www.comsys.com www.earnings.com www.comsys.com
 About COMSYS IT Partners
 Forward-looking Statements




---



##### 




    
    the Companys success in attracting, training, retaining and motivating billable consultants and key officers and
employees;
    
    the Companys ability to shift a larger percentage of its business mix into IT solutions and project management and, if
successful, its ability to manage those types of business profitably;
    
    changes in levels of unemployment and other economic conditions in the United States, or in particular regions or
industries;
    
    weakness or reductions in corporate information technology spending levels;
    
    the Companys ability to maintain existing client relationships and attract new clients in the context of changing
economic or competitive conditions;
    
    the impact of competitive pressures on our ability to maintain or improve our operating margins, including any change in
the demand for the Companys services;
    
    the entry of new competitors into the U.S. staffing services market due to the limited barriers to entry or the expansion
of existing competitors in that market;
    
    increases in employment-related costs such as healthcare and unemployment taxes;
    
    the possibility of the Companys incurring liability for the activities of its billable consultants or for events
impacting its billable consultants on clients premises;
    
    the risk in an uncertain economic environment of increased incidences of employment disputes, employment litigation and
workers compensation claims;
    
    integration and restructuring associated with the COMSYS and Venturi merger or other business activities and the
challenges of achieving anticipated synergies;
    
    the risk that further cost cutting or restructuring activities undertaken by the Company could cause an adverse impact on
certain of the Companys operations;
    
    economic declines that affect the Companys business, including its profitability, liquidity or ability to comply with its
loan covenants;
    
    adverse changes in credit and capital markets conditions that may affect the Companys ability to obtain financing or
refinancing on favorable terms;
    
    adverse changes to managements periodic estimates of future cash flows that may affect the Companys assessment of its
ability to fully recover its goodwill;
    
    whether governments will amend existing regulations or impose additional regulations or licensing requirements in such a
manner as to increase the Companys costs of doing business; and
    
    other matters discussed in this press release and the Companys most recent definitive proxy statement, Forms 10-K,
10-K/A, 10-Q and 8-K, as well as matters discussed in the Companys future SEC filings.




---



##### 



COMSYS IT PARTNERS, INC.
OPERATING DATA, SUPPLEMENTAL CASH FLOW INFORMATION AND NON-GAAP MEASUREMENTS
(IN THOUSANDS, EXCEPT OPERATING DATA)
 Operating Data:
    
    Three Months EndedJuly 2, 2006
    
    
    April 2, 2006
    
    
    July 3, 2005Ending consultant headcount
    
    
    5,183
    
    
    
    5,014
    
    
    
    4,705Billing days
    
    
    64
    
    
    
    64
    
    
    
    64Revenue per billing day (in thousands)
    
    $
    2,931
    
    
    $
    2,791
    
    
    $
    2,534Average bill rate
    
    $
    68.81
    
    
    $
    68.19
    
    
    $
    66.68Gross margin percentage
    
    
    24.5
    %
    
    
    23.6
    %
    
    
    23.1
    %DSO
    
    
    45
    
    
    
    48
    
    
    
    50
 Supplemental Cash Flow Information:
    
    Three Months EndedJuly 2, 2006
    
    
    July 3, 2005Net cash provided by operating activities
    
    $
    14,000
    
    
    $
    7,475Capital expenditures
    
    $
    969
    
    
    $
    1,930Depreciation and amortization
    
    $
    2,167
    
    
    $
    2,515
 Non-GAAP Financial Measures:
    
    Three Months EndedJuly 2, 2006
    
    
    July 3, 2005Adjusted revenues:
    
    
    
    
    
    
    N/AGAAP revenue
    
    $
    187,609Revenue from entity acquired in October 2005
    
    
    5,606Adjusted revenue
    
    $
    182,003Adjusted net income and earnings per diluted share:GAAP net income
    
    $
    11,362
    
    
    $
    729Tax refund
    
    
    (5,800
    )
    
    
    Interest on tax refund
    
    
    (550
    )
    
    
    Restructuring charges
    
    
    
    
    
    
    424Registration fees (included in SG&A)
    
    
    
    
    
    
    950Adjusted net income
    
    $
    5,012
    
    
    $
    2,103Adjusted earnings per diluted share

    

    $
    0.26
    

    

    $
    0.14Adjusted EBITDA:GAAP net income
    
    $
    11,362
    
    
    $
    729Restructuring charges
    
    
    
    
    
    
    424Registration fees (included in SG&A)
    
    
    
    
    
    
    950Stock based compensation
    
    
    950
    
    
    
    439Depreciation and amortization
    
    
    2,167
    
    
    
    2,515Interest expense, net
    
    
    3,573
    
    
    
    4,348Other (income) expense, net
    
    
    (170
    )
    
    
    4Income tax benefit
    
    
    (5,342
    )
    
    
    Adjusted EBITDA
    
    $
    12,540
    
    
    $
    9,409Adjusted EBITDA as a % of GAAP revenue
    
    
    6.7
    %
    
    
    5.8
    %
  
  MORE 




---



##### 



COMSYS IT PARTNERS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE)
(Unaudited)
 Three Months Ended
    
    
    Six Months EndedJuly 2, 2006
    
    
    July 3, 2005
    
    
    July 2, 2006
    
    
    July 3, 2005Revenues from services
    
    $
    187,609
    
    
    $
    162,185
    
    
    $
    366,201
    
    
    $
    327,138Cost of services
    
    
    141,736
    
    
    
    124,647
    
    
    
    278,256
    
    
    
    252,013Gross profit
    
    
    45,873
    
    
    
    37,538
    
    
    
    87,945
    
    
    
    75,125Operating costs and expensesSelling, general and administrative expenses
    
    
    34,283
    
    
    
    29,518
    
    
    
    68,521
    
    
    
    57,473Restructuring and integration costs
    
    
    
    
    
    
    424
    
    
    
    
    
    
    
    3,852Depreciation and amortization
    
    
    2,167
    
    
    
    2,515
    
    
    
    4,339
    
    
    
    4,986Total operating expenses
    
    
    36,450
    
    
    
    32,457
    
    
    
    72,860
    
    
    
    66,311Operating income
    
    
    9,423
    
    
    
    5,081
    
    
    
    15,085
    
    
    
    8,814Interest expense, net
    
    
    3,573
    
    
    
    4,348
    
    
    
    7,530
    
    
    
    8,374Other (income) expense, net
    
    
    (170
    )
    
    
    4
    
    
    
    (294
    )
    
    
    (83
    )Income before income taxes
    
    
    6,020
    
    
    
    729
    
    
    
    7,849
    
    
    
    523Income tax benefit
    
    
    5,342
    
    
    
    
    
    
    
    5,192
    
    
    
    Net income
    
    $
    11,362
    
    
    $
    729
    
    
    $
    13,041
    
    
    $
    523Net income per common share:Basic (attributable to common shareholders)
    
    $
    0.60
    
    
    $
    0.05
    
    
    $
    0.69
    
    
    $
    0.03Diluted
    
    $
    0.60
    
    
    $
    0.05
    
    
    $
    0.69
    
    
    $
    0.03Weighted average shares outstanding:Basic
    
    
    18,562
    
    
    
    15,418
    
    
    
    18,556
    
    
    
    15,375Diluted
    
    
    18,920
    
    
    
    16,154
    
    
    
    18,862
    
    
    
    15,956
  MORE 




---



##### 



COMSYS IT PARTNERS, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE)
 July 2,
    
    
    January 1,2006
    
    
    2006(Unaudited)AssetsCurrent assets:Cash
    
    $
    1,511
    
    
    $
    3,099Accounts receivable, net of allowance of $4,317 and $4,427, respectively
    
    
    194,060
    
    
    
    170,321Prepaid expenses and other
    
    
    3,850
    
    
    
    3,729Total current assets
    
    
    199,421
    
    
    
    177,149Fixed assets, net
    
    
    13,760
    
    
    
    14,976Goodwill
    
    
    153,737
    
    
    
    154,322Intangible assets, net
    
    
    10,188
    
    
    
    11,262Deferred financing costs, net
    
    
    4,109
    
    
    
    4,655Restricted cash
    
    
    2,764
    
    
    
    2,939Other assets
    
    
    2,266
    
    
    
    1,618Total assets
    
    $
    386,245
    
    
    $
    366,921Liabilities and stockholders equityCurrent liabilities:Accounts payable
    
    $
    115,021
    
    
    $
    108,432Payroll and related taxes
    
    
    28,218
    
    
    
    22,600Current maturities of long-term debt
    
    
    1,370
    
    
    
    5,000Interest payable
    
    
    991
    
    
    
    933Other
    
    
    14,005
    
    
    
    15,667Total current liabilities
    
    
    159,605
    
    
    
    152,632Long-term debt
    
    
    134,599
    
    
    
    137,273Other non-current liabilities
    
    
    5,578
    
    
    
    5,920Total liabilities
    
    
    299,782
    
    
    
    295,825Commitments and contingenciesStockholders equity:Common stock, par value $.01; 95,000 shares authorized; 18,855 and 18,738
shares outstanding at July 2, 2006 and January 1, 2006, respectively
    
    
    188
    
    
    
    187Common stock warrants
    
    
    2,270
    
    
    
    2,815Deferred stock compensation
    
    
    
    
    
    
    (1,749
    )Accumulated other comprehensive loss
    
    
    (7
    )
    
    
    (65
    )Additional paid-in capital
    
    
    203,056
    
    
    
    201,993Accumulated deficit
    
    
    (119,044
    )
    
    
    (132,085
    )Total stockholders equity
    
    
    86,463
    
    
    
    71,096Total liabilities and stockholders equity
    
    $
    386,245
    
    
    $
    366,921