Deal Sends All Labor Ready Claims to AIG

Labor Ready, Inc. completed an Assumption and Novation Agreement with Lumbermens Mutual Casualty Company ("Kemper") and National Union Fire Insurance Company of Pittsburgh, PA ("AIG"), as disclosed in a Form 8-K filed by the company Jan. 5, 2005.Under the terms of the novation, Kemper is relieved of all further obligation in connection with workers' compensation claims incurred by the company during the Kemper policy period of Jan. 1, 2001 through July 30, 2003. AIG is substituted as Labor Ready's workers' compensation insurer for purposes of providing required assurances to various states of ...