NEWS RELEASE

For Immediate Release	Contact:	William W. Sherertz President and Chief Executive Officer

	Telephone:	(360) 828-0700

BBSI ANNOUNCES SECOND QUARTER 2010 OPERATING RESULTS,

FINANCIAL GUIDANCE FOR 3Q10 AND CONFERENCE CALL

VANCOUVER, WASHINGTON, July 27, 2010 Barrett Business Services, Inc. (Nasdaq: BBSI) reported today net income of $2.3 million for the second quarter ended June 30, 2010 compared to a net loss of $6.7 million for the second quarter of 2009. Diluted income per share for the 2010 second quarter was $.22, as compared to diluted loss per share of $.65 for the same quarter a year ago. The 2009 second quarter included an $11.8 million increase in workers compensation expense resulting from the Companys change in estimate of its workers compensation reserves.

Net revenues for the second quarter ended June 30, 2010 totaled $67.4 million, an increase of approximately $10.1 million or 17.6% over the $57.3 million for the same quarter in 2009.

				(Unaudited)					(Unaudited)
(in thousands, except per share amounts)				Second Quarter Ended					Six Months Ended
				June 30,					June 30,
Results of Operations				2010		2009			2010			2009
Revenues:
	Staffing services		$	31,975	$	28,002		$	59,037		$	52,044
	Professional employer service fees			35,457		29,263			66,655			56,293
		Total revenues		67,432		57,265			125,692			108,337
Cost of revenues:
	Direct payroll costs			24,237		21,127			44,673			39,196
	Payroll taxes and benefits			22,861		19,434			47,489			42,061
	Workers' compensation			8,589		18,927			16,408			25,614
		Total cost of revenues		55,687		59,488			108,570			106,871
Gross margin				11,745		(2,223	)		17,122			1,466
Selling, general and administrative expenses				8,407		8,336			16,631			16,376
Depreciation and amortization				333		410			710			796
Income (loss) from operations				3,005		(10,969	)		(219	)		(15,706	)
Other income, net				380		293			665			408
Income (loss) before taxes				3,385		(10,676	)		446			(15,298	)
Provision for (benefit from) income taxes				1,107		(3,944	)		(146	)		(5,392	)
Net income (loss)			$	2,278	$	(6,732	)	$	592		$	(9,906	)
Basic income (loss) per share			$	.22	$	(.65	)	$	.06		$	(.95	)
Weighted average basic shares outstanding				10,446		10,355			10,456			10,426
Diluted income (loss) per share			$	.22	$	(.65	)	$	.06		$	(.95	)
Weighted average diluted shares outstanding				10,485		10,355			10,490			10,426

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Barrett Business Services, Inc.

News Release Second Quarter 2010

July 27, 2010

The Company reports its Professional Employer Organization services (PEO) revenues on a net basis because it is not the primary obligor for the services provided by the Companys PEO clients to their customers. The gross revenues and cost of revenues information below, although not in accordance with generally accepted accounting principles (GAAP), is presented for comparison purposes and because management believes such information is more informative as to the level of the Companys business activity and more useful in managing its operations.

				(Unaudited)					(Unaudited)
				Second Quarter Ended					Six Months Ended
(in thousands)				June 30,					June 30,
				2010		2009			2010		2009
Revenues:
	Staffing services		$	31,975	$	28,002		$	59,037	$	52,044
	Professional employer services			265,121		220,150			500,616		423,975
		Total revenues		297,096		248,152			559,653		476,019
Cost of revenues:
	Direct payroll costs			252,722		210,720			476,269		404,276
	Payroll taxes and benefits			22,861		19,434			47,489		42,061
	Workers' compensation			9,768		20,221			18,773		28,216
		Total cost of revenues		285,351		250,375			542,531		474,553
Gross margin			$	11,745	$	(2,223	)	$	17,122	$	1,466

Gross revenues of $297.1 million for the second quarter ended June 30, 2010 increased 19.7% over the similar period in 2009.

A reconciliation of non-GAAP gross revenues to net revenues is as follows:

For the second quarters ended June 30, 2010 and 2009:

				(Unaudited)
				Three Months Ended June 30,
				Gross Revenue										Net Revenue
(in thousands)				Reporting Method				Reclassification						Reporting Method
				2010		2009		2010			2009			2010		2009
Revenues:
	Staffing services		$	31,975	$	28,002	$	-		$	-		$	31,975	$	28,002
	Professional
		employer services		265,121		220,150		(229,664	)		(190,887	)		35,457		29,263
		Total revenues	$	297,096	$	248,152	$	(229,664	)	$	(190,887	)	$	67,432	$	57,265
Cost of revenues			$	285,351	$	250,375	$	(229,664	)	$	(190,887	)	$	55,687	$	59,488

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Barrett Business Services, Inc.

News Release Second Quarter 2010

July 27, 2010

For the six months ended June 30, 2010 and 2009:

				(Unaudited)
				Six Months Ended June 30,
				Gross Revenue										Net Revenue
(in thousands)				Reporting Method				Reclassification						Reporting Method
				2010		2009		2010			2009			2010		2009
Revenues:
	Staffing services		$	59,037	$	52,044	$	-		$	-		$	59,037	$	52,044
	Professional
		employer services		500,616		423,975		(433,961	)		(367,682	)		66,655		56,293
		Total revenues	$	559,653	$	476,019	$	(433,961	)	$	(367,682	)	$	125,692	$	108,337
Cost of revenues			$	542,531	$	474,553	$	(433,961	)	$	(367,682	)	$	108,570	$	106,871

The following summarizes the unaudited consolidated balance sheets at June 30, 2010 and December 31, 2009.

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Barrett Business Services, Inc.

News Release Second Quarter 2010

July 27, 2010

				June 30,		December 31,
(in thousands)				2010		2009
Assets
Current assets:
	Cash and cash equivalents		$	17,444	$	36,671
	Marketable securities			23,914		13,766
	Trade accounts receivable, net			50,301		33,070
	Income taxes receivable			3,887		4,274
	Prepaid expenses and other			2,265		979
	Deferred income taxes			4,283		4,071
		Total current assets		102,094		92,831
Marketable securities				7,012		7,473
Property, equipment and software, net				14,861		14,795
Restricted marketable securities and workers' compensation deposits				8,933		2,666
Other assets				3,103		3,104
Workers' compensation receivables for insured claims				3,639		3,865
Goodwill, net				47,820		47,338
			$	187,462	$	172,072

Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable		$	702	$	1,117
	Accrued payroll, payroll taxes and related benefits			47,853		30,244
	Other accrued liabilities			649		499
	Workers' compensation claims liabilities			10,484		10,509
	Safety incentives liabilities			4,241		4,437
		Total current liabilities		63,929		46,806
Long-term workers' compensation claims liabilities				16,106		14,560
Long-term workers' compensation liabilities for insured claims				2,684		2,729
Deferred income taxes				6,323		6,323
Customer deposits and other long-term liabilities				1,488		1,527
Stockholders' equity				96,932		100,127
			$	187,462	$	172,072

Outlook for Third Quarter 2010

The Company also disclosed today limited financial guidance with respect to its operating results for the third quarter ending September 30, 2010. The Company expects gross revenues for the third quarter of 2010 to range from $313 million to $317 million, as compared to $273.1 million for the third quarter of 2009, and anticipates diluted earnings for the third quarter of 2010 to range from $.33 to $.36 per share, as compared to diluted income per share of $.28 for the same period a year ago. A reconciliation of estimated gross revenues to estimated GAAP net revenues for the third quarter of 2010 is not included because PEO revenues and cost of PEO revenues for the period are not reasonably estimable.

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Barrett Business Services, Inc.

News Release Second Quarter 2010

July 27, 2010

Conference Call

On Wednesday, July 28 at 9:00 a.m. Pacific Time, William W. Sherertz and James D. Miller will host an investor telephone conference call to discuss second quarter 2010 operating results. To participate in the call, dial (877) 356-3717. The call identification number is 89607191. The conference call will also be webcast live at www.barrettbusiness.com. To access the webcast, click on the Investor Relations section of the Web site and select Webcast. A replay of the call will be available beginning Wednesday, July 28, 2010 at 12:00 p.m. PT and ending on Wednesday, August 4, 2010. To listen to the recording, dial (800) 642-1687 and enter conference identification code 89607191.

Statements in this release about future events or performance, including gross revenues and earnings expectations for the third quarter of 2010, are forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Factors that could affect future results include economic conditions in the Company's service areas, the effect of changes in the Company's mix of services on gross margin, the Company's ability to retain current customers and to successfully integrate acquired businesses with its existing operations, future workers' compensation claims experience, the effect of changes in the workers compensation regulatory environment in one or more of its primary markets, the collectibility of accounts receivable and the effect of conditions in the global capital markets on the Companys investment portfolio, among others. Other important factors that may affect the Companys future prospects are described in the Companys 2009 Annual Report on Form 10-K. Although forward-looking statements help to provide complete information about the Company, readers should keep in mind that forward-looking statements may be less reliable than historical information. The Company undertakes no obligation to update or revise forward-looking statements in this release to reflect events or changes in circumstances that occur after the date of this release.

BBSI provides a comprehensive range of human resource management solutions to large and small companies throughout many regions of the United States.

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Form: 8-K

Documents

NEWS RELEASE

EXHIBIT 99.1

NEWS RELEASE