Pacel Corp. Year End Strategic Update & Reorganization CHARLOTTE, N.C., Jan. 26 /PRNewswire-FirstCall/ -- Pacel Corporation (OTC:PCOR) (BULLETIN BOARD: PCOR) announced today that is has achieved its initial strategic goal in conjunction with its financing partner, Wall Street-based Compass Capital Group. This Group utilizing a combination of debt and equity financing has provided Pacel Corp with $4.2 Million during 2004. These funds allowed the company to implement a strategic plan of mergers and acquisitions that established a strong base for future growth within the PEO Industry and reorganized their additional talents into separate companies with Niche Specialties that will provide each organization the opportunity to become a stand-alone profitable company. Gary Musselman, President of Pacel, stated, "the funds that Compass Capital Group provided, allowed us to close our last acquisition, Rossar, LLC, and fund our corporate reorganization. This reorganization established Asmara Benefit Services, Inc. as our licensed insurance agency, Piedmont HR, Inc., as our Risk Management and Safety Analysis, and The Resourcing Solutions Group, Inc, as a PEO/ASO company that will shortly be directly competing with leaders in the PEO industry. This capital infusion has allowed the company to proceed with our plan become a leading force in the Human Resources Outsourcing Industry." PEO companies are growing at a rate of greater than 30% and most experts predict this rate of growth can be sustained for 5-10 years as PEO's/ASO's & HRO's respond to the growing need for their services. The Small Business Administration estimates there are nearly 6 million businesses with fewer than 100 employees. These small to mid-sized businesses employ over 52 million employees with an aggregate payroll of over $1.1 trillion. It is estimated the PEO industry currently has between 2-3 million worksite employees with annual payrolls greater than $18 billion. With just 2% of the market, the growth in PEO services is unlimited. With an average annual growth rate of 30%, more and more business owners are turning to the Professional Employer Industry to provide them with the tools they need to increase productivity and profits. About Pacel Corp. Pacel Corporation provides Human Resource Outsourcing services, including benefits administration, payroll administration, governmental compliance, risk management, unemployment administration and benefits administration to small and medium-sized businesses in the United States. The statements contained in this press release that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Therefore, the actual results of future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: (i) regulatory and tax developments; (ii) the effectiveness of the Company's sales and marketing efforts; (iii) changes in the competitive environment of the industry; (iv) changes in general economic conditions; (v) changes in the Company's direct costs and operating expenses; (vi) the estimated costs and effectiveness of capital projects and investments in technology and infrastructure. (vii) Management's ability to effectively implement its business strategy. These factors are described in further detail in filings with the Securities and Exchange Commission. DATASOURCE: Pacel Corporation CONTACT: John Hopf of Wall Street Financial Network, LLC, +1-212-825-7500, or

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