Employment Screening Overview

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October 2009

Established in 1975 – New York HQ - #1 Privately Owned BGS Corporation

$75 Million in Revenue in 2008

96% client retention rate

Over 6,000,000 transactions annually

450+ Employees, including a global network of researchers and verifiers

Lean Six Sigma Process Orientation

International Organization for Standardization (ISO) Certification 9001:2000

Safe Harbor Certified

SiteSecure Certified by Cybertrust

Company Overview

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Rock solid financials and

33 years of continued

growth has fueled

improvement of solutions

and the best retention

rate of any employment

screening firm - all

organically.

The Sterling Difference

Top Privately Held Company in Industry

Sterling’s Lean Six Sigma processes, commitment to operational excellence and technology focus have earned the company industry wide recognition and #1 ranking:

INC 5000 – Fastest Growing Companies 2007 and 2008 InfoWorld – Top 10 of 100 Best IT Projects of 2007 Deloitte & Touche USA LLP – Technology FAST 500 – Fastest Growing Technology Companies in North America Ernst & Young – Entrepreneur of the Year – CEO, William Greenblatt - 2006

Superior Support Delivery

High Tech combined with High Touch

Streamlined operations

Committed service representatives

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Our Future partnership commitment to our customers

Continued focus and improvement in our delivery organization; Lean Six Sigma orientation

Leverage Sterling IT capabilities to further streamline background screening processes

Increased exposure to Sterling’s cross-functional Customer Service team; consistency in Account Manager relationship

Participate in joint analysis of all areas of business to eliminate multiple touch points

Continue charter communication and project plan of all supply chains to bgs to parameters of SIS customers.

Greater Value; Lower Investment

QualityQuality

CapabilitiesCapabilities

Customer ServiceCustomer Service

‘‘Paperless’ / ‘Light Paperless’ / ‘Light Touch’ Handling Touch’ Handling Program DesignsProgram Designs

Extended Workforce Extended Workforce ManagementManagement

ValueValue

4The best indicator of Future behavior is past behavior

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Scope of ServicesScope of Services

Sterling’s operating model is designed to satisfy the customer’s ‘hierarchy of needs’ for successful delivery of

products and services

On-time, quality implementations to enable processing of applicants or employees

Timely order processing; quality gates and monitoring to ensure accuracy

Easy access to order status and other inquiries; ownership of issues to resolution

Proactive reviews of account status; client advocacy and knowledge sharing

Collaboration to support long-term business needs; joint product development and process re-engineering

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CourtDirect: The Future of Criminal Record Searches - Today

What CourtDirect means:

Information retrieved “instantly” First-party felony/misdemeanor

criminal record information Maximize accuracy by eliminating

data entry errors Cost control Faster Turn Around Time (TAT)

What it is:

CourtDirect is a proprietary criminal record search system that builds electronic “pipes” directly into court record repositories

Sterling has integrated with 43% of all court jurisdictions

65% of Sterling criminal searches are done through CourtDirect.

Searches performed through CourtDirect have an average TAT of 5.2 hours versus external researcher average TAT of 37.5 hours

Sterling will continue to integrate with court systems as they become available.

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CourtDirect minimizes impacts related to unexpected as well as expected Turnaround time (TAT) delays

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Place Order

Auto Distributed Research performedResults sent forQuality Control65% Automated35% Research Based

FCRA/Special care

rules applied

Order closed

Deliver

Results

Sterling Crim Dept reviews

open requests every two hours

Orders with expired

ETAs are expedited

Crim dept identifies cause of

delay

Crim dept Inform CS of

any significant

Delays

Process Metrics ComplianceQualityServices

Alert posted on Sterling’s Website

Alert posted in Sterling Direct and viewable

upon recruiter login

Blast email sent to all

clients

State County Average Turnaround

Time

CA Los Angeles 5.48 Hours

NY State of NY 8.85 Hours

PA Montgomery 2.55 Hours

TX Harris 9.88 Hours

VA Fairfax 8.53 Hours

Sterling has processed international screenings for over 300 clients in approximately 50 countries in 2009

Albania, Australia, Bahamas, Belarus, Belgium, Bermuda, Brazil,Canada, Chile, China, Columbia, Costa Rica, Cyprus, Denmark,

England, Finland, France, Germany, Greece, Guam, Holland, Hong Kong, India, Ireland, Israel, Italy, Jamaica, Japan, Kuwait, Lebanon, Luxembourg, Malawi, Malaysia, Mexico, Monaco, Netherlands, New Zealand, Pakistan, Peru, Philippines, Romania, Russia, Scotland,

South Africa, South Korea, Sweden, Switzerland, Taiwan, Tanzania, Thailand, Tortola, Turkey, United Arab Emirates, United Kingdom,

Uruguay, Venezuela, Virgin Islands

Sterling’s international footprint includes coverage in over 160 countries as well as representation from world renowned legal counsel representing 30 countries and regions.

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Scope Includes: Pre-employment Random Post-Accident Reasonable Suspicion Follow-Up Return-To-Duty

Urine * Oral Fluid * Hair Blood Breath

DOT and Non-DOT Drug Program Administration

Methods Include:

* Instant and lab-based testing solutions available

Occupational Health Strategic Relationships

* In-network collection site partners

Labcorp* Quest* CRL MedTox Psychemedics

Orasure TrueNorth eScreen Concentra US Healthworks EMSI

Drug & Alcohol Testing Services

Drug & Alcohol Testing Services

Urine Drug Screen Turnaround Times• Next day for majority of negative results• Two to four days for non-negative results

Our Facilities• Over 3,300 in-network sites• Strictly adhere to DHHS/SAMHSA and DOT requirements• Electronic Drug Testing enabled

Convenience• Online site locator• Online results through Sterling Direct and via email• All results and information maintained electronically• One point of contact for results, supplies, bills, support• Consolidated billing for entire program

Sterling’s Occupational Health Services process supports various options for a well-designed donor experience

Confirm Medical

explanation of positive

Obtain faxed Rx info from

donor

Verify Rx with

pharmacy or doctor

MRO releases

data based on

review

eChain

eScreen

Paper CCF

Method of Test Initiation of Test• MRO team conducts interview

with donors for non negative results

Deliver completed Drug Results

Results Review

Customer registers donor online – donor proceeds to collection site for testing

Customer registers donor online or conducts onsite collection using eScreen equipment

Customer provides paper CCF to donor – donor proceeds to collection site for testing

• MRO conduct interviews where required

• All DOT neg and non-neg CCFs reviewed as per regulations

TAT: 27 hours on Average*

*From time of specimen collection to the time of results report

Contact applicant for medical review if needed

• Non-DOT negative results – Sterling’s system auto closes and deliver results to Customer

Safety-Sensitive Employees & Random Testing• All DOT Modes: FMCSA (49 CFR Part 382), FRA (49 CFR Part 199), FTA (49 CFR

Part 655), FAA (14 CFR Part 121), PHMSA (49 CFR Part 199), USCG (46 CFR Parts 4, 16)

Compliance Planning Compliance Reporting Compliance Support

• Policy Development & Review• Employee Training (onsite and online)• Mock Substance Abuse Test Auditing

DOT Physical Examinations• Certification required for CDL holders

Additional Requirements• Driver Qualification Files to be maintained for drivers• Driver Logs (Hours of Service) to be prepared and evaluated for drivers

DOT Compliance

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Monthly analysis and presentation of performance against year-end target

Compliance Reporting

Electronic I-9 & E-Verify

On-line, Automated I-9 / E-Verify Ensure your I-9 Forms are compliant and error-free through our

electronic error-detecting system. Mitigate the potential for losing valued employees with our

Management Alerts sent 90, 60 and 30-days prior to the expiration of work authorization documents.

Reduce storage, retrieval and labor costs associated with maintaining hard copies of I-9 Forms.

Streamline your I-9 processing with our electronic storage and retrieval solutions, providing anytime, anywhere, secure paperless access for the updating, re-verification, management reporting and timely response to governmental audits as dictated by law.

Stabilize your workforce and eliminate the potential for disruptive and costly turnover created by the mandatory removal of legally unauthorized employees.

Decrease your chances of attracting legally unauthorized candidates by acknowledging your participation in E-Verify.

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Service LevelsService Levels

Social Security Trace

Criminal Conviction History Search

National Criminal Database

Credit History Reports

Motor Vehicle Reports

Employment / Education Verifications

OFAC

Professional License / Credential Verifications

Drug Testing

Less than 5 Minutes

Average 13 Hours

Less than 5 Minutes

Less than 3 minutes

Same day – 24 hours

24 - 72 Hours

Same Day – 24 hours

24 - 72 Hours

Negatives – Next Day

Standard Service Average Turnaround Times

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Additional Screening & Ancillary Services

International Screening (Worldwide)

HRIS & ATS Integrations

Adverse Action Letter Automation

Adjudication Services

Military Verification

Targeted Tax Credits

Workers Compensation Search

Skill Assessment

DOT Regulated Screening Services

On Staff Medical Review Officers

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Service Transparency: Results Delivery

Email Result Notification Format: PDF, HTML, RTF, Text Recipient: customizable based on client preferences; can be sent to self, email group, and / or

designated user Full Order Notifications:

- Notification is sent out via email upon the completion of all services under that order. Piecemeal Notifications:

- Notification for individual services can be sent out via email upon completion. Customized Email Notification:

- A customized email will be sent to designated individual (s) stating that the order has been completed, and can now be viewed on Sterling Direct; a link is provided to log into the Sterling Direct system.

Online Viewing Through Sterling Direct all users will have the ability to review results online based upon their

respective viewing rights.. The account can be set up so that if requested, no email notifications are sent upon completion

of service and / or order.

Service Transparency: Invoice Processes / Billing

Invoicing Procedure Invoices can be sent either on a monthly or semi-monthly basis Clients can be invoiced by email, postal mail, or credit card Recipients:

- Based off preferences of the client- Centralized or de-centralized billing contacts?

Invoice Format Cover Invoice Sorted by Search Type Statement Invoice: all orders processed on a semi-monthly basis Cover Invoice Sorted by Cost Center* Standard Invoice: one invoice per web order

*Cost Centers: cost centers can be identified per order based on the preference of the client

Invoicing By Cost Center/Division or Location

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Systems CapabilitiesSystems Capabilities

Proven ATS/HRIS Integration Solutions

Request (data in) XML HR-XML CSV/TXT

Result (data out) XML HR-XML E-mail Notification Custom Reports

Secure Data Exchange SOAP over Web Services HTTPS FTPS

Integrated with Top 10 in the Gartner E-Recruitment Magic Quadrant including: Accio (Sterling Student) ADP VirtualEdge Aon BrassRing (Kenexa) Ceridian Recruiting Solutions Cytiva SonicRecruit Deploy Solutions (Kronos) ERC Dataplus HRsmart PositionManager iCIMS Jobscience Kenexa Knowbase Lawson eRecruiting Oracle iRecruitment Oracle PeopleSoft Peopleclick Silkroad OpenHire Taleo Enterprise Ultimate Software UltiPro Unicru (Kronos) Vurv Corporate Edition

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Sterling Direct 2.1 Order Management System

Offers a consistent platform for all your locationsto work from in a secure environment

New Look & Feel; Easier to Use• Improved navigation• Easier to place orders• Enhanced search capabilities

Makes You More Productive• Faster Performance & Increased

Stability• New ‘My Orders” Dashboard• “At a Glance” Order Status / Alerts• Candidate Invites

Ordering By Cost Center/Division or Location

The detailed results show the information provided to initiate the background check:

…the summary of results:

Alerts / Notifications / Adjudication

Reports Structure Results can be reviewed through

Sterling Direct View on Screen and/or Print

Basic Report Subject Profile Results Status

- Provides a quick overview of Services Run and Findings (Alerts)

Criminal Results- Report

Optional Services (If Applicable)- Report

SS Trace Results- Report

How is Electronic Drug Testing conducted?• Sterling sets up an online account with vendor and provides training• Customers register applicants/employees by logging on vendor website• CCFs are printed at collection site when applicant/employee completes collection

Advantages• Cost savings related to chain of custody shipments and maintenance• Decreases error rate and delays associated with manual processing• Employee/Applicant tracking functionality online

Disadvantages• Only permitted for Non-DOT drug testing• Clinic of the vendor must be utilized for collection• Double sign in for customers (SD & Vendor site)

Labcorp (eChain)• 1,000 + PSCs are enabled• Preferred 3rd Parties expected to follow

Quest (eReq)• 750 + preferred 3rd Parties and PSCs enabled

eScreen• More than 1,700 in-network clinics enabled

Electronic Drug Testing Services

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ReportingReporting

Metrics & Reports

24/7 access to all reports

Extensive, Fully Customizable Options for Screening Results, Turnaround Times, Statistics, Costs, & More

User-specified Reporting Periods

User-specified Security Options

Turnaround Time Reports

Executive Summary Reports

Ad-hoc Reports

Permanent Archiving of All Results

Flexible & Customizable Options to Meet RIM’S Needs

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Sterling Management Reports assist management team with a detailed analysis to measure time to hire as well as the quality of its applicant pool.

Criminal Statistics Detailed Report gives you a summary as well as a detailed review by unique identifiers of all requests, categorized by results, defined as clear, arrest or conviction

Request List Report allows insight into the services ordered by users and the status of each order

Executive Summary allows a summary of the total number of requests by service for a specific timeframe, as well as the number of applicants convicted of a crime.

Turn Around Time Report measures processing time by % of closed orders by a defined time, allowing for accurate forecasting of new hires

Metrics & Reports: Flexible & Customizable to Each Customer’s Needs – Usage & Cost

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At a GlanceCriminal Record Search Summary and Detail

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Account ManagementAccount Management

Sterling’s Account management and Client service teams has enhancedour relationship through the availability of a cross-functional team dedicated to meeting all of our Clients on-going needs.

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Account Manager Account related strategic initiatives Best practice recommendations

Client Services Support Team Questions regarding order results or status General inquiries

Implementation and IT Integration Continued investment in system upgrades Project management for new

implementations / IT integrations

Enterprise Business Transformation Six Sigma team provides best practice

guidance to maximize Accuracy and reduce Turn-Around Time

Executive Sponsor Participates in projects aimed at service

enhancement Champions client partnerships within

Sterling

Sterling is able to real-time monitor and reportmetrics for all calls and emails completed

by the Cell’s representatives.

The Sterling Account Support Cellular Structure enables our customers to easily reach their dedicated team quickly while being provided with

the highest quality and first call resolution

In addition to your dedicated Business Relationship representative Cross-trained team of Client Service Executives

and Cell Leaders is available today

Available via phone and email Customer Phone Code is 00000 clientservices@sterlinginfosystems.com

Speed of Answer 9 sec

Abandon Rate 1.1%

First Call Resolution 98%

Email Response Time 1.35 hr

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Our customers’ satisfaction with our products and services is measured by tools such as Metrix

Matrix, which guide efforts to continually improve the customer experience.

Wastes or defects identified by Metrix Matrix are eliminated through the use of Lean Six Sigma tools such as FMEAs and Failure/Constraint Analysis that drive “Zero Waste Product

Quality” to deliver the best experience possible for our customers.

Sample of questions from the Metrix Matrix survey

How would you rate your overall satisfaction with this particular order?

On a scale of 1 to 10, how valuable was the report in the making of your hiring decision?

What would have made the report more valuable?

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Long-term systemic health of the relationship between Sterling and our Customers is centered around Account

Management’s use of customer relationship tools such as Loyalty Pro

Results are integrated into our Account Review and Relationship Management processes

Results reviewed with Sterling’s Executive Committee to provide visibility into customer priorities

Our Process: Account Reviews

LoyaltyLoyalty

Overall ExperienceOverall Experience

Future NeedsFuture Needs

VOCVOC

Our Goal: Passionate Customer Advocacy

Tools such as Loyalty Pro ask questions concerning advocacy, value add, level of service, effectiveness of the account team, willingness refer, as well as provide insight into how

Sterling can assist the customer in the future.

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Jackson Lewis LLP Partnership

Deferred Adjudication ProjectWorking on state-by-state listDelivered in next 60 days

Complimentary FCRA Webinar

Collaborative discovery projectDetermine root causes of why/how candidates fall into specific ratings guidelines

Jackson Lewis LLP Partnership:

Online Risk Management HelplineAccessible through Sterling’s websiteResponses to inquiries within 24 hours

Updated Reference LibraryReview Client Documents and otherCollateral to ensure FCRA ComplianceAdvise of Statutory Changes / Case LawQuarterly Seminars

Previous topics include: “Increased Issue Awareness in Support of Corporate Governance, Risk & Compliance Programs”, “Electronic I-9 Processing & Verification” and “Growing a Qualified & Performing Workforce in Today’s Challenging Economic Environment”.

CyberTrust Certified Routine Reviews of Security & Network Infrastructure

Redundancy Data Replication and Redundant Web servers Geographic Diversity + Site Managed by Level3 Dual High-Availability VoIP Core Systems

Enhancing Disaster Recovery to Achieve Seamless Business Continuity Core production Migration to Internap Site (in NYC) Enhancement of Asynchronous Data Availability Dual Local Redundancies + Scaling & Performance

Leveraging Enhanced Remote Workforce Support CITRIX environment + New Applications for “Portable” Business Continuity

Technology Stack enables complete Business Continuity on a Roaming-basis

Robust, Scalable & Adaptable Technology

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SummarySummary

Sterling leverages over 34 years experience in background screening to enhance value proposition to customers through tailored solutions and sophisticated

customer support thereby winning outside recognition.

Solid Track Record•Amongst the largest privately-held company in the industry

•Same ownership since inception

•33 out of 34 years of continuous organic growth

• 96% client retention rate

“High-Touch” Relationship Model•Committed service representatives for program oversight

•Lean six-sigma consultants for continued process improvement

•Unique Sterling Client codes for automated telephonic routing

•Real time data regarding response time, abandon rate and first contact resolution

Recognition/Awards•INC 5000- Fastest growing companies 2007 and 2008

•InfoWorld- Top 10 of 100 Best IT Projects of 2007

•Deloitte & Touche USA LLP- Technology FAST 500- Fastest growing technology Companies in North America

•Ernst & Young- Entrepreneur of the year- CEO William Greenblatt- 2006

Customized Solutions•Industry specific solutions, e.g. contractor management intelligence

•Tailored adjudication protocols to decrease time to hire

•Customized reporting and notifications allowing management to make accurate hiring decisions; customized invoicing options