Exhibit 99.1

NEWS RELEASE

For Immediate Release

Contact:

William W. Sherertz

President and

Chief Executive Officer

Telephone:

(360) 828-0700

BBSI

ANNOUNCES FOURTH QUARTER 2006 OPERATING RESULTS,

FINANCIAL GUIDANCE FOR 1Q07 AND CONFERENCE CALL

VANCOUVER, WASHINGTON, February 8, 2007 - Barrett Business Services, Inc. (Nasdaq: BBSI) reported today net income of $5.2 million for the fourth quarter ended December 31, 2006, an improvement of $915,000 or 21.2% over net income of $4.3 million for the fourth quarter of 2005. Diluted earnings per share for the 2006 fourth quarter were $.45, as compared to diluted earnings per share of $.37 for the same quarter a year ago.

Net revenues for the fourth quarter ended December 31, 2006 totaled $66.8 million, an increase of approximately $8.8 million or 15.2% over the $58.0 million for the same quarter in 2005.

	(Unaudited)				(Unaudited)
	Fourth Quarter Ended				Year Ended
	December 31,				December 31,
Results of Operations	2006		2005		2006		2005
Revenues:
Staffing services	$	32,766	$	29,251	$	123,500	$	130,098
Professional employer service fees		34,055		28,712		135,684		101,291
Total revenues		66,821		57,963		259,184		231,389
Cost of revenues:
Direct payroll costs		24,849		21,864		92,676		97,006
Payroll taxes and benefits		20,079		16,238		83,756		63,889
Workers’ compensation		6,240		6,302		27,199		24,667
Total cost of revenues		51,168		44,404		203,631		185,562
Gross margin		15,653		13,559		55,553		45,827
Selling, general and administrative expenses		8,140		7,043		31,604		25,670
Depreciation and amortization		341		282		1,306		974
Income from operations		7,172		6,234		22,643		19,183
Other income, net		812		519		2,847		747
Income before taxes		7,984		6,753		25,490		19,930
Provision for income taxes		2,755		2,439		9,154		7,440
Net income	$	5,229	$	4,314	$	16,336	$	12,490
Basic earnings per share	$	.46	$	.39	$	1.46	$	1.29
Weighted average basic shares outstanding		11,251		11,018		11,194		9,647
Diluted earnings per share	$	.45	$	.37	$	1.40	$	1.21
Weighted average diluted shares outstanding	$	11,680	$	11,739	$	11,671	$	10,343

Barrett Business Services, Inc.

News Release – Fourth Quarter 2006

February 8, 2007

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 Company’s 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 Company’s business activity and more useful in managing its operations.

	(Unaudited)						(Unaudited)
	Fourth Quarter						Year Ended
(in thousands)	December 31,						December 31,
	2006			2005				2006		2005
Revenues:
Staffing services		$	32,766		$	29,251		$	123,500		$	130,098
Professional employer services			241,065			183,843			916,898			635,743
Total revenues			273,831			213,094			1,040,398			765,841
Cost of revenues:
Direct payroll costs			230,555			175,924			869,410			625,242
Payroll taxes and benefits			20,079			16,237			83,756			63,888
Workers’ compensation			7,544			7,374			31,679			30,884
Total cost of revenues			258,178			199,535			984,845			720,014
Gross margin		$	15,653		$	13,559		$	55,553		$	45,827

Gross revenues of $273.8 million for the fourth quarter ended December 31, 2006 rose 28.5% over the similar period in 2005. For the year ended December 31, 2006, gross revenues of $1.04 billion increased 35.9% over 2005.

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

For the fourth quarters ended December 31, 2006 and 2005 (in thousands):

	(Unaudited)
	Three Months Ended December 31,
	Gross Revenue										Net Revenue
	Reporting Method				Reclassification						Reporting Method
	2006		2005		2006			2005			2006		2005
Revenues:
Staffing services	$	32,766	$	29,251	$	—		$	—		$	32,766	$	29,251
Professional employer services		241,065		183,843		(207,010	)		(155,131	)		34,055		28,712
Total revenues	$	273,831	$	213,094	$	(207,010	)	$	(155,131	)	$	66,821	$	57,963
Cost of revenues:	$	258,178	$	199,535	$	(207,010	)	$	(155,131	)	$	51,168	$	44,404

Barrett Business Services, Inc.

News Release – Fourth Quarter 2006

February 8, 2007

For the years ended December 31, 2006 and 2005 (in thousands):

	(Unaudited) Year Ended December 31,
	Gross Revenue										Net Revenue
	Reporting Method				Reclassification						Reporting Method
	2006		2005		2006			2005			2006		2005
Revenues:
Staffing services	$	123,500	$	130,098	$	—		$	—		$	123,500	$	130,098
Professional employer services		916,898		635,743		(781,214	)		(534,452	)		135,684		101,291
Total revenues	$	1,040,398	$	765,841	$	(781,214	)	$	(534,452	)	$	259,184	$	231,389
Cost of revenues:	$	984,845	$	720,014	$	(781,214	)	$	(534,452	)	$	203,631	$	185,562

William W. Sherertz, President and Chief Executive Officer, commented: “We are pleased with another strong quarter and surpassing the $1 billion milestone in gross revenues for 2006.”

The following summarizes the unaudited consolidated balance sheets at December 31, 2006 and December 31, 2005.

Barrett Business Services, Inc.

News Release – Fourth Quarter 2006

February 8, 2007

	December 31,		December 31,
(in thousands)	2006		2005
Assets
Current assets:
Cash and cash equivalents	$	69,874	$	61,361
Marketable securities		3,159		3,548
Trade accounts receivable, net		31,328		26,328
Prepaid expenses and other		1,940		2,514
Deferred income taxes		4,699		5,864
Workers’ compensation receivables for insured claims		225		242
Total current assets		111,225		99,857
Marketable securities		406		396
Goodwill, net		27,536		22,516
Intangibles, net		75		5
Property, equipment and software, net		13,502		13,071
Restricted marketable securities and workers’ compensation deposits		2,616		2,041
Deferred income taxes		—		341
Other assets		2,143		1,528
Workers’ compensation receivables for insured claims		4,678		4,546
	$	162,181	$	144,301
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	1,545	$	1,366
Accrued payroll, payroll taxes and related benefits		33,372		28,650
Other accrued liabilities		516		360
Workers’ compensation claims liabilities		3,843		5,729
Workers’ compensation claims liabilities for insured claims		225		242
Safety incentives liabilities		7,519		7,687
Current portion of long-term debt		—		348
Total current liabilities		47,020		44,382
Long-term debt, net of current portion		—		1,094
Customer deposits		817		663
Long-term workers’ compensation claims liabilities		5,295		8,532
Long-term workers’ compensation liabilities for insured claims		3,011		2,866
Deferred income taxes		1,545		—
Deferred gain on sale and leaseback		793		914
Stockholders’ equity		103,700		85,850
	$	162,181	$	144,301

Outlook for First Quarter 2007

The Company also disclosed today limited financial guidance with respect to its operating results for the first quarter ending March 31, 2007. The Company expects gross revenues for the first quarter of 2007 to range from $260 million to $265 million, an increase of approximately 12%

Barrett Business Services, Inc.

News Release – Fourth Quarter 2006

February 8, 2007

over the first quarter of 2006, and anticipates diluted earnings per share for the first quarter of 2007 to range from $.13 to $.15 per share, an increase of approximately 17% over the $.12 per share for the same period a year ago. A reconciliation of estimated gross revenues to estimated GAAP net revenues for the first quarter of 2007 is not included because PEO revenues and cost of PEO revenues for the period are not reasonably estimable.

The company also announced that it has incorporated a wholly-owned fully licensed captive insurance company, effective January 1, 2007, which will participate in providing BBSI with excess workers’ compensation and other insurance coverages. Management expects the captive will provide opportunities to participate in more competitive and cost effective insurance markets and provide additional flexibility in risk management.

Conference Call

On February 9, 2007 at 9:00 a.m. Pacific Time, William W. Sherertz and Michael D. Mulholland will host an investor telephone conference call to discuss fourth quarter 2006 operating results. To participate in the call, dial (877) 356-3717. The call identification number is 8622054. 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 Friday, February 9, 2007 at 12:00 p.m. PT and ending on February 16, 2007. To listen to the recording, dial (800) 642-1687 and enter conference identification code 8622054.

Statements in this release about future events or performance, including earnings expectations for the first quarter of 2007, 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 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, collectibility of accounts receivable, and the use of $73 million in cash and marketable securities, among others. Other important factors that may affect the Company’s future prospects are described in the Company’s 2005 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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	BARRETT BUSINESS SERVICES, INC.
Dated: February 8, 2007	By:	/s/ Michael D. Mulholland
		Michael D. Mulholland Vice President – Finance