Class Action Against SOURCECORP Incorporated by Law Firm of Schiffrin and Barroway LLP

The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:

The deadline to move the court to serve as Lead Plaintiff in the class action lawsuit filed on behalf of all securities purchasers of the SOURCECORP Incorporated (NASDAQ: SRCPE) ("SOURCECORP" or the "Company") is January 3, 2005. The class period for this case runs from May 7, 2003 through October 26, 2004 inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J. Check, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.

The complaint charges SOURCECORP, Ed H. Bowman, Jr. and Barry L. Edwards with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company had materially overstated its net income and earnings per share; (2) that defendants prematurely recognized revenue in its Information Management and Distribution Division; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (5) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times.

On October 27, 2004, SOURCECORP announced that based on information provided by, and the recommendation of, corporate management, the Company's Audit Committee concluded on October 25, 2004 that the Company's previously issued financial statements and related independent auditors' report for the year ended December 31, 2003, as well as its previously issued financial statements for the 2004 quarterly periods ended March 31, 2004 and June 30, 2004, should no longer be relied upon. The Company, under the guidance of the Audit Committee, had initiated an investigation of the financial results of one of the Company's operating subsidiaries in the Information Management Division of the Company's Information Management and Distribution reportable segment. Following this announcement, shares of SOURCECORP fell $6.59 per share, or 29.67 percent.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com

If you are a member of the class described above, you may, not later than January 3, 2005 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.

CONTACT:
Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Darren J. Check, Esq.
Three Bala Plaza East, Suite 400
Bala Cynwyd, PA 19004
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com