Hall Kinion & Associates (HAKI) 8-K Hall Kinion Announces 2002 Fourth Quarter and Year-end

Exhibit 99.1

Press Release

FOR IMMEDIATE RELEASE

Contact:

At Hall, Kinion & Associates, Inc.

Investor Contact:

Martin Kropelnicki

Vice President & CFO (415) 895-2200

HALL KINION ANNOUNCES 2002 FOURTH QUARTER AND YEAR-END

FINANCIAL RESULTS

Novato, CA—February 4, 2003—Hall, Kinion & Associates, Inc. (NASDAQ: HAKI), The Talent Source^™, announced today financial results for the fourth quarter and year ended December 29, 2002.

For the fourth quarter of 2002, net revenues were $39.2 million, compared with net revenues of $28.5 million in the fourth quarter of 2001. Gross profit for the fourth quarter of 2002 was $12.0 million or 30.6% of net revenues, versus $10.2 million or 35.8% of net revenues, for the fourth quarter of 2001. The fourth quarter of 2002 net loss was $1.8 million, or a loss of $0.14 per share versus a net loss of $14.5 million, or a loss of $1.12 per share, for the fourth quarter of 2001. Included in the fourth quarter 2002 results were costs of $0.9 million associated with the relocation of Corporate Headquarters, net of sublease income from other vacated facilities.

For the year ended December 29, 2002, net revenues were $120.4 million, compared with net revenues of $173.8 million for the year ended December 30, 2001. Gross profit for fiscal year 2002 was $39.7 million or 32.9% of net revenues, versus $73.0 million or 41.9% of net revenues, for fiscal year 2001. Net loss for fiscal year 2002 was $4.8 million, or a loss of $0.37 per share compared with a net loss of $45.6 million, or a loss of $3.48 per share, for fiscal year 2001.

“During the fourth quarter there was a softening in the technology industry and a drop in the average number of hours worked by our contractors,” stated Brenda Rhodes, Chairman and CEO. “In addition, several of our Technology Division’s clients either closed or worked reduced hours during the holidays,” Rhodes added.

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Hall, Kinion & Associates, Inc.

February 4, 2003/Page 2

“Our results for year 2002 include five months of our OnStaff operations. Thus far, OnStaff has exceeded our expectations and was a key milestone in our diversification and specialization strategy. We will continue to expand our niche approach to serve clients’ needs and capitalize on Hall Kinion’s core strength of providing specialty professionals in high demand markets. In addition to our successful relocation of our corporate offices during the quarter, we initiated the integration of OnStaff’s back office. Both of these projects should bring additional cost savings to our operations. Going forward, management will continue to look for ways to streamline operations and maximize productivity,” stated Ms. Rhodes.

Hall, Kinion & Associates will hold a conference call concerning this announcement on Tuesday, February 4, 2003. The conference call will begin at 8:00 a.m. PST/ 11:00 a.m. EST and will last for approximately one hour. Please dial (703) 871-3073 or (877) 282-0743 at least five minutes prior to the start time to participate on the call. Investors have the opportunity to listen to the conference call live on the Internet at the Company’s web site athttp://www.hallkinion.com. Investors should go to the web site a few minutes early, as it may be necessary to download audio software to hear the conference call. A replay of the conference call will be available through the company’s Web site for 90 days or via phone at (703) 925-2533 or (888) 266-2081, passcode #6387705 through February 18, 2003.

About Hall Kinion & Associates

Hall Kinion & Associates, Inc., The Talent Source^™ for specialized professionals, delivers world-class talent on a contract and full-time basis to high-demand sectors around the globe. The company finds, evaluates and places professional talent in more than 15 critical industries including: Technology, Government and Energy. Founded in 1991, Hall Kinion’s client list includes many of the world’s most prominent technology innovators such as Compaq, AT&T Wireless and IBM. The company currently operates in the United States and abroad. Hall Kinion’s Web site address ishttp://www.hallkinion.com.

About OnStaff

OnStaff^®, a premier national specialty staffing company, places temporary and full-time employees in Real Estate, Finance and Healthcare industries. The company operates three specialized staffing divisions: TitleTemps, Finance & Accounting, and Healthcare. OnStaff also has two online recruiting and placement websites: TheBoardNetwork.com and MediCenter.com. OnStaff’s Web site address ishttp://www.OnStaff.com.

FINANCIAL TABLES FOLLOW

Hall Kinion Associates Announces Results for 2002

February 4, 2003 / Page 4

Hall, Kinion & Associates, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	Dec. 29,			Dec. 30,
	2002			2001
Current Assets:
Cash and cash equivalents	$	8,571		$	15,488
Investments		—			8,200
Accounts receivable, net		17,804			12,705
Prepaid expenses and other current assets		2,704			5,706
Income taxes receivable		—			7,664
Deferred income taxes		3,935			5,166
Total current assets		33,014			54,929
Property and equipment, net		7,511			8,798
Goodwill, net		26,927			15,478
Intangible and other assets, net		11,636			—
Deferred income taxes		10,835			10,254
Total assets	$	89,923		$	89,459
Liabilities and stockholders’ equity
Current Liabilities:
Accounts payable and accrued expenses	$	15,688		$	18,208
Long-term debt and other non-current obligations		15,051			6,470
Total liabilities		30,739			24,678
Stockholders’ Equity:
Common stock		85,036			85,804
Stockholders’ note receivable		(800	)		(1,200	)
Other comprehensive loss		(501	)		(105	)
Accumulated deficit		(24,551	)		(19,718	)
Total stockholders’ equity		59,184			64,781
Total liabilities and stockholders’ equity	$	89,923		$	89,459

Hall, Kinion Associates Announces Results for 2002

February 4, 2003 / Page 3

Hall, Kinion & Associates, Inc.

Condensed Consolidated Income Statements

(in thousands)

(unaudited)

	Three Months Ended						Twelve Months Ended
	Dec. 29, 2002			Dec. 30, 2001			Dec. 29, 2002			Dec. 30, 2001
Net revenues:
Contract services	$	38,377		$	26,489		$	115,644		$	149,515
Permanent placement		779			2,056			4,784			24,321
Total net revenues		39,156			28,545			120,428			173,836
Cost of contract services		27,190			18,323			80,744			100,834
Gross profit		11,966			10,222			39,684			73,002
Operating expenses:
Operating expenses		13,906			20,652			47,407			96,820
Impairment of long lived assets		—			—			—			26,736
Restructuring costs		870			11,623			(6	)		17,048
Total operating expenses		14,776			32,275			47,401			140,604
Loss from operations		(2,810	)		(22,053	)		(7,717	)		(67,602	)
Other income/(expense), net		(53	)		181			225			1,182
Income taxes (benefit)		(1,026	)		(7,332	)		(2,660	)		(20,808	)
Net (loss)	$	(1,837	)	$	(14,540	)	$	(4,832	)	$	(45,612	)
Net (loss) per share:
Basic	$	(0.14	)	$	(1.12	)	$	(0.37	)	$	(3.48	)
Diluted	$	(0.14	)	$	(1.12	)	$	(0.37	)	$	(3.48	)
Shares used in per share calculations:
Shares Outstanding—Basic		12,681			12,946			13,123			13,121
Shares Outstanding—Diluted		12,681			12,946			13,123			13,121