RCM Technologies Introduces Smart Shore; Offers Companies Multiple Global Outsourcing Options with U.S.-Based Management and Accountability

PENNSAUKEN, N.J.--July 27, 2004--RCM Technologies, Inc. (NNM:RCMT) has introduced Smart Shore(TM), a global information technology and business process outsourcing solution that integrates RCM's U.S.-based business acumen and on-site management with its broad range of national and international delivery capabilities.

Smart Shore allows clients to benefit from having their work performed at the most effective worldwide locations to fit their needs. Selection criteria, such as technical expertise, domain knowledge, project scheduling and cost effectiveness, are used to determine the best-suited domestic or international centers for clients' work to take place.

"The flexibility of Smart Shore enables RCM to customize solutions that address our clients' critical business needs," said Brian Delle Donne, chief operating officer for RCM Technologies. "With established development centers in the U.S., Canada, India and Eastern Europe, RCM works together with clients to select the locations that meet specific objectives, manages the project from end to end, and delivers the results clients expect."

Spending for global sourcing of computer software and services is expected to grow at a compound annual rate of almost 26 percent, increasing from approximately $10 billion in 2003 to $31 billion in 2008, according to a March 2004 study released by the Information Technology Association of America and Global Insights. Companies interviewed for the study cite cost savings, software quality, access to global markets and talent, and labor productivity gains as the primary reasons for outsourcing. The study further reports that the potential cost savings companies will realize by the projected spending amount in 2008 is almost $21 billion.

"Smart Shore is about smart business. Companies can realize the advantages of global outsourcing, such as lower costs, deep technical knowledge and accelerated speed to market, without taking on the risk and complexities of managing the process. With Smart Shore, our clients know that their outsourced projects will be rigorously managed from start to finish, ensuring that they receive real business value," Delle Donne said.

RCM's local project managers and analysts work at the client site throughout the project lifecycle to accurately capture business requirements, interpret client nuances in project definition and set expectations for successful completion. Disciplined quality delivery standards, such as SEI-CMM Level 5, ISO 9001:2000 and CQSA, are applied to every project to further mitigate risks and provide assurances for successful outcomes.

About RCM

RCM Technologies, Inc. is a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of information technology and engineering services. RCM is an innovative leader in the design, development and delivery of these solutions to commercial and government sectors for more than 30 years. RCM's offices are located in major metropolitan centers throughout North America. Additional information can be found at www.rcmt.com.

The Statements contained in this release that are not purely historical are forward-looking statements within the Private Securities Litigation Reform Act of 1995 and are subject to various risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. Forward looking statements include, but are not limited to, those relating to demand for the Company's services, expected demand for our services and expectations regarding our revenues, the Company's ability to continue to utilize goodwill, to continue to increase gross margins, to achieve and manage growth, to develop and market new applications and services, risks relating to the acquisition and integration of acquired businesses, demand for new services and applications, timing of demand for services, industry strength and competition and general economic factors. Investors are directed to consider such risks, uncertainties and other factors described in documents filed by the Company with the Securities and Exchange Commission.