ADMINISTAFF PURCHASES SHARES OF COMMON STOCK FOLLOWING WARRANT EXERCISE

HOUSTON, TX — January 12, 1998 — Administaff, Inc. (NYSE:ASF), a leading Professional Employer Organization (PEO), today announced that it has purchased 140,508 shares of common stock from Rauscher Pierce Refsnes, Inc. (now known as Dain Rauscher) for a total cost of approximately $2.9 million. The shares, which were issued to Dain Rauscher as a result of the exercise of warrants originally issued in 1994, will become treasury shares and be used for general corporate purposes. The net payment to Dain Rauscher after deducting warrant exercise costs was approximately $2.3 million.

Administaff is one of the nation’s leading PEOs, providing a comprehensive Personnel Management System that encompasses a broad range of services, including benefits and payroll administration, medical and workers’ compensation programs, personnel records management, liability management, recruiting and selection, performance management, and training and development services to small- to medium-sized businesses. The Company serves over 1,900 small business clients with approximately 30,000 worksite employees.