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ADMINISTAFF ANNOUNCES PREFERRED PURCHASING AGREEMENT WITH DELL 

  • Agreement delivers Dell's price/performance leadership to Administaff's small and medium-sized business clients

HOUSTON, TX – April 16, 1998 – Administaff, Inc., a leading Professional Employer Organization (PEO), today announced a preferred purchasing agreement with Dell Computer Corporation that delivers Dell's price/performance leadership to all of Administaff's small and medium-sized business clients, as well as its corporate and worksite employees. The discount applies to various Dell products and services.

``This agreement enables our Company and our clients to access leading-edge technology in a cost effective and efficient manner,'' said Paul J. Sarvadi, Administaff President and Chief Executive Officer. ``We will continue seeking to align our Company with industry leaders that can provide our clients with value-added products and services.''

John Kinnaird, Group Vice President of Dell's Preferred Accounts Division commented, ``The agreement announced today is an extension of Dell's strong and ongoing commitment to serving the needs of medium-sized businesses. We make it easy and efficient to deal directly with the manufacturer.''

As part of the purchasing agreement with Dell, Administaff has its own personalized site on Dell's Premier Pages(SM), a popular Internet service that Administaff clients and employees can access via the Administaff homepage using a secure connection. Premier Pages(SM) was originally created by Dell for its biggest corporate, government and education customers, enabling them to purchase computers online, track orders, create custom reports and view their Dell Systems' purchase and service history. Administaff's clients can also access Dell's services by calling a toll-free number provided by their client service representative.

``Our agreement with Dell once again demonstrates how the PEO industry can serve as an effective gateway to the small and medium-sized business community,'' said Jerald Broussard, Administaff's Senior Vice President of Business Development. ``It also reaffirms and strengthens Administaff's leadership position within the industry.''

Ranked in the top 200 of Fortune 500(R) companies, Dell Computer Corporation is the world's leading direct computer systems company, based on revenues of $12 billion for the past four quarters. Dell designs and customizes products and services to end-user requirements, and offers an extensive selection of peripherals and software through the DellWare(R) program. Information on Dell and its products can be obtained through its toll-free number 1-800-388-8542 or by accessing the Dell World Wide Web server at www.dell.com .

Administaff had 1997 revenues of $1.2 billion. As one of the nation's leading PEOs, the Company provides a comprehensive Personnel Management System that encompasses a broad range of services, including benefits and payroll administration, medical and workers' compensation insurance programs, personnel records management, employer liability management, employee recruiting and selection, performance management, and training and development services to small and medium-sized businesses. The Company has 20 offices in 12 major markets and serves clients and worksite employees throughout the United States.

NOTE: These statements contained in this press release which are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Therefore, the actual results of future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially include regulatory and tax developments, competitive activities and increases in direct costs and operating expense, which are described in further detail in the Company's filings with the Securities and Exchange Commission.