• Also Unveils Plans For New Atlanta Facility

HOUSTON, TX – August 24, 1998 – Administaff Inc. (NYSE: ASF), a leading Professional Employer Organization (PEO), today announced the expansion and relocation of its Dallas operations center.

The new 40,000-square-foot service center, located in Irving, Texas, will handle payroll processing, benefits administration and other human resource services for Administaff clients around the country. The facility also will work in conjunction with the company’s other operations center, located in Houston, to provide mutual backup systems for ensuring business continuation in the event of an emergency, such as severe weather conditions.

"In line with Administaff’s national expansion program, the new, larger facility will eventually service approximately 40,000 worksite employees, doubling the center’s current capacity," said A. Steve Arizpe, Administaff’s executive vice president of client services.

Administaff also announced today that it has begun work on its third operations center, to be located in Atlanta and scheduled to open in the second quarter of 1999. "Our plan is to proceed with service center expansions and additions as needed to keep pace with the continuing growth of our client base," said Arizpe. "This is an important step in our efforts to deliver our comprehensive array of client services at a more regionalized level."

Administaff will host an open house at its new Dallas service center in mid-September. The event will coincide with National Payroll Week and will provide an opportunity for Administaff clients, vendors, local business leaders and others to visit the new center.

The address of Administaff’s new service center is 4600 Regent Blvd., Suite 100, Irving, Texas 75063; and the phone number is (972) 871-1875. The center was previously located nearby in the Millenium Center at 222 West Las Colinas Blvd., and the company’s three Dallas sales offices will continue operating from that location.

As one of the nation’s leading Professional Employer Organizations, Administaff 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. Administaff has 21 sales offices in 13 major markets and serves clients and worksite employees throughout the United States.

NOTE: The 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 expenses, which are described in further detail in the company’s filings with the Securities and Exchange Commission.