• National expansion program on pace toward 90 offices in 40 markets

HOUSTON, TX – September 1, 1998 – Administaff, Inc. (NYSE: ASF),  a leading Professional Employer Organization (PEO), today announced the expansion of its West Coast operations with the opening of its San Francisco Bay Area office, its 22^nd sales office nationwide. The office is located in San Mateo, between San Francisco and San Jose.

The opening of the San Francisco office is a continuation of Administaff's planned national expansion program and marks the achievement of the company’s goal of adding four new offices in 1998.

"Our entry into the Bay Area market represents an opportunity to provide our comprehensive Personnel Management System to the more than 40,000 small- and medium-sized businesses from Silicon Valley to San Francisco, Marin and the East Bay," said Paul J. Sarvadi, Administaff president and chief executive officer.

"As one of the largest metropolitan areas in the U.S. – and the epicenter of the world’s technology industry – the Bay Area represents the entrepreneurial business climate that is the best match for our services. As a business location, it is home to a highly skilled and technologically savvy workforce. A high quality of life coupled with an increasing demand for well-qualified employees makes the Bay Area a magnet for businesses and job candidates alike," Sarvadi said. "These factors make this an ideal location to further our West Coast operation, and the logical next move in our expansion program."

The San Francisco office expands Administaff's presence into 14 markets, including Atlanta, Austin, Charlotte, Chicago, Dallas, Denver, Houston, Los Angeles, Orlando, Phoenix, San Antonio, St. Louis, and Washington, DC. Its Bay Area presence marks Administaff's second West Coast market, complementing the company's Los Angeles operations.

The new office will be led by Greg Morton, who previously served as district manager for the company’s sales operations in Newport Beach, California. The address of the new office is 1825 South Grant Street, Suite 600, San Mateo, Calif., 94402; and the phone number is (650) 357-9930.

Administaff is one of the nation’s leading Professional Employer Organizations, providing 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 performance improvement services to small- and medium-sized businesses. Administaff has 22 offices in 14 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.