ADMINISTAFF EARNINGS TO BE LOWER THAN ANALYSTS' ESTIMATES

HOUSTON, TX – January 28, 1999 – Administaff, Inc. (NYSE: ASF), a leading Professional Employer Organization (PEO), today announced that it expects earnings for the fourth quarter and year ended Dec. 31, 1998, to fall short of analysts’ estimates due to lower than expected revenues in the fourth quarter. Although its 1998 results are not yet audited, the company expects to report fourth quarter diluted earnings per share of approximately $0.27 versus First Call estimates of $0.31. For the year, the company expects to report diluted earnings per share of approximately $0.62 versus First Call estimates of $0.67. For the year ended Dec. 31, 1997, the company reported diluted earnings per share of $0.53.

The company attributed the revenue shortfall to economic uncertainty within the small business community during the last few months of the year. This uncertainty was reflected in lower than expected increases in both year-end compensation of worksite employees and the number of worksite employees paid. The year-over-year increase in average payroll per worksite employee was 5.5% for the fourth quarter of 1998, down from 8.3% in the third quarter. The average number of worksite employees paid, while increasing 29% over the fourth quarter of 1997, was slightly lower than the 31% reported in the third quarter.

Paul Sarvadi, president and chief executive officer, commented, ?While we are disappointed with the overall results for the fourth quarter, the 29% increase in the number of worksite employees paid demonstrates the viability of our growth model. We remain committed to building our infrastructure and service capacity to support our long-term growth objectives."

Administaff will be hosting a conference call today at 9:00 a.m. EST to discuss the information contained in this release. To listen in, call 1-800-360-0001. The company expects to report final results as originally scheduled on February 24, 1999.

Administaff is one of the nation's leading Professional Employer Organizations, providing small- to medium-sized businesses with a comprehensive Personnel Management System that includes 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. The company currently has 23 offices in 14 major markets and serves clients and worksite employees throughout the United States.

(NOTE: The statements contained in this press release that 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 are: (i) regulatory and tax developments; (ii) changes in the company's direct costs and operating expenses; (iii) the effectiveness of the company's sales and marketing efforts, including its marketing agreement with American Express, American Express' ability to set qualified appointments and the company's ability to convert those appointments into sales; (iv) the estimated costs and effectiveness of capital projects and investments in technology and infrastructure; (v) changes in the competitive environment in the PEO industry; and (vi) the effectiveness and estimated costs of the company's Year 2000 conversion and contingency plans. These factors are described in further detail in the company's filings with the Securities and Exchange Commission.)