ADMINISTAFF DIRECTORS APPROVE STOCK REPURCHASE OF UP TO ONE MILLION SHARES

HOUSTON, TX –January 28, 1999 – Administaff, Inc. (NYSE: ASF), a leading Professional Employer Organization (PEO), today announced that the Board of Directors has authorized a program to repurchase up to one million shares of the company’s outstanding common stock. The purchases are to be made from time to time in the open market or directly from shareholders at prevailing market prices based upon market conditions and other factors. As of December 31, 1998, the company had over $70 million in cash, cash equivalents and marketable securities, and no long-term debt.

Richard G. Rawson, executive vice president and chief financial officer, said, "We are pleased that the Board has chosen to support a share repurchase program which affirms Administaff’s strong financial position and our belief that our shares are significantly undervalued relative to our business model and long-term growth prospects."

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.)