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ADMINISTAFF AND LUMINANT WORLDWIDE ANNOUNCE STRATEGIC
ALLIANCE
HOUSTON Nov. 3, 1999 Administaff,
Inc. (NYSE: ASF), a leading Professional Employer Organization (PEO),
and Luminant Worldwide Corporation (Nasdaq: LUMT), a leading provider
of Internet and electronic professional services, today announced
a three-year Strategic Alliance and Services Agreement. Under the
terms of the agreement, each company will provide its basic services
to the other, and both will serve as test sites for refining new
service delivery models.
Administaff will provide comprehensive
PEO services to Luminant and all of its worksite employees. Luminant
expects to employ an average of 1,000 worksite employees in the
first year of the agreement, increasing to an average of 2,000 worksite
employees in the third year of the agreement. Administaff and Luminant
will work together to refine Administaffs service model for
clients with more than 500 employees. Currently, Administaff provides
PEO services to approximately half of Luminants 750 employees.
As a strategic Internet professional
services partner, Luminant will provide Administaff with a broad
range of eBusiness consulting services, including strategic planning,
development and implementation of Administaffs aggressive
eService and eCommerce strategies. Administaff estimates it will
incur costs of approximately $3 million in each of the first two
years of the contract, and $4 million in the third year. Additionally,
Administaff will work with Luminant to refine the development of
Luminants full-service clientele model. Currently, Luminant
is providing a variety of consulting and development services to
Administaff.
"We are excited to be entering
into a long-term relationship with a valued client and services
provider," said Paul J. Sarvadi, Administaff president and
chief executive officer. "This relationship provides both companies
with a significant revenue opportunity and a cost-effective way
to meet critical internal needs."
A. Steve Arizpe, Administaffs
executive vice president of client services, said, "This alliance
allows us to more fully develop our service model for larger clients
by working closely with a trusted business partner. The development
of this model should enhance our ability to satisfy and retain clients
that grow beyond our typical client with 10 to 100 employees."
Gil Marmol, Luminants
chief executive officer, commented, "We are pleased to have
the opportunity to elevate our relationship and become a strategic
partner. Administaffs services will further our own integration
efforts as we build Luminant for the future. I am also confident
that our capabilities will be a positive factor in the execution
of Administaffs aggressive eCommerce initiatives."
Administaff Background
Administaff provides small
and 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. With 1998 revenues of $1.7 billion, Administaff ranks
number 765 on the Fortune 1000 list. The company also has been named
in 1999 to Fortune magazines list of "Americas
Most Admired Companies," the Forbes Platinum 400 list of the
best-performing big companies in the U.S., and the InformationWeek
500 list as one of the top users of information technology. The
company currently has 25 offices in 15 major markets and serves
clients and worksite employees throughout the United States. For
additional information, visit the companys web site at www.administaff.com.
Luminant Background
Luminant Worldwide Corporation
is a leading provider of Internet and electronic commerce professional
services to Fortune 1000 companies, Internet-based companies and
other
organizations. The company
focuses on enabling businesses to develop and expand Internet and
electronic commerce business models. Through its integrated practice
areas, Luminant specializes in providing strategy consulting, creative
solutions, technology solutions and value-added services for more
than 100 clients in a diverse range of industries. In addition to
Administaff, Luminants clients include AmeriTrade, AT&T,
Bell Atlantic, Citigroup, CNBC, Enron, IBM, Intel, Mars Incorporated,
Microsoft, Sony, United Air Lines, United States Postal Service
and Wells Fargo Bank, N.A. Based in Dallas, Texas, Luminant has
750 employees and principal locations in Atlanta, Ga.; Houston,
Texas; Larchmont, N.Y.; New York, N.Y.; Reston, Va.; San Francisco,
Calif.; and Seattle, Wash. For more information on Luminant Worldwide
Corporation, visit the companys web site at www.luminant.com.
(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 companys direct costs and operating expenses;
(iii) the effectiveness of the companys sales and marketing
efforts, including its marketing agreement with American Express,
American Express ability to set qualified appointments and
the companys 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 environments in the PEO industry; and (vi) the effectiveness
and estimated costs of the companys Year 2000 conversion and
contingency plans. These factors are described in further detail
in the companys filings with the Securities and Exchange Commission.)
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