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ADMINISTAFF ANNOUNCES BUSINESS ALLIANCE WITH FORRESTER RESEARCH

  • Administaff to Offer Forrester Research Products on New Business-to-Business eCommerce Portal

HOUSTON – Jan. 25, 2000 – Administaff, Inc. (NYSE: ASF), a leading professional employer organization (PEO), today announced an agreement with Forrester Research, Inc. (NASDAQ: FORR), a widely-recognized source of research and analysis on the global Internet economy, to offer its line of electronic research products on Administaff’s new business-to-business eCommerce portal.

The agreement will provide Administaff’s client companies access to Forrester’s Baseline Research and Baseline Forecast products, as well as Forrester PowerRankings™ – unbiased rankings of the leading eCommerce sites – through the Administaff portal. The portal, which is being developed jointly with IBM, will give small businesses access to the very latest eBusiness services and consulting via the Web. Administaff expects to unveil the new site near the end of the first quarter of 2000.

"The Internet economy presents many of the same challenges to small and medium-sized companies as it does to larger enterprises," commented Paul J. Sarvadi, Administaff’s president and chief executive officer. "These companies can now benefit from the same research and analysis used by the leading eBusinesses. The depth and breadth of Forrester’s research will allow them to make better-informed decisions about their own future on the Internet."

Administaff eCommerce Portal
Administaff’s business-to-business eCommerce portal represents a major element in the company’s comprehensive eBusiness strategy. Designed for exclusive use by Administaff’s clients and worksite employees, the portal will leverage Administaff’s buying power and business relationships to bring a broad range of value-added products and services from best-of-class providers to the premium small business community represented by Administaff’s client base. Additionally, the portal is expected to enhance the company’s attractiveness to prospective clients, further strengthen client-retention rates, and produce incremental revenue streams. Administaff expects to unveil the new portal near the end of the first quarter of 2000. In addition to Forrester Research, Administaff has strategic alliances with leading companies such as American Express, Dell Computers, IBM and Aon Enterprise Insurance Services.

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 was named in 1999 to Fortune magazine's list of "America's Most Admired Companies'' 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 company's web site at www.administaff.com.

Forrester Research Background
Forrester Research is an independent research firm that analyzes technology change and its impact on business, consumers, and society. Forrester's "whole view" of the

Internet economy enables clients to weave together Internet commerce initiatives and corporate systems to satisfy the customer's changing needs. Clients receive continuous research and analysis through Forrester's unique eResearch™ Reports, an array of advisory services, and topical events. Established in 1983, Forrester is headquartered in Cambridge, Mass. Forrester's European Research Center is located in Amsterdam, Netherlands. With the November 1999 acquisition of Fletcher Research, Forrester also maintains an office in London. Additional information about Forrester can be found on the Web at www.forrester.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 Administaff’s direct costs and operating expenses; (iii) the effectiveness of Administaff’s sales and marketing efforts, including its marketing agreement with American Express, American Express’ ability to set qualified appointments and Administaff’s ability to convert those appointments into sales; (iv) the estimated costs and effectiveness of capital projects and investments in technology and infrastructure; (v) Administaff’s ability to effectively implement its eBusiness strategy, including identifying and reaching agreements with strategic alliance partners, timely rollout of and attraction of clients and worksite employees to its eCommerce portal, effective generation of revenues from eBusiness initiatives and unanticipated development costs of eBusiness initiatives; (vi) changes in the competitive environments in the PEO industry; and (vii) the effectiveness and estimated costs of Administaff’s Year 2000 conversion and contingency plans. These factors are described in further detail in Administaff’s filings with the Securities and Exchange Commission.)