• Administaff to offer clients online purchasing service through its new eCommerce portal

HOUSTON – Feb. 23, 2000 – Administaff, Inc. (NYSE: ASF), a leading Professional Employer Organization (PEO), today announced an agreement with Works.com, (www.works.com), a leading Internet business purchasing service, to provide Administaff clients with direct access to Works.com’s state-of-the-art online purchasing management system.

The agreement calls for Administaff and Works.com to create a co-branded entry page on Administaff’s eCommerce portal through which Administaff clients can link directly to Works.com to automate the purchasing of over 20,000 business products and receive volume discounts on the products they use most. These volume discounts are available through the Works.com Cooperative Buying Program, which can help members cut their monthly supplies spending by as much as 30 percent.

As part of the agreement, Administaff clients will receive a one-year membership to the Works.com Cooperative Buying Program. In addition, Administaff will provide information for use on the Works.com web site related to human resources best practices for small businesses.

"Works.com is a perfect complement to our expanding network of premier eCommerce service providers," said Paul J. Sarvadi, Administaff president and chief executive officer. "This alliance provides a new tool that can help Administaff clients streamline the purchasing process, improve control and save valuable time and money. That is an appealing proposition to any business owner."

Martin Neath, president and chief operating officer of Works.com, commented, "We are excited to be able to serve Administaff’s clients with our innovative purchasing solution. Thousands of entrepreneurs recognize Administaff’s PEO service as a better way to do business, and we’re confident they’ll feel the same way about Works.com."

Administaff eCommerce Portal

Administaff’s new 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 Works.com, Administaff has strategic alliances with leading companies including American Express, Dell, IBM, Aon Enterprise Insurance Services, Forrester Research and Accompany, Inc.

Administaff Background

With 1999 revenues of $2.3 billion, Administaff is a leading provider of personnel management services for small and medium-sized businesses throughout the United States. The company’s comprehensive Personnel Management System includes employment administration, benefits management, government compliance, recruiting and selection, employer liability management, training and development, performance management and owner support. Administaff ranks number 765 on the Fortune 1000 list and is included for the second consecutive year on Fortune’s list of "America’s Most Admired Companies." The company also ranks number 83 on the InformationWeek 500 list of leading information technology innovators. Administaff currently has 25 sales offices in 15 major markets. For additional information, visit the company's web site at www.administaff.com.

About Works.com (www.works.com)

Works.com is an Internet business purchasing service that automates the purchasing process and gives small and midsize companies volume purchasing power. With Works.com, companies can increase buying efficiency and control spending more effectively by automating and streamlining their purchase process – from purchase request and approval to ordering, tracking, and reporting. Works.com’s national merchant network offers discounts and fast delivery on 20,000 business products including computer accessories and peripherals, software, office supplies, furniture, breakroom products and janitorial supplies. And, Works.com cuts up to 30 percent off customers’ monthly supplies bill by combining customer purchasing power to secure even deeper volume discounts on hundreds of their "most-used" products. Headquartered in Austin, Texas, Works.com is funded by Bowman Capital, Hummer Winblad, Merrill Lynch, Presidio Venture Partners, and Trellis Partners. Bill Gurley of Benchmark Capital is a member of the Works.com board of directors.

(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; and (vi) changes in the competitive environments in the PEO industry. These factors are described in further detail in Administaff’s filings with the Securities and Exchange Commission.)