• Kemper Insurance Companies to Assume Coverage

HOUSTON, TX – September 8, 2000 – Administaff, Inc. (NYSE: ASF), the leading Professional Employer Organization (PEO), today announced that it has selected Kemper Insurance Companies to underwrite the workers’ compensation insurance program for both its corporate staff and the more than 60,000 worksite employees at its client companies throughout the United States.

Under terms of the proposed agreement, Kemper will assume coverage for the policy previously serviced by Reliance National Insurance Company. The program will remain in effect at the previously negotiated rates and terms through Oct. 1, 2001. The parties expect to execute a definitive agreement within the next 10 business days.

Lumbermens Mutual Casualty Company, the flagship of the Kemper organization, is the underwriting company on the workers’ compensation coverage.

"Kemper’s reputation for quality service and performance is in line with the standards our clients have come to expect," said Paul J. Sarvadi, Administaff president and chief executive officer. "We expect this transition to be seamless with respect to coverage and service for our clients."

All workers’ compensation claims administration for Administaff will continue to be handled by Gallagher Bassett.

About Kemper
The Kemper Insurance Companies, with 1999 revenues of approximately $3 billion, is a leading provider of property-casualty insurance and risk management services. Kemper is rated A (XV) Excellent by the A.M. Best Company. It operates countrywide and in many foreign markets. For more information about Kemper, visit its website at www.kemperinsurance.com.

About Administaff
Administaff is a leading personnel management company that serves as a full-service human resources department for small and medium-sized businesses throughout the United States. With 1999 revenues of $2.3 billion, Administaff ranks number 615 on the Fortune 1000 list. The company also is included for the second consecutive year on Fortune’s list of "America’s Most Admired Companies" and ranks number 83 on the Information Week 500 list of leading information technology innovators.

Administaff’s Personnel Management System includes employment administration, benefits management, government compliance, recruiting and selection, employer liability management, training and development, performance management and owner support. These core services are complemented by an eBusiness strategy that includes Administaff Assistant ^SM, an eService platform that provides clients and worksite employees with information and resources to help maximize the benefit of their Administaff services; and bizzport^SM, an eCommerce portal that features value-added products and services from best-of-class providers such as American Express, Aon Enterprise, AT&T, Bank One, Dell, Forrester Research, IBM, MobShop and works.com.

Administaff has 29 sales offices in 17 major markets. For additional information, visit the company’s web site at www.administaff.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 estimated costs and effectiveness of capital projects and investments in technology and infrastructure; (iv) Administaff’s ability to effectively implement its eBusiness strategy; (v) the effectiveness of Administaff’s sales and marketing efforts, including the company’s marketing arrangements with other companies; 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.)