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ADMINISTAFF ANNOUNCES EXPANSION AND RELOCATION OF ITS HOUSTON SERVICE CENTER

  • Groundbreaking for New Los Angeles Facility Also Announced

HOUSTON, TX – October 3, 2000 – Administaff, Inc. (NYSE: ASF), the leading Professional Employer Organization (PEO), today announced the expansion and relocation of its Houston service center.

The new 51,000-square-foot service center, which will include a day care center for employees’ children, is in a new two-story, 80,000-square-foot building in Interwood Office Park located south of George Bush Intercontinental Airport. The 5,000 square-foot day care center is scheduled to open in the first quarter of 2001.

"This new service center reflects Administaff’s aggressive national expansion program and will help us continue providing a wide range of value-added human resource services to our rapidly growing client base of small and medium-sized businesses," said A. Steve Arizpe, executive vice president of client services. "We selected the Interwood location because of its proximity to our corporate headquarters in Kingwood, and because it meets the requirements for a reliable and expandable infrastructure in terms of telecommunications and utilities."

Total employment at the new center is expected to be about 140 people by the end of this year and 175 by the end of 2001. The facility will handle payroll processing, benefits administration, recruiting, training and other personnel management services for Administaff clients. The center also will work in conjunction with the company’s other service centers, located in Dallas and Atlanta, to provide mutual backup systems for ensuring business continuation in the event of emergencies, such as power outages or severe weather conditions.

Administaff also announced today that it has broken ground on its fourth service center, a 50,000-square-foot facility being built in the Diamond Bar area of Los Angeles and scheduled for completion in the third quarter of 2001. "Our plan is to proceed with service center expansions and additions as needed to keep pace with the continuing growth of our client base," said Arizpe. For the second quarter of 2000, the growth in Administaff’s average number of worksite employees paid per month exceeded 50 percent (compared to the 1999 second quarter).

The address of Administaff’s new Houston Service Center is 4101 Interwood North Parkway, Houston, TX 77032-3864; and the phone number is (832) 601-4200, or toll free 888-917-9038.

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 bizzportSM, 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.)