ADMINISTAFF'S STRONG PERFORMANCE CONTINUES THROUGH THIRD QUARTER

• Revenue and unit growth rates again reach 70% and 50%
• Quarterly net income increases 69%
• Year-to-date net income growth exceeds 100%

HOUSTON, TX – Nov. 1, 2000 – Administaff, Inc. (NYSE: ASF), the leading Professional Employer Organization (PEO), today announced results for the third quarter and nine months ended September 30, 2000. For the third quarter, the company reported net income and diluted earnings per share of $7.4 million and $0.25, versus $4.4 million and $0.16 in the 1999 period. For the nine months ended September 30, 2000, the company reported net income and diluted earnings per share of $7.7 million and $0.27, versus $3.8 million and $0.14 for the same period in 1999. These results reflect the two-for-one stock split effected October 16, 2000.

"During the third quarter we achieved record-setting financial performance while implementing several major initiatives that will further enhance our ability to attract, service and retain clients for the long term," commented Paul J. Sarvadi, president and chief executive officer. "With an increase in our service capacity and the release of the Administaff Information Management System ("AIMS"), our new proprietary PEO information system, we are poised to take full advantage of our traditionally strong year-end selling season."

Revenues for the third quarter of 2000 increased 70.9% to $962 million, primarily due to a 49.9% increase in the average number of worksite employees paid per month and a 14.8% increase in fee payroll cost per worksite employee per month. Gross profit increased 53.0% to

$40.1 million. The average gross profit per worksite employee per month increased 2.0% to $203 in the third quarter of 2000, versus $199 in the 1999 period, as continued pricing strength during the quarter was partially offset by increased payroll tax expense related to strong new client sales.

Operating expenses increased 48.9% over the 1999 period to $29.5 million. On a per worksite employee basis, operating expenses decreased 0.7% to $150 per month in the 2000 period from $151 per month in the 1999 period. As a result, operating income for the third quarter of 2000 increased 65.5% to $10.6 million compared to $6.4 million in the 1999 period.

"This was Administaff’s third consecutive quarter of better-than-expected revenue and unit growth combined with effective operating expense control," said Richard G. Rawson, executive vice president and chief financial officer. "While we would not forecast growth rates at these levels for the long term, we continue to see strong demand for our services in all markets, and we have a high level of confidence going into 2001."

For the nine months ended September 30, 2000 revenues increased 67.2% to $2.6 billion, primarily due to a 47.2% increase in the average number of worksite employees paid per month and a 13.8% increase in fee payroll cost per worksite employee per month. Gross profit increased 54.4% to $92.1 million, with an average monthly gross profit per worksite employee of $170 in the 2000 period compared to $162 in the 1999 period. Operating expenses increased 49.0% over the 1999 period, and increased to $153 per worksite employee per month from $151 in the 1999 period. As a result, operating income for the nine months ended September 30, 2000, increased 126.6% to $9.4 million compared to $4.1 million in the 1999 period.

Historically, the company’s earnings pattern has included losses in the first quarter, followed by improved profitability in subsequent quarters throughout the year. This pattern is due to the effects of employment-related taxes which are based on each employee’s cumulative earnings up to specified wage levels, causing employment-related taxes to be largest in the first quarter and then decline over the course of the year.

Administaff will be hosting a conference call today at 10:00 a.m. EST to discuss these results. To listen in, call 1-888-481-9034. You may also access the conference call via the Internet at www.administaff.com or www.streetfusion.com.

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 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®, 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, Best Upon Request, Dell, Forrester Research, IBM, MobShop, Virtual Growth 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.)

Administaff, Inc.

Summary Financial Information

(in thousands, except per share amounts and statistical data)

(Unaudited)

	Three months ended September 30,			Nine months ended September 30,
	2000	1999	Change	2000	1999	Change
Operating results:
Revenues	$ 962,039	$ 562,812	70.9%	$ 2,582,034	$ 1,544,348	67.2%
Direct costs:
Salaries and wages of worksite employees	804,525	466,409	72.5%	2,156,446	1,281,094	68.3%
Benefits and payroll taxes	117,447	70,212	67.3%	333,474	203,589	63.8%
Gross profit	40,067	26,191	53.0%	92,114	59,665	54.4%
Operating expenses:
Salaries, wages and payroll taxes	13,905	9,223	50.8%	38,256	26,849	42.5%
General and administrative expenses	9,022	6,152	46.7%	25,612	16,458	55.6%
Commissions	2,331	1,678	38.9%	6,708	4,654	44.1%
Advertising	1,249	932	34.0%	3,681	2,861	28.7%
Depreciation and amortization	2,987	1,817	64.4%	8,503	4,715	80.3%
	29,494	19,802	48.9%	82,760	55,537	49.0%
Operating income	10,573	6,389	65.5%	9,354	4,128	126.6%
Interest and other income	1,104	575	92.0%	2,841	1,975	43.8%
Income before income taxes	11,677	6,964	67.7%	12,195	6,103	99.8%
Income tax expense	4,262	2,577	65.4%	4,451	2,259	97.0%
Net income	$ 7,415	$ 4,387	69.0%	$ 7,744	$ 3,844	101.5%
Basic net income per share	$ 0.27	$ 0.16	68.8%	$ 0.29	$ 0.14	107.1%
Diluted net income per share	$ 0.25	$ 0.16	56.3%	$ 0.27	$ 0.14	92.9%
Weighted average common shares outstanding:
Basic	27,295	27,094		27,099	27,668
Diluted	29,780	27,170		28,712	27,748