ADMINISTAFF REAFFIRMS CONFIDENCE IN FOURTH QUARTER PERFORMANCE

HOUSTON, TX – December 20, 2000 – Administaff, Inc. (NYSE: ASF), the nation’s leading Professional Employer Organization (PEO), today expressed confidence in its fourth quarter performance and the key metrics of its business.

Specifically, the company expects that its paid worksite employee growth will be within the range provided by management on Nov. 1, 2000. In addition, fee payroll per worksite employee per month, gross profit per worksite employee per month, and operating expenses per worksite employee per month are all expected to be slightly higher than previously stated.

"We believe that our ability to balance growth and profitability will produce fourth quarter results in line with our expectations," said Paul J. Sarvadi, president and chief executive officer. "During the quarter, we have seen strong demand for our services and significant gross profit strength. These factors have allowed us to continue ramping up our sales and service capacity in anticipation of a strong start to 2001."

The company’s November 1 guidance was provided as part of its third quarter earnings conference call and may be found in the Investor Relations section of its web site at www.administaff.com.

Administaff plans to release its fourth quarter and year-end earnings on Feb. 20, 2001. Details regarding the conference call and web cast will be announced at a later date.

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 No. 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 for the third 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, CorporateGifts.com, Dell, Forrester Research, FTD.COM, IBM, MovingStation, Spiegel, Virtual Growth and Works.com.

Administaff has 30 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.)