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ADMINISTAFF ANNOUNCES NEW CARRIER FOR WORKERS'COMPENSATION
POLICY
The Hartford selected to underwrite two-year,
fully-insured contract
HOUSTON, TX — June 25, 2001 —
Administaff, Inc. (NYSE: ASF), the nation's leading Professional
Employer Organization (PEO), today announced that it has selected
The Hartford Financial Services Group, Inc. to underwrite the guaranteed-cost
workers' compensation insurance program for its corporate and worksite
employees throughout the United States.
Under the terms of the two-year, fixed-rate
contract, the maximum rate of the new policy will not exceed a 3.5%
increase over the policy with the current carrier. The new contract
is effective Oct. 1, 2001 through September 30, 2003. "Managing
the safety of our employees has always been a top priority at Administaff,
and our long-standing success in this important area is reflected
in the favorable rates of the new policy," said Richard G. Rawson,
Administaff's executive vice president of administration and chief
financial officer. "As expected, the cost of the new policy will
not have a material impact on the company's earnings. The new rates
are very competitive when compared to overall marketplace increases,
especially for small businesses, and we believe this policy will
enhance our ability to serve existing clients and sign up new prospects."
The Hartford (NYSE: HIG) is one of the nation's
largest insurance and financial services companies, with 2000 revenues
of $14.7 billion. As of March 31, 2001, The Hartford had assets
of $165.5 billion and shareholders' equity of $8.4 billion. The
Hartford is a leading provider of investment products, life insurance
and group benefits; automobile and homeowners products; commercial
property and casualty insurance; and reinsurance. For more information,
visit The Hartford's Web site at www.thehartford.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 2000 revenues of $3.7 billion, Administaff ranks number 448
on the Fortune 500 list. In addition, Administaff is included on
Fortune's list of "America's Most Admired Companies," on the Forbes
Platinum 400 list of the best big companies in America and on the
InformationWeek 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, AT&T, Bank
One, Continental Airlines, Dell, IBM and Spiegel.
Administaff has 35 sales offices in 19 major
markets. For additional information, visit the Administaff'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) changes in general economic conditions;
(ii) regulatory and tax developments; (iii) changes in Administaff's
direct costs and operating expenses; (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; (vi) the effectiveness of Administaff's
sales and marketing efforts, including the company's marketing arrangements
with other companies; and (vii) changes in the competitiveenvironments
in the PEO industry. These factors are described in further detail
in Administaff's filings with the Securities and Exchange Commission.)
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