Administaff and IBM Announce eBusiness Alliance

New venture includes eCommerce portal; joint marketing of technology, human resource services, consulting

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HOUSTON - 12 Jan 2000: -- Administaff, Inc. (NYSE: ASF), a leading Professional Employer Organization (PEO), today announced it has established an eBusiness relationship with IBM to give small businesses access to the very latest eBusiness services and consulting via the Web. Major elements of the relationship include:

·IBM Global Services will collaborate in the construction and management of Administaff's new business-to-business eCommerce portal, a web site that will deliver a broad range of product and service offerings from best-of-class providers to the premium small business community represented by the Administaff client base.

·Administaff will work with IBM Global Services and the IBM Global Small Business Unit to jointly market IBM's e-business Accelerator and Small Business WebConnections to Administaff's clients. IBM's e-business Accelerator is an online consulting tool that includes multiple levels of services designed to help customers make timely, well-informed business decisions about harnessing the Web for their business advantage. Small Business WebConnections provides a single point of contact for all of the hardware, software, service and support small businesses need to fully utilize the power of the Internet.

·The companies will exchange content for use in various Internet channels. Administaff's content will provide information about human resources best practices for small businesses, while IBM's content will focus on information technology.

·The companies will work together to identify and promote additional IBM products and services to Administaff's client base.

·The companies will pursue opportunities for IBM to market Administaff's personnel management services to IBM's small and medium-sized clients.

"This relationship with IBM represents a significant step in the expansion of our eBusiness strategy," said Paul J. Sarvadi, Administaff president and chief executive officer. "We believe this agreement will accelerate and enhance the process of developing our new best-of-class provider network. This network is intended to leverage the strength of Administaff's buying power and business relationships into substantial savings and service enhancements for our clients."

Robert Gault, vice president, IBM Global Services, added, "We are excited about IBM becoming a cornerstone in the development and implementation of an eCommerce program to benefit Administaff and its clients. We are also pleased that IBM's customers will gain access to Administaff's human resources expertise through our own Web site."

Administaff expects to unveil the new eCommerce portal near the end of the first quarter of 2000.

Administaff Background
Administaff provides small and medium-sized businesses with a comprehensive Personnel Management System that includes benefits and payroll administration, medical and workers' compensation insurance programs, personnel records management, employer liability management, employee recruiting and selection, performance management, and training and development services. With 1998 revenues of $1.7 billion, Administaff ranks number 765 on the Fortune 1000 list. The company also was named in 1999 to Fortune magazine's list of "America's Most Admired Companies," the Forbes Platinum 400 list of the best-performing big companies in the U.S., and the InformationWeek 500 list as one of the top users of information technology. The company currently has 25 offices in 15 major markets and serves clients and worksite employees throughout the United States. For additional information, visit the company's web site at http://www.administaff.com.

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