Administaff Announces Alliances With Hotels.com and USA.NET

Press Release: Administaff, Inc.
July 18, 2002
HOUSTON, TX -- Administaff, Inc. (NYSE: ASF), the nation's leading Professional Employer Organization (PEO), yesterday announced new marketing alliances with Hotels.com (Nasdaq: ROOM) and USA.NET. Under the terms of the agreements, Administaff's client companies and worksite employees will be able to access value-added service offerings by the two new alliance companies via My MarketPlace(SM), Administaff's eCommerce portal.

Hotels.com is the largest specialized provider of discount lodging worldwide, offering savings up to 70 percent off the regular rates for hotel rooms and other properties. For Administaff clients and employees, the agreement provides custom Internet and telephone access to Hotels.com's more than 6,000 discount lodging properties in more than 200 markets in North America, Europe, the Caribbean and Asia. These properties -- including hotels, resorts, timeshares, condos and vacation homes -- can be booked on a co-branded Web site, Administaff Discount Hotels Network, which is accessible via My MarketPlace. Properties may also be booked through a toll-free phone number, 1-888-ASF-HOTELS, which is supported by Hotels.com's multiple call centers.

USA.NET®, the Global eMessaging Service Provider(TM), offers hosted Microsoft® Exchange 2000, the market's most advanced and comprehensive business e-mail solution. From assessment and migration to hosting, enhanced services and complete customer service, USA.NET, a Microsoft Gold Certified Partner, provides total end-to-end e-mail solutions to its clients. USA.NET hosted Microsoft Exchange 2000 is a fully managed, turnkey solution that can help reduce spam, viruses and unwanted advertising, while increasing productivity through greater accessibility, collaborative features and knowledge sharing. Clients have the flexibility to choose from a variety of feature sets and price points to meet an organization's messaging needs. For Administaff clients using My MarketPlace, USA.NET offers a 20 percent discount on all e-mail service plans, no-cost set-up, and a 50 percent discount on all migration fees.

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 2001 revenues of $4.4 billion, Administaff ranks number 376 on the Fortune 500 list and number 11 on the Barron's 500 list of best performing companies. The company also is included on Fortune's list of America's Most Admired Companies, the Forbes Platinum 400 list of the Best Big Companies in America and 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 the Employee Service Center(SM), an interactive eService platform that provides clients and worksite employees with information and resources to help maximize the benefit of their Administaff services. The Employee Service Center also features My MarketPlace(SM), an eCommerce portal that offers value-added products and services from best-of-class providers such as American Express, AT&T, Continental Airlines, Dell, IBM and Spiegel.

Administaff has 38 sales offices in 21 major markets: Atlanta, Austin, Baltimore, Boston, Charlotte, Chicago, Cleveland, Dallas, Denver, Houston, Los Angeles, Minneapolis/St. Paul, New Jersey, New York City, Orlando, Phoenix, San Antonio, San Diego, San Francisco, St. Louis and Washington, D.C.

For additional information, visit 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 competitive environment in the Professional Employer Organization industry. These factors are described in further detail in Administaff's filings with the Securities and Exchange Commission.)

SOURCE: Administaff, Inc.