TeamStaff Sells El Paso PEO Operation.

Business Editors

S0MERSET, N.J.--(BUSINESS WIRE)--Sept. 10, 2001

TeamStaff, Inc. (NASDAQ: TSTF -news) a leading outsourcer of business solutions and Professional Employer Organization announced today that it has sold its El Paso PEO operation to American Staff Resources Corporation.

Commenting on the transaction, Donald W. Kappauf, President and CEO of TeamStaff said, "due to the heavy concentration of manufacturing and construction business in this market,

we have had difficulties in terms of our workers' compensation experience for a couple of years and decided that this market did not fit into our long-term strategic plans.. TeamStaff today is pursuing more of a white-collar book of business as it moves forward with its growth plans. We are very pleased that American Staff Resources has purchased this book of business. We feel they are a very quality -oriented organization and that the clients and employees being transferred will have a very professional and productive relationship."

TeamStaff acquired the El Paso book of business many years ago from Turnkey, Inc. a small PEO located only in El Paso, Texas. The book of business, which represents about $35 million in revenue has only been marginally profitable.

Terms of the transaction were not disclosed. However the Company stated the impact on the Company's earnings from the sale were expected to be negligible.

About TeamStaff

Headquartered in Somerset, New Jersey, TeamStaff serves over 4,000 clients and over 55,000 employees throughout the United States as a full service provider of employer outsourcing and staffing solutions. Through its Professional Employer Organization (PEO), TeamStaff provides small and medium sized businesses throughout the nation with a better way to employ their people by delivering off-site, full-service human resource outsourcing solution. TeamStaff's comprehensive employer services include employment administration, benefits management, government compliance, recruiting and selection, employer liability management, training and development and performance management tools. TeamStaff's PEO division ranks as one of the largest in the nation.

TeamStaff also operates three other employer outsourcing services. Through TeamStaff Rx, TeamStaff provides temporary and permanent medical staffing services throughout the country and is the largest provider of medical imaging personnel in its field. TeamStaff also operates DSI, its niche payroll service bureau offering payroll and tax processing to over 750 clients and over 30,000 employees, as well as TeamStaff Solutions, a Manhattan-based provider of technical temporary personnel, disbursement management systems and transaction processing services for government agencies.

For more information on each of the company visit their web site at www.teamstaff.com.

(The statements contained in this press release that are not historical facts are forward-looking statement under federal securities law 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 TeamStaff's direct costs and operating expenses; (iii) the estimated costs and effectiveness of capital projects and investments in technology and infrastructure; (iv) TeamStaff's ability to effectively implement their eBusiness strategy; (v) the effectiveness of TeamStaff's sales and marketing efforts, including the company's marketing arrangements with other companies; and (vi) changes in the competitive environment in the PEO industry. Some of these factors are described in further detail in TeamStaff's filings with the Securities and Exchanges Commission.)