TeamStaff Announces Acquisition of Paradyme HumanResources; Launches E-Commerce Strategy.

Business Editors

SOMERSET, N.J.--(BUSINESS WIRE)--Nov. 17, 2000

TeamStaff, Inc. (Nasdaq:TSTF) a leading national Professional Employer Organization (PEO) has entered into a letter of intent to acquire Paradyme Human Resources Corporation, a privately held technology driven PEO

Paradyme is currently running at a rate of over $200 million in revenue for the fiscal year ending Dec. 31, 2000 and employs in excess of 6,000 work-site employees.

In commenting on the proposed acquisition, Donald W. Kappauf, president and CEO of TeamStaff stated, "We are thrilled with the opportunity to combine these two recognized leaders in the PEO industry. Paradyme is widely acknowledged as an innovator and industry leader in the deployment of enterprise technology and a web-enabled E-commerce service delivery model. TeamStaff announced earlier this year that one of its primary strategic objectives was to acquire the technology necessary to enable its customers to manage their human resource function through the Internet. We believe that the Paradyme acquisition, because of its superior technology, will help us achieve our objective. We expect to close the transaction in spring 2001."

Consummation of the acquisition is subject to completion by the parties of due diligence, negotiation and execution of a definitive agreement and approval of the respective shareholders and Board of Directors of the parties. There can be no assurance that the acquisition will be consummated.

TeamStaff serves over 4,000 clients and over 50,000 employees throughout the United States as a full service provider of employer outsourcing and staffing solutions. Through its Professional Employer Organization, TeamStaff provides small and medium sized businesses throughout the nation with a better way to employ their people by delivering an 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 currently ranks as one of the 15 largest in the nation. Headquartered in Clearwater, Fla., TeamStaff has 7 regional sales and service offices in major markets.

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 30,000 employees mostly in the construction industries in New York and New Jersey, as well as TeamStaff Solutions, a Manhattan based provider of technical personnel and transaction processing for government agencies. For more information, visit the company's web site at www.teamstaff.com.

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 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 its 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 environments in the PEO industry. These factors are described in further detail in TeamStaff's filings with the Securities and Exchange Commission.