Digital Solutions Settles Liberty Mutual CompensationClaims.

SOMERSET, N.J.--(BUSINESS WIRE)--Sept. 17, 1998--Digital Solutions, Inc. (NASDAQ: DGSI), announced today that it has negotiated and successfully settled with Liberty Mutual Insurance Company its liability on all workers' compensation claims incurred during the three-year period 1995, 1996,

and 1997. In return for terminating all future exposure under the Liberty Mutual workers' compensation policy, Digital agreed to make a one-time payment of approximately $919,000. The settlement was funded by allocating $738,000 of DSI's restricted cash, which had been used to collateralize a portion of the letter of credit issued to Liberty Mutual to guarantee claim payments, and by internal funds of $181,000. The $181,000 cash payment was offset somewhat by a recent $50,000 equity investment made by a new member of its board of directors and approximately $45,000 in interest from the restricted cash investments.

Donald T. Kelly, DSI's CFO, said, "This is an important transaction that has numerous benefits to DSI, not only from an accounting standpoint but also from a financial one. The company felt the payment of these claims could continue for several years into the future and expose DSI to additional and uncertain losses well in excess of the settlement amount. Not only will the uncertainty about the adequacy of DSI's workers' compensation reserve for these periods be eliminated, but the company will also save approximately $50,000 each month in payments made to Liberty Mutual. The payments were being funded by current operations even though the Liberty Mutual Program had ended March 31, 1997. In addition, the restricted cash of $787,000 has finally been put to some use."

Kelly continued, "This settlement also frees up approximately $455,000 from its line of credit with the FINOVA Capital Corporation which had been blocked to support the remaining letter of credit issued to Liberty Mutual. This letter of credit has been cancelled without the loss of any funds and will now be available to DSI to utilize in its contemplated merger with the TeamStaff Companies."

The company stated that this transaction will have no or minimal effect on Fiscal 1998 earnings.

Digital Solutions, Inc. provides comprehensive human resource management to small- and medium-sized companies in a wide variety of industries, including professional employer services, administration of workers' compensation, employee benefit and 401K plans, payroll and payroll tax service preparation and temporary and permanent staffing.

This press release contains statements of a forward-looking nature regarding future events. These statements are only predictions and actual events may differ materially. Please refer to documents that DSI files from time to time with the Securities and Exchange Commission for a discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements.