ASI Reports Record EPS of $0.22 in 4thQuarter.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 17, 2000

Strong Top and Bottom Line Growth Produces All-Time Quarterly Records

ASI Solutions Incorporated (NASDAQ:ASIS) today reported record revenue and net income for its fourth quarter ended March 31, 2000. For the

quarter, revenue increased 39.2% to $20.5 million - a record for any quarter in the company's history - from $14.7 million for the fourth quarter of 1999. Net income rose 63.2% to a quarterly record of $1.5 million, or $0.22 per diluted share, from $922,000, or $0.14 per share, for 1999's fourth quarter

For the full fiscal year 2000, ASI posted record revenue of $71.9 million compared to $59.7 million a year ago, an increase of 20.5%, while net income for fiscal 2000 was $3.4 million, or $0.51 per share, compared to $3.8 million, or $0.58 per share, a year ago.

Revenue growth for the fourth quarter was strong across all ASI business segments, with each posting significant gains for the period. Performance Improvement Services revenue increased by 42.4% to $7.4 million from $5.2 million in the 1999 fourth quarter, and increased 23.7% to $21.2 million from $17.1 million for the full fiscal year. Employment Process Outsourcing revenue for the fourth quarter rose to $7.8 million in 2000 from $5.7 million in 1999, an increase of 37.6%, to finish the year up 19.2% to $25.9 million from $21.8 million for 1999. ASI's Compensation Services & Market Share Studies segment reported revenue of $5.3 million for the quarter, an increase of 37.1% from 1999's fourth quarter total of $3.9 million. For the full year, this segment grew 19.3% to $24.8 million, from revenue of $20.8 million in 1999.

Management Commentary

Discussing the fourth quarter and full-year results for the company, as well as the future outlook, Bernard F. Reynolds, chairman and chief executive officer, said: "Our strong performance reflects a simple fact of business life today. More and more companies - both current and new clients of ASI - know they need to continue to improve how they attract, select, hire, train, assess and reward their employees, and they increasingly see ASI's capabilities as instrumental in getting that done."

Mr. Reynolds continued: "Our results show continuing improvement in both revenue and margins across all lines of business, enabling ASI to finish the year with the best revenue and net income performance for any quarter in our 22-year history. Future growth and expansion in each of our businesses will be achieved by focusing our service offerings on key market segments, and by broadening those offerings in response to what we see as growing demand."

"In addition to business development initiatives in our traditional markets, we will soon launch a major new Internet-based product to enable our clients to improve customer service on the Web. We are excited about the opportunities to utilize our customer service expertise to serve the rapidly growing Web-based market." Concluding his commentary, Mr. Reynolds said, "We are pleased with how the year ended and the new year is beginning. Our focus is on the future and on our resolve to report even better results next year."

About ASI: ASI Solutions Incorporated is a leading national provider of a unique blend of human resources outsourcing services for organizations seeking to hire, train and develop a higher quality, more effective workforce. The company offers services in three areas: Performance Improvement; Employment Process Outsourcing; and Compensation Services & Market Share Studies (McLagan Partners). These services are provided to major corporations and other large organizations, primarily in the telecommunications, financial services, information technology and healthcare industries. ASI's Internet address is www.asisolutions.com.

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks that could cause the actual results to vary materially, including those discussed in our quarterly and annual filings with the Securities and Exchange Commission, negative developments relating to unforeseen order cancellations or push-outs, ASI's strategic relationships, the impact of intense competition on our ability to maintain existing business and generate new business, and changes in our industry. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. We will not undertake and we specifically disclaim any obligation to announce revisions to any such forward-looking statements to reflect events or circumstances occurring after such statements were made.

MANAGEMENT WILL BE HOLDING A CONFERENCE CALL ON THURSDAY, MAY 18, 2000 AT 11:00 A.M. EASTERN TIME. TO ACCESS THE CALL VIA WEB SIMULCAST, PLEASE VISIT: WWW.STREETEVENTS.COM OR WWW.VCALL.COM.

                    ASI SOLUTIONS INCORPORATED
             UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

                  Three Months Ended          Twelve Months Ended
                March 31,      March 31,    March 31,     March 31,
                  2000           1999         2000          1999
                ------------------------   ------------------------

Revenue        $20,511,257   $14,738,843   $71,901,931   $59,653,278
Cost of
 services       10,676,104     7,604,788    38,113,459    29,755,156
               -----------   -----------   -----------   -----------
Gross
 profit          9,835,153     7,134,055    33,788,472    29,898,122

Operating
 expenses:
General
 and
 admini-
 strative        4,643,544     3,307,523    18,180,554    14,263,341
Sales and
 marketing       1,629,662     1,405,208     6,012,223     5,407,659
Research
 and
 development       627,411       534,365     2,178,081     1,938,061
               -----------    ----------    ----------   -----------
Income
 from
 operations      2,934,536     1,886,959     7,417,614     8,289,061

Interest
 expense,
 net               234,865       331,228     1,387,609     1,709,734
               -----------    ----------   -----------  ------------
Income
 before
 provision
 for
 income
 taxes           2,699,671     1,555,731     6,030,005     6,579,327

Provision
 for
 income
 taxes           1,196,294       633,755     2,624,551     2,768,439
               -----------   -----------   -----------   -----------
Net
 income        $ 1,503,377   $   921,976   $ 3,405,454   $ 3,810,888
               -----------   -----------   -----------   -----------
Basic
 earnings
 per
 share         $      0.23   $      0.14   $      0.52   $      0.59
               -----------   -----------   -----------  ------------
Diluted
 earnings
 per
 share         $      0.22   $      0.14   $      0.51   $      0.58
               -----------   -----------   -----------   -----------
Weighted
 average
 common
 shares
 out-
 standing:
Basic
 shares          6,662,183     6,497,631     6,594,695     6,487,253
Diluted
 effect
 of stock
 options
 and
 warrants           23,938       172,926       113,320       128,018
                ----------    ----------   -----------   -----------
Diluted
 shares          6,686,121     6,670,557     6,708,015     6,615,271


                      ASI SOLUTIONS INCORPORATED
                     CONSOLIDATED BALANCE SHEETS
                        MARCH 31, 2000 AND 1999

                                        2000            1999
                                   -------------    -------------
ASSETS:

Current Assets:
      Cash and cash equivalents    $ 12,155,795    $  7,595,366
      Accounts receivable, net       14,479,377      12,874,967
      Prepaid expenses and other
       current assets                   765,721         576,424
      Deferred income taxes              75,918         299,478
                                   ------------    ------------
            Total current assets     27,476,811      21,346,235

Property and equipment, net           5,042,982       5,218,408
Intangible assets, net               22,401,403      23,258,472
Deferred financing costs                375,160         391,386
Other assets                            453,875         325,518
                                   ------------    ------------
      Total assets                  $ 55,750,231   $ 50,540,019
                                    ============    ============

LIABILITIES AND
 STOCKHOLDERS' EQUITY:

Current Liabilities:
Current portion, notes
 payable to bank                   $  3,462,363    $  7,143,658
Current portion, subordinated
  notes payable                       1,666,667       1,666,666
Other debt                               87,785          66,501
Accounts payable and
 accrued expenses                    17,558,809       7,946,658
Accrued income taxes                    278,287         326,964
                                   ------------    ------------
Total current liabilities            23,053,911      17,150,447

Deferred income taxes                   690,765         543,593
Notes payable to bank, less
  current portion                     7,762,537      11,224,900
Subordinated notes payable,
 less current portion                                 1,666,667
Other liabilities                       313,528         268,373
                                   ------------    ------------
Total liabilities                    31,820,741      30,853,980

Commitments

Stockholders Equity:
Preferred stock, $.01 par value,
 authorized 2,000,000 shares;
 no shares issued
Common stock, $.01 par value,
 authorized 18,000,000 shares;
issued and outstanding
 6,662,183 in 2000 and
 6,497,631 in 1999                       67,078          65,432
Additional paid in
 capital                             11,477,820      11,038,250
Accumulated other
 comprehensive income                    (3,789)         (7,839)
Retained earnings                    12,388,381       8,982,927
Less: Treasury stock,
 45,534 shares at cost in 1999                         (392,731)
                                   ------------    ------------
Total stockholders' equity          23,929,490      19,686,039
                                   ============    ============
Total liabilities &
 stockholders' equity              $ 55,750,231    $ 50,540,019
                                   ============    ============