TeamStaff, Inc. Announces Earnings for First Quarter Net Income Grows 45%.

Business Editors

SOMERSET, N.J.--(BUSINESS WIRE)--Feb. 14, 2001

TeamStaff, Inc. (NASDAQ:TSTF), one of the nation's top Professional Employer Organizations (PEO's), announced revenue and earnings for the quarter ended December 31, 2000. As anticipated in an earlier release disclosed

on February 7, 2001, revenue in the first fiscal quarter of 2001, ended December 31,2000, increased 100% from last year's first quarter to $164,699,000. Net income increased 45% from $428,000 reported in the first quarter ended December 31,1999, to $620,000 in the first quarter ended December 31, 2000. Revenue and earnings grew in each of the company's business segments.

Commenting on the Company's performance, Donald Kappauf, President and Chief Executive Officer of the Company, said, " The Company is on track with its internal projections. The PEO business continues to grow and we expect future earnings improvement as we head towards our anticipated merger with BrightLane.com in the near future. Our medical imaging and temporary staffing businesses continue to experience outstanding growth and earnings improvement. Our payroll services operation, which historically has been in a non-growth mode, is starting to show growth in revenue and earnings."

In addition to its Professional Employer Organization, 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 TeamStafff'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.)

                   TEAMSTAFF, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF INCOME
                              (Unaudited)

                                        FOR THE THREE MONTHS ENDED
                                                DECEMBER 31,
                                      --------------------------------
                                          2000               1999
                                      -------------       ------------
REVENUES                             $ 164,699,000       $ 82,222,000
DIRECT EXPENSES                        157,708,000         77,338,000
                                      -------------       ------------
         Gross profit                    6,991,000          4,884,000

SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES                5,298,000          3,669,000
                                      -------------       ------------
         EBITDA                          1,693,000          1,215,000
DEPRECIATION AND AMORTIZATION              352,000            310,000
                                      -------------       ------------
         Income from operations          1,341,000            905,000
                                      -------------       ------------
OTHER INCOME (EXPENSE)
         Interest and other income         200,000            146,000
         Interest expense                 (481,000)          (304,000)
                                      -------------       ------------
                                          (281,000)          (158,000)

         Income before tax               1,060,000            747,000

INCOME TAX EXPENSE                        (440,000)          (319,000)
                                      -------------       ------------
NET INCOME                              $  620,000          $ 428,000
                                       =============       ===========
BASIC EARNINGS PER COMMON SHARE         $     0.08          $    0.05
                                       =============       ===========
BASIC SHARES OUTSTANDING                 7,956,099          7,958,245
                                       =============       ===========
DILUTED EARNINGS PER COMMON SHARE       $     0.08          $    0.05
                                       =============       ===========
DILUTED SHARES OUTSTANDING               7,982,434          7,972,409
                                       =============       ===========