TeamStaff, Inc. Discusses Strategic Options With Investment Bankers to Unlock Value of Medical...

Business Editors

SOMERSET, N.J.--(BUSINESS WIRE)--Jan. 30, 2002

TeamStaff, Inc. (NASDAQ:TSTF), one of the nation's top business outsourcing and professional employer organizations (PEOs), announced today that its Board of Directors has authorized the Executive Committee of the

TeamStaff's Chairman of the Board, Stephen Johnson, said, "We are currently interviewing investment bankers for the purpose of investigating the potential to unlock the value of our medical staffing business."

As disclosed in the Company's recent SEC filings, its temporary staffing business revenues and operating income for 2001 increased by about 40% over those of fiscal 2000. TeamStaff Rx, the Company's niche medical staffing division, has been a part of TeamStaff since 1994 and comprises the majority of the Company's temporary staffing revenues.

About TeamStaff

Headquartered in Somerset, N.J., TeamStaff serves over 3,700 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, 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 solutions.

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 ranks as one of the top 10 PEOs in the nation.

In addition to its Professional Employer Organization, TeamStaff 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 services and payroll tax processing to over 750 clients and 33,000 employees, mostly in the construction industries in New York and New Jersey.

TeamStaff Solutions is a Manhattan-based provider of technical temporary personnel and transaction processing for government agencies.

BrightLane, a recently acquired business unit, provides an Internet-based online business center through which small businesses may acquire a variety of administrative products and services. For more information, visit the TeamStaff 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 those factors that could cause actual results to differ materially are: (i) regulatory and tax developments; (ii) changes in direct costs and operating expenses; (iii) the estimated costs and effectiveness of capital projects and investments in technology infrastructure; (iv) ability to effectively implement its e-business strategy; (v) the effectiveness of sales and marketing efforts, including the company's marketing arrangements with other companies; and (vi) changes in the competitive environment in the PEO industry. These factors are described in further detail in TeamStaff's filings with the Securities and Exchange Commission.