Revenues for the second quarter of 2008 increased 11.6% over the 2007 period to $420.5 million, due to a 7.2% increase in the average number of worksite employees paid per month and a 4.1% increase in revenues per worksite employee per month.

"Solid execution over the first half of the year has allowed us to make investments in our sales expansion and product and service enhancements while achieving strong profitability," said Paul J. Sarvadi, Administaff chairman and chief executive officer. "These investments, which include a 15% increase in trained sales staff, should allow us to continue to grow in the current economic environment and to accelerate our growth rate as the economy improves."

Gross profit increased 7.1% to $84.1 million from $78.5 million in the second quarter of 2007. The 2007 period included a $3.3 million administrative fee credit negotiated under the current three-year contract with UnitedHealthcare. The gross profit increase, excluding this credit, was 11.8%.

Operating expenses for the quarter increased 13.9% to $68.5 million, and included expenses associated with the company's sales expansion, development of its middle-market sales and service initiative, development of HRTools software products, and integration of its second quarter acquisition of USDatalink, an employment screening services company.

As a result of these investments and last year's administrative fee credit, operating income for the second quarter of 2008 decreased 15.0% to $15.6 million, with an average operating income per worksite employee per month of $45 compared to $56 in the 2007 period. The administrative fee credit added $10 in the 2007 period.

Year-to-Date Results

Year-to-date revenues were $876.5 million, an 11.7% increase over the 2007 period, due to a 7.7% increase in the average number of worksite employees paid per month and a 3.8% increase in revenues per worksite employee per month. Gross profit for the six months ended June 30, 2008 increased 16.5% to $170.7 million. The average gross profit per worksite employee per month increased 8.3% over the 2007 period.

Year-to-date operating expenses increased 16.0% to $137.1 million. On a per worksite employee per month basis, operating expenses increased 7.6% over the 2007 period. The resulting operating income for the six months ended June 30, 2008, was $33.6 million compared to $28.3 million in the 2007 period.

EBITDA for the first half of the year increased 8.7% over 2007 to $45.4 million. During the period, the company returned $22.2 million to shareholders, including share repurchases of $16.5 million and dividends of $5.7 million.

"A 19% increase in earnings per share on 12% revenue growth through the first half of this year further confirms the strength of our business model, even in a tough economic climate," said Douglas S. Sharp, senior vice president of finance, chief financial officer and treasurer. "These results demonstrate our ability to invest for the long term while continuing to increase profitability."

Administaff will be hosting a conference call today at 10 a.m. EDT to discuss these results, give guidance for the third quarter and full year 2008, and answer questions from investment analysts. To listen in, call 866-770-7146 and use passcode 63181769. The call will also be webcast at http://www.administaff.com/investor_relations. The conference call script and company guidance will be available at the same Web site later today. A replay of the conference call will be available at 888-286-8010, passcode 24261941, for two weeks after the call. The webcast will be archived for one year.

Administaff is the nation's leading professional employer organization (PEO), serving as a full-service human resources department that provides small and medium-sized businesses with administrative relief, big-company benefits, reduced liabilities and a systematic way to improve productivity. The company operates 49 sales offices in 24 major markets. For additional information, visit Administaff's Web site at http://www.administaff.com.

The statements contained herein that are not historical facts are forward-looking statements within the meaning of the federal securities laws (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). You can identify such forward-looking statements by the words "expects," "intends," "plans," "projects," "believes," "estimates," "likely," "possibly," "probably," "goal," "objective," "target," "assume," "outlook," "guidance," "predicts," "appears," "indicator" and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business, Administaff, Inc., in an effort to help keep our stockholders and the public informed about our operations, may from time to time issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of such plans or strategies, or projections involving anticipated revenues, earnings, unit growth, profit per worksite employee, pricing, operating expenses or other aspects of operating results. We base the forward-looking statements on our current expectations, estimates and projections. These statements are not guarantees of future performance and involve risks and uncertainties that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Therefore, the actual results of the 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) changes in general economic conditions; (ii) regulatory and tax developments and possible adverse application of various federal, state and local regulations; (iii) increases in health insurance costs and workers' compensation rates and underlying claims trends, financial solvency of workers' compensation carriers and other insurers, state unemployment tax rates, liabilities for employee and client actions or payroll-related claims, changes in the costs of expanding into new markets, and failure to manage growth of our operations; (iv) the effectiveness of our sales and marketing efforts; (v) changes in the competitive environment in the PEO industry, including the entrance of new competitors and our ability to renew or replace client companies; (vi) our liability for worksite employee payroll and benefits costs; and (vii) an adverse final judgment or settlement of claims against Administaff. These factors are discussed in further detail in Administaff's filings with the U.S. Securities and Exchange Commission. Any of these factors, or a combination of such factors, could materially affect the results of our operations and whether forward-looking statements we make ultimately prove to be accurate.

                          Administaff, Inc.
                    Summary Financial Information
    (in thousands, except per share amounts and statistical data)

                                              June 30,    December 31,
                                                2008          2007
                                            ------------- ------------
                                             (Unaudited)
Assets
  Cash and cash equivalents                  $   158,637   $  135,793
  Restricted cash                                 34,320       35,318
  Marketable securities                            3,831       74,880
  Accounts receivable                            159,658      134,834
  Prepaid expenses and other current assets       30,213       28,668
  Income taxes receivable                             --        3,918
                                            ------------  -----------
    Total current assets                         386,659      413,411

  Property and equipment, net                     78,446       77,941
  Deposits                                        77,235       63,720
  Other assets                                    17,537        5,579
                                            ------------  -----------
    Total assets                             $   559,877   $  560,651
                                            ============  ===========

Liabilities and Stockholders' Equity
  Accounts payable                           $     3,663   $    5,236
  Payroll taxes and other payroll
   deductions payable                             76,116      113,929
  Accrued worksite employee payroll expense      140,201      110,406
  Accrued health insurance costs                  15,328       19,297
  Accrued workers' compensation costs             36,731       37,150
  Deferred income taxes                            2,790        1,066
  Income tax payable                                 993           --
  Other accrued liabilities                       25,163       28,518
  Current portion of capital leases                  652          629
                                            ------------  -----------
    Total current liabilities                    301,637      316,231

  Long-term capital leases                           205          537
  Accrued workers' compensation costs             43,299       39,116
  Deferred income taxes                            7,299        6,092
                                            ------------  -----------
    Total noncurrent liabilities                  50,803       45,745

  Stockholders' equity:
  Common stock                                       309          309
  Additional paid-in capital                     138,977      138,640
  Treasury stock, cost                          (133,572)    (123,600)
  Accumulated other comprehensive income,
   net of tax                                          3            5
  Retained earnings                              201,720      183,321
                                            ------------  -----------
    Total stockholders' equity                   207,437      198,675
                                            ------------  -----------
    Total liabilities and stockholders'
     equity                                  $   559,877   $  560,651
                                            ============  ===========

                          Administaff, Inc.
              Summary Financial Information (continued)
    (in thousands, except per share amounts and statistical data)
                             (Unaudited)


                                          Three months ended
                                               June 30,
                                            2008      2007    Change
                                          --------- --------- -------

Operating results:
  Revenues (gross billings of $2.456
   billion, $2.191 billion, $5.010 billion
   and $4.465 billion, less worksite
   employee payroll cost of $2.036
   billion, $1.814 billion, $4.133 billion
   and $3.681 billion, respectively)      $420,469  $376,758   11.6%
  Direct costs:
   Payroll taxes, benefits and workers'
    compensation costs                     336,408   298,291   12.8%
                                          --------  --------
  Gross profit                              84,061    78,467    7.1%
  Operating expenses:
    Salaries, wages and payroll taxes       37,427    33,076   13.2%
    Stock-based compensation                 2,908     2,435   19.4%
    General and administrative expenses     16,923    14,276   18.5%
    Commissions                              3,274     2,704   21.1%
    Advertising                              4,158     3,958    5.1%
    Depreciation and amortization            3,799     3,704    2.6%
                                          --------  --------
  Total operating expenses                  68,489    60,153   13.9%
                                          --------  --------
  Operating income                          15,572    18,314  (15.0)%
  Other income (expense):
    Interest income                          1,876     2,987  (37.2)%
    Other, net                                  (7)      (29) (75.9)%
                                          --------  --------
  Income before income tax expense          17,441    21,272  (18.0)%
  Income tax expense                         6,454     7,627  (15.4)%
                                          --------  --------
  Net income                              $ 10,987  $ 13,645  (19.5)%
                                          ========  ========
  Diluted net income per share of common
   stock                                  $   0.43  $   0.50  (14.0)%
                                          ========  ========
  Diluted weighted average common shares
   outstanding                              25,785    27,517

                                            Six months ended
                                                June 30,
                                             2008      2007    Change
                                          ---------- --------- -------

Operating results:
  Revenues (gross billings of $2.456
   billion, $2.191 billion, $5.010 billion
   and $4.465 billion, less worksite
   employee payroll cost of $2.036
   billion, $1.814 billion, $4.133 billion
   and $3.681 billion, respectively)      $ 876,535  $784,516   11.7%
  Direct costs:
   Payroll taxes, benefits and workers'
    compensation costs                      705,867   637,982   10.6%
                                          ---------  --------
  Gross profit                              170,668   146,534   16.5%
  Operating expenses:
    Salaries, wages and payroll taxes        74,406    65,121   14.3%
    Stock-based compensation                  5,293     3,743   41.4%
    General and administrative expenses      35,662    30,222   18.0%
    Commissions                               6,368     5,623   13.2%
    Advertising                               7,936     6,060   31.0%
    Depreciation and amortization             7,445     7,424    0.3%
                                          ---------  --------
  Total operating expenses                  137,110   118,193   16.0%
                                          ---------  --------
  Operating income                           33,558    28,341   18.4%
  Other income (expense):
    Interest income                           4,383     5,984  (26.8)%
    Other, net                                  (40)      (52) (23.1)%
                                          ---------  --------
  Income before income tax expense           37,901    34,273   10.6%
  Income tax expense                         13,758    12,235   12.4%
                                          ---------  --------
  Net income                              $  24,143  $ 22,038    9.6%
                                          =========  ========
  Diluted net income per share of common
   stock                                  $    0.94  $   0.79   19.0%
                                          =========  ========
  Diluted weighted average common shares
   outstanding                               25,770    27,845

                          Administaff, Inc.
              Summary Financial Information (continued)
    (in thousands, except per share amounts and statistical data)
                             (Unaudited)

                   Three months ended         Six months ended
                        June 30,                  June 30,
                     2008      2007   Change    2008     2007   Change
                   --------- -------- ------- -------- -------- ------

Statistical data:
  Average number
   of worksite
   employees paid
   per month         116,149  108,336   7.2%   114,845  106,609   7.7%
  Revenues per
   worksite
   employee per
   month (1)        $  1,207 $  1,159   4.1%  $  1,272 $  1,226   3.8%
  Gross profit per
   worksite
   employee per
   month                 241      241    --        248      229   8.3%
  Operating
   expenses per
   worksite
   employee per
   month                 197      185   6.5%       199      185   7.6%
  Operating income
   per worksite
   employee per
   month                  45       56 (19.6)%       49       44  11.4%
  Net income per
   worksite
   employee per
   month                  32       42 (23.8)%       35       34   2.9%

(1) Gross billings of $7,049, $6,741, $7,270 and $6,981 per worksite
     employee per month, less payroll cost of $5,842, $5,582, $5,998
     and $5,755 per worksite employee per month, respectively.

                          Administaff, Inc.
              Summary Financial Information (continued)
    (in thousands, except per share amounts and statistical data)
                             (Unaudited)

                GAAP to Non-GAAP Reconciliation Tables

            Three months ended             Six months ended
                 June 30,                      June 30,
              2008       2007    Change     2008       2007    Change
           ---------- ---------- ------- ---------- ---------- -------

Payroll
 cost
 (GAAP)    $2,035,626 $1,814,103  12.2%  $4,133,215 $3,680,862  12.3%
Less:
 Bonus
 payroll
 cost         111,393    120,779  (7.8)%    345,918    356,774  (3.0)%
           ---------- ----------         ---------- ----------
 Non-bonus
  payroll
  cost     $1,924,233 $1,693,324  13.6%  $3,787,297 $3,324,088  13.9%
           ========== ==========         ========== ==========

Payroll
 cost per
 worksite
 employee
 (GAAP)    $    5,842 $    5,582   4.7%  $    5,998 $    5,755   4.2%
Less:
 Bonus
 payroll
 cost per
 worksite
 employee         320        372 (14.0)%        502        558 (10.0)%
           ---------- ----------         ---------- ----------
 Non-bonus
  payroll
  cost per
  worksite
  employee $    5,522 $    5,210   6.0%  $    5,496 $    5,197   5.8%
           ========== ==========         ========== ==========

Non-bonus payroll cost represents payroll cost excluding the impact of bonus payrolls paid to the company's worksite employees. Bonus payroll cost varies from period to period, but has no direct impact to the company's ultimate workers' compensation costs under the current program. As a result, Administaff management refers to non-bonus payroll cost in analyzing, reporting and forecasting the company's workers' compensation costs.

                                                  Six months ended
                                                      June 30,
                                                  2008         2007
                                               ----------   ----------

Net income (GAAP)                               $  24,143    $  22,038
Interest expense                                       39           61
Income tax expense                                 13,758       12,235
Depreciation and amortization                       7,445        7,424
                                               ----------   ----------
EBITDA                                          $  45,385    $  41,758
                                               ==========   ==========

EBITDA represents net income computed in accordance with generally accepted accounting principles ("GAAP"), plus interest expense, income tax expense, depreciation and amortization expense. Administaff management believes EBITDA is often a useful measure of the company's operating performance, as it allows for additional analysis of the company's operating results separate from the impact of taxes and capital and financing transactions on earnings.

Non-bonus payroll and EBITDA are not financial measures prepared in accordance with GAAP and may be different from similar measures used by other companies. Non-bonus payroll and EBITDA should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Administaff includes non-bonus payroll and EBITDA in this press release because the company believes they are useful to investors in allowing for greater transparency related to the costs incurred under the company's workers' compensation program and the company's operating performance during the periods presented. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used in this press release to their most directly comparable GAAP financial measures as provided in the tables above.

SOURCE: Administaff, Inc.

Administaff, Inc.
Investor Relations Contact:
Vice President, Finance
Chief Financial Officer and Treasurer
Douglas S. Sharp, 281-348-3232
Douglas_Sharp@Administaff.com
or
News Media Contact:
Managing Director, Marketing
and Corporate Communications
Jason Cutbirth, 281-312-3085
Jason_Cutbirth@Administaff.com

Revenue for the bank was $20.32 billion, above the $18.37 billion estimate of analysts.

In the year-earlier period, the company reported second-quarter net income of $5.76 billion, or $1.28 a share, on revenue of $19.63 billion.

Bank of America's provision for credit losses soared to $5.83 billion from $1.81 billion a year ago. The provisions reflect net charge-offs of $3.62 billion and additions to the allowance for loan and lease losses of $2.21 billion. The additions were mostly in consumer and commercial portfolios directly tied to housing, the company said.

Shares of Bank of America closed Friday at $27.49. Shares of the Dow Jones industrial average component are down 43% over the past 52 weeks. Ryan Vlastelica rv/jw

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

MMMM

Expected next investor conference call information:
Conference Call Date: 8/1/2008
Conference Call Time: 10:00 AM
Conference Call URL: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=105568&eventID=1896430

Expected next dividend:
Dividend Announcement Date: 5/7/2008
Dividend Record Date: 5/30/2008
Dividend Pay Date: 6/20/2008
Dividend Amount: 0.11

"Administaff has the opportunity to see the entrepreneurial spirit firsthand every day and is pleased to continue to provide hardworking innovators with the chance to strengthen their organizations through the Administaff BIG $100,000 Business Sweepstakes," said Jay E. Mincks, executive vice president of sales and marketing for Administaff. "With many business owners concerned about the economy, cash prizes totaling $135,000 present an unexpected business opportunity for the winners, reflecting Administaff's philosophy to help small and medium-sized businesses succeed."

Businesses with at least 10 and no more than 2,000 full-time employees located in the United States are eligible to enter the sweepstakes at http://www.administaff.com. Entrants are required to view a brief Administaff Advantage Video and correctly answer four questions. A complete list of official rules is also located on the Web site. The contest ends at 5 p.m. CT on Dec. 31, 2008. Winners will be randomly selected from all qualified entries and announced in late January.

Administaff is the nation's leading professional employer organization (PEO), serving as a full-service human resources department that provides small and medium-sized businesses with administrative relief, big-company benefits, reduced liabilities and a systematic way to improve productivity. The company operates 49 sales offices in 24 major markets. For additional information, visit Administaff's Web site at http://www.administaff.com.

SOURCE: Administaff, Inc.

Administaff, Inc. 
Investor Relations Contact: 
Senior Vice President, Finance 
Chief Financial Officer and Treasurer 
Douglas S. Sharp, 281-348-3232 
Douglas_Sharp@Administaff.com 
or 
News Media Contact: 
Managing Director, Marketing 
and Corporate Communications 
Jason Cutbirth, 281-312-3085 
Jason_Cutbirth@Administaff.com