TeamStaff Announces Acquisition of Paradyme Human Resources

Friday November 17, 2:06 pm Eastern Time
Press Release
TeamStaff Announces Acquisition of Paradyme Human Resources
Launches E-Commerce Strategy
SOMERSET, N.J.--(BUSINESS WIRE)--Nov. 17, 2000--TeamStaff, Inc. (Nasdaq:TSTF -
news) a leading national Professional Employer Organization (PEO) has entered
into a letter of intent to acquire Paradyme Human Resources Corporation, a
privately held technology driven PEO headquartered in Palm Beach Gardens, Fla.
Paradyme is currently running at a rate of over $200 million in revenue for the
fiscal year ending Dec. 31, 2000 and employs in excess of 6,000 work-site
employees.
In commenting on the proposed acquisition, Donald W. Kappauf, president and CEO
of TeamStaff stated, ``We are thrilled with the opportunity to combine these
two recognized leaders in the PEO industry. Paradyme is widely acknowledged as
an innovator and industry leader in the deployment of enterprise technology and
a web-enabled E-commerce service delivery model. TeamStaff announced earlier
this year that one of its primary strategic objectives was to acquire the
technology necessary to enable its customers to manage their human resource
function through the Internet. We believe that the Paradyme acquisition,
because of its superior technology, will help us achieve our objective. We
expect to close the transaction in spring 2001.''
Consummation of the acquisition is subject to completion by the parties of due
diligence, negotiation and execution of a definitive agreement and approval of
the respective shareholders and Board of Directors of the parties. There can be
no assurance that the acquisition will be consummated.
TeamStaff serves over 4,000 clients and over 50,000 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 an off-site, full-service human resource
outsourcing solution.
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 division currently ranks as one of the 15 largest in the
nation. Headquartered in Clearwater, Fla., TeamStaff has 7 regional sales and
service offices in major markets.
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 http://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
TeamStaff'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. Contact:
Team Staff, Inc.
Donald W. Kappauf or Donald T. Kelly, 732/748-1700
or
Cameron Associates
Clarence A. McGowan, 212/245-8800

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