"We are pleased with our first quarter results, which demonstrate our ability to manage effectively and continue to make substantial profits through a difficult economic period," said Paul J. Sarvadi, Administaff chairman and chief executive officer. "Although current marketplace realities have had a negative effect on the small business community, the value of our services in helping small businesses succeed has never been more apparent. Demand for our strategic HR services remains strong and sales efforts are improving, which we believe will produce considerable upside as economic conditions improve."

Revenues for the first quarter of 2009 increased 1.3% over the 2008 period to $462.0 million, due to a 2.9% increase in revenues per worksite employee per month, partially offset by a 1.6% decrease in the average number of worksite employees paid per month.

Gross profit for the first quarter 2009 decreased 3.5% to $83.6 million compared to the first quarter of 2008. As expected, the average gross profit per worksite employee per month decreased 2.0% to $249 in the 2009 period from $254 in the 2008 period.

Operating expenses for the quarter increased 3.0% to $70.7 million; however, were approximately $2 million lower than our first quarter budget due to effective cost control efforts.

As a result, operating income for the first quarter of 2009 was higher than expected at $12.9 million and was 28.3% lower than the same period last year.

EBITDA for the first quarter was $17.7 million. Cash outlays included capital expenditures of $2.5 million and dividends of $3.3 million.

"Although we experienced a decline in worksite employees during the quarter, we successfully managed the bottom line through direct cost management and operating expense control," said Douglas S. Sharp, senior vice-president of finance, chief financial officer and treasurer. "This operating expense control demonstrates the flexibility in our business model and the timely and effective execution by our corporate employees."

Administaff will be hosting a conference call today at 10 a.m. EST to discuss these results, give guidance for the second quarter and full year 2009 and answer questions from investment analysts. To listen in, call 888-419-5570 and use passcode 15586961. The call will also be webcast at http://www.administaff.com. To access the webcast, click on the Investor Relations section of the Web site and select "Live Webcast." 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 51988188, 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 51 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.