[TEAM STAFF LOGO]
FOR IMMEDIATE RELEASE
CONTACTS:
Rick Filippelli, Chief Financial Officer Donald C. Weinberger
TEAMSTAFF, INC. WOLFE AXELROD WEINBERGER
300 Atrium Drive ASSOCIATES, LLC
Somerset, NJ 08873 212-370-4500
don@wolfeaxelrod.com
732-748-1700 --------------------
rick.filippelli@teamstaff.com
Kathey S. Palmer
Vice President, Marketing and Business Development
COMPUPAY, INC.
318 Seaboard Lane
Franklin, TN 37067
615-591-3756
katheypalmer@compupay.com
TEAMSTAFF REPORTS SALE OF ITS PAYROLL DIVISION TO COMPUPAY FOR $9.0
MILLION SOMERSET, NJ - MAY 31, 2006 - TEAMSTAFF, INC. (NASDAQ: TSTF), a
national provider of healthcare staffing today announced the sale of its payroll
division, DSi Payroll Services, for $9.0 million to CompuPay, Inc. The general
terms of the transaction are an all-cash sale for $9,000,000, subject to an
escrow of $250,000 for certain post-closing contingencies. The agreement is for
the sale of substantially all of the assets of DSi Payroll Services, and also
includes a transition agreement whereby CompuPay will sublease certain office
space at DSi's current location from TeamStaff, Inc., among other standard
agreements.
Commenting on the sale of the assets of DSi by TeamStaff, T. Kent Smith,
TeamStaff's President and CEO stated, "We are pleased to have completed this
transaction with CompuPay, a leading national payroll and tax services provider.
We believe that CompuPay will continue to serve DSi's clients to the highest
standards." Mr. Smith continued, "The sale of DSi will enable TeamStaff to
pursue opportunities more closely related to its core staffing businesses. In
the short term, the proceeds will be used to pay down our line of credit with
PNC and to bolster our working capital."
CompuPay CEO and President Charlie Lathrop stated, "The acquisition of DSi
greatly expands our presence in the tri-state region of NY, CT and NJ and allows
us to offer the specialized calculations and reporting associated with certified
and union payrolls to clients across the country." Mr. Lathrop added, "We are
pleased that substantially all of the DSi employees will be joining the CompuPay
team, ensuring the continuity of service for the DSi clients."
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About TeamStaff, Inc.
Headquartered in Somerset, New Jersey, TEAMSTAFF serves clients and their
employees throughout the United States as a full-service provider of medical
staffing services. TeamStaff is a leading provider of nursing and allied
healthcare professionals and operates through three medical staffing units.
TeamStaff's RS Staffing subsidiary specializes in providing medical and office
administration/technical professionals through nationwide schedule contracts
with both the General Services Administration and Veterans Affairs. The
TeamStaff Rx subsidiary operates throughout the US and specializes in the supply
of allied medical employees and nurses, especially "travel" staff (typically 13
week assignments). TeamStaff's Nursing Innovations unit provides travel nursing,
per diem nursing, temporary-to-permanent nursing and permanent nursing placement
services. For more information, visit the TeamStaff web site at
www.teamstaff.com.
About CompuPay, Inc.
CompuPay, Inc. was founded in 1980 and today is the largest privately-held
payroll company in the U.S. and among the top five overall. Its growing network
of local offices processes payroll for thousands of companies ranging in size
from one to over 10,000 employees in all 50 states. The company offers
comprehensive payroll and employer-related services to clients seeking highly
flexible, innovative solutions to meet their growing business needs. For more
information, visit the CompuPay web site at www.compupay.com.
This press release contains "forward-looking statements" as defined by the
Federal Securities Laws. TeamStaff's actual results could differ materially from
those described in such forward-looking statements as a result of certain risk
factors and uncertainties, including but not limited to: our ability to continue
to recruit qualified temporary and permanent healthcare professionals and
administrative staff at reasonable costs; our ability to retain qualified
temporary healthcare professionals and administrative staff for multiple
assignments at reasonable costs; our ability to attract and retain sales and
operational personnel; our ability to enter into contracts with hospitals,
healthcare facility clients, affiliated healthcare networks, physician practice
groups and the United States government on terms attractive to us and to secure
orders related to those contracts; our ability to demonstrate the value of our
services to our healthcare and other facility clients; changes in the timing of
hospital, healthcare facility clients', physician practice groups' and U.S.
Government orders for and our placement of temporary and permanent healthcare
professionals and administrative staff; the general level of patient occupancy
at our hospital, healthcare facility clients' and physician practice groups'
facilities; the overall level of demand for services offered by temporary and
permanent healthcare staffing providers; the ability of our hospital, healthcare
facility and physician practice group clients to retain and increase the
productivity of their permanent staff; the variation in pricing of the
healthcare facility contracts under which we place temporary and permanent
healthcare professionals; our ability to successfully implement our strategic
growth, acquisition and integration strategies; our ability to successfully
integrate completed acquisitions into our current operations; our ability to
manage growth effectively; our ability to leverage our cost structure; the
performance of our management information and communication systems; the effect
of existing or future government legislation and regulation; our ability to grow
and operate our business in compliance with these legislation and regulations;
the impact of medical malpractice and other claims asserted against us; the
disruption or adverse impact to our business as a result of a terrorist attack;
our ability to carry out our business strategy; the loss of key officers and
management personnel that could adversely affect our ability to remain
competitive; other regulatory and tax developments; the effect of recognition by
us of an impairment to goodwill; the effect of adjustments by us to accruals for
self-insured retentions and other one-time events and other important factors
disclosed previously and from time-to-time in TeamStaff's filings with the U.S.
Securities Exchange Commission. These factors are described in further detail in
TeamStaff's filings with the U.S. Securities and Exchange Commission. The
information in this release should be considered accurate only as of the date of
the release. TeamStaff expressly disclaims any current intention to update any
forecasts, estimates or other forward-looking statements contained in this press
release.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding TeamStaff, Inc.'s business
which are not historical facts are "forward-looking statements" that involve
risks and uncertainties. For a discussion of such risks and uncertainties which
could cause actual results to differ from those contained in the forward-looking
statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for
the most recently ended fiscal year.
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