Gevity Acquires TeamStaff HR Outsourcing Portfolio


       *  Gevity Adds More Than 1,500 New Clients With Approximately
        16,000 Worksite Employees
       *  Clients Benefit From Seamless Transition, Expanded Services, and
        Technology
       *  TeamStaff To Focus On Growing Core Healthcare Staffing Business
       *  Acquisition Immediately Accretive To Gevity


  SOMERSET, N.J., Nov. 17 /PRNewswire-FirstCall/ -- Gevity (Nasdaq: GVHR),
the nations leading provider of outsourced human capital management solutions
and TeamStaff, Inc, (Nasdaq: TSTF), a premier business outsourcing provider
and the second largest U.S. based allied healthcare staffing service, today
jointly announced that Gevity has acquired TeamStaff's Human Resource
Outsourcing client portfolio and other assets for $9.5 million in cash, of
which $2.5 million will be placed in escrow.  Final settlement is contingent
on achieving a certain level of retention of the former TeamStaff clients. 
Gevity Chairman and CEO Erik Vonk and TeamStaff CEO T. Kent Smith each
believe that this transaction positively impacts all stakeholders.  Gevity can
take advantage of its infrastructure capacity, while TeamStaff will be able to
focus on its core businesses.  Clients and their employees will experience a
seamless transition, and will benefit from the full depth of Gevity's services
and web-enabled technology.  In addition, a number of TeamStaff associates
have joined the Gevity team with recognition of their prior service. 
Mr. Vonk added, "The transaction is fully supported by the member
companies of the American International Group, Inc. (AIG) as well as the
health and benefits partners of both companies, including Aetna and Blue Cross
and Blue Shield of Florida.  We are completely prepared to assimilate this new
portfolio into the Gevity family.  Today each of our new clients is being
personally welcomed and will instantly be able to capitalize on the benefits
of our new relationship.  Due to the strong similarity of the client profile
to Gevity's current base, AIG will provide immediate coverage for all
TeamStaff worksite employees.  The transaction will not affect the terms of
Gevity's current workers' compensation program.  To provide optimal
convenience, existing health, welfare and benefits plans will remain in place
for TeamStaff clients, without interruption, change in terms, or policy
modifications." 
  Significant Opportunity For Gevity 
The acquired TeamStaff portfolio is comprised of more than 1,500 clients
with approximately 16,000 worksite employees with concentrations in New
Jersey, Massachusetts, Texas, Georgia and Florida. 
Mr. Vonk commented, "This is a particularly exciting moment in Gevity's
progress. We are recognizing the first signs of organic growth in our
portfolio, which is now augmented by an acquisition that is immediately
accretive to our bottom line.  Consistent with our strategy, the two forces
combined accelerate top line growth and further improve our profitability." 
  New Strategic Direction For TeamStaff 
Mr. Smith commented, "We are pleased that TeamStaff's PEO clients will
continue to be well served following this transaction by the industry leader
in the sector.  We are especially pleased that Gevity has determined to retain
TeamStaff's sales force as well as those TeamStaff personnel who provided
day-to-day service to our former clients and their employees.  From the
TeamStaff perspective, the sale of our PEO operation paves the way for us to
pursue a strategy that I believe offers our company the greatest opportunity
for growth and profitability going forward.  At the core of this strategy is
the further expansion and development of our Medical Staffing division,
TeamStaff Rx." 
Mr. Smith continued, "The staffing market for allied healthcare is highly
fragmented and estimated to be over $1.5 billion.  Healthcare technicians and
related support personnel are expected to be among the fastest growing
segments in the labor market.  TeamStaff Rx is currently the number two allied
health care staffing company in the country.  TeamStaff Rx is prepared to
expand its leadership in this market.  As a result of this sale, TeamStaff can
now aggressively grow TeamStaff Rx by adding measurably to its sales force as
well as expanding its new Vendor Integration Program (VIP) service offering.
TeamStaff Rx unveiled its new VIP offering at the ASTRO Tradeshow in Salt Lake
City this past October, assuming a leadership position in the Allied Health
segment, as well as the Medical Staffing industry as a whole, for providing
vendor management solutions." 
"The sale not only provides additional capital for internal growth," noted
Smith, "but allows TeamStaff Rx to begin to look at acquisitions to broaden
client penetration.  In addition to the immediate cash from the sale, nearly
an additional $4.5 million in cash and $3.5 million in debt capacity should be
freed up over the next few years as our workers' compensation program winds
down."  Mr. Smith commented, "We plan to redeploy these assets to grow our
business and enhance shareholder value." 
  About Gevity 
As the nation's leading provider of outsourced human capital management
solutions, Gevity helps businesses find, develop and manage their people,
retain their best employees, manage the paperwork, and protect their
businesses.  These services are provided through specific offerings, such as
recruiting assistance, training, benefits administration, payroll processing
and related paperwork management, and regulatory compliance. 
Gevity's business solutions are delivered through professional
consultation and leading-edge technology, embodied in Gevity Central, an
online HR and payroll community designed for business owners, managers, and
employees. 
  About TeamStaff 
Headquartered in Somerset, New Jersey, TeamStaff serves clients and their
employees throughout the United States as a full-service provider of payroll
services and medical staffing solutions. 
TeamStaff's TeamStaff Rx unit provides allied health professionals and
nurses to physicians' offices and medical facilities throughout the United
States on a temporary or permanent basis and offers programs and services
designed to assist medical facilities in managing their temporary medical
staffing costs.  DSi Payroll Services, TeamStaff's payroll processing
division, provides customized payroll management and tax filing services to
select industries, such as construction and general contracting. 
A copy of this press release can be found at www.gevityhr.com and
www.teamstaff.com . 
  In connection with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act"), Gevity HR, Inc. and
TeamStaff, Inc (the "Companies" or "Company") are hereby providing cautionary
statements identifying important factors that could cause the Companies'
actual results to differ materially from those projected in forward-looking
statements (as such term is defined in the Reform Act) made by or on behalf of
the Companies herein, in other filings made by the Companies with the
Securities and Exchange Commission, in press releases or other writings,
including in electronic form on the Companies' respective internet web
site(s), or orally, whether in presentations, in response to questions or
otherwise. Any statements that express, or involve discussions as to,
expectations, beliefs, plans, objectives, assumptions or future events or
performance (often, but not always, through the use of words or phrases such
as "will result," "are expected to," "anticipated," "plans," "intends," "will
continue," "estimated," and "projection") are not historical facts and may be
forward-looking and, accordingly, such forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause the
actual results or performance of either Company to be materially different
from any future results or performance expressed or implied by such
forward-looking statements.  These factors are described in further detail in
each of the Company's Annual Report on Form 10-K and in other filings by each
Company with the Securities and Exchange Commission.  Each Company cautions
that these factors could cause actual results or outcomes to differ materially
from those expressed in any forward-looking statements made by or on behalf of
either Company.  Any forward-looking statement speaks only as of the date on
which such statement is made, and the Companies undertake no obligation to
update any forward-looking statement or statements to reflect events or
circumstances after the date on which such statement is made or to reflect the
occurrence of unanticipated events.  New factors emerge from time to time, and
it is not possible for the management of either Company to predict all of such
factors.  Further, management cannot assess the impact of each such factor on
the business of either Company or the extent to which any factor, or
combination of factors, may cause actual results to differ materially from
those contained in any forward-looking statements. 
  For further information please contact T. Kent Smith, President & CEO of
TeamStaff, Inc., +1-732-748-1700; or Christi Mottola, Managing Partner of CCG
Investor Relations, +1-949-851-1109, cmottola@aol.com, for TeamStaff, Inc.
  

SOURCE  TeamStaff, Inc. 
-0-                             11/17/2003 
/CONTACT:  T. Kent Smith, President & CEO of TeamStaff, Inc.,
+1-732-748-1700; or Christi Mottola, Managing Partner of CCG Investor
Relations, +1-949-851-1109, cmottola@aol.com, for TeamStaff, Inc./ 


    /Web site:  http://www.gevityhr.com /
    /Web site:  http://www.teamstaff.com /


(TSTF GVHR) 
CO:  TeamStaff, Inc.; Gevity; Gevity HR, Inc.
ST:  New Jersey, California
IN:  FIN HEA
SU:  TNM
-0- Nov/17/2003 14:15 GMT
 
 
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