ACSYS Reports Record Revenues for Fourth Quarter and Year.

ATLANTA--(BUSINESS WIRE)--Feb. 7, 1999--Acsys, Inc. (Nasdaq/NM:ACSY), a leading provider of specialty professional staffing services, today announced results for the fourth quarter and the year ended December 31, 1998.

For the fourth quarter, total historical service revenues increased 86% to a quarterly record of $40.5 million from $21.8 million for the same quarter last year. Pro forma net income for the quarter, reflecting the Company as a taxable entity, was $0.2 million, or $0.02 per diluted share, compared with a pro forma loss of ($0.5) million, or ($0.04) per diluted share, for the fourth quarter of 1997.

For 1998, total historical service revenues increased 66% to a record $129.9 million from $78.1 million for 1997. Pro forma net income was $1.7 million, or $0.12 per diluted share, compared with pro forma net income of $0.9 million, or $0.00 per diluted share, for 1997. Excluding previously announced combination and severance expenses incurred in the second quarter of 1998, pro forma net income for 1998 would have been $3.8 million, or $0.26 per diluted share.

Chief Executive Officer Timothy Mann, Jr. said, "Although we were pleased with our internal revenue growth of approximately 40% and our gross margins in our temporary staffing business, as previously announced we experienced a significant decline in our permanent placement business. Additionally, our results were adversely affected by higher selling, general and administrative costs that we committed to prior to this unexpected decline in permanent placement revenues.

"We continue to be comfortable with analysts' estimates for our 1999 permanent placement revenues. Additionally, the Company has taken steps to reduce selling, general and administrative costs in 1999. These actions include: eliminating certain permanent placement consultant positions, closing a nonperforming office and, where appropriate, changing management personnel. Such actions are expected to result in severance charges of up to $3.3 million, which will be recorded in the Company's first quarter 1999 results. These changes are expected to result in a favorable impact on EPS for each of the remaining quarters of 1999 and thereafter."

Acsys, Inc. is one of the leading specialty professional staffing firms in the United States. Acsys currently operates over 40 offices, serving metropolitan markets across the U.S. with a more significant presence in the Eastern and Midwestern U. S.

This press release contains forward-looking statements about the Company's expected first quarter and 1999 operating results. The Company's first quarter and 1999 operating results could differ materially from the results projected in the forward-looking statements. Such statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on the Company's expected operating results, performance or financial condition are uncertainties associated with the Company's brief operating history; the Company's ability to achieve and manage growth; the Company's ability to successfully identify suitable acquisition candidates, complete acquisitions or integrate the acquired business into its operations; the Company's ability to attract and retain qualified personnel; the Company's ability to develop new services; conditions in the specialty professional staffing industry; general economic conditions; and other factors discussed from time to time in Acsys's filings with the Securities and Exchange Commission. -0-

                             ACSYS, INC.
                  Condensed Statements of Operations
            (dollars in thousands, except per share data)
                             (Unaudited)

                             Fourth Quarter Ended      Year Ended
                              Dec. 31,  Dec. 31,  Dec. 31,   Dec. 31,
                               1998      1997       1998      1997

Service revenues:
  Temporary staffing          $33,503   $17,507   $103,067   $60,057
  Permanent placement           7,024     4,329     26,831    18,071
   Total service revenues      40,527    21,836    129,898    78,128

Direct cost of services        23,402    12,720     72,170    42,583
  Gross profit                 17,125     9,116     57,728    35,545

Selling, general &
  administrative expenses      15,291     8,916     48,260    29,979
Combination expenses                         75      1,730     1,797
Severance and franchise
  termination costs                         512        650       682
Depreciation and
  amortization                    599       256      1,658       715
  Operating income (loss)       1,235      (643)     5,430     2,372

Interest expense, net             662       200      1,129       788
Income (loss) before
  income taxes                    573      (843)     4,301     1,584
Income tax expense
  (benefit)                       343      (142)     5,527       438
Net income (loss)             $   230   $  (701)  $ (1,226)  $ 1,146

Net income (loss)
  per share(a)                $  0.02   $ (0.06)  $  (0.09)  $  0.02

Pro forma:(a)
  Pro forma income
   tax expense (benefit)      $   343   $  (371)  $  2,634   $   697
  Pro forma net
   income (loss)              $   230   $  (472)  $  1,667   $   887
  Pro forma income
   (loss) per diluted
   share                      $  0.02   $ (0.04)  $   0.12   $  0.00

Shares to compute
diluted earnings               14,479    11,192     14,345    10,544

----------------------------------

(a)  Historical net income (loss) per share is not comparable among
     the periods presented because the Company was not a taxable
     entity in 1997. Net income (loss) per share and pro forma income
     (loss) per share in the year ended December 31, 1997, included a
     charge of $932 for the accretion of certain redeemable shares.
     Additionally, the Company recognized income tax expense of $3.0
     million in the first quarter of 1998 in connection with the
     Company's conversion to a taxable entity. Pro forma net income
     (loss) and pro forma income (loss) per diluted share reflect the
     Company as a taxable entity in all periods presented.

-0-

                     Condensed Balance Sheet Data
                        (dollars in thousands)

                                       Dec. 31, 1998     Dec. 31, 1997

Cash and cash equivalents               $  1,776           $      370
Working capital                            3,038                4,921
Total assets                              86,342               33,352
Long-term liabilities                     25,616               12,084
Shareholders' equity                      33,703               10,801