Acsys, Inc. Announces Third Quarter Results; Total Service Revenues Increase 74%.

ATLANTA--(BUSINESS WIRE)--Oct. 28, 1998--Acsys, Inc. (Nasdaq/NM:ACSY), a leading provider of specialty professional staffing services, today announced results for the third quarter and nine months ended September 30, 1998.

Total service revenues for the third quarter increased 74% to a quarterly record of $37.6 million from $21.6 million for the same quarter last year. Pro forma net income for the quarter, reflecting the Company as a taxable entity, was $2.0 million, or $0.14 per diluted share, compared with $1.1 million, or $0.06 per diluted share, for the year-earlier period. During the third quarter, as previously announced, the Company completed the acquisition of Staffing Edge, Inc., a leading specialty professional staffing firm, which added offices in 10 new markets.

For the nine months, total service revenues increased 59% to a record $89.4 million from $56.3 million for the first nine months of 1997. Pro forma net income, reflecting the Company as a taxable entity, was $1.5 million, or $0.11 per diluted share, compared with pro forma net income of $0.7 million, or $(0.02) per diluted share, for the first nine months of 1997. Excluding previously announced combination and severance expenses incurred in the second quarter of 1998, pro forma net income for the first nine months of 1998 would have been $3.7 million, or $0.26 per diluted share.

Commenting on the results, Chief Executive Officer Timothy Mann, Jr. said, "Our results for the quarter reflect strong internal revenue growth of 39%, after removing the impact of acquisitions. The integration process for our acquisitions is proceeding nicely and all of our operations contributed to our growth in the third quarter. Revenues from our temporary staffing business grew 40% and revenues from our permanent placement business grew 33% for the quarter after removing the impact of acquisitions.

"We continue to look for merger opportunities with specialty professional staffing companies that have a leading position in new markets or that are operationally and geographically synergistic with our existing business. Although we have as of late been digesting out recent merger with Staffing Edge, our acquisition pipeline remains robust."

Acsys, Inc. is one of the leading specialty professional staffing and permanent placement firms in the U.S. Acsys currently operates over 40 offices, serving major metropolitan markets principally throughout the Midwest and the East Coast.

Information contained in this press release, other than historical information, should be considered forward-looking in nature and is 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 operating results, performance or financial condition are 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)

                           Third Quarter Ended      Nine Months Ended
                          ----------------------------------------------
                          Sept. 30,    Sept. 30,  Sept. 30,    Sept. 30,
                            1998         1997       1998         1997
                          ----------------------------------------------
Service revenues:
  Temporary staffing      $ 29,525     $ 16,198   $ 69,564     $ 42,550
  Permanent placement        8,050        5,355     19,807       13,742
                          ----------------------------------------------
  Total service revenues    37,575       21,553     89,371       56,292

Direct cost of services     20,714       11,350     48,768       29,863
                          ----------------------------------------------
  Gross profit              16,861       10,203     40,603       26,429

Selling, general &
 administrative expenses    12,436        7,977     32,969       21,063
Combination expenses           ---          ---      1,730        1,722
Severance and franchise
 termination costs             ---          ---        650          170
Depreciation and
 amortization                  502          230      1,059          459
                          ----------------------------------------------
  Operating income           3,923        1,996      4,195        3,015

Other expense, net             402          209        466          588
                          ----------------------------------------------
Income before income
 taxes                       3,521        1,787      3,729        2,427
Income taxes                 1,500          166      5,185          580
                          ----------------------------------------------
Net income (loss)         $  2,021     $  1,621   $ (1,456)    $  1,847
                          ==============================================
Net income (loss)
 per share:(a)            $   0.14     $   0.11   $  (0.10)    $   0.09
                          ==============================================
Pro forma:(a)
Pro forma income taxes    $  1,500     $    725   $  2,185     $  1,683
                          ==============================================
  Pro forma net income    $  2,021     $  1,062   $  1,544     $    744
                          ==============================================
  Pro forma income (loss)
   per diluted share      $   0.14     $   0.06   $   0.11     $  (0.02)
                          ==============================================
Shares used to compute
 diluted earnings           14,744       10,749     13,878       10,321
                          ==============================================


(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) and pro forma income (loss) per
     share in the quarter and nine month period ended September 30,
     1997 included a charge of $454 and $932, respectively, 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 and pro forma income (loss)
     per share reflect the Company as a taxable entity in all periods
     presented.

                     Condensed Balance Sheet Data
                            (in thousands)

                                           Sept. 30,    Dec. 31,
                                             1998         1997
------------------------------------------------------------------------

Cash and cash equivalents                  $  1,176     $    370
Working capital                               3,171        5,025
Total assets                                 85,188       33,249
Long-term liabilities                        28,651       12,084
Shareholders' equity                         33,697       10,802