CAREERSTAFF UNLIMITED, INC. REPORTS RECORD 1994 RESULTS; 1994 Net Income Up 370% On 103% Revenue Increase.

HOUSTON, TX--(BUSINESS WIRE)--March 20, 1995--CareerStaff Unlimited, Inc. (Nasdaq National Market: STAF), the leading national provider of temporary rehabilitation therapist staffing, today announced financial results for the fourth quarter and year ended December 31, 1994 (see attached table).

For the fourth quarter of 1994, the Company reported record revenues of $16,085,792, a 76% increase over the comparable period in 1993. Net income rose at a faster rate, up 243% to $747,807, or $.11 per share. For the year ended December 31, 1994, the Company reported a 103% increase in revenues to a record $55,258,186, with net income up 370% to $3,093,511, or $.48 per share.

Total service hours billed, from which the Company primarily derives its revenues, increased to 335,785 from the 194,742 hours billed in the same period in 1993. For all of 1994, billable hours rose to 1,157,535 from 590,405 in 1993. The significant increase in revenues in 1994 is the result of this aggregate rise in billable hours and the increased number of therapists at Company offices open for more than one year and, to a lesser extent, from the opening of the Company's three new Division Offices, and increases in billing rates.

CareerStaff Unlimited's President and Chief Executive Officer Michael Weinholtz, commented, "1994 was an outstanding year for CareerStaff Unlimited as we greatly expanded our geographic presence to become the leading provider of therapist staffing nationwide. During the year, we opened Division Offices in three major cities and added two satellite offices. As our Division Offices have matured, they have contributed an increasing level of revenue and profitability to the Company."

Management added that as the Company's Division Offices have grown, it has achieved economies of scale at the divisional and corporate office levels. As a result, in 1994 the Company's selling, general and administrative expenses declined as a percentage of revenues to 16.1% from 20.6% in 1993.

Mr. Weinholtz added, "While we are proud of the Company's financial achievements in 1994, our fourth quarter earnings reflect the disappointing 1994 performance of Physicians Unlimited, which was sold in December 1994, as well as higher costs associated with the Company's aggressive growth plans for 1995. In this regard, in the first quarter of 1995 the Company has taken several important steps to further enhance its revenue and earnings growth potential this year. In the first quarter we opened our 15th Therapists Unlimited Division Office, in Minneapolis, Minnesota, which serves the Twin Cities region. We have also opened our fifth satellite office, located in Pittsburgh, PA, further expanding the geographic area served by our Philadelphia division. We have augmented our internal growth with an accelerated acquisition program which is allowing CareerStaff to bridge the geographic areas between existing Division offices and to support our ongoing operations in major cities across the country. This expansion complements and strengthens our ability to serve major national providers of rehabilitation services and home healthcare.

"In January 1995, we acquired three rehabilitation staffing companies. These acquisitions provided for our entry into the Cincinnati market, and strengthened our existing operations in Washington, D.C. and San Francisco. This month, we completed our largest acquisition to date with the purchase of Healthcare Staff Resources, Inc., a national provider of traveling therapists with 1994 revenues of approximately $13,000,000 (unaudited). Each of these acquisitions is expected to generate an immediate financial return as we record additional billable hours from our expanded pool of therapist personnel. While our focus remains the opening of new division offices in major cities coast-to-coast, we will continue to pursue attractive acquisitions. To be prepared to take advantage of acquisition opportunities as they arise, the Company is in the final stages of negotiating a $15 million revolving line of credit to be used for acquisition financing and working capital."

Mr. Weinholtz added, "The force behind the Company's substantial growth in both revenues and earnings remains our Division Presidents' ability to recruit and retain qualified therapists to meet the growing staffing needs of our clients. CareerStaff's exciting compensation package and ability to offer a wide variety of clinical and geographic assignments, allows us to present an increasingly attractive career alternative for qualified therapists nationwide. Our geographic expansion and the significant increase in the size of our personnel pool positions us to take full advantage of continuing growth in the temporary staffing and rehabilition markets and enhances our ability to serve national providers of rehabilitation and home health services. We believe 1995 will mark another year of dynamic growth for the Company in both revenue and earnings per share."

CareerStaff Unlimited, Inc. is the leading provider of licensed physical, occupational and speech therapy staffing, primarily to hospitals, nursing homes, outpatient and other rehabilitation contract service managers and to home health care providers. CareerStaff operates through a growing national network currently comprised of 15 Therapists Unlimited Division offices and five satellite offices, along with Healthcare Staff Resources, Inc. and TravelCare USA, both national providers of traveling therapists. -0-

                CAREERSTAFF UNLIMITED, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS

                 Three months ended          Year ended
                    December 31,              December 31,
                   1994        1993          1994       1993
                     (Unaudited)                (Audited)

Total revenues  $16,085,792   $9,119,794  $55,258,186  $27,179,776
Gross profit      3,945,614    2,225,994   13,825,067    6,756,985
Operating expenses:
 Selling, general and
  administrative  2,764,632    1,722,676    8,891,048    5,106,956
 Appreciation and
  profit rights          --      123,310         --        493,240
Operating income
 before interest
 expense/income   1,180,982      380,008    4,934,019    1,156,789
Interest
 expense/(income)   (42,866)      27,213      (30,983)      92,168
Minority Interest
- Limited Partners   46,360           --       46,360           --
Net income before
 provision for
 income taxes     1,177,488       352,795   4,918,642    1,064,621
Provision for
 income taxes       424,750            --    1,037,696          --
Net income       $  752,738     $ 352,795  $ 3,880,946 $ 1,064,621
Pro forma net income
 adjusted for
 income taxes:
Net income before
 provision
 for income
 taxes as above   1,177,488       352,795    4,918,642    1,064,621
Pro forma provision
 for income taxes   429,681       134,514    1,825,131      405,922
Net income
 adjusted         $ 747,807     $ 218,281 $  3,093,511  $   658,699
Net income
 adjusted per
 share                $0.11         $0.03        $0.48        $0.11
Weighted average
 shares
 outstanding      6,955,448     6,146,133    6,497,241    5,813,130

                  CAREERSTAFF UNLIMITED, INC. AND SUBSIDIARIES
                      Condensed Consolidated Balance Sheets

                       December 31, 1994       December 31, 1993
ASSETS
Current Assets:
Cash and cash equivalents  $ 6,085,895             $   178,613
Accounts receivable (net)    7,105,795               3,615,509
Prepaid expenses and
 other current assets          764,727                 325,042
Total current assets        13,956,417               4,119,164
Other assets                 2,218,929                 742,799
Total assets               $16,175,346              $4,861,963

LIABILITIES
 AND STOCKHOLDERS' EQUITY

Total Current Liabilities    2,668,004               2,539,018
Long-term debt                     --                  223,050
Other liabilities               95,634                     --
Minority interests in
 subsidiary limited
 partnerships                  228,690                 181,000
Total stockholders' equity  13,183,018               1,918,895
Total liabilities
 and stockholders' equity   $16,175,346             $4,861,963

CONTACT: J. Livingston Kosberg, Chairman

[phone]

Michael Weinholtz, President & CEO

[phone]

Jay Rosen, Chief Financial Officer

[phone]

or

The Equity Group Inc.

Robert Goldstein

[phone]

Tamara Ehlin

[phone]