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<TYPE>EX-99.1
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<FILENAME>file002.txt
<DESCRIPTION>PRESS RELEASE
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EXHIBIT 99.1

Contact Information:
TeamStaff, Inc.                                     CCG Investor Relations
300 Atrium Drive                                    19900 MacArthur Blvd. #110
Somerset, NJ  08873                                 Irvine, CA  92612
(732) 748-1700                                      (949) 851-1109
T. Kent Smith, President & CEO                      Christi Mottola
                                                    Managing Partner
                                                    cmottola@aol.com

TEAMSTAFF ANNOUNCES FOURTH-QUARTER AND FISCAL 2003 FINANCIAL RESULTS AND
POST-RESTRUCTURING GROWTH PLANS

SOMERSET, N.J., December 22, 2003 -- TeamStaff, Inc. (Nasdaq: TSTF) one of the
nation's leading providers of healthcare staffing and specialty payroll
services, today announced that it has filed its Form 10-K for the fiscal year
ended September 30, 2003. Additionally, TeamStaff announced financial results
for the fourth quarter and fiscal year ended September 30, 2003. As a result of
TeamStaff's sale of its Professional Employer Organization (PEO) segment, all
results reported in this release have been reclassified to show PEO and certain
related corporate expenses as discontinued operations.

"Fiscal 2003 has been a year of transition for TeamStaff. The key changes we
have made within our senior management group, together with the subsequent sale
of the PEO division and the competitive advantages that are built into our
medical staffing services, including our innovative VIP program, have positioned
TeamStaff to expand its leadership role in the medical staffing industry," said
TeamStaff's President and CEO, T. Kent Smith. "Now that we have sold the PEO
operations in favor of segments with higher margins and more robust growth
potential, we have refocused our vision and believe we have sufficient capital
to make appropriate investments to grow our business and return to
profitability."

"As the third-largest allied healthcare staffing provider, we believe that we
are in the right place with the right technology and the right expertise to
capitalize on the trend toward vendor consolidation in medical staffing," Mr.
Smith continued. "This trend mirrors a similar phenomenon in contract IT
staffing over the last several years, but it is still unfolding in our space.
Our in-depth knowledge of our customers' needs and the innovative services we
have developed to meet those needs position us for significantly improved
performance as the medical staffing sector recovers."

TeamStaff's revenues from continuing operations for the three months ended
September 30, 2003 were $13.3 million compared to $19.6 million in the same
quarter last year. The 32% decrease is attributable to decreased revenues in the
medical staffing division. Loss before discontinued operations was $0.2 million
or $0.01 per share in the fourth quarter of 2003 compared to net income before
discontinued operations of $0.3 million or $0.02 per share in the comparable
quarter last year. Net loss was $0.7 million or $0.05 per share in the fourth
quarter of fiscal 2003 versus breakeven in the fourth quarter of fiscal 2002.
Net loss for the fourth quarter was affected by $0.6 million or $0.04 per share
and $0.3 million or $0.02 per share loss from discontinued operations in fiscal
year 2003 and fiscal year 2002, respectively.

TeamStaff's revenues from continuing operations for the fiscal year ended
September 30, 2003 were $62.8 million compared to $79.8 million last year. The
decrease is primarily attributable to decreased revenues in the medical staffing
division as noted above. Loss before discontinued operations was $1.6 million
compared to income before discontinued operations of $3.0 million last year.
Loss from continuing operations in fiscal 2003 was affected by $2.5 million of
expense accruals related to severance and supplemental retirement plan
obligations to TeamStaff's former Chief Executive Officer and former Chief
Financial Officer. Net loss was $28.9 million or $1.84 per share in fiscal year
2003 versus net income of $3.1 million or $0.19 per share in fiscal year 2002.
Net loss in fiscal year 2003 was affected by a $27.3 million loss or $1.74 per
share from discontinued operations. This loss was predominately due to the
previously disclosed after-tax write-down of impaired goodwill and intangibles
totaling $25.4 million. Net income in fiscal year 2002 was favorably impacted by
$0.1 million or $0.01 per share from discontinued operations.

Commenting on TeamStaff's results and restructuring, Mr. Smith stated, "Our
fiscal year results were significantly and negatively affected by our
determination to write down impaired goodwill and intangibles associated with
our PEO division in the second and third quarters. Additionally, in recent
quarters the entire industry has experienced reduced


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demand for traveling nurses and allied health professionals. However, we believe
the demand for temporary medical staffing will increase, driven by an improving
economy, rising hospital admissions, an aging population and a chronically
deepening shortage in the supply of registered nurses."

Mr. Smith continued, "As we continue the restructuring of TeamStaff, the sale of
our PEO division not only has strengthened our balance sheet and improved our
free cash position significantly, but has also given us the ability to focus on
the strategic development of our TeamStaff Rx division. As we previously
disclosed, we will be investing heavily in the development of our TeamStaff Rx
sales team with a 'relationship' emphasis, with both inside and outside sales
professionals who maintain constant interaction with existing and prospective
clients. Additionally, our product development efforts have resulted in the
introduction of our Vendor Integration Program (VIP), which provides both large
and middle-market clients the opportunity to manage the entirety of their
medical staffing needs quickly and efficiently through a web-based application.
VIP centralizes management of our customers' multiple orders, vendors and
locations while freeing them of much of the traditional associated paperwork and
time-of-staff burdens, and not coincidentally, also provides them with
significant savings in both hard and soft costs. While we feel confident in the
direction of our revised TeamStaff Rx business strategy and the continued steady
contribution to revenues provided by our DSi Payroll Services division, we
believe it will take a few quarters for us to realize the positive benefits of
our new efforts."

About TeamStaff:

Headquartered in Somerset, New Jersey, TeamStaff serves clients and their
employees throughout the United States as a full-service provider of payroll and
medical staffing solutions.

TeamStaff Rx provides medical allied health professionals and nurses to doctors'
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 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.

For more information, visit the TeamStaff web site at www.teamstaff.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, including but not limited to: (i) regulatory and tax developments; (ii)
changes in direct costs and operating expenses; (iii) the estimated costs and
effectiveness of capital projects and investments in technology infrastructure;
(iv) ability to effectively implement its business strategies and operating
efficiency initiatives, including, but not limited to, its new business strategy
for TeamStaff Rx; (v) the effectiveness of sales and marketing efforts,
including TeamStaff's marketing arrangements with other companies; (vi) changes
in the competitive environment in the temporary staffing and payroll processing
industry; and (vii) other one-time events and other important factors disclosed
previously and from time to time in TeamStaff's filings with the U.S. Securities
and Exchange Commission. These factors are described in further detail in
TeamStaff's filings with the U.S. Securities and Exchange Commission.

For further information please contact: T. Kent Smith, President & CEO of
TeamStaff, Inc., +1-732-748-1700; or Christi Mottola, Managing Partner, CCG
Investor Relations, +1-949-851-1109, cmottola@aol.com, for TeamStaff, Inc.









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                         TEAMSTAFF, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                  (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)

                             FOR THE THREE MONTHS ENDED    FOR THE YEARS ENDED
                               Sept. 30,   Sept. 30,      Sept. 30,   Sept. 30,
                                 2003        2002           2003        2002

    REVENUES                   $13,316     $19,635        $62,805     $79,820

    DIRECT EXPENSES             10,713      15,993         50,615      63,796

        Gross profit             2,603       3,642         12,190      16,024

    SELLING, GENERAL AND
     ADMINISTRATIVE EXPENSES     2,942       3,268         14,766      12,085

    DEPRECIATION AND
     AMORTIZATION                   91           3            329         198

        (Loss) income from
         continuing operations    (430)        371         (2,905)      3,741

    OTHER INCOME (EXPENSE)
        Interest and other
         income                    125         230            601       1,117
        Interest and other
         expense                   (26)        (75)          (220)       (167)
                                    99         155            381         950

        (Loss) income before
         tax                      (331)        526         (2,524)      4,691

    INCOME TAX BENEFIT (EXPENSE)   140        (229)           930      (1,717)

        (Loss) income before
         discontinued operations  (191)        297         (1,594)      2,974

    (Loss) from discontinued
     operations, net of tax
     benefit                      (558)       (331)       (27,291)        101

        Net (loss) income        $(749)       $(34)      $(28,885)     $3,075

    EARNINGS PER SHARE
     - BASIC & DILUTED
        (Loss) income before
         discontinued
         operations             $(0.01)      $0.02         $(0.10)      $0.18
        (Loss) income from
         discontinued
         operations              (0.04)      (0.02)         (1.74)       0.01
        Net (loss) income       $(0.05)     $(0.00)        $(1.84)      $0.19

    BASIC AVERAGE SHARES
     OUTSTANDING                15,701      15,972         15,732      16,014

    DILUTED AVERAGE SHARES
     OUTSTANDING                15,701      16,028         15,732      16,183



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                         TEAMSTAFF, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                              (AMOUNTS IN THOUSANDS)

                                              September 30,    September 30,
                                                  2003             2002
    ASSETS

    CURRENT ASSETS
      Cash and cash equivalents                  $4,329          $12,455
      Restricted cash                             1,264              129
      Accounts receivable, net of allowance
       for doubtful accounts of $142 and
       $17 at September 30, 2003 and 2002         4,926            7,617
      Current deferred tax asset                     --            1,791
      Prepaid workers' compensation               3,645            2,341
      Other current assets                        1,447            3,069
        Total current assets                     15,611           27,402

    EQUIPMENT AND IMPROVEMENTS
      Furniture and equipment                     2,628            2,603
      Computer equipment                          1,073            1,025
      Computer software                           1,060              606
      Leasehold improvements                        146              129
                                                  4,907            4,363

      Accumulated depreciation and
       amortization                              (3,689)          (3,341)
                                                  1,218            1,022

    DEFERRED TAX ASSET                           14,875            6,680

    TRADENAME                                     4,199            4,199

    AMORTIZED INTANGIBLES - PENSION                  --              612

    GOODWILL                                      1,710            1,710

    OTHER ASSETS                                    555              915

    ASSETS HELD FOR SALE                         22,449           51,426

        TOTAL ASSETS                            $60,617          $93,966




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                         TEAMSTAFF, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                              (AMOUNTS IN THOUSANDS)

                                              September 30,    September 30,
                                                   2003             2002

    LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES
      Current portion of long-term debt             $61              $59
      Accounts payable                              669            1,400
      Accrued payroll                             2,856            1,784
      Deferred tax liability                        538               --
      Accrued expenses and other current
       liabilities                                3,181            6,222
        Total current liabilities                 7,305            9,465

    LONG-TERM DEBT, net of current portion           94              147
    ACCRUED PENSION LIABILITY                     1,724            1,271
    LIABILITIES HELD FOR SALE                    16,384           18,344
        Total liabilities                        25,507           29,227

    COMMITMENTS AND CONTINGENCIES

    SHAREHOLDERS' EQUITY
      Preferred stock, $.10 par value;
       authorized 5,000 shares;
       0 issued and outstanding                      --               --
      Common Stock, $.001 par value;
       authorized 40,000 shares;
       issued 16,267 and 16,229;
       outstanding 15,714 and 15,899                 16               16
      Additional paid-in capital                 65,256           65,200
      Retained (deficit) earnings               (27,572)           1,313
      Accumulated comprehensive losses             (273)            (142)
      Treasury Stock, 533 and 330 shares
       at cost                                   (2,317)          (1,648)
        Total shareholders' equity               35,110           64,739

      TOTAL LIABILITIES AND
       SHAREHOLDERS' EQUITY                     $60,617          $93,966


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Source: TeamStaff, Inc.



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