<SEC-DOCUMENT>0000950123-11-057293.txt : 20110607
<SEC-HEADER>0000950123-11-057293.hdr.sgml : 20110607
<ACCEPTANCE-DATETIME>20110607164544
ACCESSION NUMBER:		0000950123-11-057293
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20110601
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Unregistered Sales of Equity Securities
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20110607
DATE AS OF CHANGE:		20110607

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TEAMSTAFF INC
		CENTRAL INDEX KEY:			0000785557
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-HELP SUPPLY SERVICES [7363]
		IRS NUMBER:				221899798
		STATE OF INCORPORATION:			NJ
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-18492
		FILM NUMBER:		11898988

	BUSINESS ADDRESS:	
		STREET 1:		300 ATRIUM DRIVE
		CITY:			SOUTH PLAINFIELD
		STATE:			NJ
		ZIP:			08873
		BUSINESS PHONE:		7327481700

	MAIL ADDRESS:	
		STREET 1:		300 ATRIUM DRIVE
		CITY:			SOUTH PLAINFIELD
		STATE:			NJ
		ZIP:			08873

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DIGITAL SOLUTIONS INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>c18498e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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style="width: 7.5in; font-family: 'Times New Roman',Times,serif; margin-left: 0.25in">
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<DIV
style="border-bottom: black 1pt solid; width: 100%; font-size: 1pt">&nbsp;</DIV>

<P style="font-size: 14pt" align="center"><B>UNITED STATES<BR>
SECURITIES AND
EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

<P style="font-size: 12pt" align="center"><B>CURRENT REPORT<BR>
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest
event reported): June 1, 2011</B>

<P align="center">&nbsp;

<P style="font-size: 24pt" align="center"><B>TeamStaff, Inc.<BR>
</B><FONT
style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>
<TABLE style="text-align: center; font-size: 10pt" border="0" cellspacing="0"
cellpadding="0" width="100%">

 <TR>
  <TD width="32%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="33%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="32%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>New Jersey</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>0-18492</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>22-1899798</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
 </TR>

</TABLE>
<TABLE style="text-align: center; font-size: 10pt" border="0" cellspacing="0"
cellpadding="0" width="100%">

 <TR>
  <TD width="49%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="49%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>1 Executive
Drive<BR>
Somerset, NJ<BR>
</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>08873</B></TD>
 </TR>
 <TR valign="top">
  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number,
including area code: <B>(877) 523-9897</B>
<TABLE style="text-align: center; font-size: 10pt" border="0" cellspacing="0"
cellpadding="0" width="30%">

 <TR>
  <TD width="100%">&nbsp;</TD>
 </TR>
 <TR>
  <TD style="border-bottom: #000000 1px solid" nowrap><B>&nbsp;</B></TD>
 </TR>
 <TR>
  <TD nowrap>(Former name or former address if changed since last report.)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="left">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


<P>&nbsp;
<DIV
style="border-bottom: black 1pt solid; margin-top: 10pt; width: 100%; font-size: 1pt">&nbsp;</DIV>
<DIV
style="border-bottom: black 2pt solid; width: 100%; font-size: 1pt">&nbsp;</DIV>
</DIV>

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;1.01</B>&nbsp;&nbsp;&nbsp;<B> Entry into a Material Definitive Agreement.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">On June&nbsp;1, 2011, TeamStaff, Inc. (the &#147;<u>Company</u>&#148;) entered into
a debenture purchase agreement (the &#147;<u>Purchase Agreement</u>&#148;) with
entities affiliated with Wynnefield Capital, Inc. (the
&#147;<u>Purchasers</u>&#148;), providing for a standby commitment pursuant to
which the Purchasers agreed to purchase convertible debentures
(the &#147;<u>Convertible Debentures</u>&#148;) in an aggregate principal
amount of up to $350,000 (the &#147;<u>Total Commitment Amount</u>&#148;).
During the 24-month commitment term, upon at least five (5)
days&#146; written notice by the Company, the Purchasers will
purchase Convertible Debentures in the aggregate principal
amount specified in such notice up to the Total Commitment
Amount. In addition, the Company issued the Purchasers
warrants to purchase an aggregate of 53,846 shares of common
stock (the &#147;<u>Warrants</u>&#148;) in consideration of their agreement to
provide the Total Commitment Amount. As of the date of this
Current Report, no Convertible Debentures have been sold by
Company. The Company intends to use any proceeds resulting
from the sale of the Convertible Debentures for working
capital and general corporate purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The Convertible Debentures will mature on the 27-month
anniversary of issuance and bear interest at the rate of the
greater of the prime rate plus 5%, or 10% per annum, payable
at maturity or upon redemption of such Convertible Debentures.
The Convertible Debentures are convertible into shares of the
Company&#146;s common stock at an initial conversion price of $1.30
per share. The initial conversion rate is subject to
adjustment to account for certain customary events and also
will include weighted-average anti-dilution protection for
future issuances by the Company, subject to certain
exclusions. The Company can also redeem the outstanding
Convertible Debentures at any time at 120% of the remaining
principal amount, plus accrued but unpaid interest. The
Warrants will be exercisable for five years at an initial
exercise price equal to $1.00. The initial exercise price of
the Warrants is subject to adjustment for certain customary
events and includes weighted average anti-dilution protection
for future issuances by the Company, subject to certain
exclusions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">In connection with the parties&#146; entry into the Purchase
Agreement, the Company, TeamStaff Government Solutions, Inc.,
the Purchasers and Presidential Financial Corporation entered
into subordination agreements concerning the terms of the
subordination of the Convertible Debentures to the secured
loan facility provided by Presidential Financial Corporation.
Under the subordination agreements, the Company may not make
payments to the Purchasers under the Convertible Debentures
unless before and following such payments, no &#147;Event of
Default&#148; exists under the secured loan facility.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The Purchasers are entities affiliated with Wynnefield
Capital, Inc., the Company&#146;s largest shareholder. Mr.&nbsp;Peter
Black, a member of the Company&#146;s Board of Directors, is an
employee of Wynnefield Capital. The Convertible Debentures and
Warrants will be restricted securities issued in reliance upon
the exemption from registration provided by Section&nbsp;4(2) of
the Securities Act of 1933, as amended (the &#147;<u>Securities Act</u>&#148;).
On June&nbsp;7, 2011, the Company issued a press release announcing
its execution of the Purchase Agreement. A copy of this press
release is filed herewith as Exhibit&nbsp;99.1.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;2.03 </B>&nbsp;&nbsp;&nbsp;<B> Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">To the extent required to be disclosed pursuant to Item&nbsp;2.03
of Form 8-K, the information set forth in Item&nbsp;1.01 is
incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;3.02 </B>&nbsp;&nbsp;&nbsp;<B> Unregistered Sales of Equity Securities.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The information set forth in &#147;Item&nbsp;1.01. Entry into a Material
Definitive Agreement&#148; regarding the standby commitment and
issuance of warrants is incorporated herein by reference.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">The securities issuable under the Purchase Agreement were
offered and sold in a private placement to accredited
investors (as such term is defined in Rule&nbsp;501(a), as
promulgated under the Securities Act), without registration
under the Securities Act and the securities laws of certain
states, in reliance on the exemption provided by Section&nbsp;4(2)
of the Securities Act and similar exemptions under applicable
state laws. The securities sold in the foregoing transaction
may not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;5.02 </B>&nbsp;&nbsp;&nbsp;<B> Other Events.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">As of June&nbsp;1, 2011, the Company entered into amendments to its
employment agreements with each of Mr.&nbsp;Zachary C. Parker, Mr.
John E. Kahn and Mr.&nbsp;John F. Armstrong pursuant to which each
person agreed to amend their employment agreements to modify
the definition of the term &#147;change in control&#148; as set forth in
person&#146;s employment agreement so as to provide assurances that
the consummation of the transactions described in Item&nbsp;1.01 of
this Current Report would not result in a change in control of
the Company under the definition of such term as it existed
prior to the amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;9.01 </B>&nbsp;&nbsp;&nbsp;<B> Financial Statements and Exhibits.</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>(d)&nbsp;</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B> Exhibits</B>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>99.1</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release of TeamStaff, Inc.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SIGNATURE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>TeamStaff, Inc.</B>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">                          /s/ Zachary C. Parker
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Zachary C. Parker&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Date: June&nbsp;7, 2011
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press Release of TeamStaff, Inc.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>




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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>c18498exv99w1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>Exhibit 99.1</TITLE>
</HEAD>
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<DIV
style="width: 7.5in; font-family: 'Times New Roman',Times,serif; margin-left: 0.25in">
<DIV align="right" style="font-size: 10pt; margin-top: 10pt"><b>Exhibit 99.1</b></DIV>
<P style="text-indent: 70%; font-size: 10pt" align="justify"><B>FOR IMMEDIATE
RELEASE</B>

<P style="font-size: 10pt" align="center"><B>TEAMSTAFF, INC. COMPLETES
STRATEGIC CAPITAL INFUSION INITIATIVE AFTER REACHING AGREEMENT WITH WYNNEFIELD
CAPITAL</B>

<P style="font-size: 10pt" align="justify"><B>Somerset, New Jersey &#8211;
June&nbsp;7, 2011 &#8212; TeamStaff, Inc. (Nasdaq: TSTF), </B>a leading
logistics and healthcare services provider to the Federal Government, announced
today that affiliates of its largest shareholder, Wynnefield Capital, Inc.,
have entered into definitive agreements to provide the Company with a standby
commitment of up to $350,000 to be used for general corporate purposes. This
transaction completes the Company&#8217;s capital infusion initiative which
included expanding its relationship with Presidential Financial Corporation and
the previous investments made by select TeamStaff management and directors.
Pursuant to the transaction agreements, the purchasers have agreed to purchase
up to a total principal amount of $350,000 of convertible debentures during a
24-month commitment term. Under the agreements, the Company can request funding
from time to time during the commitment term. The convertible debentures will
have a maturity date of 27&nbsp;months from date of issuance and will bear an
interest rate at the greater of prime plus 5% or 10% per annum. The debentures
will be convertible into shares of common stock at an initial rate of $1.30 per
share, subject to adjustment. In addition, the Company also agreed to issue to
the purchasers five-year warrants to purchase an aggregate of 53,846 shares of
common stock at an initial exercise price of $1.00 per share. As of the date of
this release, no convertible debentures have been sold by the Company. The
Company intends to use any proceeds resulting from the sale of the convertible
debentures for working capital and general corporate purposes.

<P style="font-size: 10pt" align="justify">Mr.&nbsp;Nelson Obus, President of
Wynnefield Capital, stated, &#8220;The new management team at TeamStaff has put
in place a strategic plan that offers an intriguing value proposition.
&nbsp;Bolstering their capital position appears to be a prudent
decision.&#8221; Wynnefield Capital, Inc. (WCI)&nbsp;is a value investor,
specializing in U.S. small cap situations that have a company or industry
specific catalyst(s).

<P style="font-size: 10pt" align="justify">&#8220;We fully appreciate this vote
of confidence and commitment from such a reputable small cap value investor as
Wynnefield Capital. This action is not only a strong endorsement in the
potential upside that we believe TeamStaff has to offer investors, but also
will help us to carry out our strategic plan that we&#8217;ve worked so
diligently on in the last year. We continue to streamline the Company and have
made significant enhancements. With the new capital, we can continue to focus
on strategic organic growth and enhancing our brand,&#8221; said TeamStaff
President and Chief Executive Officer Zachary Parker.

<P style="font-size: 10pt" align="justify">The securities to be issued in
connection with this transaction have not been registered under the Securities
Act or state securities laws and may not be offered or sold in the United
States absent registration with the SEC or an applicable exemption from the
registration requirements. This news release is neither an offer to sell nor a
solicitation of an offer to buy any of the securities discussed herein, nor
shall there be any sale of these securities in any state or other jurisdiction
in which such offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of any state.

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">1
</DIV>

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<DIV
style="width: 7.5in; font-family: 'Times New Roman',Times,serif; margin-left: 0.25in">

<P style="font-size: 10pt" align="justify"><B>About TeamStaff, Inc.</B>

<P style="font-size: 10pt" align="justify">TeamStaff serves clients throughout
the United States as a full-service provider of logistics and healthcare
services support. TeamStaff specializes in providing high quality healthcare,
logistics, and technical services to the US Departments of Defense and
Veterans&#8217; Affairs. For more information, visit the TeamStaff corporate
web site at www.teamstaff.com or the TeamStaff Government Solutions web site at
<U>www.teamstaffgs.com</U>.

<P style="font-size: 10pt" align="justify">&#8220;Safe Harbor&#8221; Statement
under the Private Securities Litigation Reform Act of 1995:

<P style="font-size: 10pt" align="justify"><I>This press release contains
&#8220;forward-looking statements&#8221; within the meaning of the Private
Securities Litigation Reform Act of 1995. When used in this report, the words
&#8220;believe,&#8221; &#8220;anticipate,&#8221; &#8220;think,&#8221;
&#8220;intend,&#8221; &#8220;plan,&#8221; &#8220;will be,&#8221;
&#8220;expect,&#8221; and statements in this press release regarding TeamStaff,
Inc.&#8217;s business which are not historical facts, are
&#8220;forward-looking statements&#8221; that involve risks and uncertainties
which could cause actual events or the actual future results of the company to
differ materially from any forward-looking statement. Such risks and
uncertainties include, among other things our ability to obtain any needed
financing; our ability to attract and retain sales and operational personnel;
our ability to secure contract awards, including the ability to secure renewals
of contracts under which we currently provide services; our ability to enter
into contracts with United States Government facilities and agencies on terms
attractive to us and to secure orders related to those contracts; changes in
the timing of orders for and our placement of professionals and administrative
staff; the overall level of demand for the services we provide; the variation
in pricing of the contracts under which we place professionals; our ability to
manage growth effectively; the performance of our management information and
communication systems; the effect of existing or future government legislation
and regulation; changes in government and customer priorities and requirements
(including changes to respond to the priorities of Congress and the
Administration, budgetary constraints, and cost-cutting initiatives); economic,
business and political conditions domestically; the impact of medical
malpractice and other claims asserted against us; the disruption or adverse
impact to our business as a result of a terrorist attack; the loss of key
officers, and management personnel; the competitive environment for our
services; the effect of recognition by us of an impairment to goodwill and
intangible assets; other tax and regulatory issues and developments; the effect
of adjustments by us to accruals for self-insured retentions; and the effect of
other events and important factors disclosed previously and from time-to-time
in TeamStaff&#8217;s filings with the U.S. Securities Exchange Commission. For
a discussion of such risks and uncertainties which could cause actual results
to differ from those contained in the forward-looking statements, see
&#8220;Risk Factors&#8221; in the company&#8217;s periodic reports filed with
the SEC. In light of the significant risks and uncertainties inherent in the
forward-looking statements included herein, the inclusion of such statements
should not be regarded as a representation by the company or any other person
that the objectives and plans of the Company will be achieved. The
forward-looking statements contained in this report are made as of the date
hereof and may become outdated over time. The Company does not assume any
responsibility for updating any forward-looking statements.</I>

<P style="font-size: 10pt" align="justify"><B>CONTACTS:</B>

<P style="font-size: 10pt" align="justify">Donald C. Weinberger/Diana Bittner
(media) <BR>
<B>Wolfe Axelrod Weinberger Associates, LLC</B> <BR>
212-370-4500
<BR>
<U>don@wolfeaxelrod.com</U> <BR>
<U>diana@wolfeaxelrod.com</U>

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