Summary of Results of Operations (Unaudited)
                  Three Months Ended March 31, 1997 and 1996
                   (In thousands, except per share amounts)

                                  Historical           Pro Forma
                                1997      1996        1997      1996
    Revenues                 $216,948   $103,386   $223,264   $171,357
    Gross profit              $49,855    $25,702    $52,311    $41,039
    Operating  income         $12,221    $5,826     $12,965    $10,204
    Net  income                $5,755     $2,669     $6,035     $3,355
    Earnings per common share  $ 0.18     $ 0.10     $ 0.19     $ 0.12
    Average shares             32,429     27,339     32,429     27,339
     outstanding

    HOUSTON, April 29 /PRNewswire/ -- CORESTAFF, Inc. (Nasdaq: CSTF), one of
the largest national providers of information technology and staffing
services, today announced record results for the quarter ended March 31,
1997.  Net income for the current quarter increased 116 percent to
$5.8 million compared with net income of $2.7 million in the first quarter of
1996.  Earnings per share increased 80 percent to $0.18 per share, up from
$0.10 per share in 1996.  The average number of shares outstanding during the
current quarter was 19 percent higher than a year ago, as a result of the
Company's follow-on public offering in May 1996.
    Revenues in the current quarter increased 110 percent to $216.9 million
from $103.4 million in the first quarter of 1996.  Operating income also
increased 110 percent to $12.2 million from $5.8 million in the same period a
year ago.  Gross margin for the current quarter of 23 percent was 190 basis
points (BPS) lower than the first quarter of 1996.  The lower  gross margin
primarily resulted from the effects of acquisitions of lower margin businesses
made after March 31, 1996, and a higher proportion of revenues from large
customers.  These larger accounts have lower gross margins than smaller
accounts, but higher operating leverage.  Despite the lower gross margin,
operating margin for the current quarter was 5.6 percent, which equaled the
margin for the first quarter of 1996.  This was the result of the higher
operating leverage and the higher proportion of revenues from the Information
Technology (IT) Services group, partially offset by the effects of investments
in infrastructure and IT technical practices to support growth of the Company.
    Pro forma operating results, which assume all acquisitions consummated
through March 31, 1997, and the sale of the physical therapy staffing business
in January 1997, occurred as of the beginning of the periods presented,
demonstrate the high internal growth rate of the Company's business units
during the current quarter.  Pro forma revenues for the current quarter were
$223.2 million, up 30 percent from $171.4 million in the first quarter of
1996.  Pro forma net income rose 80 percent to $6.0 million, or $0.19 per
share, compared with pro forma net income of $3.4 million, or $0.12 per share,
in 1996.
    Information Technology Services Group -- For the current quarter, the IT
Services group accounted for 47 percent and 53 percent of the Company's
consolidated revenues and gross profit, respectively, up from 39 percent
and 45 percent, respectively, in the first quarter of 1996.  These increases
reflect the higher internal growth rate of this group compared with staffing
services and the nine businesses acquired in this sector in 1996.  Revenues
and gross profit for the current quarter were up 154 percent and 128 percent,
respectively, over the first quarter of 1996.  Gross margin for the current
quarter of 26.3 percent was 300 BPS below that for the first quarter of 1996
primarily due to the acquisition of certain lower margin businesses in 1996
and the higher proportion of revenues from large customers, which have lower
gross margins than smaller accounts, but higher operating leverage.
    Pro forma revenues and gross profit for the current quarter, which can
be used as a measure of internal growth, increased 33 percent and 30
percent, respectively, from the first quarter of 1996.  These improvements
reflect the continued strong demand for the Company's IT services.  Pro forma
gross margin of 26.3 percent was 70 BPS lower in the current quarter primarily
due to (i) a higher proportion of revenues from large accounts, principally
telecommunication clients, (ii) higher bench time caused by delays in certain
project work, (iii) one less billing day in the current quarter and (iv)
higher consultant costs.
    Staffing Services Group -- For the current quarter, Staffing Services
accounted for 53 percent and 45 percent of the Company's consolidated revenues
and gross profit, respectively, down from 59 percent and 52 percent,
respectively, in the first quarter of 1996.  Revenues and gross profit for the
current quarter were up 88 percent and 70 percent, respectively, over the
first quarter of 1996.  Gross margin for the current quarter of 19.8 percent
was 210 BPS, lower than the first quarter of 1996 primarily due to (i) the
acquisition of a low margin staffing services business in 1997, (ii) the
higher proportion of revenues being generated from the Company's large on-site
programs (VIP programs) and (iii) lower internal growth of the Company's
higher margin businesses.  VIP programs have lower gross margins than the
group's other staffing services business, but higher operating leverage.
    Pro forma revenues and gross profit for the current quarter increased 27
percent and 21 percent, respectively, from the first quarter of 1996.  These
improvements primarily reflect the increase in revenues from the VIP programs,
including new programs that were added in 1997.  Pro forma gross margin for
the current quarter of 19.8 percent was 90 BPS, lower than the first quarter
of 1996, reflecting the higher proportion of revenues from the Company's VIP
programs.
    IT Solutions Group -- During the current quarter, the Company formed a new
business unit, IT Solutions, to provide system integration and consulting
services.  This new unit is currently comprised of three IT consulting and
systems integration businesses and the Company's technical communication
business, which was formerly included in its IT Services group. This unit is
expected to generate 1997 revenues in excess of $70 million.  The Company
plans to focus on making additional acquisitions in this sector during 1997.
    The three system integration and consulting services businesses include
Technology and Process Consulting, Inc. (TPC), Metamor Technologies, Ltd.
(Metamor) and Business Management Data and its Indian affiliate Sriven
Computer Solutions (together BMD).  TPC was formed in early January by the
Company to provide high-level consulting services, principally object-oriented
systems development.  Metamor, a Chicago-based IT systems integration firm,
was acquired in late March 1997. BMD, which provides long-term critical code
maintenance and offshore client/server development services, was acquired in
April 1997.
    Pro forma revenues and gross profit for the current quarter, which exclude
BMD since it was acquired after March 31, 1997, increased 50 percent and 65
percent, respectively, from the first quarter of 1996.  Pro forma gross margin
was 38.2 percent, which was 340 BPS higher than first quarter of 1996.  The
gross margin for this group is higher than that for the Company's other
business units due to the higher value-added nature of the services provided.
The growth rate for the group is also expected to exceed the Company's other
business units.
    Acquisition Activity -- CORESTAFF acquired one staffing services business
and one IT Solutions business during the current quarter.  These businesses
were acquired in all cash transactions totaling $24 million.  The acquired
staffing services business and the IT Solutions business had 1996 revenues of
approximately $37 million and $21 million, respectively.

    First Quarter Review
    Commenting on the results, Michael T. Willis, chairman and CEO, said,
"We are pleased with the high internal growth rate and record earnings of the
Company during the first quarter.  Earnings per share for the quarter were 80
percent higher and pro forma revenues were 30 percent higher than the first
quarter of 1996, reflecting the strong demand for our services.  Since a
significant portion of our growth came from large customers, pro forma gross
margin for the current quarter was 50 basis points below that for 1996, as
these accounts typically have lower gross margins, but higher operating
leverage.  Our pro forma operating margin was 20 basis points below 1996, as a
result of the lower gross margin and the effects of investments in
infrastructure and IT technical practices to support growth, partially offset
by higher operating leverage.
    "Although most of the reduction in gross margin related to higher sales
to lower margin accounts, gross margin was also affected by higher consultant
costs," Willis added.  "In most cases, the Company was able to maintain its
gross profit spread by billing customers the higher consultant costs without a
full mark up.  We expect that maintaining margins for our IT staff
augmentation services will be challenging due to rising consulting costs in a
tightening labor market and as large IT staff augmentation users continue to
press their preferred vendors to hold the line on costs.  In addition to the
close management of our large accounts, our strategy for managing operating
margins will focus on more project work, including Year 2000 projects, greater
penetration of higher margin accounts and programs to improve retention of our
consultants."
    Willis continued, "In the first quarter, we exited the health care
staffing business by selling our physical therapy business and we entered the
IT Solutions business.  We are very excited about the opportunities of the IT
Solutions business.  This sector is growing at a higher growth rate than our
other lines of business and also offers higher gross and operating margins.
We believe this business will benefit from our IT staff augmentation business,
which can provide it with access to its customers.  To date, we have acquired
two businesses and formed a high-level consulting business in this sector.  On
a combined basis, the IT Solutions business is expected to generate 1997
revenues in excess of $70 million."
    Established in 1993, CORESTAFF, Inc. has quickly become one of the largest
national providers of information technology and staffing services through
three operating units:  COMSYS Information Technology Services, CORESTAFF
Services and IT Solutions.  The Company, with pro forma revenues in excess of
$850 million, operates more than 150 branches across the United States and has
operations in India and the United Kingdom.
    Except for historical information, all of the statements, expectations
and assumptions contained in the foregoing are forward-looking statements that
involve a number of risks and uncertainties.  Although the Company has used
its best efforts to be accurate in making those forward-looking statements, it
is possible that the assumptions made by management may not materialize.  In
addition, important factors which could cause results to differ materially are
set forth under the caption "Risk Factors" in the Company's annual report on
Form 10-K, a copy of which is available upon request from CORESTAFF's investor
relations department.
    For further information regarding CORESTAFF, Inc. free of charge via
 fax, dial 1-800-PRO-INFO and enter "CSTF."

                       CORESTAFF, Inc. and Subsidiaries
            Summary Consolidated Results of Operation (Unaudited)
                  Three Months Ended March 31, 1997 and 1996
                   (In thousands, except per share amounts)

                                                Historical
                                     1997                          1996
    Revenues from services:
     Staffing Services     $114,066        52.6%         $60,786         58.8%
     IT Services            101,071        46.6           39,818         38.5
     IT Solutions             1,811         0.8              585          0.6
     Other                       --          --            2,197          2.1
      Total                $216,948       100.0%        $103,386        100.0%

    Gross profit:
     Staffing Services      $22,631        45.4%         $13,324         51.8%
     IT Services             26,574        53.3           11,656         45.4
     IT Solutions               650         1.3              186          0.7
     Other                       --          --              536          2.1
      Total                 $49,855       100.0%         $25,702        100.0%

    Operating income        $12,221          --           $5,826           --

    Net income               $5,755          --           $2,669           --

    Earnings per share        $0.18          --            $0.10           --

    Margins:
     Gross  --
      Staffing Services        19.8%         --             21.9%          --
      IT Services              26.3          --             29.3           --
      IT Solutions             35.9          --             31.8           --
      Consolidated             23.0          --             24.9           --
     Operating                  5.6          --              5.6           --
     Net income                 2.7          --              2.6           --


                                                Pro Forma
                                      1997                         1996
    Revenues from services:
     Staffing Services     $114,066        51.1%         $89,889         52.5%
     IT Services            101,071        45.3           76,059         44.4
     IT Solutions             8,127         3.6            5,409          3.1
     Other                       --          --               --           --
      Total                $223,264       100.0%        $171,357        100.0%

    Gross profit:
     Staffing Services      $22,631        43.3%         $18,637         45.4%
     IT Services             26,574        50.8           20,520         50.0
     IT Solutions             3,106         5.9            1,882          4.6
     Other                       --          --               --           --
      Total                 $52,311       100.0%         $41,039        100.0%

    Operating income        $12,965          --          $10,204           --

    Net income               $6,035          --           $3,355           --

    Earnings per share        $0.19          --            $0.12           --

    Margins:
     Gross  --
      Staffing Services        19.8%         --             20.7%          --
      IT Services              26.3          --             27.0           --
      IT Solutions             38.2          --             34.8           --
      Consolidated             23.4          --             23.9           --
     Operating                  5.8          --              6.0           --
     Net income                 2.7          --              2.0           --

    Note:  Pro forma data assume all acquisitions made through March 31,
           1997 and the sale of the physical therapy staffing business were
           consummated as of the beginning of the periods presented.

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