HIGHLIGHTS:

    * Second-quarter revenues increase 80% to $241.4 million
    * Net income increases 83% to $7.4 million, or $0.23 per share
    * Second-quarter gross margin of 24.9% compared with  24.3% in the
      same period a year ago and 23.0% in the first quarter of 1997
    * Acquired two businesses in the new IT Solutions unit

                 Summary of Results of Operations (Unaudited)
           Three Months and Six Months Ended June 30, 1997 and 1996
                   (In thousands, except per share amounts)

                             Three Months           Six Months
                                Ended                 Ended
                               June 30,              June 30,
                            1997     1996         1997     1996
    Revenues              $241,351 $134,159     $458,299 $237,545
    Gross profit           $60,173  $32,618     $110,028  $58,320
    Operating income       $15,777   $8,360      $27,998  $14,186
    Net income              $7,407   $4,038      $13,162   $6,707
    Earnings per share      $ 0.23   $ 0.14       $ 0.41   $ 0.24
    Average shares
      outstanding           32,455   29,177       32,450   28,212

    HOUSTON, July 22 /PRNewswire/ -- CORESTAFF, Inc. (Nasdaq: CSTF), one of
the largest national providers of information technology (IT) services and
staffing services, today announced record results for the quarter and the six
months ended June 30, 1997.  Net income for the current quarter increased
83 percent to $7.4 million, or $0.23 per share, from $4.0 million, or
$0.14 per share, for the second quarter of 1996.  Net income for the six
months ended June 30, 1997 increased 96 percent to $13.2 million, or $0.41 per
share, from $6.7 million, or $0.24 per share, for the first half of 1996.
    Revenues in the current quarter increased 80 percent to $241.4 million
from $134.2 million in the second quarter of 1996.  Gross margin for the
current quarter was 24.9 percent compared with 24.3 percent for the second
quarter of 1996.  The expansion in gross margin primarily related to the shift
in mix toward higher margin IT services, resulting from the acquisitions of IT
Services businesses and the higher internal growth rate of the IT Services
Group as compared with the lower margin Staffing Services Group.  Operating
income increased 89 percent to $15.8 million from $8.4 million in 1996.
Operating margin for the current quarter was 6.5 percent compared with
6.2 percent for the second quarter of 1996.  This improvement related to the
higher gross margin, partially offset by investments in infrastructure and in
technical practices of the IT Services Group.
    Pro forma operating results, which assume all acquisitions consummated
through June 30, 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 during the current
quarter and the first half of 1997.  Pro forma revenues for the current
quarter were $247.4 million, up 30 percent from $190.3 million in the second
quarter of 1996.  Pro forma net income rose 73 percent to $7.9 million, or
$0.24 per share, compared with pro forma net income of $4.6 million, or
$0.16 per share, in 1996.  Pro forma revenues for the first half of 1997 were
$481.1 million, up 31 percent from $367.4 million in the first half of 1996.
Pro forma net income increased 86 percent to $14.7 million, or $0.45 per
share, compared with pro forma net income of $7.9 million, or $0.28 per share,
in 1996.
    Commenting on the results, Michael T. Willis, president and chief
executive officer, said, "We are pleased with the high internal growth rate
and record earnings achieved during the second quarter and with the
improvement in gross and operating margins over the first quarter of 1997.  We
also think it is important to note the higher percentage of total gross profit
-- 61 percent -- that our IT Services Group is contributing and the progress
made in building our IT Solutions unit.  Our IT Solutions unit is growing at a
higher rate than our other lines of business and also offers higher gross and
operating margins.  To date, we have acquired three IT Solutions businesses,
which on a combined basis, are expected to generate 1997 revenues in excess of
$70 million.  We plan to continue to focus on acquiring businesses in the IT
sector."

    IT Services Group -- The IT Services Group, which is comprised of COMSYS
Information Technology Services (COMSYS) and the newly formed IT Solutions
unit, accounted for 52 percent and 61 percent of CORESTAFF's consolidated
revenues and gross profit, respectively, up from 42 percent and 49 percent,
respectively, in the second quarter of 1996.  These increases reflect
execution of CORESTAFF's strategy to expand the higher-growth, higher-margin
IT Services Group.  Revenues and gross profit for the current quarter were up
125 percent and 131 percent, respectively, over the second quarter of 1996.
Gross margin for the current quarter increased to 28.9 percent from
28.2 percent for the second quarter of 1996, primarily due to the IT Solutions
unit, which accounted for approximately 10 percent of the group's revenues and
15 percent of its gross profit.
    Pro forma revenues and gross profit for the current quarter increased
39 percent and 40 percent, respectively, from the second quarter of 1996.
These improvements reflect the continued strong demand for the company's IT
services.  Pro forma gross margin for the current quarter was 29.8 percent, up
from 29.6 percent in the second quarter of 1996.  The improvement in pro forma
gross margin primarily related to the higher internal growth rate of the IT
Solutions unit, which accounted for 13 percent and 20 percent of the group's
revenues and gross profit in the current quarter compared with 10 percent and
15 percent in the second quarter of 1996.  The pro forma gross margin for the
IT Solutions unit for the current quarter was 45.2 percent compared with 44.1
percent in the second quarter of 1996.  The pro forma gross margin for COMSYS
for the current quarter was 27.5 percent compared with 28.0 percent in the
second quarter of 1996 and 26.3 percent in the first quarter of 1997.  The
lower pro forma gross margin for the current quarter compared with the second
quarter of 1996 reflects the high growth of certain large accounts, which
generally have lower gross margins than the other accounts of COMSYS, but
comparable or higher operating margins due to higher operating leverage.  The
improvement in pro forma gross margin over the first quarter of 1997 resulted
from higher revenues from projects and lower bench time of salaried
consultants.

    Staffing Services Group -- For the current quarter, the Staffing Services
Group accounted for 48 percent and 39 percent of CORESTAFF's consolidated
revenues and gross profit, respectively, down from 57 percent and 50 percent,
respectively, in the second quarter of 1996.  Revenues and gross profit for
the current quarter were up 52 percent and 45 percent, respectively, over the
second quarter of 1996.  Gross margin for the current quarter was 20.6
percent, down from 21.4 percent in the second quarter of 1996.  The lower
gross margin primarily related to the acquisition of a low margin staffing
services business in January 1997 and the higher proportion of revenues being
generated from the company's large on site programs (VIP).  VIP programs have
lower gross margins than the group's other accounts, but higher operating
leverage.
    Pro forma revenues and gross profit for the current quarter increased
21 percent and 18 percent, respectively, from the second 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 was 20.6 percent compared with 21.1 percent for
the second quarter of 1996.  The lower gross margin primarily resulted from
the higher proportion of revenues from the company's VIP programs.

    Acquisition Activity -- During the first half of 1997, CORESTAFF acquired
one staffing services business and five IT services businesses, including
three IT Solutions businesses.  These businesses were acquired in all cash
transactions totaling $65.9 million.  The five IT services businesses and the
one staffing services business had 1996 revenues of approximately $49.0
million and $37.0 million, respectively.

    Formation of New Business Unit -- In March 1997, CORESTAFF formed a new
business unit, IT Solutions, to provide a full spectrum of IT services from
the planning stage through implementation of the final product or services.
These services include custom software development (both on site and off site
at one of CORESTAFF's six development centers), system integration, legacy
application support and consulting.  The unit is currently comprised of three
acquired businesses:  Metamor Technologies, Ltd., a Chicago-based business,
that was acquired in March 1997, Business Management Data and its Indian
affiliate, Sriven Computer Solutions (together BMD), that were acquired in
April 1997 and Millennium Computer Corporation, which was acquired in June
1997.  The growth rate and gross margin for this unit is higher than COMSYS,
CORESTAFF's other IT Services unit, due to the higher demand for and the
higher value-added nature of the services provided.

    Proposed Capital Markets Transactions -- CORESTAFF recently announced that
it filed a registration statement with the Securities and Exchange Commission
relating to the proposed offering of $180 million of Convertible Subordinated
Notes due in 2004 and, concurrently with the notes offering, that certain
selling shareholders of the company are offering to sell 6.0 million shares of
common stock.

    Established in 1993, CORESTAFF, Inc. is one of the largest national
providers of information technology (IT) services and staffing services
through its two business groups:  the IT Services Group, which is comprised of
COMSYS Information Technology Services and the IT Solutions unit, and the
Staffing Services Group, which operates under the name CORESTAFF Services.
The Company, with pro forma revenues in excess of $925 million, operates
148 branches in 28 states, the District of Columbia, the United Kingdom and
India.
    This press release contains various forward-looking statements and
information that are based on management's belief as well as assumptions
made by and information currently available to management.  When used in
this release, the words, "anticipate," "estimate," "project," "expect,"
and similar expressions are intended to identify forward-looking statements.
Although the company believes that the expectations reflected in such forward-
looking statements are reasonable, it can give no assurance that such
expectations will prove to have been correct.  Such statements are subject to
certain 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, projected or expected.  Among the key factors that may have a
direct bearing on the company's operating results are fluctuations in the
economy, the degree and nature of competition, demand for the company's
services, and the company's ability to integrate the operations of acquired
businesses, to recruit and place temporary and IT professionals, to expand
into new markets, and to maintain profit margins in the face of pricing
pressures.  In addition, the information set forth under the captions "Risk
Factors" in the company's Registration Statement on Form S-3 (File No. 333-
31509) and in the company's Form 10-K for the fiscal year ended December 31,
1996, describe certain additional risk and uncertainties that could cause
actual results to vary materially from the future results covered in such
forward-looking statements.

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