HOUSTON, March 21 /PRNewswire/ -- CORESTAFF, Inc. (Nasdaq: CSTF), one of
the largest national providers of information technology and staffing
services, today announced it has initiated its new line of business,
Information Technology Solutions.  This new unit will focus on companies that
provide custom software development, critical code maintenance, package
software implementation and network engineering and integration.  CORESTAFF
has signed a definitive agreement to acquire all of the capital stock of
Business Management Data, Inc. (BMD) and its India-based affiliate, Sriven
Computer Solutions (Pvt.), Ltd. (SCS).  The acquisition, which is subject to
certain governmental approvals, is expected to close in the second quarter of
1997.  The acquisition is expected to contribute $0.03 per share to 1997
earnings.  Other terms of the transaction were not disclosed.
    BMD and SCS provide a comprehensive range of information technology (IT)
solutions, including systems integration, computer code maintenance and
support, systems re-engineering, Year 2000 conversions and application
development services for legacy and client/server technologies.  BMD and SCS
specialize in mission-critical, 24-hour, 7-day-a-week support to selected
FORTUNE 500 clients.  The companies provide these services through their four
offices located in Irvine, California, and New Delhi, Madras, and Hyderabad,
India.  In their three Indian facilities, SCS employs more than 300 full-time
computer consultants trained in the newest  technologies.  SCS provides
24-hour mission-critical, code maintenance and support and client/server
development services.  SCS currently supports more than 35 million lines of
code.  In the United States, BMD employees more than 160 full-time consultants
to provide a full range of services.  BMD and SCS do not engage in IT staff
augmentation and their relationships and contracts, which customers tend to be
long-term in duration.  To perform these services offshore and to maintain
constant communication with their customers, the companies maintain four
64 Kbp high speed satellite links, N.T. computer servers, AS400 mid-range
computer servers, UNIX computer servers and S-390 development machines.  SCS
currently occupies more than 60,000 square feet of "state of the art"
facilities situated in India's major "export free" software technology parks.
Some of their clients are CSX, Countrywide Home Loans, Sealand, Bank of
America, Midcom and Shared Medical Systems.
    In commenting on the transaction, Michael T. Willis, CORESTAFF'S president
and CEO said, "BMD and SCS will permit us to offer our existing clients more
affordable offshore Year 2000 solutions and other new services.  The companies
will be managed domestically by Russ Cappellino, the current president of BMD,
and his senior management team and in India, by Satya Bolli and Paramjeet
Dargan.  Dargan, the current chairman of BMD, will be responsible for the
expansion of the companies' existing software academy and physical
infrastructure in India."
    "We expect the companies to have combined revenues for 1997 in excess of
$30 million."  Mr. Willis stated, "The companies' offshore client/server
development capabilities will be instrumental in supporting the 'solutions
business' CORESTAFF is committed to building.  This is our first acquisition
in our new, Information Technology Solutions line of business and we
anticipate that other acquisitions in this line will occur in 1997.   BMD and
SCS are probably one of the best situated players in the Year 2000 arena due
to their strong code maintenance practice, and knowledge and management of
their clients' existing computer code.  The companies have been awarded major
Year 2000 projects with Countrywide Home Loans, Shared Medical, and CSX and
have developed their own proprietary Year 2000 tool entitled 'Target 2000'.
BMD and SCS believe that the offshore Year 2000 conversion work they obtain
and complete will result in long-term offshore computer maintenance and
development work thereafter."  Willis further stated, "Once a company
entrusts millions of lines of code to a company for Year 2000 conversion work,
it is logical to believe that they will continue to allow the company to
support and maintain their computer code.  This model has proven true to-date
for BMD and SCS."
    Established in 1993, CORESTAFF, Inc. has quickly become one of the largest
national providers of information technology and staffing services through its
two key operating units: COMSYS Information Technology Services and CORESTAFF
Services. The Company, with pro forma revenues in excess of $780 million,
operates 130 branches across the United States and has operations in 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 would 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.

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