ASI'S Revenue & Net Income Increased in 4th Quarter.

NEW YORK--(BUSINESS WIRE)--May 20, 1999--

ASI Solutions Incorporated (Nasdaq:ASIS) reported today that net income for its fourth quarter ended March 31, 1999, increased to a record $922,000, or $0.14 per diluted share.

For the same quarter a year ago, the company posted net income of $874,000, or $0.13 per diluted share. ASI, a leader in human resources outsourcing services, posted revenue of $14.7 million for the period this year, compared with $12.9 million for the fourth quarter of 1998.

For fiscal 1999, ASI had record results. Revenue of $59.7 million was up 71%, compared with $34.9 million in fiscal 1998, as net income increased 80% to $3.8 million, or $0.58 per diluted share, from $2.1 million, or $0.33 per diluted share, for the prior year.

Management Commentary

"We had another solid quarter, and an excellent year across our three business areas," said Bernard F. Reynolds, ASI's chairman and chief executive officer. "Revenue growth for the March quarter was especially strong in Performance Improvement Services, where we provide clients with the expertise to assess, select, develop and measure the performance of their employees."

"Our Employment Process Outsourcing group continues to perform well and grew by more than 50% during the past year," Reynolds stated, "and this business has now reached a substantial run rate. Accordingly, we are well positioned to offer these specialized employment services to a wider market where we see demand growing rapidly."

Commenting on the company's third business area -- Compensation Services -- Reynolds noted, "This business is comprised of our McLagan Partners subsidiary, and it continues to be an excellent performer. Recently, McLagan strengthened its management team and has grown faster than we had expected when we acquired it some 18 months ago."

"During the fourth quarter and all year long," Reynolds said, "ASI's sales and marketing team has contributed to our solid revenue growth, developing new business from large corporations and other organizations. New clients are attracted to our solutions as they seek to strengthen the effectiveness of their employment, training, performance measurement and compensation initiatives, all of which are critical elements in achieving their business goals."

Concluding his remarks, Reynolds said, "All of our efforts -- especially the significant investments we are making in sales, marketing and new business development -- are designed to accelerate our success as we continue to grow this company. In the past, and all through ASI's 21-year history, we have been committed to helping our clients achieve their goals. As a consequence over time, our business has grown and prospered. We intend to continue to adhere to that commitment in the quarters and years ahead."

About ASI

ASI Solutions Incorporated is a leading national provider of a unique blend of human resources outsourcing services for organizations seeking to hire, train and develop a higher quality, more effective workforce. The company offers services in three areas: Performance Improvement (Assessment & Selection, Training & Development and Performance Measurement); Employment Process Outsourcing; and Compensation Services (McLagan Partners). These services are provided to major corporations and other large organizations, primarily in the telecommunications, financial services, information technology and healthcare industries. ASI's Internet address is www.asisolutions.com.

This press release includes certain forward-looking statements. Any such statements are subject to risks that could cause the actual results to vary materially, including negative developments relating to unforeseen order cancellations or push-outs, ASI's strategic relationships, the impact of intense competition, and changes in our industry.

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                       ASI SOLUTIONS INCORPORATED                    Consolidated Statements of Income                        Three Months Ended           Years Ended                     March 31,    March 31,    March 31,    March 31,                        1999         1998         1999         1998  Revenue            $14,738,843  $12,874,980  $59,653,278  $34,865,557 Cost of services     7,604,788    6,371,693   29,755,156   17,663,690   Gross profit        7,134,055    6,503,287   29,898,122   17,201,867  Operating expenses:  General and   administrative     3,307,523    2,964,190   14,263,341    7,871,423  Sales and   marketing          1,405,208    1,021,467    5,407,659    3,272,518  Research and   development          534,365      518,464    1,938,061    1,746,507  Income from  operations          1,886,959    1,999,166    8,289,061    4,311,419  Interest  expense, net          331,228      470,384    1,709,734      592,841  Income before  provision for  income taxes        1,555,731    1,528,782    6,579,327    3,718,578  Provision for  income taxes          633,755      654,313    2,768,439    1,598,989  Net income         $   921,976  $   874,469  $ 3,810,888  $ 2,119,589  Basic earnings per  share             $      0.14  $      0.14  $      0.59  $      0.33  Diluted earnings  per share         $      0.14  $      0.13  $      0.58  $      0.33  Weighted average  common shares  outstanding:   Basic shares       6,497,631    6,466,701    6,487,253    6,346,053   Diluted effect    of stock options    and warrants        172,926      194,097      128,018      175,345    Diluted shares     6,670,557    6,660,798    6,615,271    6,521,398                          ASI SOLUTIONS INCORPORATED                       Consolidated Balance Sheets                         March 31, 1999 and 1998                                                  1999          1998 ASSETS:  Current Assets:   Cash and cash equivalents                 $ 7,595,366   $   964,106   Restricted cash                                           1,891,821   Accounts receivable, net                   12,874,967    10,706,699   Prepaid expenses and other current assets     576,424       678,531   Deferred income taxes                         299,478       106,158     Total current assets                     21,346,235    14,347,315  Property and equipment, net                   5,218,408     5,318,524 Intangible assets, net                       23,258,472    24,132,292 Deferred financing costs                        391,386       460,075 Other assets                                    325,518       302,706     Total assets                            $50,540,019   $44,560,912  LIABILITIES  AND STOCKHOLDERS' EQUITY:  Current Liabilities:   Current portion, notes payable to bank    $ 7,143,658   $ 4,951,602   Current portion, subordinated notes    payable                                    1,666,666     1,666,666   Other debt                                     66,501       267,667   Accounts payable and accrued expenses       7,946,658     4,129,877   Accrued income taxes                          326,964       171,864     Total current liabilities                17,150,447    11,187,676  Deferred income taxes                           543,593       423,140 Notes payable to bank, less current portion  11,224,900    13,668,558 Subordinated notes payable, less current  portion                                      1,666,667     3,333,334 Other liabilities                               268,373       252,663     Total liabilities                        30,853,980    28,865,371  Stockholders' Equity:   Preferred stock, $.01 par value,    authorized 2,000,000 shares;    no shares issued   Common stock, $.01 par value,    authorized 18,000,000 shares; issued    and outstanding 6,497,631 in 1999 and    6,466,701 in 1998                             65,432        65,123   Additional paid-in-capital                 11,038,250    10,841,728   Accumulated other comprehensive income         (7,839)        9,382   Retained earnings                           8,982,927     5,172,039    Treasury stock, 45,534 shares at cost       (392,731)     (392,731)     Total stockholders' equity               19,686,039    15,695,541     Total liabilities & stockholders'      equity                                $ 50,540,019  $ 44,560,912