INTERIM SERVICES INC, S-3, 1996-07-29

INTERIM SERVICES INC
S-3, 1996-07-29
HELP SUPPLY SERVICES

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<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON ,

REGISTRATION NO. 333-
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
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INTERIM SERVICES INC.
(Exact name of registrant as specified in its charter)

<TABLE>
<S> <C>
DELAWARE 36-3536544
(State of incorporation) (IRS E.I.N.)
</TABLE>

2050 SPECTRUM BOULEVARD
FORT LAUDERDALE, FL 33309, (954) 938-7600
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)

JOHN B. SMITH, ESQ.
SENIOR VICE PRESIDENT
2050 SPECTRUM BOULEVARD
FORT LAUDERDALE, FL 33309
(954) 938-7600
(Name, address, including zip code, and telephone number, including area code,
of agent for service)
----------------

COPIES TO:

<TABLE>
<S> <C>
KENDRICK T. WALLACE, ESQ. EDWIN D. WILLIAMSON, ESQ.
BRYAN CAVE LLP SULLIVAN & CROMWELL
1200 MAIN STREET, SUITE 3500 1701 PENNSYLVANIA AVE., N.W.
KANSAS CITY, MO 64105 WASHINGTON, D.C. 20006
(816) 374-3200 (202) 956-7500
</TABLE>

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AS SOON AS POSSIBLE AFTER THIS REGISTRATION STATEMENT BECOMES EFFECTIVE.
(Approximate date of commencement of proposed sale to the public)
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If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box: / /

If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. / /

If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. / /

If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. / /
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CALCULATION OF REGISTRATION FEE

<TABLE>
<CAPTION>
PROPOSED PROPOSED
MAXIMUM MAXIMUM
TITLE OF EACH CLASS AMOUNT OFFERING PRICE AGGREGATE AMOUNT OF
OF SECURITIES BE TO BE PER OFFERING REGISTRATION
REGISTERED REGISTERED (1)(2) SHARE (2) PRICE (2) FEE (2)
<S> <C> <C> <C> <C>
Common Stock, Par Value $.01 Per 4,885,000
Share.............................. Shares........... 38.00 $185,630,000 $64,011.00
</TABLE>

(1) Includes 637,106 shares of Common Stock subject to the Underwriters
over-allotment option.
(2) Estimated solely for calculating the registration fee pursuant to Rule
457(c). As of July 26, 1996, the average of the bid and ask price of the
Common Stock as reported on the Nasdaq National Market was 38.00.
----------------

THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF
THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(A),
MAY DETERMINE.

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<PAGE>
INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A
REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY
OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES
EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES
IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR
TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.
<PAGE>
SUBJECT TO COMPLETION, DATED , 1996

[LOGO]
COMMON STOCK
(PAR VALUE $.01 PER SHARE)
-------------------

Of the shares of Common Stock offered, shares are being
offered hereby in the United States and shares are being offered in a
concurrent international offering outside the United States. The initial public
offering price and the aggregate underwriting discount per share will be
identical for both offerings. See "Underwriting".

Of the shares of Common Stock offered, shares are being
sold by the Company and 300,000 shares are being sold by the Selling
Stockholders. See "Selling Stockholders". The Company will not receive any of
the proceeds from the sale of the shares being sold by the Selling Stockholders.

The last reported sale price of the Common Stock, which is quoted under the
symbol "INTM", on the Nasdaq National Market on July , 1996 was $ per
share. Effective August 7, 1996, the Company's Common Stock will be listed on
the New York Stock Exchange under the symbol "IS". See "Price Range of Common
Stock".

SEE "RISK FACTORS" BEGINNING ON PAGE 7 FOR CERTAIN CONSIDERATIONS RELEVANT
TO AN INVESTMENT IN THE COMMON STOCK.
-----------------

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS
THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

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<TABLE>
<CAPTION>
INITIAL PUBLIC UNDERWRITING PROCEEDS TO PROCEEDS TO SELLING
OFFERING PRICE DISCOUNT (1) COMPANY (2) STOCKHOLDERS(2)
---------------- ------------- ---------------- -------------------
<S> <C> <C> <C> <C>
Per Share...................................... $ $ $ $
Total (3)...................................... $ $ $ $
</TABLE>

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(1) The Company and the Selling Stockholders have agreed to indemnify the
Underwriters against certain liabilities, including liabilities under the
Securities Act of 1933, as amended.
(2) Before deducting estimated expenses of $ payable by the Company and
$ payable by the Selling Stockholders.
(3) The Company has granted the U.S. Underwriters an option for 30 days to
purchase up to an additional shares at the initial public offering
price per share, less the underwriting discount, solely to cover
over-allotments. Additionally, the Company has granted the International
Underwriters a similar option with respect to shares as part of the
concurrent international offering. If such options are exercised in full,
the total initial public offering price, underwriting discount and proceeds
to the Company will be $ , $ and $ , respectively.
See "Underwriting".

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The shares offered hereby are offered severally by the Underwriters, as
specified herein, subject to receipt and acceptance by them and subject to their
right to reject any order in whole or in part. It is expected that certificates
for the shares will be ready for delivery in New York, New York, on or about
, 1996 against payment therefor in immediately available funds.

-------------------

GOLDMAN, SACHS & CO. ROBERT W. BAIRD & CO.
Incorporated

The date of this Prospectus is , 1996.
<PAGE>
[INSIDE COVER PAGE]

[MAP TO COME]

IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVER-ALLOT OR EFFECT
TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE COMMON STOCK
OFFERED HEREBY AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN
MARKET, SUCH TRANSACTIONS MAY BE EFFECTED ON THE NASDAQ NATIONAL MARKET, IN THE
OVER-THE-COUNTER MARKET OR OTHERWISE. SUCH STABILIZING, IF COMMENCED, MAY BE
DISCONTINUED AT ANY TIME.

IN CONNECTION WITH THIS OFFERING, CERTAIN UNDERWRITERS AND SELLING GROUP
MEMBERS (IF ANY) OR THEIR RESPECTIVE AFFILIATES MAY ENGAGE IN PASSIVE MARKET
MAKING TRANSACTIONS IN THE COMPANY'S COMMON STOCK ON THE NASDAQ NATIONAL MARKET
IN ACCORDANCE WITH RULE 10B-6A UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS
AMENDED (THE "EXCHANGE ACT"). SEE "UNDERWRITING".

2
<PAGE>
PROSPECTUS SUMMARY

THE FOLLOWING SUMMARY IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE MORE
DETAILED INFORMATION AND THE SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS,
INCLUDING THE NOTES THERETO, APPEARING ELSEWHERE IN THIS PROSPECTUS. REFERENCES
TO THE COMPANY'S "SALES" IN THIS PROSPECTUS REFER TO THE AGGREGATE SYSTEM-WIDE
SALES OF ALL COMPANY-OWNED, FRANCHISED AND LICENSED OFFICES. SALES DATA OF THE
COMPANY'S FRANCHISED OFFICES USED IN DETERMINING SALES ARE DERIVED FROM REPORTS
PROVIDED BY THE FRANCHISEES AND ARE NOT AUDITED. REFERENCES TO THE COMPANY'S
"REVENUES" INCLUDE SALES FROM COMPANY-OWNED AND LICENSED OFFICES AND ROYALTIES
AND OTHER INCOME FROM FRANCHISED OFFICES.

THE COMPANY

Interim Services Inc. ("Interim" or the "Company") is a leader in providing
a comprehensive range of customized staffing solutions, including flexible
staffing, home care, full-time placement, consulting and other value-added
services on a national basis to businesses, professional and service
organizations, governmental agencies, health care facilities and individuals. As
of March 29, 1996, the Company operated through a network of 958 offices in the
U.S., Canada and the United Kingdom. Management believes that, based on
system-wide sales, the Company is the fourth largest provider of staffing
services in the United States and is the seventh largest provider in the world.

The Company provides commercial and health care services through two
divisions, each offering numerous specialized skills. The Commercial Services
Division is divided into two units, Commercial Staffing and Professional
Services, which currently represent approximately 50% and 30% of total Company
revenues, respectively. Commercial Staffing fulfills client requirements for
temporary clerical and light industrial skills, in addition to temporary and
permanent workforce management. Professional Services offers consulting and
staffing services in the areas of information technology ("IT"), legal,
accounting, search and human resources. The HealthCare Division provides
physicians, nurses, therapists, home health aides and home companions and
currently represents approximately 20% of total Company revenues.

BUSINESS STRATEGY

The Company's goal is to drive revenue and earnings growth by providing the
most innovative human resource solutions worldwide. The Company's strategy
emphasizes broad geographic coverage, a comprehensive range of services and
customized client solutions. Management believes that the Company's proven
earnings performance, brand identity, aggressive growth strategy and
entrepreneurial operating environment are key competitive advantages. The
following details the major elements of the Company's strategy.

INCREASE REVENUE THROUGH OFFICE EXPANSION. The Company maintains an
aggressive growth strategy which includes establishing Company-owned branches,
adding licensed and franchised offices and making strategic acquisitions. This
diversified growth strategy provides Interim with significant flexibility in
evaluating alternative methods for expansion. Since the initial public offering
of the Company's Common Stock in January 1994 (the "IPO"), the Company has
increased its office base approximately 35% through the addition of 91
greenfield offices and 69 franchised offices and the acquisition of 90 offices
with approximately $250 million in revenues.

DISPROPORTIONATELY GROW PROFESSIONAL SERVICES. As part of its acquisition
focus, Interim plans to continue to target disproportionate growth in its
Professional Services businesses, as these offer higher margins than traditional
staffing and provide numerous opportunities to cross-sell other services. The
merger with Brandon Systems Corporation, an IT consulting and staffing company,
is the most recent and significant such acquisition to date. Since the IPO,
approximately $210 million of the $250 million in acquired revenues has been in
Professional Services.

3
<PAGE>
LEVERAGE COMMON BRAND IDENTITY. Interim is the only national staffing
company which provides commercial, professional and health care services under
the same brand name (e.g., Interim HealthCare, Interim Technology, Interim
Accounting Professionals). This common brand identity facilitates closer client
relationships and cross-selling of services.

PROVIDE INNOVATIVE VALUE-ADDED CLIENT SOLUTIONS. Interim is committed to
developing innovative human resource solutions to meet the evolving needs of its
clients and providing quality care for its patients. For example, in 1993
Interim pioneered the concept of dedicated, on-site workforce management with
Interim On-Premise ("On-Premise").

DELIVER SERVICES THROUGH SPECIALIZED OFFICES. Each of the Company's offices
is focused on providing staff with a particular skill set to meet customer
needs. It has been the Company's experience that clients prefer dealing with an
office that "speaks their language" and understands their staffing requirements.

SUPPORT ENTREPRENEURIAL ENVIRONMENT. All Interim managers are compensated
based on profits generated within their scope of responsibility. Management
believes the Company's decentralized approach provides strong incentives to
manage expenses and increase profits at each office and results in a creative
and committed management team.

THE FLEXIBLE STAFFING INDUSTRY

In 1995, STAFFING INDUSTRY REPORT estimated that temporary staffing industry
revenues would be approximately $41 billion and that, from 1991 to 1995, such
revenues would have grown at a compound annual rate of approximately 17.5%.
Demand for staffing services has grown significantly as businesses continue to
increase reliance on temporary personnel in order to manage personnel costs and
meet fluctuating staffing requirements. In addition, many companies use flexible
staffing to reduce administrative overhead by outsourcing operations that are
not part of their core business competencies.

The flexible staffing industry is highly fragmented and is currently
experiencing a trend toward consolidation. The key forces driving consolidation
include the growth of regional or national contracts, expansion of professional
specialties and the need for sophisticated management information systems.
Smaller staffing companies that have limited capital and management resources
are finding it increasingly difficult to compete.

4
<PAGE>
THE OFFERING

<TABLE>
<S> <C>
Common Stock offered by the Company:
U.S. Offering......................................... shares
International Offering................................ shares
Total (1)......................................... shares
Common Stock offered by the Selling Stockholders:
U.S. Offering......................................... shares
International Offering................................ shares
Total (2)......................................... 300,000 shares
Total Common Stock to be outstanding after the
Offering (1)(3)........................................ shares
Nasdaq National Market Symbol (4)....................... INTM
Use of Proceeds......................................... Repayment of debt and general
corporate purposes including
acquisitions
</TABLE>

- --------------
(1) Does not include shares of Common Stock that are subject to the
over-allotment options granted by the Company to the Underwriters. See
"Underwriting".

(2) See "Selling Stockholders".

(3) For information regarding Common Stock issuable upon exercise of outstanding
options, see footnote (1) to "Capitalization". As of June 28, 1996, the
Company had 15,464,351 shares of Common Stock outstanding.

(4) Effective August 7, 1996, the Company's Common Stock will be listed on the
New York Stock Exchange under the symbol "IS".

5
<PAGE>
SUMMARY CONSOLIDATED FINANCIAL AND OPERATING DATA

The Company's 52/53 week fiscal year ends on the last Friday of December.
Fiscal years 1993, 1994 and 1995 ended on December 24, December 30 and December
29, respectively. The Company completed a merger with Brandon Systems
Corporation ("Brandon") on May 23, 1996, whereby 4,401,146 outstanding shares of
Brandon and 235,900 Brandon stock options were exchanged for 3,872,690 shares of
Interim Common Stock and 207,592 Interim stock options (the "Brandon Merger").
This transaction was accounted for as a pooling-of-interests and accordingly the
historical information has been restated for all periods prior to the Brandon
Merger.

Brandon's fiscal year ended on the Sunday nearest to the end of the month of
September. For restatement purposes, Brandon's historical information has been
converted to a calendar year end to coincide with the Company's fiscal year.

<TABLE>
<CAPTION>
THREE MONTHS ENDED
FISCAL YEAR ENDED DECEMBER, MARCH,
-------------------------------------------------------- --------------------
1991 1992 1993 1994 (1) 1995 1995 1996
--------- --------- ---------- ---------- ---------- --------- ---------
(IN THOUSANDS, EXCEPT PER SHARE AND OPERATING DATA)

<S> <C> <C> <C> <C> <C> <C> <C>
System-wide Sales (2).......... $ 904,994 $ 973,099 $1,085,759 $1,279,339 $1,494,260 $ 342,317 $ 423,392
--------- --------- ---------- ---------- ---------- --------- ---------
--------- --------- ---------- ---------- ---------- --------- ---------
Revenues:
Commercial Services Division
Commercial Staffing........ $ 234,773 $ 281,982 $ 347,189 $ 431,347 $ 515,454 $ 115,782 $ 135,976
Professional Services...... 43,967 55,785 79,691 99,936 138,140 27,945 71,454
HealthCare Division.......... 138,215 135,956 143,209 165,614 205,719 48,845 55,932
Other Income................. 3,114 3,740 4,171 7,799 4,934 1,080 1,363
--------- --------- ---------- ---------- ---------- --------- ---------
Total Revenues................. $ 420,069 $ 477,463 $ 574,260 $ 704,696 $ 864,247 $ 193,652 $ 264,725
Total Expenses (3)............. 402,946 457,125 549,846 669,212 822,443 185,187 254,889(4)
--------- --------- ---------- ---------- ---------- --------- ---------
Earnings Before Taxes.......... $ 17,123 $ 20,338 $ 24,414 $ 35,484 $ 41,804 $ 8,465 $ 9,836
Taxes on Earnings (3).......... 8,260 9,855 11,564 16,028 18,071 3,773 4,347
--------- --------- ---------- ---------- ---------- --------- ---------
Net Earnings................... $ 8,863 $ 10,483 $ 12,850 $ 19,456 $ 23,733 $ 4,692 $ 5,489
--------- --------- ---------- ---------- ---------- --------- ---------
--------- --------- ---------- ---------- ---------- --------- ---------
Net Earnings Per Share (5)..... $ 0.64 $ 0.76 $ 0.93 $ 1.26 $ 1.52 $ 0.30 $ 0.35
Net Earnings Per Share
(excluding merger expenses)... $ 0.36
Weighted Average Shares........ 13,832 13,846 13,873 15,391 15,662 15,649 15,839
System-wide Offices (6)........ 677 674 728 796 940 821 958
</TABLE>

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(1) The 1994 fiscal year contained 53 weeks. All other years contained 52
weeks.
(2) Includes sales of all Company-owned, franchised and licensed offices. Sales
data for franchised offices are derived from reports provided by
franchisees, which are not audited.

(3) Prior to September 25, 1993, the Company's working capital and acquisition
financing were provided by H&R Block, Inc. ("Block"). There was no interest
charged on intercompany debt. In conjunction with the IPO, effective
September 25, 1993, Block formalized this arrangement by (i) providing a
revolving credit facility in the amount of $20,000 to fund the operating
requirements of the Company; (ii) converting $30,000 of intercompany
indebtedness on such date to a term loan and (iii) contributing $51,289 to
the capital of the Company. The earnings data for fiscal 1991, 1992 and
1993 give effect to this arrangement as if it occurred at the beginning of
the periods. Interest expense has been computed at 6% and income taxes at
the statutory rate.

(4) Includes merger expenses of $417.

(5) No cash dividend has ever been paid by Interim. However, prior to the
Brandon Merger, Brandon paid cash dividends.

(6) At end of period.

6
<PAGE>
RISK FACTORS

IN ADDITION TO THE OTHER INFORMATION IN THIS PROSPECTUS, THE FOLLOWING RISK
FACTORS SHOULD BE CONSIDERED CAREFULLY IN EVALUATING AN INVESTMENT IN SHARES OF
THE COMMON STOCK OFFERED HEREBY.

COMPETITIVE MARKET

The flexible staffing industry is highly competitive with limited barriers
to entry. The Company competes in national, regional and local markets with full
service agencies and with specialized staffing service agencies and home care
providers. The majority of competitors are significantly smaller than the
Company. However, several competitors have greater marketing and financial
resources than those of the Company. The Company expects the level of
competition to remain high in the future. See "Description of Operations --
Competition".

ABILITY TO GROW AND MANAGE GROWTH

The Company has experienced significant growth in the past through the
acquisition of existing businesses and the opening of new offices, as well as
through licensing and franchising. The ability of the Company to continue to
grow and to manage its growth will depend on a number of factors, including
existing and emerging competition for acquisitions, the availability of capital,
and the Company's ability to successfully recruit and train staff. There can be
no assurance that the Company will continue to be able to establish and expand
its market presence or successfully identify suitable acquisition candidates
and/or complete the acquisitions on terms favorable to the Company. See
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" and "Business -- Business Strategy".

RELIANCE ON KEY PERSONNEL

The Company is highly dependent on its management. The continued success of
the Company will depend in large part on the abilities and continued services of
Raymond Marcy, its President and Chief Executive Officer, and certain other
officers and key employees. The loss of Mr. Marcy or other officers and key
employees could have a material adverse effect on the Company's operations.

INFORMATION TECHNOLOGY TRENDS

Growth in the use of flexible staffing in the IT area in recent years has
been driven largely by rapid technological advances. As the sophistication and
complexity of business information systems increase, and as the general
corporate trend toward downsizing continues, businesses are increasingly turning
to specialized, outside technical personnel to support their IT operations. The
success of the Company in the IT area depends in large part on its ability to
keep pace with existing technology, predict new technological advancements and
recruit and train based on these trends. See "Description of Operations --
Commercial Services Division".

HEALTH CARE COMPETITION

The Company faces increasing competition in health care staffing from
providers such as hospitals, other primary care institutions and stand-alone
home care agencies. As it becomes evident that home care is an efficient
substitute to hospital care, hospitals are experiencing pressure to integrate
the home care services that their doctors may otherwise refer to outsiders.
Today more than half of U.S. hospitals offer home care, according to the
American Hospital Association ("AHA"). Although federal law imposes significant
restrictions on the ability of physicians employed by a hospital to refer
patients to a home health agency owned by or affiliated with the hospital, the
AHA is lobbying for a moratorium on the law and the Health Care Financing
Administration has been slow to undertake enforcement activities. The growth of
hospital-owned home care agencies and the potential for self-referral business
could hinder the growth of the HealthCare Division.

DEPENDENCE ON AVAILABILITY OF QUALIFIED PERSONNEL

The Company depends upon its ability to attract qualified personnel who
possess the skills and experience necessary to meet the staffing requirements of
its clients. The Company must continually

7
<PAGE>
evaluate and upgrade its base of available qualified personnel to keep pace with
changing client needs and emerging technologies. Competition for individuals
with proven professional skills is intense. See "Description of Operations --
Commercial Services Division" and "-- HealthCare Division".

EFFECT OF FLUCTUATIONS IN THE GENERAL ECONOMY

Demand for traditional flexible staffing is significantly affected by the
general level of economic activity. When economic activity increases, flexible
staff are often added before full-time employees are hired. In addition, in the
early stages of a recovery, before employment returns to previous levels, it is
easier to hire employees for placement on a temporary basis. However, as
economic activity slows, many companies reduce their usage of flexible staff
before undertaking layoffs of their regular employees. While traditionally the
demand for the health care services of the Company has not been directly
affected by the overall state of the economy, the Company's HealthCare Division
may in the future be affected by decreases in economic activity. See
"Management's Discussion and Analysis of Financial Condition and Results of
Operations -- Seasonality and Cyclicality of Business".

EMPLOYER RISKS

Flexible staffing providers employ and place people in the workplace of
other businesses. Attendant risks of such activity which could increase the
Company's cost of doing business include possible claims of discrimination and
harassment, employment of illegal aliens, errors and omissions by the Company's
flexible staff, particularly for the acts of temporary professionals (e.g.,
accountants and attorneys), misuse or misappropriation of client funds or
proprietary information, and other similar claims. While the Company maintains
insurance coverage for general liability, errors and omissions and employee
theft, such insurance coverage may not be adequate in scope or amount to cover
any such liability.

GOVERNMENTAL REGULATION

A number of states have adopted laws regulating companies that provide
health care services which could adversely affect the Company's profit margins.
In many of the states with such laws, the Company need only be licensed.
However, in 20 states, home care providers must receive a certificate of need
("CON") from the state. CON laws restrict the types of care that may be provided
and can limit or prohibit a company's ability to provide certain services and to
establish or expand its operations within such state. CON requirements and
restrictions vary substantially from state to state. See "Description of
Operations -- Governmental Regulations".

FRANCHISING RISKS

Approximately 44% of system-wide sales, representing approximately 3% of
Company revenues, were derived from franchised operations in 1995. Moreover, the
largest 10 franchisees (based on sales volume) accounted for 20% of system-wide
sales in 1995. Franchisees may leave the franchise system at the end of the term
of their franchise agreements and have occasionally terminated their franchise
agreements before the end of the agreement term. While the Company's agreements
contain non-competition covenants, such covenants may not be enforceable nor
prevent the loss of sales. See "Description of Operations -- Office Structure".

INSURANCE

The Company is required to pay unemployment insurance premiums and workers'
compensation costs for its flexible staff. Unemployment insurance premiums have
continued to increase for employers as a result of increased levels of
unemployment and the extension of periods of time for which benefits are
available. Workers' compensation costs have continued to increase as states have
raised benefit levels and liberalized allowable claims. In addition, the
Company's cost of providing health benefits could increase as the result of
future health care reforms. Specifically, certain federal and state legislative
proposals have included provisions requiring employers to extend health
insurance benefits to flexible staff who do not presently receive such benefits.
Future results of operations could be adversely affected if the Company is not
able to increase the fees charged to its clients to absorb the increased costs

8
<PAGE>
related to unemployment insurance, workers' compensation, or employer-paid
health insurance benefits that must be extended to flexible staff. See
"Management's Discussion and Analysis of Financial Condition and Results of
Operations".

STOCK PRICE VOLATILITY

The price of the Company's Common Stock has increased significantly since
its IPO in January 1994. The market price of the Common Stock could be subject
to significant fluctuations in response to operating results of the Company,
changes in general conditions in the economy, the financial markets, the
staffing industry or other developments affecting the Company, its competitors,
or clients which may be unrelated to the Company's performance. See "Price Range
of Common Stock".

ANTI-TAKEOVER CONSIDERATIONS

The Company's Restated Certificate of Incorporation and the Delaware General
Corporation Law contain certain provisions that are intended to make it more
difficult for a party to acquire, and/or to discourage a party from attempting
to acquire, control of the Company without approval of the Company's Board of
Directors. In addition, the Company's Board of Directors has adopted a
shareholder's rights plan. The foregoing may discourage unsolicited tender
offers or other bids for the Company's Common Stock at a premium over the
prevailing market price. In addition, the requirement that a change of control
of the Company be approved by the Public Health Council of the New York State
Department of Public Health may have a similar effect. See "Description of
Operations -- Governmental Regulation".

9
<PAGE>
THE COMPANY

The Company was founded in 1946 to provide temporary industrial staffing
services. Nursing and home care services were added in 1966. On August 16, 1978,
the Company, then known as Personnel Pool of America, Inc., was acquired by H&R
Block, Inc. ("Block"). On January 22, 1991, Block acquired another temporary
service business, Interim Systems Corporation ("ISC"). At the time of the
acquisition, ISC was providing clerical, light industrial and health care
personnel through 178 branch offices in 20 states and three Canadian provinces.
The businesses of the Company and ISC were combined on December 31, 1991. On
June 15, 1992, the Company changed its name to "Interim Services Inc.".
On January 27, 1994, Block completed the sale at $20 per share of 10 million
shares of Interim, its entire holding. Since its IPO, the Company has acquired
12 flexible staffing companies including five in 1994, five in 1995 and two
companies thus far in 1996.

The Company is a Delaware corporation whose corporate headquarters are
located at 2050 Spectrum Boulevard, Fort Lauderdale, Florida 33309. The
Company's telephone number is (954) 938-7600.

USE OF PROCEEDS

The net proceeds to the company from the Offering are estimated to be
approximately $ million (approximately $ million if the Underwriters'
over-allotment option is exercised in full). Approximately $ million of such
proceeds will be used to repay principal and interest under the Company's Credit
Facilities (as defined below) with the remainder to be used for general
corporate purposes including future acquisitions. To the extent the
Underwriters' over-allotment option is exercised, net proceeds from such
exercise will also be used for general corporate purposes including future
acquisitions. The Company will not receive any proceeds from the sale of shares
by the Selling Stockholders.

The Company maintains a $150.0 million committed senior revolving credit
agreement and has also established short-term, unsecured, uncommitted lines of
credit with certain banks (collectively, the "Credit Facilities"). The Company
utilizes the Credit Facilities to fund acquisitions, to supply working capital
and to provide for general corporate needs. As of March 29, 1996, the total
outstanding debt under all of the Company's Credit Facilities was $113.9 million
with an effective interest rate of 6.07%. See "Management's Discussion and
Analysis of Financial Condition and Results of Operations -- Description of
Company Financing".

10
<PAGE>
PRICE RANGE OF COMMON STOCK

Since January 27, 1994, the Common Stock has been traded on the Nasdaq
National Market under the symbol "INTM". Effective August 7, 1996, the Company's
Common Stock will be listed on the New York Stock Exchange under the symbol
"IS". The following table sets forth for the periods indicated the high and low
closing prices of the Common Stock as reported by the Nasdaq National Market.

<TABLE>
<CAPTION>
HIGH LOW
--------- ---------
<S> <C> <C>
1994
First Quarter (from January 27, 1994)....................................................... $ 27 1/8 $ 23 1/4
Second Quarter.............................................................................. 27 1/4 22 1/8
Third Quarter............................................................................... 25 1/8 21 3/8
Fourth Quarter.............................................................................. 26 1/8 22 1/2
1995
First Quarter............................................................................... $ 29 3/4 $ 23 1/4
Second Quarter.............................................................................. 31 23 1/8
Third Quarter............................................................................... 28 1/8 23 5/8
Fourth Quarter.............................................................................. 35 3/8 26 1/2
1996
First Quarter............................................................................... $ 40 3/4 $ 34 1/4
Second Quarter.............................................................................. 50 1/4 34 3/4
Third Quarter (through July , 1996).......................................................
</TABLE>

On July 1996, the closing price of the Common Stock on the Nasdaq National
Market was $ . As of June 28, 1996, there were 609 Common Stockholders of
record.

DIVIDEND POLICY

No cash dividend or other cash distribution with respect to the Company's
Common Stock has ever been paid by the Company, although Brandon paid cash
dividends prior to the Brandon Merger. The Company currently intends to retain
any earnings for use in its business and does not anticipate paying any cash
dividends in the foreseeable future.

11
<PAGE>
CAPITALIZATION

The following table sets forth the capitalization of the Company as of March
29, 1996 and as adjusted to reflect the sale of shares of Common Stock by
the Company at the public offering price of $ per share and the application
of the net proceeds therefrom. See "Use of Proceeds" and "Management's
Discussion and Analysis of Financial Condition and Results of Operations --
Description of Company Financing". The table should be read in conjunction with
the selected financial information, the supplemental consolidated financial
statements and the related notes thereto included elsewhere in this Prospectus.

<TABLE>
<CAPTION>
MARCH 29, 1996
----------------------
AS
ACTUAL ADJUSTED
----------- ---------
(IN THOUSANDS)
<S> <C> <C>
Cash, cash equivalents and marketable securities......................................... $ 17,849 $
----------- ---------
----------- ---------

Short-term debt.......................................................................... $ 53,900 $ --
Long-term debt........................................................................... 60,000 --
----------- ---------
Total debt........................................................................... $ 113,900 $ --
Stockholders' equity:
Preferred stock, par value $.01 per share; 2,500,000 shares authorized; none issued or
outstanding........................................................................... -- --
Common stock, par value $.01 per share; 25,000,000 shares authorized; 15,407,958 shares
issued and outstanding as adjusted(1)(2).............................................. 154
Additional paid-in capital............................................................. 85,727
Retained earnings...................................................................... 146,137
----------- ---------
Total stockholders' equity........................................................... $ 232,018 $
----------- ---------
Total capitalization, including short-term debt...................................... $ 345,918 $
----------- ---------
----------- ---------
</TABLE>

- --------------
(1) An additional 1,420,533 shares of Common Stock are reserved for issuance
upon the exercise of stock options that have been or may be granted under
the Company's stock option plans.
(2) On September 9, 1996, the Company's Stockholders will vote on a proposal to
amend the Company's Restated Certificate of Incorporation to increase the
number of authorized shares of Common Stock to 50,000,000.

12
<PAGE>
SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA

The selected consolidated financial statement data for each of the three
years in the period ended December 29,1995 and as of December 30, 1994 and
December 29, 1995 are derived from, and are qualified by reference to, the
Company's audited supplemental consolidated financial statements and related
notes thereto, which together with the related report of Deloitte & Touche LLP,
independent auditors, are included elsewhere in this Prospectus. The
supplemental consolidated financial statements reflect the combined entities of
Interim and Brandon at such dates and for such periods, consistent with
pooling-of-interests treatment. The selected consolidated financial statement
data for the fiscal years ended December 27, 1991 and December 25, 1992 and as
of December 27, 1991, December 25, 1992 and December 24, 1993 are derived from
audited consolidated financial statements of Interim and Brandon not included
herein, and have been restated consistent with pooling-of-interests treatment.
The selected consolidated financial statement data for the three months ended
March 31, 1995 and March 29, 1996 and as of March 31, 1995 and March 29, 1996
are derived from the Company's and Brandon's unaudited consolidated financial
statements and, in the opinion of the Company, include all adjustments,
consisting only of normal recurring adjustments, necessary for a fair
presentation of such information and have been restated consistent with
pooling-of-interests treatment. Results for the three months ended March 29,
1996 are not necessarily indicative of results that may be expected for a full
year. The following information should be read in conjunction with "Management's
Discussion and Analysis of Financial Condition and Results of Operations" and
the supplemental consolidated financial statements and notes thereto included
elsewhere in this Prospectus.

13
<PAGE>

<TABLE>
<CAPTION>
THREE MONTHS ENDED
FISCAL YEAR ENDED DECEMBER, MARCH,
----------------------------------------------------------- --------------------
1991 1992 1993 1994 (1) 1995 1995 1996
--------- --------- ----------- ----------- ----------- --------- ---------
(IN THOUSANDS, EXCEPT PER SHARE AND OPERATING DATA)

<S> <C> <C> <C> <C> <C> <C> <C>
System-wide Sales (2)......... $ 904,994 $ 973,099 $ 1,085,759 $ 1,279,339 $ 1,494,260 $ 342,317 $ 423,392
--------- --------- ----------- ----------- ----------- --------- ---------
--------- --------- ----------- ----------- ----------- --------- ---------
INCOME STATEMENT DATA:
Revenues:
Commercial Services Division
Commercial Staffing......... $ 234,773 $ 281,982 $ 347,189 $ 431,374 $ 515,454 $ 115,782 $ 135,976
Professional Services....... 43,967 55,785 79,691 99,936 138,140 27,945 71,454
HealthCare Division........... 138,215 135,956 143,209 165,614 205,719 48,845 55,932
Other Income.................. 3,114 3,740 4,171 7,799 4,934 1,080 1,363
--------- --------- ----------- ----------- ----------- --------- ---------
Total Revenues.............. $ 420,069 $ 477,463 $ 574,260 $ 704,696 $ 864,247 $ 193,652 $ 264,725
Expenses:
Cost of Services.............. 288,979 331,782 402,039 491,404 600,169 134,536 185,728
--------- --------- ----------- ----------- ----------- --------- ---------
Gross Profit................ $ 131,090 $ 145,681 $ 172,221 $ 213,292 $ 264,078 $ 59,116 $ 78,997
Selling, General & Admin...... 104,260 106,346 119,763 137,859 177,105 40,364 55,777
Licensee Commissions.......... 4,022 12,142 20,586 33,796 37,295 8,644 9,182
--------- --------- ----------- ----------- ----------- --------- ---------
Results of Operations....... $ 22,808 $ 27,193 $ 31,872 $ 41,637 $ 49,678 $ 10,108 $ 14,038
Merger Expense................ -- -- -- -- -- -- 417
Amort. of Intangibles......... 4,243 5,285 5,671 6,041 6,884 1,626 2,149
Interest Expense (3)(4)....... 1,442 1,570 1,787 112 990 17 1,636
--------- --------- ----------- ----------- ----------- --------- ---------
Earnings Before Taxes....... $ 17,123 $ 20,338 $ 24,414 $ 35,484 $ 41,804 $ 8,465 $ 9,836
Taxes on Earnings............. 8,260 9,855 11,564 16,028 18,071 3,773 4,347
--------- --------- ----------- ----------- ----------- --------- ---------
Net Earnings................ $ 8,863 $ 10,483 $ 12,850 $ 19,456 $ 23,733 $ 4,692 $ 5,489
--------- --------- ----------- ----------- ----------- --------- ---------
--------- --------- ----------- ----------- ----------- --------- ---------
Net Earnings Per Share (5).... $ 0.64 $ 0.76 $ 0.93 $ 1.26 $ 1.52 $ 0.30 $ 0.35
Net Earnings Per Share
(excluding merger expenses)... $ 0.36
Weighted Average Shares....... 13,832 13,846 13,873 15,391 15,662 15,649 15,839

BALANCE SHEET DATA:
Total Assets.................. $ 226,453 $ 241,616 $253,978 $291,650 $441,628 $ 299,666 $ 455,395
OPERATING INFORMATION:
Total Offices (6)............. 677 674 728 796 940 821 958
</TABLE>

- ------------------
(1) The 1994 fiscal year contained 53 weeks. All other years contained 52 weeks.

(2) Includes sales of all Company-owned, franchised and licensed offices. Sales
data for franchised offices are derived from reports provided by
franchisees, which are not audited.

(3) Interest expense is net of interest income earned by Brandon.

(4) Prior to September 25, 1993, the Company's working capital and acquisition
financing were provided by Block. There was no interest charged on
intercompany debt. In conjunction with the IPO, effective September 25,
1993, Block formalized this arrangement by (i) providing a revolving credit
facility in the amount of $20,000 to fund the operating requirements of the
Company; (ii) converting $30,000 of intercompany indebtedness on such date
to a term loan and (iii) contributing $51,289 to the capital of the Company.
The earnings data for fiscal 1991, 1992, and 1993 give effect to this
arrangement as if it occurred at the beginning of the periods. Interest
expense has been computed at 6% and income taxes at the statutory rate.

(5) No cash dividend has ever been paid by Interim. However, prior to the
Brandon Merger, Brandon paid cash dividends.

(6) At end of period.

14
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

THE FOLLOWING DISCUSSION AND ANALYSIS SHOULD BE READ IN CONJUNCTION WITH THE
"SELECTED CONSOLIDATED FINANCIAL AND OPERATING DATA" AND NOTES THERETO INCLUDED
ELSEWHERE IN THIS PROSPECTUS AND THE SUPPLEMENTAL CONSOLIDATED FINANCIAL
STATEMENTS AND RELATED NOTES INCLUDED ELSEWHERE IN THIS PROSPECTUS.

INTRODUCTION

The Company operates within one industry segment, providing flexible
staffing in the United States, Canada and parts of the United Kingdom. The
Company's business is organized into two divisions, Commercial Services and
HealthCare.

The Company completed a merger with Brandon, a strategic IT staffing
company, on May 23, 1996, which was accounted for as a pooling-of-interests.
Accordingly, the historical information has been restated for all periods prior
to the Brandon Merger. All other acquisitions to date have been accounted for
under the purchase method of accounting.

During the nine months ended December 30, 1994, the Company changed its
fiscal year from a 52 or 53-week year ending on the last Friday in March to a 52
or 53-week year ending on the last Friday in December. The change in fiscal year
was made to align the Company's year end more closely with the standard for
companies in the flexible staffing industry. The financial statements have been
restated, for all years presented, to a 52 or 53-week year ending on the last
Friday in December.

GENERAL INDUSTRY TRENDS

Demand for staffing services has grown significantly as businesses continue
to rely on temporary personnel in order to manage operating costs and meet
fluctuating staffing requirements. In addition, many companies use flexible
staffing to reduce administrative overhead by outsourcing operations that are
not part of their core business competencies. Furthermore, the flexible staffing
industry is highly fragmented and is currently experiencing a trend toward
consolidation, which is contributing to above-market rates of growth for a
number of companies in the industry.

SALES OVERVIEW

System-wide sales data includes sales from all Company-owned, franchised and
licensed offices. Sales data for franchised offices are derived from reports
provided by franchisees, which are not audited. During 1995, Company sales
increased by 16.8% to $1,494.3 million. From fiscal 1993 to 1995, system-wide
sales increased by 37.6%. Sales growth from 1993 through 1995 is due primarily
to the rapidly growing markets in which the Company operates, new branch
openings, growth in licensing and most recently, growth in Professional Services
through the acquisition of IT, legal and accounting branch offices.

Franchisee sales have decreased as a percentage of total sales due to a
slower rate of growth among franchisees and the repurchase of franchises by the
Company. Licensee sales in the quarter ended March 29, 1996 decreased as a
percentage of total sales as a result of the conversion of a large license to a
franchise.

The following table summarizes the Company's sales mix for the last three
years and the three months ended March 31, 1995 and March 29, 1996:

15
<PAGE>
REVENUE OVERVIEW

From 1993 through 1995 Commerical Services Division revenue increased as a
percentage of total Company revenue principally due to the accelerated growth
rate and acquisition activity in Professional Services. For the three months
ended March 29, 1996, Professional Services revenues increased over the prior
year period primarily as a result of acquisitions.

RESULTS FROM OPERATIONS OVERVIEW

During the past three years, the Company's gross profit margin remained
relatively stable as higher gross margins in Professional Services were
partially offset by (i) the growth of Commercial Staffing revenues, which have
lower gross profit margins, and (ii) the decline of franchise royalties (which
essentially contribute 100% to gross profit) as a percent of total Company
revenue.

The following table sets forth operational results as a percentage of total
revenues for the periods indicated.

<TABLE>
<CAPTION>
THREE MONTHS ENDED
FISCAL YEAR ENDED DECEMBER, ------------------------
------------------------------- MARCH 31, MARCH 29,
1993 1994 1995 1995 1996
--------- --------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Total Revenues........................................ 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of Services...................................... 70.0 69.7 69.4 69.5 70.2
--------- --------- --------- ----- -----
Gross Profit (1)...................................... 30.0 30.3 30.6 30.5 29.8
Selling, General & Administrative..................... 20.9 19.6 20.5 20.9 21.1
Licensee Commisions................................... 3.6 4.8 4.3 4.4 3.4
--------- --------- --------- ----- -----
Results from Operations............................... 5.5 5.9 5.8 5.2 5.3
Merger Costs.......................................... -- -- -- -- 0.2
Amortization of Intangibles........................... 1.0 0.8 0.8 0.8 0.8
Interest.............................................. 0.3 -- 0.1 -- 0.6
Taxes................................................. 2.0 2.3 2.1 2.0 1.6
--------- --------- --------- ----- -----
Net Earnings.......................................... 2.2% 2.8% 2.8% 2.4% 2.1%
</TABLE>

- --------------

(1) During 1995, the Company reclassified certain non-payroll related costs from
cost of services to selling, general and administrative expenses to conform
to industry norms. The effect of this reclassification is to increase gross
profit by 0.4% in 1995.

THREE MONTHS ENDED MARCH 29, 1996 COMPARED TO THREE MONTHS ENDED MARCH 31, 1995

REVENUES

For the three months ended March 29, 1996, revenues increased 36.7% to
$264.7 million from $193.6 million in the prior year period. Commercial Staffing
revenues increased 17.4% reflecting the expansion of the On-Premise program and
an increase in the number of offices and services provided. Professional
Services revenues increased 155.7% reflecting significant acquisition activity
and internal growth, primarily in IT. HealthCare Division revenues increased
14.5% due to increases in number of offices and expansion of Occupational Health
and Physicians services.

16
<PAGE>
GROSS PROFIT

Gross profit increased 33.7% to $79.0 million from $59.1 million in the
prior year period. Increases in gross profit and cost of services are associated
with the increase in revenues. Gross profit margin decreased to 29.8% from 30.5%
in the prior year principally due to a decline in franchise royalties as a
percent of total Company revenue. Franchise royalties essentially contribute
100% to gross profit.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses increased 38.1% to $55.8
million from $40.4 million in the prior year period. Selling, general and
administrative expenses as a percentage of revenues were 21.1% compared to 20.9%
a year ago due to the higher relative costs associated with Professional
Services.

LICENSEE COMMISSIONS

Licensee commissions increased 7.0% to $9.2 million from $8.6 million in the
prior year period. Licensee commissions as a percent of revenues decreased from
4.4% to 3.4% due to acquisition activity.

AMORTIZATION OF INTANGIBLES

Amortization expense increased 31.3% to $2.1 million from $1.6 million in
the prior year period reflecting the increase in intangible assets arising from
acquisitions.

TAXES ON EARNINGS

The effective tax rate was 44.2% compared to 44.6% in the prior year period.
The decline in the effective tax rate is due primarily to the fact that during
these periods amortization of certain non-deductible intangibles remained
relatively fixed while earnings before taxes increased. Management anticipates
that the Company's effective income tax rate will continue to decrease slightly
as non-deductible amortization decreases as a percentage of earnings before
taxes.

NET EARNINGS

Net earnings for the quarter excluding merger costs (net of taxes) increased
21.3% to $5.7 million, or $0.36 per share, from $4.7 million, or $0.30 per share
in the prior year period. This represents a 20.0% increase in per share
earnings. Including merger costs, net earnings increased 17.0% to $5.5 million,
or $0.35 per share from $4.7 million or $0.30 per share in the prior period. The
weighted average number of shares outstanding was 15,839,000 compared to
15,649,000 in the prior year period.

FISCAL 1995 COMPARED TO 1994

REVENUES

Revenues in 1995 increased 22.6% (24.3% excluding the 53rd week in 1994) to
$864.2 million from $704.7 million in 1994. Commercial Staffing revenues
increased 19.5% (21.1% excluding the 53rd week in 1994) due to an increase in
the number of billed hours, offices acquired and continued internal office
expansion. Professional Services revenues increased 38.2% (38.9% excluding the
53rd week in 1994) primarily related to acquisitions that occurred in 1995.
HealthCare Division revenues increased 24.2% (26.8% excluding the 53rd week in
1994) due to continued expansion in home care.

GROSS PROFIT

Gross profit in 1995 increased 23.8% to $264.1 million from $213.3 million
in 1994 (22.4% excluding reclassifications adopted in 1995 in which certain
non-payroll related costs were removed from cost of services to conform to
industry norms). The gross profit margin was 30.6% (30.2% excluding
reclassifications) as compared with 30.3% in the prior year.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses increased 28.4% to $177.1
million from $137.9 million in 1994. Selling, general and administrative
expenses as a percentage of total revenue increased to 20.5% in 1995 from 19.6%
in 1994 as a result of a full year of HealthCare Division acquisitions made in

17
<PAGE>
1994 and a partial year of Professional Services acquisitions made in 1995.
Professional Services such as executive search, human resources, accounting and
therapy have a higher gross profit margin but require higher selling, general
and administrative expenditures as a percentage of revenue.

LICENSEE COMMISSIONS

In 1995, licensee commissions increased 10.4% to $37.3 million from $33.8
million in 1994 as a result of an increased number of licensees.

AMORTIZATION OF INTANGIBLES

For 1995, amortization expense increased 15.0% to $6.9 million from $6.0
million in the prior year period reflecting the increase in intangible assets
arising from acquisitions.

TAXES ON EARNINGS

The provision for income taxes for 1995 reflects an effective tax rate of
43.2%, which is less than the 45.2% rate for 1994. The lower effective tax rate
for 1995 is the result of (i) a decrease in the effective rate relating to state
income taxes and (ii) non-deductible amortization of intangible assets remaining
fixed while earnings before income taxes increased.

NET EARNINGS

In 1995, net earnings increased 21.5% to $23.7 million from $19.5 million in
1994. Net earnings per share increased 20.6% to $1.52 in 1995 from $1.26 in
1994. The weighted average shares outstanding was 15,662,000 in 1995 compared to
15,391,000 in 1994.

FISCAL 1994 COMPARED TO 1993

REVENUES

Revenues in 1994 increased 22.7% (21.1% excluding the 53rd week in 1994) to
$704.7 million from $574.3 million in 1993. Commercial Staffing revenues
increased 24.3% (22.6% excluding the 53rd week in 1994) due to an increase in
the number of billed hours, the continued economic recovery and increases in the
number of licensed offices. Professional Services revenues increased 25.3%
(24.9% excluding the 53rd week in 1994) due to acquisitions. HealthCare Division
revenues increased 15.6% (13.3% excluding the 53rd week in 1994) due to growth
in the home care market and the addition of more offices.

GROSS PROFIT

Gross profit for 1994 increased 23.9% to $213.3 million from $172.2 million
in 1993. The gross profit margin increased to 30.3% in 1994 from 30.0% in 1993,
primarily as a result of increased HealthCare revenues which typically have
higher gross profit margins than Commercial Staffing. Franchise royalties
increased from the comparable prior year period due to increases in hourly
rates.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Selling, general and administrative expenses increased 15.1% to $137.9
million from $119.8 million in 1993. Selling, general and administrative
expenses as a percentage of total revenue decreased to 19.6% in 1994 from 20.9%
in 1993 as a result of a decrease in bad debt expenses and acquisitions of
customer lists increasing revenues without commensurate increases in selling,
general and administrative expenses.

LICENSEE COMMISSIONS

In 1994, licensee commissions increased 64.1% to $33.8 million from $20.6
million in 1993 as a result of an increased number of licensees.

AMORTIZATION OF INTANGIBLES

Amortization expense increased 5.3% to $6.0 million from $5.7 million in the
prior year period reflecting the increase in intangible assets arising from
acquisitions.

18
<PAGE>
TAXES ON EARNINGS

The provision for income taxes for 1994 reflects an effective tax rate of
45.2%, which is less than the 47.4% rate for 1993 (affected for the adjustment
to reflect the Block financing arrangement as if it occurred at the beginning of
the period). The decline in the effective tax rate is due primarily to the fact
that, during these periods, amortization of certain non-deductible intangibles
has remained relatively fixed while earnings before taxes increased.

NET EARNINGS

Net earnings increased 51.2% to $19.5 million in 1994 from $12.9 million in
1993. Net earnings per share increased 35.5% to $1.26 in 1994 from $0.93 in
1993. The weighted average number of shares outstanding was 15,391,000 in 1994
compared to 13,873,000 in 1993.

LIQUIDITY AND CAPITAL RESOURCES

Historically, the Company has financed its operations through cash generated
by operating activities and bank lines of credit. The Company's principal uses
of cash are funding acquisitions, capital expenditures, working capital needs
and repayment of debt. The nature of the Company's business requires payment of
wages to its flexible staff on a weekly, or bi-weekly basis, while payments from
clients are generally received 30-60 days after billing for Commercial Staffing
and Professional Services and 50 or more days for HealthCare clients. The
Company believes that its internally generated funds and lines of credit are
sufficient to support anticipated levels of growth of the Company.

Net cash flow from operating activities was $14.3 million, $10.1 million and
$6.6 million in years 1993, 1994 and 1995, respectively, and $4.8 million and
$4.5 million for the first quarters of 1995 and 1996, respectively. The decrease
in cash flow from operating activities was due to increased funding of accounts
receivable resulting from strong revenue growth during the year and an increase
in loans outstanding to franchisees that are included in other assets. Accounts
receivable increased to $143.2 million at the end of 1995 from $101.7 million at
the end of 1994 as a result of an increase in revenues (with comparable days
outstanding) over the previous year and a higher level of health care
receivables as compared to the prior year.

The Company's capital expenditures (excluding acquisitions) during 1993,
1994 and 1995 were funded through internally generated funds. The Company
anticipates increased expenditures to continue development and implementation of
its information technologies. Additionally, the Company has committed
approximately $7.6 million to build and furnish an addition to its corporate
headquarters. As of March 29, 1996, approximately $2.0 million of this amount
had been spent.

Historically, Brandon invested its cash in excess of immediately foreseeable
requirements principally in interest-bearing marketable securities. As a result
of the Brandon Merger, these investments were liquidated to pay down debt.

DESCRIPTION OF COMPANY FINANCING

On April 6, 1994, the Company replaced a $30 million term loan and a $20
million revolving credit facility with Block with a new $50 million committed
senior revolving credit agreement. In November 1995, this facility was increased
to $150 million. The credit facility is available to fund the Company's
acquisitions, to supply working capital and to provide for general corporate
needs. Interest charged on the facility is based, at the Company's option, on
either the banks' base rate or LIBOR plus an applicable margin. The margin
changes based on the Company's leverage and fixed charge ratios. The facility,
which terminates April 6, 1999, contains customary covenants, including the
maintenance of certain financial ratios such as minimum net worth and
restrictions on the incurrence of liens and additional indebtedness.

In addition, the Company has established short term, unsecured, uncommitted
lines of credit with certain banks. These lines of credit are based on LIBOR and
are available to fund the Company's short term capital requirements. As of March
29, 1996, the total outstanding debt under all of the Company's

19
<PAGE>
credit agreements was $113.9 million with an effective interest rate of 6.07%.
Approximately $100.0 million of the Company's total outstanding debt was
incurred in connection with acquisitions made by the Company.

INFLATION

The effects of inflation on the Company's operations were not significant
during the periods presented in the financial statements.

SEASONALITY AND CYCLICALITY OF BUSINESS

The Company's businesses are not seasonal in nature. The Company's
commercial business has historically been considered to be cyclical, often
acting as a coincidental indicator of both economic downswings and upswings.
However, as a result of general shifting of employment patterns and the growth
in On-Premise, management believes that the Company's commercial business is
becoming less cyclical. In addition, the Company's health care business is not
cyclical and tends to dampen any cyclical effects from the commercial sector. No
single customer accounts for more than 1% of the Company's revenues.

OTHER MATTERS

In March 1995, the Financial Accounting Standards Board ("FASB") issued
Statement of Accounting Standards ("SFAS") No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of".
SFAS No. 121 establishes accounting standards for the impairment of long-lived
assets, certain identifiable intangibles, and goodwill related to those assets
to be held and used and for long-lived assets and certain identifiable
intangibles to be disposed of. SFAS No. 121 will apply to the Company for the
year ended December 27, 1996. The adoption of this statement did not have a
material impact on the Company's financial position or results of operations.

In October 1995, the FASB issued SFAS No. 123, "Accounting for Stock-Based
Compensation", which is effective for the Company beginning January 1, 1996.
SFAS No. 123 requires expanded disclosures of stock-based compensation
arrangements with employees and encourages (but does not require) compensation
cost to be measured based on the fair value of the equity instrument awarded.
Companies are permitted, however, to continue to apply APB Opinion No. 25 to its
stock-based compensation awards to employees and Interim will disclose the
required pro forma effect on net income and earnings per share in its 1996 Form
10-K and Annual Report.

20
<PAGE>
BUSINESS

COMPANY OVERVIEW

The Company is a leader in providing a comprehensive range of customized
staffing solutions, including flexible staffing, home care, full-time placement,
consulting and other value-added services on a national basis to businesses,
professional and service organizations, governmental agencies, health care
facilities and individuals. As of March 29, 1996, the Company operated through a
network of 958 offices in the U.S., Canada and the United Kingdom. Management
believes that, based on system-wide sales, the Company is the fourth largest
provider of staffing services in the United States and is the seventh largest
provider in the world.

The Company provides commercial and health care services through two
divisions, each offering numerous specialized skills. The Commercial Services
Division is divided into two units, Commercial Staffing and the Professional
Services, which currently represent approximately 50% and 30% of total Company
revenues, respectively. Commercial Staffing fulfills client requirements for
temporary clerical and light industrial skills, in addition to temporary and
permanent workforce management. Professional Services offers consulting and
staffing services in the areas of IT, legal, accounting, search and human
resources. The HealthCare Division provides physicians, nurses, therapists, home
health aides and home companions and currently represents approximately 20% of
total Company revenues.

THE FLEXIBLE STAFFING INDUSTRY

Demand for staffing services has grown significantly as businesses continue
to increase reliance on temporary personnel to manage operating costs and meet
fluctuating staffing requirements. In addition, many companies use flexible
staffing to reduce administrative overhead by outsourcing operations that are
not part of their core business competencies. Furthermore, the flexible staffing
industry is highly fragmented and is currently experiencing a trend toward
consolidation. The key forces driving consolidation include the growth of
regional or national contracts, expansion of professional specialties and the
need for sophisticated management information systems. Smaller staffing
companies that have limited capital and management resources are increasingly
finding it difficult to compete.

TRADITIONAL FLEXIBLE STAFFING MARKET

In 1995, STAFFING INDUSTRY REPORT estimated that temporary staffing industry
revenues would be approximately $41 billion and that, from 1991 to 1995 such
revenues would have grown at a compound annual rate of approximately 17.5%. The
Bureau of Labor Statistics forecasts that the flexible staffing industry will be
the seventh fastest growing employment category in the United States, increasing
nearly five times faster than the general labor force from 1995 to 2005.

PROFESSIONAL AND IT STAFFING MARKETS

Certain categories of professional staffing services are experiencing
considerable growth, in excess of the industry as a whole, as companies realize
they can enjoy the same type of flexibility for personnel such as computer
programmers, accountants, paralegals and attorneys as they do with traditional
flexible staff. Furthermore, the use of technology has led to a dramatic rise in
demand for technical project support, software development and other
computer-related services. Corporations are outsourcing many of these
departments and/or utilizing flexible staffing to attempt to keep pace with
rapidly changing technology and increasing demand for these types of technical
skills.

Revenues from professional/specialty temporary staffing were estimated to
grow from $2.4 billion in 1993 to $4.0 billion in 1995, which would represent a
compound annual growth rate of approximately 30% according to STAFFING INDUSTRY
REPORT. In addition, revenues from technical/computer temporary staffing were
estimated to grow from $5.7 billion in 1993 to $8.9 billion in 1995, which would
represent a compound annual growth rate of approximately 25%.

HEALTH CARE STAFFING INDUSTRY

Health care staffing services include providing general and specialized
health care skills and companionship in the home environment, as well as
providing the same health care skills in hospitals,

21
<PAGE>
nursing homes, HMOs and other health care facilities. Home care is one of the
fastest growing sectors of the health care industry and has grown at an
estimated average annual rate of 16% since 1988 according to the Bureau of Labor
Statistics.

Contributing to the growth of home care is national pressure to reduce
health care costs. Studies indicate that the cost of home care averages 40% to
70% of that of institutional care. In addition, industry growth is driven by the
increase in overall demand for health care for the aging American population and
by technological advances which have made it possible to perform many
sophisticated medical procedures in the home.

BUSINESS STRATEGY

INCREASE REVENUE THROUGH OFFICE EXPANSION

The Company maintains an aggressive growth strategy which includes
establishing Company-owned branches, adding licensed and franchised offices and
making strategic acquisitions. Growth through acquisition is generally preferred
when building experience in a particular professional service area or when an
acquisition in its traditional commercial staffing or home care business will
enable Interim to fill-in or expand into an important geographic market. The
Company's successful diversified growth strategy provides Interim with
significant flexibility in evaluating alternative methods for expansion.

Since the IPO, the Company has increased its office base by approximately
35% to 958, adding approximately $250 million in revenues from 12 acquired
flexible staffing companies. The following table provides detail of the
Company's acquisitions since the IPO.

<TABLE>
<CAPTION>
ACQUISITION NUMBER OF REVENUES
ACQUIRED COMPANY DATE OFFICES (1) IN MILLIONS(2) PRIMARY SERVICES
- ---------------------------------------- ------------- --------------- -------------- ------------------------------------
<S> <C> <C> <C> <C>
PROFESSIONAL SERVICES
Brandon Systems Corporation............. 5/96 32 $ 89.0 IT Consulting and Staffing
Of-Counsel.............................. 5/96 1 1.0 Attorney, Paralegal and Legal
Secretary Staffing
Computer Power Group.................... 12/95 17 81.0 IT Consulting and Staffing
Hernand & Partners...................... 11/95 3 2.7 Attorneys Staffing
Juntunen................................ 10/95 2 13.6 IT Staffing, HR Consulting and
Retained Search
OCS Services & Group.................... 6/95 5 16.1 IT Consulting and Staffing
Career Associates/Career Temps.......... 6/95 5 5.6 Accounting Staffing/Search
HEALTHCARE
Therapy Staff Services/Gulf Rehab....... 10/94 1 $ 12.1 Therapy Staffing
Hospital Staffing Services.............. 9/94 18 23.5 Home care
Med South Health Care................... 8/94 1 1.2 Home care
Community Home Health Professionals..... 6/94 4 3.0 Home care
COMMERCIAL STAFFING
ICS Temporary Services.................. 12/94 1 $ 1.6 Clerical and Light Industrial
-- --------------
TOTAL............................... 90 $ 250.4
</TABLE>

- ------------------

(1) Office count at the time of acquisition.

(2) Revenues shown for 1995 and 1994 acquisitions reflect annualized results for
the year. 1996 acquisitions reflect revenues for the year ended prior to
acquisition.

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<PAGE>
In addition to external acquisitions, Interim usually purchases franchises
and licenses which are for sale. The Company is generally the purchaser of
choice when an Interim franchisee or licensee decides to sell its business. The
Company has a first right of refusal on any franchise sale at the same terms and
conditions as may be agreed with another purchaser and has a standard purchase
option on licenses. Overall, Company-owned branches yield higher profits than
franchised or licensed offices and therefore the purchase of these offices is
accretive to overall earnings.

DISPROPORTIONATELY GROW PROFESSIONAL SERVICES

As part of its acquisition focus, Interim plans to continue to target
disproportionate growth in its Professional Services businesses. Demand
continues to expand for professional staffing services, reflecting changing
attitudes toward workforce management and the proliferation of technical skills
required in an office environment. The Company believes that such services tend
to provide higher margins and to be less cyclical than traditional flexible
staffing and to provide attractive opportunities to cross-sell other Interim
services. Since the IPO, approximately $210 million of the $250 million in
acquired revenues has been in Professional Services.

LEVERAGE COMMON BRAND IDENTITY

Interim is the only national staffing company which provides commercial,
professional and health care services under the same brand name (e.g., Interim
HealthCare, Interim Technology, Interim Accounting Professionals). Such brand
identity facilitates cross-selling as management has found that customers
appreciate the ability to do business with a familiar company while also having
access to a broad range of specialists. The common company identity also allows
for easier information flow and smoother interaction among the various Interim
offices. In addition, through its common brand identity the Company and its
franchisees are better able to benefit from national media advertising.
Accordingly, all acquisitions are converted to the Interim name as soon as
practicable. The increasing demand by large companies for centralized staffing
services is increasing the importance of being able to offer a high-profile,
wide range of services over a broad geographic area. Interim is well-positioned
to capitalize on these trends.

PROVIDE INNOVATIVE VALUE-ADDED CLIENT SOLUTIONS

Interim is committed to developing innovative human resource solutions to
meet the evolving needs of its clients and providing quality care for its
patients. For example, in 1993 Interim pioneered the concept of dedicated,
on-site workforce management with Interim On-Premise. Interim On-Premise
accounted for 18% of the Commercial Services Division's revenue for the quarter
ended March 29, 1996. Executive search, placement and human resource consulting
services have similarly been added in response to client needs. Recognizing the
changing needs of the health care marketplace and anticipating the demands of
health care payors, Interim developed InterPath, a proprietary medical record
documentation and outcome measurement system for home care services.

DELIVER SERVICES THROUGH SPECIALIZED OFFICES

Each of the Company's offices is focused on providing staff with a
particular skill set to meet customer needs. The managers and sales people in
these offices have training and experience in the relevant field and are able to
establish relationships with those individuals making the buying decisions for
that service at a client organization. For example, the IT offices market their
services directly to the information resources department head, the accounting
offices market to the controller and the HealthCare offices market to the care
manager. It has been the Company's experience that clients prefer dealing with
an office that "speaks their language" and understands their staffing
requirements.

SUPPORT ENTREPRENEURIAL ENVIRONMENT

The Company seeks highly talented managers who are capable of operating
independently and who will succeed within the Company's decentralized structure.
All Interim managers are compensated based on profits generated within their
scope of responsibility. Branch, area and regional managers are responsible for
their own hiring, pricing, business mix and local promotion. The Company's use
of franchising and licensing contributes to this entrepreneurial environment.
Management believes the

23
<PAGE>
Company's decentralized approach provides strong incentives to manage expenses
and increase profits at each office and results in a creative and committed
management team. In addition, the Company has granted stock-based compensation
in the form of options, representing in excess of 9% of the Company's
outstanding Common Stock.

DESCRIPTION OF OPERATIONS

COMMERCIAL SERVICES DIVISION

The Commercial Services Division provides skills in two primary areas,
traditional commercial flexible staffing and professional services. These
service "units" offer a comprehensive range of skills to fulfill client
requirements and are described below.

Commercial Staffing offers personnel with traditional temporary clerical and
light industrial skills on a flexible basis. In addition to traditional flexible
staffing, Interim provides value-added staffing services to large clients
through its On-Premise product. Approximately 50% of the Company's total
revenues are currently derived from Commercial Staffing.

Professional Services offers a comprehensive range of consulting and
staffing services in the areas of IT, legal, accounting, search and human
resources. The Company provides personnel with skills in specialized
professional areas, including software analysts, computer programmers, network
administrators, attorneys, paralegals, court reporters, accountants and human
resource managers. In addition, the Company offers full-time placement,
recruiting, consulting and executive retained search services. Approximately 30%
of the Company's current total revenues are derived from Professional Services.

COMMERCIAL STAFFING

The traditional flexible staffing business entails providing a wide variety
of clerical, administrative, assembly and light industrial skills. In addition
to supplying personnel to perform general office tasks such as reception,
copying and filing, the Company provides personnel who are proficient in word
processing, graphics, spreadsheets or database management. In the light
industrial area, Interim supplies personnel to perform light industrial tasks
such as electronic and precision assembly, PC board assembly, packaging,
shipping and receiving, warehousing, landscaping, construction and equipment
operation. The Company also offers full-time placement of these skills.

INTERIM ON-PREMISE

Four years ago, the Company introduced a new staffing concept, Interim
On-Premise, whereby a client delegates management of its flexible staffing needs
to the Company, allowing the client to focus on its core business activities.
Further, On-Premise has evolved to include managing a client's entire workforce
on-site, a significant portion of which is permanent staff. Since the concept
was introduced, revenues from On-Premise clients have grown to 18% of Commercial
Services revenues for the quarter ended March 29, 1996.

The Company has found that Interim On-Premise clients, which currently tend
to utilize Commercial Staffing services, are very receptive to other Interim
services, particularly in the Professional Services area. On-Premise managers
are well positioned to build on established relationships with key people at
client organizations to introduce Professional Services. Conversely,
Professional Services' employees often can identify instances where clients need
additional staffing services and introduce Interim On-Premise. Management
believes the Company's geographic and service breadth provide a strong
competitive advantage in securing such broad-reaching assignments. To better
serve its On-Premise clients, the Company has developed proprietary software
that is designed to facilitate managing the productivity of personnel at the
client's work site. On-Premise offices are predominantly Company-owned.

PROFESSIONAL SERVICES

Professional Services offers a comprehensive range of consulting and
staffing services in the areas of IT, legal, accounting, search and human
resources. The Company provides personnel with skills in

24
<PAGE>
specialized professional areas, including software analysts, computer
programmers, network administrators, attorneys, paralegals, court reporters,
accountants and human resource managers. In addition, the Company offers
full-time placement, recruiting, consulting and executive retained search
services. The Company believes that Professional Services tend to be less
cyclical than traditional flexible staffing and that higher margins and
cross-selling opportunities are associated with these services. Management
believes that Professional Services has substantial growth opportunities, and
therefore the Company will continue to target disproportionate growth in these
areas. Approximately 30% of the Company's total revenues are currently derived
from Professional Services.

INFORMATION TECHNOLOGY. Through acquisitions made since the IPO, Interim
has built a leading information consulting and staffing services group operating
through 51 offices in the United States and two locations in the United Kingdom.
Now consolidated as Interim Technology, they provide a spectrum of strategic IT
services including consulting, flexible staffing and outsourcing services.
Interim Technology services can be subdivided into three specialty offerings,
Interim Search Solutions, the Consulting Group and the Staffing Solutions Group.

Interim Search Solutions provides a range of search services for technology
specialties in positions up to and including Chief Information Officer. The
group offers both contingency and fully retained search services. Contingency
search results in payment only when a candidate has been placed at a company
whereas retained search, which is generally for senior management positions,
results in payments for services rendered, irrespective of placement.

The Consulting Group specializes in the areas of software design,
development, quality assurance, implementation and management. The Group has
separate practices to supply specialized skills in the areas of client/server,
legacy systems, network integration, software quality management, systems
engineering and technical communications, and is a preferred skills provider for
leading IT product companies such as Microsoft, SAP and Novell. In addition, the
Consulting Group provides management of the significant conversions necessary to
correct many mainframe software's inability to recognize dates after December
31, 1999, the "millennium problem". The Consulting Group provides longer term
staffing and consulting services utilizing highly trained employees.

The Staffing Solutions Group provides operations-based technical and
professional staffing and support for IT operations including help desk and data
center operations, operations analysis, communications, operations and PC
support. This group also offers a unique outsourcing service whereby its clients
maintain complete strategic control of their IT functions but are relieved of
technology staffing and performance issues. Management believes that this
service engenders a partnering relationship by providing the traditional savings
of outsourcing while enabling clients to preserve strategic control over their
information systems and data. The Staffing Solutions Group generally provides
large numbers of personnel for shorter assignments.

LEGAL SERVICES. The Company's legal offices provide attorneys, paralegals,
court reporters, legal secretaries and deposition summary services predominantly
to law firms and corporations. In addition, the Company has a "Depolab" at its
corporate headquarters which utilizes proprietary software that permits law
firms to have depositions summarized into 13 different formats. The centralized
Depolab concept enhances supervision, confidentiality and quality control while
making better use of human resources which would otherwise be located in various
local offices.

ACCOUNTING. Interim Accounting Professionals provides accounting and
finance personnel at all levels including bookkeepers, degreed accountants,
certified public accountants, auditors and controllers. The Company provides
flexible staffing and full-time placement capabilities for its clients.

HUMAN RESOURCE SERVICES. Interim HR Solutions offices provide human
resource consulting and project management at client locations or on an
outsourced basis. In addition, skilled professionals such as contract recruiters
and human resource directors are available for project assignments. This group's
expertise ranges from organizational development and training to compensation,
plan design and benefits analysis.

25
<PAGE>
HEALTHCARE DIVISION

Health care staffing services includes providing general and specialized
health care skills and companionship in the home environment, as well as
providing the same health care skills in hospitals, nursing homes, HMOs and
other health care facilities. Management believes Interim is the second largest
health care staffing company, based on sales. The HealthCare Division provides a
broad range of personnel including physicians, nurses, therapists, home health
aides and companions, occupational health and on-site medical personnel. During
1995, 80% of the HealthCare Division's revenues were derived from home care
services, with the balance being derived from Health Care Special Services for
hospitals, clinics, nursing homes and corporations with occupational health
programs. Approximately 20% of the Company's total revenues are currently
derived from the HealthCare Division.

HOME CARE

Interim provides a comprehensive, integrated approach to home care. Primary
services include health aides, home companions and skilled nursing services.
Additional services include activities such as home infusion services and the
delivery of home medical equipment. Registered nurses and licensed practical
nurses perform full clinical procedures, including dispensing medication,
administering intravenous therapy and providing post-surgery wound care. In
addition, nurses examine and record patients' progress, provide patient
instructions and teaching, make periodic reports to the physicians in charge and
carry out physicians' instructions. Home health aides are trained to assist the
ill, elderly or disabled. Home companions visit patients in their homes to
provide companionship and attend to other social and personal needs.

The trend towards home care services has resulted in an increase in the
portion of HealthCare revenues being remitted through Medicare and Medicaid.
Medicare business, by which the Company is only reimbursed for its costs, is not
a principal focus of the Company's strategy and represents approximately 5% of
the Company's revenues. Management believes that maintaining federal Medicare
certification is important, however, as it serves as a widely recognized
indicator of quality and standing in local communities and is important in
obtaining more profitable business.

HEALTHCARE SPECIAL SERVICES

INSTITUTIONAL STAFFING. The institutional staffing sector provides licensed
health care personnel for hospitals, nursing homes, HMOs and other health care
facilities. Hospitals utilize temporary nurses to augment core nursing staff
based on the number and condition of hospital patients, and for specialized
staffing needs such as in the intensive care unit, surgery or emergency room.

LOCUM TENENS PHYSICIANS. Interim supplies temporary physicians to physician
groups and clinics, HMOs, and other facilities through nine regionally based
offices which provide complete coverage of the United States. With more offices
than any competitor, Interim is among the largest locums tenens staffing firms
providing primary care physicians in North America. This is a growing, high
margin business, and an example of the type of emerging special opportunities in
the health care industry on which the Company is focusing.

THERAPY SERVICES. The Company's physical and respiratory therapists and
other similar health care professionals provide both home care and health care
staffing services to rehabilitation facilities, school systems, hospitals,
clinics, nursing homes and individuals needing home care all over the country.
These specially trained, licensed personnel are often in short supply, and as a
result, Interim recruits physical, occupational and speech therapists on a
world-wide basis. Interim also offers IN-STEP, a program through which the
Company helps finance overseas training of American students, who would
otherwise be unable to pursue a therapy degree because of the shortage of U.S.
schools offering therapy studies. Upon returning to the U.S. with their degree
and being licensed, these students become members of the Interim workforce for a
minimum of two years.

26
<PAGE>
OCCUPATIONAL HEALTH. In 1995, the Company launched Interim Occupational
Health which manages and staffs on-site clinics and medical health programs for
corporate clients, primarily Fortune 500 companies. Interim Occupational Health
assists companies in enhancing employee safety procedures, developing wellness
programs and implementing aggressive return-to-work policies. Such on-site
management is another example of the Company's services that allow its clients
to focus on their core competencies by reducing job related injuries, thereby
lowering costs and increasing productivity.

OFFICE STRUCTURE

Interim offices are Company-owned, franchised and licensed. Most offices
serve multiple clients in their respective geographic area, with the exception
of Interim On-Premise sites which are established at the client's location to
serve only that client. The following table details the number of offices which
are Company-owned, franchised and licensed as of the end of the periods listed.

<TABLE>
<CAPTION>
FISCAL YEAR ENDED DECEMBER,
THREE MONTHS
------------------------------------- ENDED MARCH 29, PERCENT
NUMBER OF OFFICES 1993 1994 1995 1996 OF TOTAL
- ------------------------------------------------------ ----------- ----------- ----------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Company-owned Offices................................. 253 273 342 356 37.2%
Franchised Offices.................................... 355 369 414 424 44.2
Licensed Offices...................................... 120 154 184 178 18.6
--- --- --- --- -----
Total Offices......................................... 728 796 940 958 100.0%
--- --- --- --- -----
--- --- --- --- -----
</TABLE>

OWNED OFFICES

As of March 29, 1996, the Company owned and operated 356 branch offices.
Branch office expansion is generally pursued in new markets or in markets where
Interim has an established presence and is used to increase market penetration.
Additional expansion is achieved by establishing On-Premise locations which tend
to be Company-owned. The Company intends to continue to expand Company-owned
branches in those locations where it can "cluster" multiple offices in close
geographic proximity to utilize centralized regional and area management and
other administrative functions, which leverages growth and increases
profitability.

FRANCHISED OFFICES

The Company has been granting franchises for more than 37 years. The average
tenure of franchise ownership exceeds 13 years, and a number of franchisees are
second generation owners. Most franchisees operate more than one franchise and
franchises are granted for the services offered by both the Commercial Services
and HealthCare Divisions. While historically Commercial Services Division
franchises tend to be Commercial Staffing offices, the Company is beginning to
offer franchises for Professional Services offices as well. As of March 29,
1996, the Company's 83 franchisees operated 424 franchised offices.

The Company grants franchisees the exclusive right to market and furnish
commercial flexible staffing services, health care services or a particular
specialty or niche service within a designated geographic area using the
Company's trade names, service marks, advertising materials, sales programs,
operating procedures, manuals and forms. The Company provides franchises with
its national, regional and local advertising. Franchisees operate their
businesses autonomously within the framework of the Company's policies and
standards and recruit, employ and pay their own full-time and flexible staff.
The Company receives royalty fees from each franchise based upon its sales, and
in return supplies a variety of support and marketing services.

For many years, the Company has had a secured loan program available to
franchisees for working capital or acquisition loans. The Company believes this
loan program has been an important factor in enhancing franchise growth. As of
March 29, 1996, the aggregate balance outstanding on all franchise loans was
$19.7 million.

27
<PAGE>
LICENSED OFFICES

The Company also grants licenses, primarily in its Commercial Services
Division, which give the licensee the right to establish a business utilizing
the Company's trade names, service marks, advertising materials, sales programs,
operating procedures, manuals and forms within a designated territory. As of
March 29, 1996, the Company operated 178 licensed offices.

Licensees are required to observe the Company's operating procedures and
standards and act as representatives of the Company in recruiting, screening,
classifying, employing and placing flexible staff in response to client orders.
The licensee is responsible for establishing the office and paying related
administrative and operating expenses, such as rent, utilities and salaries of
full-time employees. The Company is responsible for paying the wages of the
flexible staff and all related payroll taxes and insurance. As a result, the
Company provides a substantial portion of the working capital needed for the
licensed businesses. The Company has made a loan program available to licensees
similar to that available to franchisees, although few licensees have accessed
it to date.

Sales by the licensed offices are included in the Company's revenues, and
the direct costs of services are included in the Company's cost of services. The
licensee receives a commission from the Company, which presently is equivalent
to 75% of the licensed offices' gross profits. The licensee is required to
participate in the Company's national advertising program and use the Company's
billing, payroll and other data processing services for which a separate fee is
paid to the Company.

CORPORATE SUPPORT SERVICES

FIELD SUPPORT. The Company maintains a strong national support system to
provide services, coordinate marketing and maintain consistent quality standards
throughout the Interim office network. The Company offers a variety of skill
development training for its personnel through Company-generated manuals and
corporate training programs for office management.

CORPORATE SERVICE CENTER. The Company provides its decentralized branch
network with centralized functions for training, payroll, billing, receivables
management, credit and collections, risk management, legal support, cash
management, marketing and health care clinical operations. In addition, the
Company has developed its own proprietary software program called "TempLink" to
efficiently maintain client and flexible staff information, facilitate staffing
selection and payroll functions as well as provide testing software for
consistent skills testing and information management.

HEALTHCARE CLINICAL OPERATIONS. The Company maintains quality control
standards through its national Clinical Operations Department. This department
sets Company-wide medical policies and procedures and establishes guidelines for
compliance with federal, state and local regulations in order to maintain
consistent quality in patient care. All Interim HealthCare offices have
registered nurses who provide supervision of patient care at the local level and
coordinate business strategy with the national organization. Further, as a part
of its overall strategy to become a full-service home care provider, Interim has
entered into a number of relationships with pharmaceutical and home medical
equipment vendors.

CORPORATE MANAGED CARE AND MEDICARE EXPERTISE. During 1995, approximately
10% of the Company's revenues were derived from employer insurance plans, HMO
plans, indemnity insurance plans and private funds. The Company has worked in
tandem with many of the largest HMOs, insurance carriers and health care
facilities and has developed experience with per episode and capitated rates, as
well as traditional fee-for-service payment systems.

Approximately 5% of the Company's 1995 revenues were from the Medicare
program and approximately 4% were from Medicaid programs. Proposals have been
advanced to change the current Medicare cost reimbursement scheme by
substituting a prospective payment plan. Most prospective payment proposals
would phase in a payment system under which providers would ultimately receive
payment on a "per episode" basis, with overall payment limits as well as the
opportunity for providers to share in savings to the extent program payments to
providers are less than annual aggregate limits. While there can be no assurance
that any such proposals will be implemented, nor any assurance as to

28
<PAGE>
the final form of such legislation, Interim does not anticipate any adverse
impact from such changes because of its ability to manage its Medicare caseload
and its ability to keep its current Medicare service costs well below existing
cost caps.

SEASONALITY AND CYCLICALITY OF BUSINESS

The Company's businesses are not seasonal in nature. The Company's
commercial business has historically been considered to be cyclical, often
acting as a coincidental indicator of both economic downswings and upswings.
However, as a result of general shifting of employment patterns and the growth
in On-Premise, this business is becoming less cyclical. In addition, the
Company's health care business is not cyclical and tends to dampen any cyclical
effects from the commercial sector. No single customer accounts for more than 1%
of the Company's revenues.

COMPETITION

The flexible staffing industry is competitive with limited barriers to
entry. In addition to the Company, Manpower, Inc., Kelly Services, Inc., and the
Olsten Corporation are the principal national companies in the flexible staffing
industry. The Company also competes with CDI Corporation, Career Horizons, Inc.,
Accustaff, Inc., Robert Half International, Inc., Keane, Inc., COREStaff, Inc.,
Alternative Resources Corporation and Norrell Corporation, as providers of
flexible staffing in regional or specialty staffing markets and with a variety
of smaller, local providers of flexible staffing. No single competitor has more
than a 7% national market share, based on system-wide sales. The Company and the
Olsten Corporation are the principal national staffing companies providing
health care personnel. Management believes that, based on system-wide sales, the
Company is the fourth largest provider of staffing services in the United States
and is the seventh largest provider in the world.

Management believes that the Company's size gives it an advantage over
smaller local competitors. As large companies and government agencies in the
commercial area and large insurance companies, hospitals and physician groups in
the health care area are increasingly contracting staffing services on a
national and regional basis, flexible staffing companies that lack a significant
presence may be at a disadvantage in bidding for this business.

TRADEMARKS

In 1992, the Company changed its name and primary identifying trademarks
from "PERSONNEL POOL" and "MEDICAL PERSONNEL POOL" to "INTERIM" and the related
"INTERIM" marks described below. A few locations continue to operate under the
"MEDICAL PERSONNEL POOL" and "PERSONNEL POOL" marks (or related marks used by
such location prior to its acquisition by the Company). The Company has
undertaken extensive national and local advertising and marketing efforts to
increase its name recognition in the marketplace.

The Company uses and has registered with the United States Patent and
Trademark Office the trademarks: INTERIM, INTERIM ACCOUNTING, INTERIM
HEALTHCARE, INTERIM PERSONNEL SERVICES, INTERIM IN-TOUCH, INTERIM LEGAL, INTERIM
ON-PREMISE, PHYSICIANS, INTERIM THERAPY, DEPOSUMS, INTERPATH, TEMPLINK, SKILL
ANALYZER, TEMPORARY HEROS, INTERIM ASSISTED CARE, MEDICAL PERSONNEL POOL and
PERSONNEL POOL; it uses and has applications for registration pending for the
trademarks: INTERIM COURT REPORTING, INTERIM TECHNOLOGY, DEPOLAB, and INTERIM
ATTORNEYS; and it uses and claims ownership of the unregistered trademarks:
INTERIM CARE MANAGEMENT, INTERIM PERSONNEL, INTERIM FACILITIES MANAGEMENT,
INTERIM FINANCIAL PERSONNEL, INTERIM HOME CARE, INTERIM OCCUPATIONAL HEALTH
SERVICES, INTERIM MANAGED SERVICES, INTERIM OFFICE TECHNOLOGY, INTERIM STAFFING
and VICTOR PERSONNEL.

GOVERNMENTAL REGULATION

Flexible staffing firms are generally subject to one or more of the
following types of government regulations: (i) regulation of the
employer/employee relationship between a firm and its flexible staff; (ii)
registration, licensing, record keeping and reporting requirements; and (iii)
substantive limitations on its operations. Flexible staffing firms are the legal
employers of their temporary workers. Therefore, the firm is governed by laws
regulating the employer/employee relationship, such as tax withholding or
reporting, social security or retirement, anti-discrimination and workers'
compensation.

29
<PAGE>
The Company's HealthCare Division is subject to periodic examinations by
government agencies and to extensive government regulation under federal, state
and local law, including licensing requirements, certificate of need
requirements, Medicare and Medicaid certification requirements, reimbursement
requirements, anti-fraud, anti-abuse and anti-kickback statutes and regulations,
and laws prohibiting physician ownership or compensation arrangements with home
care agencies. Health care providers are also subject to extensive documentation
requirements of government agencies and industry participants, such as insurance
companies and managed care companies. These regulations can affect the ability
of the Company to collect its fees for services provided. There can be no
assurance that the Company will be able to continue to obtain or maintain the
required governmental approvals or licenses, obtain reimbursement for its
services or avoid compliance or other problems under applicable laws and
regulations.

The federal and state governments have enacted in the past, and will enact
in the future, laws and regulations that affect the provision of and
reimbursement for Medicare services by the Company. However, management believes
that because home care services and flexible staffing enable health care
providers to lower the cost of providing medical services, health care reform
may increase the use of flexible staffing and home care services, which are less
costly than institutional care.

Currently, 193 Interim HealthCare locations (approximately 50%) are
accredited by the Joint Commission on Accreditation of Health care Organizations
("JCAHO"). Applications for accreditation by the JCAHO are pending for
additional branch and franchised offices. Being accredited by the JCAHO can
simplify the process of becoming an approved home care provider under the
Medicare program and becoming licensed to provide home care services in some
states. The Company intends to seek JCAHO accreditation of all branch and
licensed offices and to encourage all franchised offices to do so as well.

New York State requires the approval by the Public Health Council of the New
York State Department of Health ("NYPHC") of any changes in "the controlling
person" of an operator of a licensed health care services agency (a "LHCSA").
Control of an entity is presumed to exist if any person owns, controls or holds
the power to vote 10% or more of the voting securities of such entity. A person
seeking approval as a controlling person of an operator of a LHCSA must file an
application for NYPHC approval within 30 days of becoming a controlling person,
and pending a decision by the NYPHC, such person may not exercise control over
LHCSA. The Company has six offices in New York State which are LHCSA's. These
offices accounted for 2.3% of the Company's revenues during 1995. If any person
should become the owner or holder, or acquire control, or the right to vote 10%
or more of the common stock of the Company, such person could not exercise
control of the Company's LHCSAs until such ownership, control or holding has
been approved by the NYPHC.

The Company's sale of franchises and licenses is regulated by the Federal
Trade Commission and by authorities in approximately 17 states and one Canadian
province. The Company must deliver a franchise offering circular (similar to a
prospectus) to prospective franchisees or licensees. The Company has either
filed the appropriate registration or obtained an exemption from registration in
states which require franchisors to register in order to sell franchises. The
Company does not anticipate that these requirements will have any material
effect on its ability to sell franchises or licenses.

LEGAL AND ADMINISTRATIVE PROCEEDINGS
The Company, in the ordinary course of its business, is threatened with or
named as a defendant in various lawsuits, and the Company maintains insurance in
such amounts and with such coverage and deductibles as management believes are
reasonable and prudent. The principal risks that the Company insures against are
workers' compensation, personal injury, bodily injury, property damage,
professional malpractice, errors and omissions and fidelity losses.

EMPLOYEES
The Company estimates that it placed approximately 380,000 flexible
personnel with clients in 1995, of which approximately 78,000 were placed, on
average, at any given time. In addition, the Company employed approximately
3,300 staff employees at its corporate headquarters, field offices and national
processing center.

30
<PAGE>
SELLING STOCKHOLDERS

The table below sets forth the beneficial ownership of the Company's Common
Stock by the Selling Stockholders at July 29, 1996, and following the sale of
the shares of Common Stock offered hereby.

<TABLE>
<CAPTION>
SHARES OF SHARES OF
COMMON STOCK COMMON STOCK
BENEFICIALLY TO BE BENEFICIALLY
OWNED BEFORE OWNED AFTER
SALE UNDER THIS SALE UNDER THIS
NAME OF PROSPECTUS (1)(2) PROSPECTUS
SELLING ------------------------ SHARES TO ------------------------
STOCKHOLDERS NUMBER PERCENTAGE BE SOLD NUMBER PERCENTAGE
- ------------------------ --------- ------------- ----------- --------- -------------
<S> <C> <C> <C> <C> <C>
Ira Brown (1)(2) 1,101,640 7.1% 220,000 801,640
Myra Brown (1)(2) 1,101,640 7.1 80,000 801,640
</TABLE>

- ------------------
(1) Includes 799,772 shares owned directly by Ira Brown, 168,011 shares owned
directly by Myra Brown, 50,257 shares owned by Ira and Myra Brown's daughter
Rene Brown, over which Mr. and Mrs. Brown severally have voting and
dispositive power pursuant to a power of attorney, and 83,600 shares owned
by and in the name of the Ira B. Brown Foundation, for which Ira B. Brown
serves as a co-trustee.

(2) Until May 23, 1996, Mr. Brown served as a director, and as the Chairman and
Chief Executive Officer of Brandon and Mrs. Brown served as a director and
officer of Brandon.

31
<PAGE>
DESCRIPTION OF CAPITAL STOCK

The Company's authorized capital stock consists of 27,500,000, shares of
which 25,000,000 shares are Common Stock (the "Common Stock") and 2,500,000
shares are Preferred Stock (the "Preferred Stock"). As of March 29, 1996, there
were 15,407,958 issued and outstanding shares of Common Stock as adjusted, and
approximately 1,420,533 additional shares of Common Stock are reserved for
issuance upon the execise of stock options that have been or may be granted
under the Company's stock option plans. As of March 29, 1996, there were no
issued and outstanding shares of Preferred Stock. On September 9, 1996, the
Company's Stockholders will vote on a proposal to amend the Company's Restated
Certificate of Incorporation to increase the number of authorized shares of
Common Stock to
50,000,000.

COMMON STOCK

Generally, the vote of the holders of a majority of all shares of stock of
the Company voting (whether in person or by proxy) on a matter will decide such
matter, unless express provisions of law or the Company's Restated Certificate
of Incorporation require a different vote. All shares of Common Stock are deemed
to be voting stock of the Company, and all holders thereof are entitled to one
vote for each share of stock standing in their names. Holders of Common Stock
have no pre-emptive rights to purchase or subscribe for any stock or other
securities of the Company. The outstanding Common Stock is fully paid and
non-assessable. Each holder of Common Stock on the applicable record date is
entitled to receive such dividends as may be declared by the Board of Directors
at any meeting out of funds legally available therefor. No dividend or other
distribution with respect to the Common Stock has ever been paid by the Company,
other than in connection with the stockholder rights plan discussed below. The
Company currently intends to retain any earnings for use in its business and
does not anticipate paying any cash dividends in the foreseeable future.

The Company has in place a stockholder rights plan designed to deter
coercive or unfair takeover tactics and to prevent a potential acquirer from
gaining control of the Company without offering a fair price. Under the plan, a
dividend of one right (a "Right") per share was declared and paid on each share
of Common Stock outstanding on April 1, 1994 and with respect to shares of
Common Stock issued after such date, Rights will automatically attach to them
after their issuance. Under the plan, holders of each Right may purchase from
the Company one one-hundredth of a share of a new class of Preferred Stock, par
value $.01 per share, at a price of $98.00, subject to adjustment, when the
Rights become exercisable. The Rights become exercisable when a person or group
of persons acquires 15% or more of the outstanding shares of Common Stock
without prior written approval of the Company's Board of Directors ("Unapproved
Stock Acquisition"), and after ten business days following the commencement of a
tender offer that would result in an Unapproved Stock Acquisition. If a person
or group of persons makes an Unapproved Stock Acquisition, the registered holder
of each Right has the right to purchase, for the exercise price of the Right, a
number of shares of Common Stock having a market value equal to twice the
exercise price of the Right. Following an Unapproved Stock Acquisition, if the
Company is involved in a merger, or 50% or more of the Company's assets or
earning power are sold, the registered holder of each Right has the right to
purchase, for the exercise price of the Right, a number of shares of the common
stock of the acquiring company having a market value equal to twice the exercise
price of the Right. After an Unapproved Stock Acquisition, but before any person
or group of persons acquires 50% or more of the outstanding shares of Common
Stock, the Board of Directors may exchange all or part of the then outstanding
and exercisable Rights for Common Stock at an exchange ratio of one share of
Common Stock per Right. Upon any such exchange, the right of any holder to
exercise a Right terminates. The Company may redeem the Rights at a price of
$.01 per Right at any time prior to an Unapproved Stock Acquisition (and after
such time in certain circumstances). The Rights expire on April 1, 2004, unless
extended by the Board of Directors. Until a Right is exercised, the holder
thereof, as such, has no rights as a stockholder of the Company, including the
right to vote or to receive dividends. The issuance of the Rights alone has no
dilutive effect and does not affect reported earnings per share.

32
<PAGE>
PREFERRED STOCK

The Company's Board of Directors has the authority to issue up to 2,500,000
shares of Preferred Stock, par value $.01 per share, in one or more series and
to fix, by resolution, the number of shares constituting any such series, the
designations, preferences and relative, participating, optional or other special
rights and qualifications, limitations or restrictions thereof, including the
dividend rights, dividend rates, terms of redemption (including sinking fund
provisions), redemption prices, conversion rights, amounts payable on
liquidation and liquidation preferences of the shares constituting any series,
without any further vote or action by the stockholders. No shares of Preferred
Stock are outstanding. Any shares of Preferred Stock so authorized and issued
may have priority over the Common Stock with respect to dividend and liquidation
rights.

CERTAIN EFFECTS OF AUTHORIZED BUT UNISSUED STOCK

The Company's authorized but unissued shares are available for future
issuance without stockholder approval. These additional shares may be utilized
for a variety of proper corporate purposes, including future public offerings to
raise additional capital, to facilitate corporate acquisitions and for employee
benefit plans.

One of the effects of the existence of unissued and unreserved Preferred
Stock and Common Stock may be to enable the Company's Board of Directors to
issue shares to persons friendly to current management which could render more
difficult or discourage an attempt to obtain control of the Company by means of
a merger, tender offer, proxy contest or otherwise, and thereby protect the
continuity of the Company's management. Issuance of Preferred Stock might, under
certain circumstances, deter the acquisition of the Company or its securities by
a person concerned about the terms or effect of such Preferred Stock.

INCREASED IN AUTHORIZED SHARES

Immediately prior to the consummation of the Offering, the Company will
amend its Restated Certificate of Incorporation to (i) increase the number of
authorized shares of Common Stock, par value $0.01 per share, from 25,000,000 to
50,000,000 in order to provide the Company flexibility to meet future needs for
unreserved Common Stock and (ii) to reduce the vote required to amend the number
and type of authorized shares of stock of the Company from a 2/3 vote to a
majority vote of the outstanding shares of stock of the Company entitled to vote
thereon.

33
<PAGE>
VALIDITY OF COMMON STOCK

The validity of the shares of Common Stock offered hereby will be passed
upon for the Company by Bryan Cave LLP, Kansas City, Missouri and for the
Underwriters by Sullivan & Cromwell, Washington, DC.

EXPERTS

The supplemental consolidated financial statements and financial statement
schedules of the Company as of December 30, 1994 and December 29, 1995, and for
each of the three years in the period ended December 29, 1995, included in the
Prospectus and Registration Statement have been audited by Deloitte & Touche
LLP, independent auditors, as stated in their reports thereon appearing herein
and elsewhere in this Registration Statement and have been so included in
reliance upon the reports of such firm upon their authority as experts in
accounting and auditing.

AVAILABLE INFORMATION

The Company is subject to the informational requirements of the Exchange
Act, and in accordance therewith files reports, proxy statements and other
information with the Commission. Reports, proxy statements and other information
filed by the Company may be inspected and copied at the public reference
facilities maintained by the Commission at 450 Fifth Street, N.W., Washington,
D.C. 20549, and at the Commission's Regional Offices located at Citicorp Center,
500 West Madison Street, Suite 1400, Chicago, Illinois 60661 and 7 World Trade
Center, 7th Floor, New York, New York 10048. Copies of such materials may be
obtained from the web site that the Commission maintains at http://www.sec.gov.
In addition, such material may also be inspected and copied at the offices of
the New York Stock Exchange, Inc., 20 Broad Street, New York, New York 10005,
and the Pacific Stock Exchange, Incorporated, 301 Pine Street, San Francisco,
California 94104.

The Company has filed with the Commission a registration statement on Form
S-3 (herein, together with all amendments and exhibits, referred to as the
"Registration Statement") under the Securities Act of 1933, as amended. This
Prospectus does not contain all of the information set forth in the Registration
Statement, certain parts of which are omitted in accordance with the rules and
regulations of the Commission. For further information, reference is hereby made
to the Registration Statement.

INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE

The following documents filed with the Commission (File No. 0-23198)
pursuant to the Exchange Act are incorporated herein by reference:

1. the Company's Annual Report on Form 10-K for the fiscal year ended
December 29, 1995;

2. the Company's Quarterly Report on Form 10-Q for the quarter ended March
29, 1996;

3. the Company's Current Reports on Form 8-K dated December 15, 1995, and
as amended by Form 8-K/A dated February 2, 1996;

4. the Company's Registration Statement on Form S-4, dated April 24, 1996
(File No. 333-2773);

5. the Company's Current Report on Form 8-K, dated June 6, 1996; and

6. all documents filed by the Company pursuant to Sections 13(a), 13(c), 14
or 15(d) of the Exchange Act prior to the termination of the offering made
hereby.

The Company will provide without charge to each person, including any
beneficial owner, to whom a copy of this Prospectus is delivered, upon the
written or oral request of any such person, a copy of any

34
<PAGE>
or all of the documents which are incorporated herein by reference, other than
exhibits to such information (unless such exhibits are specifically incorporated
by reference into such documents). Requests should be directed to the Company,
2050 Spectrum Boulevard, Fort Lauderdale, FL 33309, Attention: Roy Krause,
telephone: (954) 938-7600.
--------------

Any statement contained in a document all or a portion of which is
incorporated or deemed to be incorporated by reference herein shall be deemed to
be modified or superseded for purposes of this Prospectus to the extent that a
statement contained herein or in any other subsequently filed document which
also is or is deemed to be incorporated by reference herein modifies or
supersedes such statement. Any statement so modified shall not be deemed to
constitute a part of this Prospectus except as so modified, and any statement so
superseded shall not be deemed to constitute part of this Prospectus.

35
<PAGE>
INTERIM SERVICES INC.
INDEX TO SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
PAGE
---------
<S> <C>
Independent Auditors' Report............................................................................... F-2

Supplemental Consolidated Statements of Earnings for the Years Ended December 24, 1993, December 30, 1994
and December 29, 1995 and the Quarters Ended March 31, 1995 and March 29, 1996 (Unaudited)................ F-3

Supplemental Consolidated Balance Sheets as of December 30, 1994, December 29, 1995 and March 29, 1996
(Unaudited)............................................................................................... F-4

Supplemental Consolidated Statements of Stockholders' Equity for the Years Ended December 24, 1993,
December 30, 1994 and December 29, 1995 and the Quarter Ended March 29, 1996 (Unaudited).................. F-5

Supplemental Consolidated Statements of Cash Flows for the Years Ended December 24, 1993, December 30, 1994
and December 29, 1995 and the Quarters Ended March 31, 1995 and March 29, 1996 (Unaudited)................ F-6

Notes to Supplemental Consolidated Financial Statements.................................................... F-7
</TABLE>

F-1
<PAGE>
INDEPENDENT AUDITORS' REPORT

To the Board of Directors
of Interim Services Inc.
Fort Lauderdale, Florida

We have audited the accompanying supplemental consolidated balance sheets of
Interim Services Inc. and subsidiaries as of December 30, 1994 and December 29,
1995, and the related supplemental consolidated statements of earnings,
stockholders' equity and cash flows for each of the three years in the period
ended December 29, 1995. These supplemental financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these supplemental financial statements based on our audits. The
supplemental financial statements give retroactive effect to the merger of
Brandon Systems Corporation with Interim Services Inc. on May 23, 1996, which
has been accounted for as a pooling-of-interests as described in Note 1 to the
supplemental financial statements. Generally accepted accounting principles
prescribe giving effect to a consummated business combination accounted for by
the pooling-of-interests method in financial statements that do not include the
date of consummation. These supplemental financial statements do not extend
through the date of consummation; however, they will become the historical
consolidated financial statements of Interim Services Inc. and subsidiaries
after financial statements covering the date of consummation of the business
combination are issued.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the supplemental financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall supplemental
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, such supplemental consolidated financial statements referred
to above present fairly, in all material respects, the financial position of
Interim Services Inc. and subsidiaries as of December 30, 1994 and December 29,
1995, and the results of their operations and their cash flows for each of the
three years in the period ended December 29, 1995, in conformity with generally
accepted accounting principles applicable after consolidated financial
statements are issued for a period which includes the date of consummation of
the business combination.

DELOITTE & TOUCHE LLP

Fort Lauderdale, Florida
July 29, 1996

F-2
<PAGE>
INTERIM SERVICES INC.
SUPPLEMENTAL CONSOLIDATED STATEMENT OF EARNINGS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

<TABLE>
<CAPTION>
YEARS ENDED QUARTERS ENDED
------------------------------------- ------------------------
DEC. 24, DEC. 30, DEC. 29, MARCH 31, MARCH 29,
1993 1994 1995 1995 1996
----------- ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Revenues............................................ $ 574,260 $ 704,696 $ 864,247 $ 193,652 $ 264,725
Cost of services.................................... 402,039 491,404 600,169 134,536 185,728
----------- ----------- ----------- ----------- -----------
Gross profit.................................... 172,221 213,292 264,078 59,116 78,997
----------- ----------- ----------- ----------- -----------
Selling, general and administrative expenses........ 119,763 137,859 177,105 40,364 55,777
Licensee commissions................................ 20,586 33,796 37,295 8,644 9,182
Amortization of intangibles......................... 5,671 6,041 6,884 1,626 2,149
Merger expense...................................... -- -- -- -- 417
Interest expense.................................... 137 112 990 17 1,636
----------- ----------- ----------- ----------- -----------
146,157 177,808 222,274 50,651 69,161
----------- ----------- ----------- ----------- -----------
Earnings before taxes............................... 26,064 35,484 41,804 8,465 9,836
Income taxes........................................ 12,241 16,028 18,071 3,773 4,347
----------- ----------- ----------- ----------- -----------
Net earnings.................................... $ 13,823 $ 19,456 $ 23,733 $ 4,692 $ 5,489
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Net earnings per common and common equivalent
shares............................................. $ 1.26 $ 1.52 $ 0.30 $ 0.35
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Supplemental earnings data (unaudited):
Pro forma net earnings............................ $ 12,850
-----------
-----------
Pro forma net earnings per share.................. $ 0.93
-----------
-----------
Weighted average shares outstanding................. 13,873 15,391 15,662 15,649 15,839
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>

See notes to supplemental consolidated financial statements.

F-3
<PAGE>
INTERIM SERVICES INC.
SUPPLEMENTAL CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

ASSETS

<TABLE>
<CAPTION>
DECEMBER 30, DECEMBER 29, MARCH 29,
1994 1995 1996
-------------- -------------- -----------
<S> <C> <C> <C>
(UNAUDITED)
Current Assets:
Cash and cash equivalents......................................... $ 6,872 $ 4,025 $ 2,468
Marketable securities............................................. 10,335 15,675 15,381
Receivables, less allowance for doubtful accounts of $1,602,
$2,176 and $2,789 at December 30, 1994, December 29, 1995 and
March 29, 1996, respectively..................................... 101,720 143,209 152,656
Insurance deposits................................................ 43,695 50,686 54,918
Other current assets.............................................. 6,126 9,270 8,622
-------------- -------------- -----------
Total current assets............................................ 168,748 222,865 234,045
Intangible Assets, net.............................................. 91,699 171,529 169,686
Property and Equipment, net......................................... 20,456 27,128 30,289
Other Assets........................................................ 10,747 20,106 21,375
-------------- -------------- -----------
$ 291,650 $ 441,628 $ 455,395
-------------- -------------- -----------
-------------- -------------- -----------

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable to banks............................................ $ 6,100 $ 54,727 $ 53,900
Accounts payable and other accrued expenses....................... 17,810 25,829 23,848
Accrued salaries, wages, and payroll taxes........................ 19,524 30,005 34,839
Accrued insurance................................................. 42,520 43,319 47,091
Dividend payable.................................................. 311 372 374
Accrued income taxes.............................................. 486 1,087 3,325
-------------- -------------- -----------
Total current liabilities....................................... 86,751 155,339 163,377
Long-Term Obligations............................................... -- 60,000 60,000
Commitments and Contingencies (see notes 14 and 15)
Stockholders' Equity:
Preferred stock, par value $.01 per share; 2,500,000 shares
authorized; none issued or outstanding........................... -- -- --
Common stock, par value $.01 per share; 25,000,000 shares
authorized; 15,424,870, 15,376,248 and 15,407,958 shares issued
and outstanding at December 30, 1994, December 29, 1995 and March
29, 1996, respectively........................................... 154 154 154
Additional paid-in capital........................................ 86,069 85,121 85,727
Unrealized gain (loss) on marketable securities................... (72) 26 30
Retained earnings................................................. 118,748 140,988 146,107
-------------- -------------- -----------
Total stockholders' equity...................................... 204,899 226,289 232,018
-------------- -------------- -----------
$ 291,650 $ 441,628 $ 455,395
-------------- -------------- -----------
-------------- -------------- -----------
</TABLE>

See notes to supplemental consolidated financial statements.

F-4
<PAGE>
INTERIM SERVICES INC.
SUPPLEMENTAL CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(IN THOUSANDS)

<TABLE>
<CAPTION>
UNREALIZED
ADDITIONAL GAIN ON
PAID-IN MARKETABLE RETAINED
COMMON STOCK CAPITAL SECURITIES EARNINGS TOTAL
------------- ----------- ------------ ----------- ---------

<S> <C> <C> <C> <C> <C>
Balance as of December 26, 1992....................... $ 100 $ -- $ -- $ 74,667 $ 74,767
Adjustment for pooling-of-interests................... 38 5,778 -- 13,096 18,912
----- ----------- ------------ ----------- ---------
Balance as of December 26, 1992, restated............. 138 5,778 -- 87,763 93,679

Net earnings.......................................... -- -- -- 13,823 13,823
Transactions of pooled company........................ -- 130 -- (944) (814)
Change in foreign currency translation adjustment..... -- -- -- 17 17
Contribution to capital............................... -- 51,289 -- -- 51,289
----- ----------- ------------ ----------- ---------
Balance as of December 24, 1993....................... 138 57,197 -- 100,659 157,994

Net earnings.......................................... -- -- -- 19,456 19,456
Transactions of pooled company........................ 1 612 (72) (1,105) (564)
Change in foreign currency translation adjustment..... -- -- (262) (262)
Proceeds from exercise of over-allotment option net of
expenses of $1,725................................... 15 28,260 -- -- 28,275
----- ----------- ------------ ----------- ---------
Balance as of December 24, 1994....................... 154 86,069 (72) 118,748 204,899

Net earnings.......................................... -- -- -- 23,733 23,733
Transactions of pooled company........................ -- (1,349) 98 (1,308) (2,559)
Change in foreign currency translation adjustment..... -- -- -- (185) (185)
Proceeds from exercise of employee stock options...... -- 401 -- -- 401
----- ----------- ------------ ----------- ---------
Balance as of December 29, 1995....................... 154 85,121 26 140,988 226,289

Net earnings.......................................... -- -- -- 5,489 5,489
Transactions of pooled company........................ -- 190 4 (374) (180)
Change in foreign currency translation adjustment..... -- -- -- 4 4
Proceeds from exercise of employee stock options...... -- 416 -- -- 416
----- ----------- ------------ ----------- ---------
Balance as of March 29, 1996 (unaudited).............. $ 154 $ 85,727 $ 30 $ 146,107 $ 232,018
----- ----------- ------------ ----------- ---------
----- ----------- ------------ ----------- ---------
</TABLE>

See notes to supplemental consolidated financial statements.

F-5
<PAGE>
INTERIM SERVICES INC.
SUPPLEMENTAL CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)

<TABLE>
<CAPTION>
YEARS ENDED QUARTERS ENDED
------------------------------- --------------------------
DEC. 31, DEC. 30, DEC. 29, MARCH 31, MARCH 29,
1993 1994 1995 1995 1996
--------- --------- --------- ----------- -------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Earnings............................................... $ 13,823 $ 19,456 $ 23,733 $ 4,692 $ 5,489
Adjustments to reconcile net earnings to net cash from
operating activities:
Depreciation and amortization............................ 11,419 12,173 14,556 3,376 4,367
(Benefit from) Provision for deferred taxes on income.... (1,487) 775 (89) (68) 30
Changes in assets and liabilities, net of effects of
acquisitions:
Receivables............................................ (10,079) (19,118) (27,458) (4,295) (9,461)
Insurance deposits..................................... (3,388) (12,448) (6,991) (766) (4,233)
Other current assets................................... (2,591) 285 (2,334) (1,602) 615
Other assets........................................... (574) (5,324) (9,527) 741 (1,246)
Accounts payable and accrued expenses.................. (77) 2,438 3,143 (1,467) (1,868)
Accrued salaries, wages and payroll taxes.............. (351) 6,797 10,481 1,941 4,835
Accrued insurance...................................... 4,427 8,171 799 665 3,772
Accrued income taxes................................... 3,042 (2,810) 460 1,518 2,238
Other.................................................. 138 (335) (211) 42 4
--------- --------- --------- ----------- -------------
NET CASH PROVIDED BY OPERATING ACTIVITIES............ 14,302 10,060 6,562 4,777 4,542
--------- --------- --------- ----------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures....................................... (5,980) (9,576) (11,303) (2,949) (5,349)
Purchases of marketable securities......................... (7,927) (10,276) (16,910) (5,405) (1,103)
Proceeds from sales of marketable securities............... 6,849 9,106 11,736 3,975 1,404
Decrease in deposits....................................... (4) (4) 35 (1) (41)
Acquisitions, net of cash acquired......................... (4,058) (10,758) (98,990) (3,025) (417)
--------- --------- --------- ----------- -------------
NET CASH USED IN INVESTING ACTIVITIES................ (11,120) (21,508) (115,432) (7,405) (5,506)
--------- --------- --------- ----------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuances (Repayments) of Notes Payable.................... -- 6,100 108,218 700 (827)
Dividends paid............................................. (893) (1,032) (1,247) (311) (372)
Purchase of treasury stock................................. (3) -- (1,805) -- --
Issuance of Common Stock under employee stock purchase
plan...................................................... -- 144 189 49 59
Issuance of Common Stock under dividend reinvestment and
stock purchase plan....................................... -- -- 4 -- 4
Repayments to H&R Block.................................... (7,728) (30,000) -- -- --
Proceeds from exercise of employee stock options........... 84 467 664 135 543
Proceeds from exercise of over-allotment option............ -- 28,275 -- -- --
--------- --------- --------- ----------- -------------
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES.. (8,540) 3,954 106,023 573 (593)
--------- --------- --------- ----------- -------------
Net decrease in cash and cash equivalents.................... (5,358) (7,494) (2,847) (2,055) (1,557)
Cash and cash equivalents, beginning of period............... 19,724 14,366 6,872 6,872 4,025
--------- --------- --------- ----------- -------------
Cash and cash equivalents, end of period..................... $ 14,366 $ 6,872 $ 4,025 $ 4,817 $ 2,468
--------- --------- --------- ----------- -------------
--------- --------- --------- ----------- -------------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Income taxes paid.......................................... $ 9,337 $ 16,911 $ 17,570 $ 2,942 $ 2,076
--------- --------- --------- ----------- -------------
--------- --------- --------- ----------- -------------
Interest paid.............................................. $ 456 $ 528 $ 1,452 $ 178 $ 1,910
--------- --------- --------- ----------- -------------
--------- --------- --------- ----------- -------------
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING ACTIVITIES:
Conversion of due to parent indebtedness to a $30 million
term loan and contribution of balance to additional paid-in
capital..................................................... $ 30,000
Term loan.................................................... 51,289
---------
Additional paid-in capital................................... $ 81,289
---------
---------
</TABLE>

See notes to supplemental consolidated financial statements.

F-6
<PAGE>
NOTES TO SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT SHARE DATA)

1. ORGANIZATION

HISTORY -- Prior to January 27, 1994, the effective date of its initial
public offering, Interim Services Inc. ("Interim" or the "Company") was a
wholly-owned subsidiary of H&R Block, Inc. ("Block"). On January 27, 1994, Block
completed the sale at $20 per share of 10 million shares of Interim, its entire
holdings. On January 28, 1994, Interim's shares commenced trading on the Nasdaq
National Market. In addition, the underwriters for the offering exercised their
over-allotment option and purchased from Interim an additional 1.5 million
shares at $20 per share. The net proceeds to Interim were $28,275.

Prior to September 25, 1993, the Company's working capital and acquisition
financing were provided by Block. There was no interest charged on intercompany
debt. Effective September 25, 1993, Block formalized this arrangement by (i)
providing a revolving credit facility in the amount of $20,000 to fund the
operating requirements of Interim; (ii) converting $30,000 of intercompany
indebtedness on such date to a term loan, and (iii) contributing $51,289 to the
capital of Interim. The supplemental earnings data for the year ended December
24, 1993 (unaudited) gives effect to this arrangement as if it occurred at the
beginning of the period. Interest expense has been computed at 6% and income
taxes at the statutory rate.

BUSINESS -- The Company is a leader in providing a comprehensive range of
customized staffing solutions, including flexible staffing, home care, full-time
placement, consulting and other value-added services on a national basis to
businesses, professional and service organizations, governmental agencies,
health care facilities and individuals. As of March 31, 1996, the Company
operated through a network of offices in the U.S., Canada and the United
Kingdom.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION -- The supplemental consolidated financial statements
include the accounts of Interim and Brandon Systems Corporation ("Brandon") (a
wholly-owned subsidiary of Interim), collectively referred to as the Company. As
discussed in Note 3, on May 23, 1996, Brandon became a wholly-owned subsidiary
of Interim. These supplemental consolidated financial statements have been
prepared under the pooling-of-interests method of accounting and reflect the
combined financial position and operating results of Interim and Brandon for all
periods presented. Upon issuance of the Company's second quarter fiscal 1996
results of operations for the period ended June 28, 1996, these supplemental
consolidated financial statements will become the historical financial
statements of the Company. There were no significant intercompany transactions
during the periods covered by these supplemental consolidated financial
statements.

PRINCIPLES OF CONSOLIDATION -- The consolidated financial statements include
the accounts of the Company and its wholly-owned subsidiaries. All material
intercompany transactions and balances have been eliminated.

PERVASIVENESS OF ESTIMATES -- The preparation of financial statements in
conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.

FISCAL YEAR -- The Company's fiscal year is comprised of 52 or 53 weeks,
ending on the last Friday in December. The year ended December 30, 1994
contained 53 weeks and the years ended December 29, 1995 and December 24, 1993
contained 52 weeks.

INTANGIBLE ASSETS -- The excess of cost of franchise and independent offices
acquired over the fair value of net assets acquired is being amortized on a
straight-line basis over various periods averaging

F-7
<PAGE>
NOTES TO SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN THOUSANDS, EXCEPT SHARE DATA)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
approximately 29 years. The Company evaluates the recoverability of its
investments in such intangible assets in relation to anticipated cash flows on
an undiscounted basis. If the estimated future cash flows are projected to be
less than the carrying value, an impairment write-down would be recorded.

REVENUES -- The Company generates revenues from sales by its own branch and
licensed operations and from royalties earned on sales by its franchise
operations. Franchise royalties, which are included in revenues, were $20,458,
$22,790 and $24,316 for the years ended December 24, 1993, December 30, 1994 and
December 29, 1995, respectively, and $5,803 and $6,269 for the three months
ended March 31, 1995 and March 29, 1996, respectively. Revenues and the related
labor costs and payroll taxes are recorded in the period in which the service is
performed.

The Company utilizes two forms of franchising agreements. Under the first
form, the Company records franchise royalties, based upon the contractual
percentage of franchise sales, in the period in which the franchise provides the
service. Under the second form (termed "license" by the Company), revenues
generated by the franchisee operations and related direct costs are included as
part of the Company's revenues from services and cost of services, respectively.
The net distribution paid to the licensee is based upon a percentage of the
gross profit generated, and is captioned "licensee commissions" in the
Supplemental Consolidated Statements of Earnings.

Revenues generated from the sales of licenses and franchises are recognized
when the Company has performed substantially all of its obligations under its
franchise agreements and when collectibility of such amounts is reasonably
assured.

MARKETABLE SECURITIES -- Marketable securities, which consist of tax-exempt
securities issued by various state agencies and their political subdivisions,
and U.S. Treasury Notes, have been categorized as available for sale and, as a
result, are stated at fair value. Unrealized gains and losses are included as a
component of stockholders' equity until realized.

DEPRECIATION AND AMORTIZATION -- Buildings and equipment are depreciated
over the estimated useful lives of the assets using the straight-line method.
Leasehold improvements are amortized over the shorter of their estimated useful
life or the lease term using the straight-line method. Maintenance and repairs
are expensed as incurred. Expenditures which significantly increase the value of
the assets or extend useful lives are capitalized.

WORKERS' COMPENSATION BENEFITS -- The Company's workers' compensation
coverage is retrospectively rated based upon ultimate incurred losses and loss
adjustment expenses. Workers' compensation costs are accrued based upon the
aggregate of the liability for reported claims and loss adjustment expenses and
an actuarially-determined estimated liability for claims incurred but not
reported.

INCOME TAXES -- The Company accounts for income taxes in accordance with the
provisions of Statement of Financial Accounting Standards No. 109 (SFAS No.
109), "Accounting for Income Taxes". SFAS No. 109 provides that income taxes are
accounted for using an asset and liability method which requires the recognition
of deferred tax assets and liabilities for expected future tax consequences of
temporary differences, which are not material, between tax bases and financial
reporting bases of assets and liabilities.

F-8
<PAGE>
NOTES TO SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN THOUSANDS, EXCEPT SHARE DATA)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The Company has entered into an income tax sharing agreement with Block to
provide for the payment of taxes for periods prior to January 27, 1994, during
which Block and the Company filed a consolidated federal income tax return, and
whereby Block shall be liable for, and shall hold the Company harmless against,
any liability for income taxes for any period prior to January 27, 1994.

EARNINGS PER SHARE -- Earnings per share and supplemental earnings per share
(see Note 1) are computed based upon the weighted average number of common and
common equivalent shares outstanding, adjusted for the exchange ratio of the
merger described in Note 3. Earnings per share and supplemental earnings per
share, assuming full dilution, have not been shown as there would be no material
dilution.

ALLOWANCE FOR DOUBTFUL ACCOUNTS -- The Company carries accounts and notes
receivable at the amount it deems to be collectible. Accordingly, the Company
provides allowances for accounts and/or notes receivable it deems to be
uncollectible based on management's best estimates. Recoveries are recognized in
the period they are received. The ultimate amount of accounts and/or notes
receivable that become uncollectible could differ from those estimated.

CONSOLIDATED STATEMENTS OF CASH FLOWS -- For purposes of the Supplemental
Consolidated Statements of Cash Flows, the Company considers all highly liquid
debt instruments purchased with an original maturity of three months or less to
be cash equivalents.

DISCLOSURE REGARDING FINANCIAL INSTRUMENTS -- The carrying amounts of cash
and cash equivalents, accounts receivable, accounts payable and accrued expenses
approximate fair value due to the relatively short maturity of the respective
instruments.

The carrying amounts of notes payable to banks and long-term debt
obligations issued pursuant to the Company's bank credit agreements and
revolving credit facility approximate fair value because the interest rates on
these instruments change with market interest rates.

NEW ACCOUNTING STANDARDS -- In March 1995, the Financial Accounting
Standards Board ("FASB") issued SFAS No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to be Disposed Of." SFAS No. 121
establishes accounting standards for the impairment of long-lived assets,
certain identifiable intangibles and goodwill related to those assets to be held
and used and for long-lived assets and certain identifiable intangibles to be
disposed of. SFAS No. 121 requires that long-lived assets and certain
identifiable intangibles to be held and used by an entity be reviewed for
impairment whenever events or changes in circumstances indicated that the
carrying amount of an asset may not be recoverable. The Company adopted SFAS No.
121 during the quarter ended March 29, 1996. The adoption of this statement did
not have a material impact on the Company's financial position or results of
operations.

The FASB has also issued SFAS No. 123, "Accounting for Stock-Based
Compensation". This statement defines a fair value based method of accounting
for an employee stock option. This statement also permits a company to continue
to measure compensation costs for their stock option plan using the intrinsic
value based method of accounting prescribed by Accounting Principles Board
("APB") Opinion No. 25, "Accounting for Stock Issued to Employees". SFAS No. 123
requires disclosure of the pro forma net income and earnings per share that
would be reported if the fair value method was utilized. The Company plans to
continue to utilize the provisions of APB No. 25 to account for such
compensation costs, and will provide the pro forma disclosures required by SFAS
No. 123 in their 1996 financial statements.

F-9
<PAGE>
NOTES TO SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN THOUSANDS, EXCEPT SHARE DATA)

3. THE BRANDON SYSTEMS MERGER
On May 23, 1996, the Company completed its merger with Brandon Systems
Corporation, an information technology staffing company. The Company issued
3,872,690 shares of its common stock in exchange for 100% of the outstanding
shares of Brandon common stock. In addition, Brandon stock options outstanding
at the effective time of the merger were converted into options to purchase an
aggregate of 207,592 additional Interim common shares.

The merger has been accounted for as a pooling-of-interests for accounting
and financial reporting purposes. The pooling-of-interests method of accounting
is intended to present as a single interest two or more common shareholders'
interests which were previously independent; accordingly, the historical
financial statements for the periods prior to the merger are restated as though
the companies had been combined. The restated financial statements are adjusted
to conform the accounting policies of the combined companies and fiscal
reporting periods of the Company.

All fees and expenses related to the merger and the consolidation and
restructuring of the combined companies will be expensed as required under the
pooling-of-interests accounting method. Certain expenses have not been reflected
in the supplemental consolidated statements of earnings but will be reflected in
the consolidated statement of earnings of the Company for the six month period
ending June 28, 1996. Such fees and expenses are estimated to be approximately
$8,600 ($7,555 after tax) and include investment banking, legal and accounting
fees, severance and benefit-related costs, and other costs of consolidating
operations. The actual cost of the transaction could vary significantly from
those estimates.

The following summarizes amounts previously reported by Interim and Brandon
prior to the transaction:

<TABLE>
<CAPTION>
YEARS ENDED QUARTERS ENDED
------------------------------------- ------------------------
DEC. 24, DEC. 30, DEC. 29, MAR. 31, MAR. 29,
1993 1994 1995 1995 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Revenues:
Interim.................................. $ 515,033 $ 634,417 $ 780,886 $ 173,517 $ 242,414
Brandon.................................. 59,227 70,279 83,361 20,135 22,311
----------- ----------- ----------- ----------- -----------
Combined............................... $ 574,260 $ 704,696 $ 864,247 $ 193,652 $ 264,725
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Net earnings:
Interim.................................. $ 10,383 $ 14,157 $ 17,527 $ 3,241 $ 4,245
Brandon.................................. 3,440 5,299 6,206 1,451 1,244
----------- ----------- ----------- ----------- -----------
Combined............................... $ 13,823 $ 19,456 $ 23,733 $ 4,692 $ 5,489
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Pro forma net earnings:
Interim.................................. $ 9,410
Brandon.................................. 3,440
-----------
Combined............................... $ 12,850
-----------
-----------
Net earnings per share:
Interim.................................. $ 0.92 $ 1.12 $ 0.21 $ 0.27
Brandon.................................. 0.34 0.40 0.09 0.08
----------- ----------- ----------- -----------
Combined............................... $ 1.26 $ 1.52 $ 0.30 $ 0.35
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Pro forma net earnings per share:
Interim.................................. $ 0.68
Brandon.................................. 0.25
-----------
Combined............................... $ 0.93
-----------
-----------
</TABLE>

F-10
<PAGE>
NOTES TO SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN THOUSANDS, EXCEPT SHARE DATA)

4. MARKETABLE SECURITIES
At December 29, 1995 and March 29, 1996, the net unrealized gains on
marketable securities were $44 and $51, respectively and are included in
stockholders' equity net of applicable taxes of $18 and $21, respectively. Gross
unrealized gains and losses were $87 and $43 at December 29, 1995, respectively,
and $59 and $8 at March 29, 1996, respectively. There were $57 of gross realized
gains and $37 of gross realized losses during the fiscal year ended December 29,
1995 and $7 gross realized gains and $40 gross realized losses during the three
month period ended March 29, 1996. For the purpose of determining gross realized
gains and losses, the amortized cost of securities sold is based upon specific
identification.

The contractual maturities of available for sale marketable debt securities,
including accrued interest are as follows:

<TABLE>
<CAPTION>
DEC. 30, 1994 DEC. 29, 1995 MARCH 29, 1996
---------------------- ---------------------- ----------------------
AMORTIZED FAIR AMORTIZED FAIR AMORTIZED FAIR
COST VALUE COST VALUE COST VALUE
----------- --------- ----------- --------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
Due within one year................. $ 7,257 $ 7,244 $ 10,816 $ 10,862 $ 12,323 $ 12,359
Due after one through five years.... 1,644 1,613 4,054 4,093 2,842 2,861
Due five through ten years.......... 495 489 117 116 10 10
Due after ten years................. 1,061 989 644 604 155 151
----------- --------- ----------- --------- ----------- ---------
$ 10,457 $ 10,335 $ 15,631 $ 15,675 $ 15,330 $ 15,381
----------- --------- ----------- --------- ----------- ---------
----------- --------- ----------- --------- ----------- ---------
</TABLE>

5. INTANGIBLE ASSETS
A summary of intangible assets is as follows:

<TABLE>
<CAPTION>
WEIGHTED WEIGHTED WEIGHTED
AVERAGE LIFE DEC. 30, AVERAGE LIFE DEC. 29, AVERAGE LIFE MARCH 29,
(IN YEARS) 1994 (IN YEARS) 1995 (IN YEARS) 1996
--------------- ----------- --------------- ----------- --------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Excess of cost over fair value of net
assets acquired...................... 23 $ 116,670 29 $ 202,351 29 $ 202,657
Customer lists........................ 5 1,706 5 1,985 5 1,986
Non-compete agreements................ 5 1,581 5 2,376 5 2,376
Other intangible assets............... 5 531 5 516 5 515
----------- ----------- -----------
22 120,488 29 207,228 29 207,534
Less accumulated amortization......... (28,789) (35,699) (37,848)
----------- ----------- -----------
$ 91,699 $ 171,529 $ 169,686
----------- ----------- -----------
----------- ----------- -----------
</TABLE>

Amortization of intangible assets is as follows:

<TABLE>
<CAPTION>
YEARS ENDED THREE MONTHS ENDED
------------------------------------- ------------------------
DEC. 24, DEC. 30, DEC. 29, MARCH 31, MARCH 29,
1993 1994 1995 1995 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Excess of cost over fair value of net assets
acquired...................................... $ 5,149 $ 5,536 $ 6,021 $ 1,402 $ 2,008
Customer lists................................. 302 317 269 130 48
Non-compete agreements......................... 169 132 533 79 77
Other intangible assets........................ 51 56 61 15 16
----------- ----------- ----------- ----------- -----------
$ 5,671 $ 6,041 $ 6,884 $ 1,626 $ 2,149
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
</TABLE>

F-11
<PAGE>
NOTES TO SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(in thousands, except share data)

6. PROPERTY AND EQUIPMENT
A summary of property and equipment follows:

<TABLE>
<CAPTION>
DEC. 30, DEC. 29, MARCH 29,
1994 1995 1996
---------- ---------- -----------
<S> <C> <C> <C>
Land............................................................... $ 3,817 $ 3,817 $ 3,817
Buildings.......................................................... 3,718 3,824 3,788
Equipment.......................................................... 33,026 42,135 45,796
Software........................................................... 3,990 7,306 7,920
Leasehold Improvements............................................. 1,904 2,228 2,127
Construction in progress........................................... 70 1,009 1,867
---------- ---------- -----------
46,525 60,319 65,315
Less accumulated depreciation and amortization..................... (26,069) (33,191) (35,026)
---------- ---------- -----------
$ 20,456 $ 27,128 $ 30,289
---------- ---------- -----------
---------- ---------- -----------
</TABLE>

Depreciation and amortization of leasehold improvements for the years ended
December 24, 1993, December 30, 1994 and December 29, 1995 amounted to $5,748,
$6,132 and $7,672, respectively, and $1,750 and $2,218 for the three months
ended March 31, 1995 and March 29, 1996, respectively.

7. CREDIT FACILITIES

SHORT-TERM:

The Company has unsecured, uncommitted lines of credit with several banks
based on LIBOR and available to fund the Company's short-term capital
requirements. As of December 29, 1995 and March 29, 1996, the Company had
borrowings outstanding of $54,727 and $53,900, respectively, under these
agreements.

LONG-TERM:

On April 6, 1994, the Company replaced a $30,000 term loan and a $20,000
revolving credit facility with a new five-year $50,000 committed senior
revolving credit agreement. In November, 1995, this facility was increased to
$150,000. This credit facility is available to fund the Company's general
corporate needs, to fund working capital and to fund acquisitions. Interest
charged on the facility is based, at the Company's option, on either the banks'
base rate or LIBOR plus an applicable margin. The margin changes based on the
Company's leverage and fixed charge ratios. The facility contains customary
covenants, which include the maintenance of certain financial ratios including
minimum net worth, restrictions on the incurrence of liens and additional
indebtedness. This facility terminates on April 6, 1999. As of December 29, 1995
and March 29, 1996, the Company had borrowings outstanding of $60,000 under this
facility, and was in compliance with all of its terms.

8. INCOME TAXES
The provision for income taxes is comprised of the following:

<TABLE>
<CAPTION>
YEARS ENDED QUARTERS ENDED
------------------------------- ------------------------
DEC. 24, DEC. 30, DEC. 29, MARCH 31, MARCH 29,
1993 1994 1995 1995 1996
--------- --------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Currently payable:
Federal......................................... $ 11,051 $ 12,230 $ 14,509 $ 3,081 $ 3,500
State and local................................. 2,677 3,023 3,636 760 817
--------- --------- --------- ----------- -----------
13,728 15,253 18,145 3,841 4,317
Deferred.......................................... (1,487) 775 (74) (68) 30
--------- --------- --------- ----------- -----------
$ 12,241 $ 16,028 $ 18,071 $ 3,773 $ 4,347
--------- --------- --------- ----------- -----------
--------- --------- --------- ----------- -----------
</TABLE>

F-12
<PAGE>
NOTES TO SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN THOUSANDS, EXCEPT SHARE DATA)

8. INCOME TAXES (CONTINUED)
The following table reconciles the U.S. Federal income tax rate to the
Company's effective tax rate:

<TABLE>
<CAPTION>
YEARS ENDED QUARTERS ENDED
------------------------------------- ----------------------------
DEC. 24, DEC. 30, DEC. 29, MARCH 31, MARCH 29,
1993 1994 1995 1995 1996
----------- ----------- ----------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Statutory rate..................................... 35.0% 35.0% 35.0% 35.0% 35.0%
Increase in income taxes resulting from:
State income taxes, net of federal benefit....... 6.0 5.8 5.6 5.7 5.5
Non-deductible amortization of intangibles....... 6.5 4.7 3.9 4.8 4.1
Other............................................ (0.5) (0.3) (1.3) (0.9) (0.4)
--- --- --- --- ---
47.0% 45.2% 43.2% 44.6% 44.2%
--- --- --- --- ---
--- --- --- --- ---
</TABLE>

9. EMPLOYEE BENEFIT PLANS
The Company and Brandon each maintain voluntary defined contribution 401(k)
profit sharing plans covering all eligible employees as defined in the
respective plan documents. For Interim employees, the plan provides a
discretionary matching contribution of up to 25% of employee contributions up to
6% of compensation contributed by eligible employees. In years when budget
objectives are attained, the plan provides for up to an additional 25% matching
contribution payable in Interim Common Stock. For Brandon employees, the
discretionary matching contribution permitted by the plan is equal to 25% of the
first 6% of compensation contributed by eligible full-time salaried employees.
In addition, each year the Company may elect to make a profit sharing
contribution to eligible full-time salaried employees. Additionally, the Company
had sponsored a profit sharing plan for Interim employees who had completed
1,000 hours of service within a twelve month period. The profit sharing plan was
non-contributory, with amounts funded for the benefit of qualifying employees
determined annually by the Company's Board of Directors on a discretionary
basis. The Company's Board of Directors voted to terminate the profit sharing
plan effective December 31, 1993. Contributions, net of forfeitures, by the
Company under these plans amounted to $611, $756 and $666 for the years ended
December 24, 1993, December 30, 1994 and December 29, 1995, respectively, and
$304 and $218 for the three months ended March 31, 1995 and March 29, 1996,
respectively.

During 1995, the Company started a deferred compensation plan for selected
highly compensated employees who are not eligible to participate in the
Company's 401(K) savings plan. The plan allows eligible employees to defer
receipt of a portion (not less than 2 percent nor more than 10 percent) of their
compensation. The Company provides a discretionary matching contribution of up
to 25% of employee contributions up to 6 percent. In years when budget
objectives are attained, the Company provides an additional 25% matching
contribution. The matching contributions vest on a graduated scale from two to
five years of service. The deferred compensation, along with the Company
matching amounts and accumulated investment earnings, is accrued but unfunded.
Such accrual amounted to $710 and $1,141 at December 29, 1995 and March 29,
1996, respectively. Contributions by the Company under this plan amounted to
$149 and $108 for the year ended December 29, 1995 and the three months ended
March 29, 1996, respectively.

10. STOCKHOLDERS' EQUITY AND STOCK OPTION PLANS

STOCK OPTIONS -- The Company has three stock option plans: the 1993
Long-Term Executive Compensation Plan, the 1993 Stock Option Plan for Outside
Directors and the 1994 Stock Option Plan for Franchisees, Licensees and Agents.
Under the plans, options may be granted to outside directors, selected employees
and franchisees, licensees and agents to purchase the Company's common stock for
periods not to exceed ten years at a price that is not less than 100 percent of
fair market value on the date of grant. Options under the Long-Term Executive
Compensation Plan are exercisable (if certain

F-13
<PAGE>
NOTES TO SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN THOUSANDS, EXCEPT SHARE DATA)

10. STOCKHOLDERS' EQUITY AND STOCK OPTION PLANS (CONTINUED)
qualifying criteria are met) starting one year from the date of grant on a
cumulative basis at the annual rate of 33 1/3 percent of the total number of
optioned shares. Options under the Outside Directors Plan are exercisable in
full one year after the date of grant. Options under the Franchisees, Licensees
and Agents Plan are exercisable starting one year from the date of grant on a
cumulative basis at an annual rate that varies during the first five years of
the options' term at which time they become fully exercisable. In October, 1993,
the Company reserved a total of 1,000,000 shares, and on May 11, 1995 an
additional total of 350,000 shares, of common stock for issuance under the
foregoing plans. On January 27, 1994, the first options under these plans were
granted.

As described in Note 3, prior to the merger Brandon had also adopted a stock
option plan, under which 235,900 options to purchase its common shares were
outstanding and unexercised at the date of the Merger. Such options were
converted into options to purchase an aggregate of 207,592 shares of the
Company's common stock at a price equivalent (after conversion) to the original
grant price (which was not less than the estimated fair value of Brandon common
stock at grant date). Changes under these plans for 1994 and 1995 giving
retroactive effect to the conversion of the Brandon stock options upon their
original grant dates were as follows:

<TABLE>
<CAPTION>
NUMBER OPTION
OF SHARES PRICE
----------- ------------------
<S> <C> <C>
Options outstanding, December 24, 1993............................. 234,546 $ 1.14 - 12.65
Options granted.................................................... 666,913 14.92 - 24.38
Options exercised.................................................. (60,648) 6.09 - 14.92
Options forfeited.................................................. (33,706) 6.09 - 20.00
-----------
Options outstanding, December 30, 1994............................. 807,105 6.82 - 24.38
Options granted.................................................... 375,085 22.16 - 33.00
Options exercised.................................................. (47,403) 9.09 - 23.13
Options forfeited.................................................. (71,076) 18.05 - 25.00
-----------
Options outstanding, December 29, 1995............................. 1,063,711 6.82 - 33.00
Options granted.................................................... 356,575 36.23 - 37.25
Options exercised.................................................. (29,449) 6.82 - 25.00
Options forfeited.................................................. (12,560) 18.05 - 37.25
-----------
Options outstanding, March 29, 1996................................ 1,378,277 6.82 - 33.00
-----------
-----------
Shares exercisable, March 29, 1996................................. 443,942 6.82 - 25.00
-----------
-----------
Shares reserved for future grants, March 29, 1996.................. 105,684
-----------
-----------
</TABLE>

TREASURY STOCK -- On October 26, 1995, Brandon repurchased 100,000 shares of
its common stock for $1,805. In 1990, Brandon's Board of Directors had
authorized the repurchase of up to $2 million of common stock as market
conditions may warrant. The aggregate number of shares repurchased through
October 26, 1995 were 116,700 for a total consideration of $1,923. Such treasury
stock was cancelled upon consummation of the merger.

EMPLOYEE STOCK PURCHASE AND DIVIDEND REINVESTMENT AND STOCK PURCHASE PLANS
- -- Under the terms of Brandon's 1993 Employee Stock Purchase Plan, eligible
employees could purchase Brandon's Common Stock through authorized payroll
deductions. The Employee Stock Purchase and Dividend Reimbursement and Stock
Purchase Plans were terminated upon consummation of the Merger.

F-14
<PAGE>
NOTES TO SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN THOUSANDS, EXCEPT SHARE DATA)

11. SHAREHOLDER RIGHTS PLAN
On February 17, 1994, the Company's Board of Directors adopted a shareholder
rights plan to deter coercive or unfair takeover tactics and to prevent a
potential acquirer from gaining control of the Company without offering a fair
price to all of the Company's stockholders. Under the plan, a dividend of one
right (a "Right") per share was declared and paid on each share of the Company's
Common Stock outstanding on April 1, 1994. As to shares issued after such date,
rights will automatically attach to them after their issuance.

Under the plan, registered holders of each Right may purchase from the
Company one one-hundredth of a share of a new class of the Company's Preferred
Stock, $0.01 par value per share, at a price of $98.00, subject to adjustment,
when the Rights become exercisable. The Rights become exercisable when a person
or group of persons acquires 15% or more of the outstanding shares of the
Company's Common Stock without the prior written approval of the Company's Board
of Directors (an "Unapproved Stock Acquisition"), and after ten business days
following the commencement of a tender offer that would result in an Unapproved
Stock Acquisition. If a person or group of persons makes an Unapproved Stock
Acquisition, the registered holder of each Right has the right to purchase, for
the exercise price of the Right, a number of shares of the Company's Common
Stock having a market value equal to twice the exercise price of the Right.
Following an Unapproved Stock Acquisition, if the Company is involved in a
merger, or 50% or more of the Company's assets or earning power are sold, the
registered holder of each Right has the right to purchase, for the exercise
price of the Right, a number of shares of the common stock of the acquiring
company having a market value equal to twice the exercise price of the Right.

After an Unapproved Stock Acquisition, but before any person or group of
persons acquires 50% or more of the outstanding shares of the Company's Common
Stock, the Board of Directors may exchange all or part of the then outstanding
and exercisable Rights for Common Stock at an exchange ratio of one share of
Common Stock per Right. Upon any such exchange, the right of any holder to
exercise a Right terminates.

The Company may redeem the Rights at a price of $0.01 per Right at any time
prior to an Unapproved Stock Acquisition (and after such time in certain
circumstances). The Rights expire on April 1, 2004, unless extended by the Board
of Directors. Until a Right is exercised, the holder thereof, as such, has no
rights as a stockholder of the Company, including the right to vote or to
receive dividends. The issuance of the Rights alone has no dilutive effect and
does not affect reported earnings per share.

12. ACQUISITIONS
Effective December 1, 1995, Interim acquired the assets of Computer Power
Group, a subsidiary of Australia-based Computer Power Group, Ltd., for $71
million in cash. Computer Power Group provides staffing and consulting services
in a variety of information technology disciplines. This acquisition was
accounted for under the purchase method of accounting. Accordingly, the
operations of CPG are included in the supplemental consolidated statements of
earnings from the date of acquisition. The excess of the purchase price over the
fair value of the net tangible assets acquired (goodwill) was $56,618 and is
being amortized over 40 years.

During 1993, 1994 and 1995, the Company made certain other acquisitions
which were accounted for under the purchase method of accounting. Their
operations are included in the supplemental consolidated statements of earnings
from the date of acquisition. Had the acquisitions during 1993 and 1994 taken
place at the beginning of the year in which they occurred, pro forma operating
results would not have been significantly different from those reported.

F-15
<PAGE>
NOTES TO SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN THOUSANDS, EXCEPT SHARE DATA)

12. ACQUISITIONS (CONTINUED)
The following unaudited pro forma consolidated results of operations give
effect to the acquisitions made during 1995 as though they occurred at the
beginning of 1994 and 1995 with pro forma adjustments to give effect to
amortization of goodwill, interest expense on additional borrowings used to fund
the acquisitions, and other adjustments, together with income tax effects.

<TABLE>
<CAPTION>
DEC. 30, DEC. 29,
1994 1995
----------- -----------
<S> <C> <C>
Revenue.................................................................... $ 806,178 $ 969,652
Net earnings............................................................... $ 17,706 $ 23,974
Net earnings per common and common equivalent shares....................... $ 1.15 $ 1.53
</TABLE>

The unaudited pro forma information is not necessarily indicative either of
results of operations that would have occurred had the purchases been made at
the beginning of 1994 and 1995, or future results of the continued companies.

13. TRANSACTIONS WITH BLOCK
The Company and Block, or an affiliate of Block, had engaged in the
following transactions or are parties to the contracts or business relationships
described below.

DUE TO BLOCK -- Amounts due to Block consisted of cash advances for
purchases of property and equipment, acquisitions, current income tax
liabilities and fluctuating working capital needs, offset by payments made by
the Company from its operating bank accounts. Block did not charge the Company
interest expense on any balance due. During the year ended December 24,1993 the
average balance of amounts due Block was $84,018.

CAPTIVE INSURANCE PROGRAM -- The Company has historically purchased workers'
compensation, general liability, errors and omissions, and property and casualty
insurance from various insurance companies. The Company has purchased its
workers' compensation insurance coverage and its general liability and errors
and omissions insurance coverage from an insurance company that has a
reinsurance agreement with an affiliate of Block commencing January 1, 1994 and
June 1, 1993, respectively. Certain of the Company's franchisees also
participate in the same insurance program. The premiums for coverages provided
by the insurance company to the Company and its licensees for the years ended
December 24, 1993, December 30, 1994 and December 29, 1995, aggregated $1,600,
$3,300 and $1,400, respectively for general liability and errors and omissions
coverage and $0, $14,600 and $5,600, respectively for workers' compensation
coverage, subject to certain adjustments based on actual loss experience.

BLOCK GUARANTEE OF FRANCHISE OBLIGATIONS -- For purposes of enabling the
Company to register to sell franchises in certain states, Block guaranteed the
performance of the Company's obligations as franchisor under its franchise
agreements. Subsequent to the closing of the public offering, Block no longer
guarantees the Company's obligations to new franchisees. Each previously
existing guarantee will terminate at the end of the term of the applicable
franchise agreement, with such termination of the guarantee being effective upon
the granting of a renewal by the Company (or election by the franchisee to
exercise its option to renew the franchise).

INDEMNIFICATION AGREEMENT -- The Company and Block have entered into an
Indemnification Agreement, whereby the Company has agreed to indemnify Block
against losses incurred by Block arising from the conduct of the Company's
business subsequent to January 27, 1994. This indemnification obligation
includes any liability incurred by Block pursuant to Block's guarantee of the
Company's obligation as franchisor under the Company's franchise agreements.

F-16
<PAGE>
NOTES TO SUPPLEMENTAL CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(IN THOUSANDS, EXCEPT SHARE DATA)

14. COMMITMENTS
Substantially all of the Company's operations are conducted in leased
premises. The Company leases off-site corporate related office space and branch
and regional processing center locations. Total lease expense for the years
ended December 24, 1993, December 30, 1994 and December 29, 1995 was $7,399,
$7,418 and $8,585, respectively, and $2,002 and $2,637 for the three months
ended March 31, 1995 and March 29, 1996, respectively.

Future minimum lease payments under noncancellable leases as of December 29,
1995 were as follows:

<TABLE>
<CAPTION>
FISCAL YEAR ENDING
- --------------------------------------------------------------
<S> <C>
1996.......................................................... $ 8,846
1997.......................................................... 6,954
1998.......................................................... 5,150
1999.......................................................... 3,689
2000.......................................................... 2,356
</TABLE>

15. CONTINGENCIES
The Company in the ordinary course of its business is threatened with or
named as a defendant in various lawsuits. It is not possible to determine the
ultimate disposition of these matters; however, management is of the opinion
that the final resolution of any threatened or pending litigation is not likely
to have a material adverse effect on the financial position or results of
operations of the Company.

QUARTERLY FINANCIAL DATA (UNAUDITED)

The following is a tabulation of the quarterly results of operations for the
years ended December 29, 1995 and December 30, 1994.

<TABLE>
<CAPTION>
MAR. 25, JUNE 24, SEP. 23, DEC. 30, MAR. 31, JUNE 30, SEP. 29, DEC. 29,
1994 1994 1994 1994 1995 1995 1995 1995
--------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues................................... $ 156,973 $ 164,410 $ 179,486 $ 203,827 $ 193,652 $ 203,444 $ 221,948 $ 245,203
Gross profit............................... 47,400 49,577 53,996 62,319 59,116 62,845 66,509 75,608
Earnings before taxes...................... 6,722 8,373 9,550 10,839 8,465 9,628 11,304 12,407
Income taxes............................... 3,099 3,781 4,280 4,868 3,773 4,159 4,927 5,212
Net earnings............................... 3,623 4,592 5,270 5,971 4,692 5,469 6,377 7,195
Net earnings per
common and common equivalent shares....... $ 0.24 $ 0.30 $ 0.34 $ 0.38 $ 0.30 $ 0.35 $ 0.41 $ 0.46
</TABLE>

F-17
<PAGE>
UNDERWRITING

Subject to the terms and conditions of the Underwriting Agreement, the
Company and the Selling Stockholders have agreed to sell to each of the U.S.
Underwriters named below, and each of such U.S. Underwriters, for whom Goldman,
Sachs & Co. and Robert W. Baird & Co. Incorporated are acting as
representatives, have severally agreed to purchase from the Company and the
Selling Stockholders, the respective number of shares of Common Stock set forth
opposite its name below:

<TABLE>
<CAPTION>
NUMBER OF
SHARES OF
UNDERWRITER COMMON STOCK
- --------------------------------------------------------------------------------------- ---------------
<S> <C>
Goldman, Sachs & Co....................................................................
Robert W. Baird & Co. Incorporated.....................................................

---------------
Total..............................................................................
---------------
---------------
</TABLE>

Under the terms and conditions of the Underwriting Agreement, the U.S.
Underwriters are committed to take and pay for all of the shares offered hereby,
if any are taken.

The U.S. Underwriters propose to offer the shares of Common Stock in part
directly to the public at the initial public offering price set forth on the
cover page of this Prospectus and in part to certain securities dealers at such
price less a concession of $ per share. The U.S. Underwriters may allow, and
such dealers may reallow, a concession not in excess of $ per share to
certain brokers and dealers. After the shares of Common Stock are released for
sale to the public, the offering price and other selling terms may from time to
time be varied by the representatives.

The Company and the Selling Stockholders have entered into an underwriting
agreement (the "International Underwriting Agreement") with the underwriters of
the international offering (the "International Underwriters") providing for the
concurrent offer and sale of shares of Common Stock in an
international offering outside of the United States. The offering price and
aggregate underwriting discounts and commissions per share for the two offerings
are identical. The closing of the offering made hereby is a condition to the
closing of the international offering, and vice versa. The representatives of
the International Underwriters are Goldman Sachs International and Robert W.
Baird & Co. Incorporated.

Pursuant to an Agreement between the U.S. and International Underwriting
Syndicates (the "Agreement Between") relating to the two offerings, each of the
U.S. Underwriters has agreed that, as part of the distribution of the shares
offered hereby and subject to certain exceptions, it will offer, sell or deliver
the shares of Common Stock, directly or indirectly, only in the United States of
America (including the States and the District of Columbia), its territories,
its possessions and other areas subject to its jurisdiction (the "United
States") and to U.S. persons, which term shall mean, for purposes of this
paragraph: (a) any individual who is a resident of the United States or (b) any
corporation, partnership or other entity organized in or under the laws of the
United States or any political subdivision thereof and whose office most
directly involved with the purchase is located in the United States. Each of the
International Underwriters named herein has agreed pursuant to the Agreement
Between that, as a part of the distribution of the shares offered as a part of
the international offering, and subject to certain exceptions, it will (i) not,
directly or indirectly, offer, sell or deliver shares of Common Stock (a) in the
United States or to any U.S. persons or (b) to any person who it believes
intends to reoffer, resell or deliver the shares in the United States or to any
U.S. persons, and (ii) cause any dealer to whom it may sell such shares at any
concession to agree to observe a similar restriction.

U-1
<PAGE>
Pursuant to the Agreement Between, sales may be made between the U.S.
Underwriters and the International Underwriters of such number of shares of
Common Stock as may be mutually agreed. The price of any shares so sold shall be
the initial public offering price less an amount not greater than the selling
concession.

The Company has granted the U.S. Underwriters an option exercisable for 30
days after the date of this Prospectus to purchase up to an aggregate of
additional shares of Common Stock solely to cover over-allotments, if
any. If the U.S. Underwriters exercise their over-allotment option, the
Underwriters have severally agreed, subject to certain conditions, to purchase
approximately the same percentage thereof that the number of shares to be
purchased by each of them, as shown in the foregoing table, bears to the
shares of Common Stock offered. The Company has granted the
International Underwriters a similar option exercisable up to an aggregate of
additional shares of Common Stock.

The Company and the Selling Stockholders have agreed that during the period
beginning from the date of this Prospectus and continuing to and including the
date 90 days after the date of this Prospectus, not to offer, sell, contract to
sell or otherwise dispose of any securities of the Company (other than pursuant
to employee stock option plans, employee stock purchase plans, 401(k) plans or
any other employee plans of similar nature, including, without limitations, any
such plans for the benefit of directors or officers of the Company, which are
described in the Prospectus, existing on the date of this Prospectus) which are
substantially similar to the shares of Common Stock, without the prior written
consent of the Representatives, except for the shares of Common Stock offered in
connection with the concurrent U.S. and international offerings.

The representatives of the Underwriters have informed the Company that they
do not expect sales to accounts over which the Underwriters exercise
discretionary authority to exceed five percent of the total number of shares of
Common Stock offered by them.

The Company and the Selling Stockholders have severally agreed to indemnify
the several Underwriters against certain liabilities, including liabilities
under the Securities Act of 1933, as amended.

U-2
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS AND, IF GIVEN OR
MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN
AUTHORIZED. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY SUCH SECURITIES OTHER THAN THE SECURITIES TO
WHICH IT RELATES OR AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SUCH
SECURITIES IN ANY CIRCUMSTANCES IN WHICH SUCH OFFER OR SOLICITATION IS UNLAWFUL.
NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL, UNDER
ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE
AFFAIRS OF THE COMPANY SINCE THE DATE HEREOF OR THAT THE INFORMATION CONTAINED
HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE.

------------------

TABLE OF CONTENTS

<TABLE>
<CAPTION>
PAGE
-----
<S> <C>
Prospectus Summary......................
Risk Factors............................
The Company.............................
Use of Proceeds.........................
Price Range of Common Stock.............
Dividend Policy.........................
Capitalization..........................
Selected Consolidated Financial and
Operating Data........................
Management's Discussion and Analysis of
Financial Condition and Results of
Operations............................
Business................................
Selling Stockholders....................
Description of Capital Stock............
Validity of Common Stock................
Experts.................................
Available Information...................
Incorporation of Certain Documents by
Reference.............................
Supplemental Consolidated Financial
Statements............................ F-1
Underwriting............................ U-1
</TABLE>

[LOGO]

COMMON STOCK
(PAR VALUE $.01 PER SHARE)

--------------

PROSPECTUS

-----------

GOLDMAN, SACHS & CO.

ROBERT W. BAIRD & CO.
Incorporated

REPRESENTATIVES OF THE UNDERWRITERS

ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION

The following table sets forth the estimated expenses to be incurred by the
Company in connection with the issuance and distribution of the Common Stock
being registered less the portion thereof to be paid by the Selling
Stockholders.

<TABLE>
<S> <C>
Securities and Exchange Commission registration fee.............. $ 64,011
NASD filing fee.................................................. 15,500
Accounting fees and expenses..................................... *
Legal Fees and expenses.......................................... *
Printing and Engraving expenses.................................. *
Blue Sky fees and expenses....................................... *
Transfer Agent and Registrar fees and expenses................... *
Miscellaneous.................................................... *
Expenses payable by Selling Stockholders......................... *
---------
Total........................................................ $
---------
---------
</TABLE>

- --------------
*To be completed by amendment.

ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS

THE COMPANY'S AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

SIXTH: (A) The Corporation shall indemnify to the fullest extent authorized
or permitted by law (as now or hereafter in effect) any person made, or
threatened to be made a party or witness to any action, suit or proceeding
(whether civil or criminal or by or in the right of the Corporation) by reason
of the fact that he, his testator or intestate, is or was a director or officer
of the Corporation or by reason of the fact that such director or officer, at
the request of the Corporation, is or was serving any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise, in
any capacity. Nothing contained herein shall affect any rights to
indemnification to which employees other than directors and officers may be
entitled by law. No amendment to or repeal of this paragraph (A) of Article
Sixth shall apply to or have any effect on any right to indemnification provided
hereunder with respect to any acts or omissions occurring prior to such
amendment or repeal.

(B) No director or shareholder of the Corporation shall be personally liable
to the Corporation or its shareholders for monetary damages for any breach of
fiduciary duty as a director. Notwithstanding the foregoing sentence, a director
shall be liable to the extent provided by applicable law (i) for any breach of
the director's duty of loyalty to the Corporation or its shareholders, (ii) for
acts or omissions not in good faith or which involve intentional misconduct or a
knowing violation of law, (iii) pursuant to Section 174 of the General
Corporation Law of the State of Delaware, or (iv) for any transaction from which
such director derived an improper personal benefit. No amendment to or repeal of
this paragraph (B) of Article Sixth shall adversely affect any right or
protection of any director of the Corporation existing at the time of such
amendment to repeal for or with respect to any acts or omissions of such
director occurring prior to such amendment or repeal.

THE COMPANY'S BYLAWS

24. INDEMNIFICATION OF DIRECTORS AND OFFICERS.

(a) POWER TO INDEMNIFY IN ACTIONS, SUITS OR PROCEEDINGS OTHER THAN THOSE BY
OR IN THE RIGHT OF THE CORPORATION. The corporation shall indemnify to the
fullest extent authorized or permitted by law (as now or hereafter in effect)
any person made, or threatened to be made, a party or witness to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or

II-1
<PAGE>
investigative (other than an action by or in the right of the corporation) by
reason of the fact that he or she (or his or her testator or intestate) is or
was a director or officer of the corporation, or is or was serving at the
request of the corporation as a director or officer of another corporation,
partnership, joint venture, trust or other enterprise, against expenses
(including attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by such person in connection with such action,
suit or proceeding if he or she acted in good faith and in a manner he or she
reasonably believed to be in or not opposed to the best interests of the
corporation and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his or her conduct was unlawful. The termination of
any action, suit or proceeding by judgment, order, settlement, conviction or
upon a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that the person did not act in good faith and in a manner which he
or she reasonably believed to be in or not opposed to the best interests of the
corporation, and, with respect to any criminal action or proceeding, had
reasonable cause to believe that his or her conduct was unlawful.

(b) POWER TO INDEMNIFY IN ACTIONS, SUITS OR PROCEEDINGS BY OR IN THE RIGHT
OF THE CORPORATION. The corporation shall indemnify to the fullest extent
authorized or permitted by law (as now or hereafter in effect) any person made,
or threatened to be made a party or witness to any threatened, pending or
completed action or suit by or in the right of the corporation to procure a
judgment in its favor by reason of the fact that he or she (or his or her
testator or intestate) is or was a director or officer of the corporation, or is
or was serving at the request of the corporation as a director or officer of
another corporation, partnership, joint venture, trust or other enterprise
against expenses (including attorneys' fees), and, if and to the extent
permitted by applicable law, judgments, penalties, and amounts to paid in
settlement, incurred by him or her in connection with defending, investigating,
preparing to defend, or being prepared to be a witness in, such action, suit,
proceeding or claim if such person acted in good faith and in a manner he or she
reasonably believed to be in or not opposed to the best interests of the
corporation; except that no indemnification shall be made in respect of any
claim, issue or matter as to which such person shall have been adjudged to be
liable to the corporation unless (and only to the extent that) the Court of
Chancery or the court in which such action, suit, proceeding or claim was
brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, such person is
fairly and reasonably entitled to indemnity for such expenses and amounts which
the Court of Chancery or such other court shall deem proper.

(1) Any indemnification under Section 24 (unless ordered by a court) shall
be made by the corporation only as authorized in the specific case upon a
determination that indemnification of the director or officer is proper in the
circumstances because he has met the applicable standard of conduct set forth in
Section 24(a) or (b), as the case may be. Such determination shall be made (i)
by the Board of Directors by a majority vote of a quorum consisting of directors
who were not parties to such action, suit or proceeding, or (ii) if such a
quorum is not obtainable, or, even if obtainable, a quorum of disinterested
directors so directs, by independent legal counsel in a written opinion, or
(iii) by the stockholders; provided, however, that if a Change in Control (as
defined in Section 24(c)(3)) has occurred and the person seeking indemnification
so requests, such determination shall be made in a written opinion rendered by
independent legal counsel chosen by the person seeking indemnification and not
reasonably objected to by the Board of Directors (whose fees and expenses shall
be paid by the corporation). To the extent, however, that a director or officer
of the corporation has been successful on the merits or otherwise in defense of
any action, suit or proceeding described above, or in defense of any claim,
issue or matter therein, he or she shall be indemnified against expenses
(including attorneys' fees) incurred by him or her in connection therewith,
without the necessity of authorization in the specific case.

(2) For purposes of the proviso to the second sentence of Section 24(c)(1),
"independent legal counsel" shall mean legal counsel other than an attorney, or
a firm having associated with it an attorney, who has been retained by or who
has performed services for the corporation or the person seeking indemnification
within the previous three years.

II-2
<PAGE>
(3) A "Change in Control" shall mean a change in control of the corporation
of a nature that would be required to be reported in response to Item 5(f) of
Schedule 14A of Regulation 14A promulgated under the Exchange Act, whether or
not the corporation is then subject to such reporting requirement; provided
that, without limitation, such a change in control shall be deemed to have
occurred if (i) any "person" (as such term is used in Section 13(d) and 14(d) of
the Exchange Act), other than a trustee or other fiduciary holding securities
under an employee benefit plan of the corporation or a corporation owned
directly or indirectly by the stockholders of the corporation in substantially
the same proportions as their ownership of stock of the corporation, is or
becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the corporation representing
thirty percent (30%) or more of the total voting power represented by the
corporation's then outstanding shares of capital stock entitled to vote (the
"Voting Securities"), or (ii) during any period of two consecutive years,
individuals who at the beginning of such period constitute the Board of
Directors of the corporation and any new director whose election by the Board of
Directors or nomination for election by the corporation's stockholders who
approved by a vote of at least two-thirds ( 2/3) of the directors then still in
office who either were directors at the beginning of the period or whose
election or nomination for election was previously so approved, cease for any
reason to constitute a majority thereof, or (iii) the stockholders of the
corporation approve a merger or consolidation of the corporation with any other
corporation, other than a merger or consolidation which would result in any
Voting Securities of the corporation outstanding or by being converted into any
voting securities of the surviving entity) at least eighty percent (80%) of the
total voting power represented by all Voting Securities of the corporation or
such surviving entity outstanding immediately after such merger or
consolidation, or the stockholders of the corporation approve a plan of complete
liquidation of the corporation or an agreement for the sale or disposition by
the corporation of (in one transaction or a series of transactions) all or
substantially all of the corporation's assets.

(d) GOOD FAITH DEFINED. For purposes of any determination under Section
24(c), a person shall be deemed to have acted in good faith and in a manner he
or she reasonably believed to be in or not opposed to the best interest of the
corporation, or, with respect to any criminal action or proceeding, to have had
no reasonable cause to believe his or her conduct was unlawful, if his or her
action is based on the records or on information supplied to him or her by the
officers of the corporation or another enterprise in the course of their duties,
or on the advice of legal counsel for the corporation or another enterprise or
on information or records given or reports made to the corporation or another
enterprise by an independent certified public accountant or by an appraiser or
other expert selected with reasonable care by the corporation or another
enterprise. The term "another enterprise" as used in this Section 24(d) shall
mean any other corporation or any partnership, joint venture, trust or other
enterprise of which such person is or was serving at the request of the
corporation as a director or officer. The provisions of this Section 24(d) shall
not be deemed to be exclusive or to limit in any way the circumstances in which
a person may be deemed to have met the applicable standard of conduct set forth
in Section 24(a) or (b), as the case may be.

(e) RIGHT TO INDEMNIFICATION UPON APPLICATION; PROCEDURE UPON APPLICATION,
ETC. Except as otherwise provided in the proviso to Section 24(b):

(1) Any indemnification under Section 24(a) or (b) shall be made no
later than 30 days after receipt by the corporation of the written request
of the director or officer or former director or officer unless a
determination is made within said 30-day period in accordance with Section
24(c) that such person has not met the applicable standard of conduct set
forth in Sections 24(a) and (b).

(2) The right to indemnification under Section 24(a) or (b) or advances
under Section 24(f) shall be enforceable by the director or officer or
former director or officer in any court of competent jurisdiction. The
burden of proving that indemnification is not appropriate shall be on the
corporation. Neither the absence of any prior determination that
indemnification is proper in the circumstances, nor a prior determination
that indemnification is not proper in the circumstances shall be a defense
to the action or create a presumption that the director or officer or former
director or officer has not met the applicable standard of conduct. The
expenses (including attorneys' fees and

II-3
<PAGE>
expenses) incurred by the director or officer or former director or officer
in connection with successfully establishing his or her right to
indemnification, in whole or in part, in any such action (or in any action
or claim brought by him to recover under any insurance policy or policies
referred to in Section 24(i)) shall also be indemnified by the corporation.

(3) If any person is entitled under any provision of this Section 24 to
indemnification by the corporation for some or a portion of expenses,
judgments, fines, penalties or amounts paid in settlement incurred by him or
her, but not, however, for the total amount thereof, the corporation shall
nevertheless indemnify such person for the portion of such expenses,
judgments, fines, penalties and amounts to which he is entitled.

(f) EXPENSES PAYABLE IN ADVANCE. Expenses incurred in defending or
investigating a threatened or pending action, suit or proceeding may be paid by
the corporation in advance of the final disposition of such action, suit or
proceeding upon receipt of an undertaking by or on behalf of the director or
officer to repay such amount if it shall ultimately be determined that he is or
she is not entitled to be indemnified by the corporation as authorized in this
Section 24; provided, however, that if he or she seeks to enforce his or her
rights in a court of competent jurisdiction pursuant to Section 24(e)(2), said
undertaking to repay shall not be applicable or enforceable unless and until
there is a final court determination that he or she is entitled to
indemnification as to which all rights of approval have been exhausted or have
expired.

(g) NON-EXCLUSIVITY OF INDEMNIFICATION AND ADVANCEMENT OF EXPENSES. The
indemnification and advancement of expenses provided by or granted pursuant to
this Section 24 shall not be deemed exclusive of any other rights to which those
seeking indemnification or advancement of expenses may be entitled under any
by-law, agreement, contract, vote of stockholders or disinterested directors or
pursuant to the direction (howsoever embodied) of any court of competent
jurisdiction or otherwise, both as to action in his or her official capacity and
as to action in another capacity while holding such office, it being the policy
of the corporation that indemnification of the persons specified in Sections
24(a) and (b) shall or may, as the case may be, be made to the fullest extent
permitted by law. The provisions of this Section 24 shall not be deemed to
preclude the indemnification of any person who is not specified in Sections
24(a) and (b) but whom the corporation has the power or obligation to indemnify
under the provisions of the General Corporation Law of the State of Delaware, or
otherwise. The Corporation may enter into written agreements, approved by a
majority of the Directors, which include all or any of the indemnity provisions
required or permitted by this Section 24.

(h) INSURANCE. The corporation may purchase and maintain insurance on
behalf of any person who is or was a director or officer of the corporation, or
is or was serving at the request of the corporation as a director or officer of
another corporation, partnership, joint venture, trust or other enterprise
against any liability asserted against him or her and incurred by him or her in
any such capacity, or arising out of his status as such, whether or not the
corporation would have the power or the obligation to indemnify him or her
against such liability under the provisions of this Section 24.

(i) MEANING OF "CORPORATION" FOR PURPOSES OF SECTION 24. For purposes of
this Section 24, references to "the corporation" shall include, in addition to
the resulting corporation, any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or merger which, if
its separate existence had continued, would have had power and authority to
indemnify its directors or officers so that any person who is or was a director
or officer of such constituent corporation, or is or was serving at the request
of such constituent corporation as a director or officer of another corporation,
partnership, joint venture, trust or other enterprise, shall stand in the same
position under the provisions of this Section 24 with respect to the resulting
or surviving corporation as he or she would have with respect to such
constituent corporation if its separate existence had continued.

(j) SURVIVAL OF INDEMNIFICATION AND ADVANCEMENT OF EXPENSES. The
indemnification and advancement of expenses provided by, or granted pursuant to,
this Section shall, unless otherwise provided when authorized or ratified,
continue as to a person who has ceased to be a director or officer and shall
inure to the benefit of the heirs, executors and administrators of such a
person.

II-4
<PAGE>
STATUTORY

Generally, Section 145 of the General Corporation Law of the State of
Delaware authorizes Delaware corporations, under certain circumstances, to
indemnify their officers and directors against all expenses and liabilities
(including attorneys' fees) incurred by them as a result of any suit brought
against them in their capacity as a director or an officer, if they acted in
good faith and in a manner they reasonably believed to be in or not opposed to
the best interests of the corporation, and, with respect to any criminal action
or proceeding, if they had no reasonable cause to believe their conduct was
unlawful. A director or officer may also be indemnified against expenses
incurred in connection with a suit by or in the right of the corporation if such
director or officer acted in good faith and in a manner reasonably believed to
be in or not opposed to the best interests of the corporation, except that no
indemnification may be made without court approval if such person was adjudged
liable to the corporation.

UNDERWRITING AGREEMENT

The Underwriting Agreement provides that the Underwriter shall indemnify
each director of the Company, each officer of the Company who signed this
Registration Statement, each person who controls the Company, and the Selling
Stockholders, for certain liabilities, including certain liabilities under the
Securities Act of 1933, as amended.

II-5
<PAGE>
ITEM 16. EXHIBITS

(A) EXHIBITS

<TABLE>
<CAPTION>
EXHIBIT
NUMBER EXHIBIT NAME NOTE
- ----------- -------------------------------------------------------------------------------------------------- -----
<C> <S> <C>
1.1 Form of Underwriting Agreement (U.S. Version)..................................................... (1)
1.2 Form of Underwriting Agreement (International Version)............................................ (1)
2.1 Agreement and Plan of Merger...................................................................... (2)
4.1 Articles Fourth, Fifth, Seventh, Eighth and Tenth of the Restated Certificate of Incorporation of
the Company...................................................................................... (3)
4.2 Sections Four through Twelve and Thirty-Five through Forty-One of the Bylaws of the Company....... (3)
4.3 Form of Stock Certificate......................................................................... (4)
4.4 Rights Agreement, as amended, dated as of April 1, 1994, by and between the Company and Boatmen's
Trust Company.................................................................................... (5)
5.1 Opinion of Bryan Cave LLP ........................................................................ (1)
15.1 Letter regarding Unaudited Interim Financial Information.......................................... (1)
23.1 Consent of Bryan Cave LLP (to be included in Exhibit 5.1)......................................... (1)
23.2 Consent of Deloitte & Touche LLP.................................................................. *
24.1 Power of Attorney (included on signature page).................................................... *
27.1 Financial Data Schedule........................................................................... *
99.1 Schedule II -- Valuation and Qualifying Accounts.................................................. *
</TABLE>

- --------------
(1) To be filed by amendment.

(2) This Exhibit is filed as an Exhibit to the Company's Proxy Statement/
Prospectus, dated April 24, 1996 and is incorporated herein by reference.

(3) These Exhibits are filed as Exhibits to the Company's Form S-1, Amendment
No. 2, dated January 12, 1994, SEC Registration No. 33-71338, and are
incorporated herein by reference.

(4) This Exhibit is filed as an Exhibit to the Company's Form 10-K for the
fiscal year ended March 25, 1994, and is incorporated herein by this
reference.

(5) This Exhibit is filed as an Exhibit to the Company's Form 8-A, dated April
11, 1994, SEC Registration No. 0-23198, and is incorporated herein by
reference.

* Filed herewith.

ITEM 17. UNDERTAKINGS

The undersigned registrant hereby undertakes:

(1) For purposes of determining any liability under the Securities Act
of 1933, each filing of the Company's annual report pursuant to section
13(a) or section 15(d) of the Securities Exchange Act of 1934 that is
incorporated by reference in the registration statement shall be deemed to
be a new registration statement relating to the securities offering therein,
and the offering of such securities at that time shall be deemed to be the
initial BONA FIDE offering thereof.

(2) To deliver or cause to be delivered with the prospectus, to each
person to whom the prospectus is sent or given, the latest annual report to
security holders that is incorporated by reference in the prospectus and
furnished pursuant to and meeting the requirements of Rule 14a-3 or Rule
14c-3 under the Securities Exchange Act of 1934; and, where interim
financial information required to be presented by Article 3 of Regulation
S-X are not set forth in the prospectus, to deliver,

II-6
<PAGE>
or cause to be delivered to each person to whom the prospectus is sent or
given, the latest quarterly report that is specifically incorporated by
reference in the prospectus to provide such interim financial information.

(3) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the registrant pursuant to the foregoing provisions,
or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public
policy as expressed in the Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities (other than
the payment by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of
any action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue.

(4) For purposes of determining any liability under the Securities Act
of 1933, the information omitted from the form of prospectus filed as part
of this registration statement in reliance upon Rule 430A and contained in a
form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4)
or 497(h) under the Securities Act shall be deemed to be part of this
registration statement as of the time it was declared effective.

(5) For the purpose of determining any liability under the Securities
Act of 1933, each post-effective amendment that contains a form of
prospectus shall be deemed to be a new registration statement relating to
the securities offered therein, and the offering of such securities at that
time shall be deemed to be the initial BONA FIDE offering thereof.

II-7
<PAGE>
SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, as amended, the
Registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Fort Lauderdale, State of Florida, on the 26th day of
July, 1996.

INTERIM SERVICES INC.

By:

-----------------------------------
Raymond Marcy
PRESIDENT AND CHIEF EXECUTIVE
OFFICER

POWER OF ATTORNEY

Each person whose signature appears below appoints Raymond Marcy, John B.
Smith, and Kendrick T. Wallace, and each of them, any of whom may act without
the joiner of the other, as his true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution, for him and in his name,
place and stead, in any and all capacities to sign this Registration Statement
and any and all amendments (including post-effective amendments) to this
Registration Statement or a Registration Statement for the same offering that is
to be effective upon filing pursuant to Rule 462(b) under the Securities Act of
1933, as amended, and to file the same, with all exhibits thereto and all other
documents in connection therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents full power and authority to do
and perform each and every act and thing requisite and necesssary to be done, as
fully to all intents and purposes as he might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents or their
substitute or substitutes may lawfully do or cause to be done by virture hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.

<TABLE>
<S> <C> <C>
SIGNATURE TITLE DATE
- ------------------------------------------------------ --------------------------------------- ----------------

------------------------------------------- Director July 26, 1996
Steven S. Elbaum

------------------------------------------- Director July 26, 1996
William F. Evans

------------------------------------------- Director July 26, 1996
Jerome B. Grossman

------------------------------------------- Director July 26, 1996
Cinda A. Hallman

------------------------------------------- Director July 26, 1996
J. Ian Morrison
</TABLE>

II-8
<PAGE>
<TABLE>
<S> <C> <C>
SIGNATURE TITLE DATE
- ------------------------------------------------------ --------------------------------------- ----------------

------------------------------------------- Director July 26, 1996
Allen C. Sorensen

------------------------------------------- Director July 26, 1996
Harold Toppel

------------------------------------------- Director July 26, 1996
A. Michael Victory

------------------------------------------- President, Chief Executive Officer and July 26, 1996
Raymond Marcy Director (principal executive officer)

Executive Vice President and Chief
------------------------------------------- Financial Officer (principal financial July 26, 1996
Roy G. Krause officer)

------------------------------------------- Financial Vice President and Treasurer July 26, 1996
Paul Haggard (principal accounting officer)
</TABLE>

II-9
<PAGE>
INDEX TO EXHIBITS

- --------------
(1) To be filed by amendment.

(2) This Exhibit is filed as an Exhibit to the Company's Proxy Statement/
Prospectus, dated April 24, 1996 and is incorporated herein by reference.

(3) These Exhibits are filed as Exhibits to the Company's Form S-1, Amendment
No. 2, dated January 12, 1994, SEC Registration No. 33-71338, and are
incorporated herein by reference.

(4) This Exhibit is filed as an Exhibit to the Company's Form 10-K for the
fiscal year ended March 25, 1994, and is incorporated herein by this
reference.

(5) This Exhibit is filed as an Exhibit to the Company's Form 8-A, dated April
11, 1994, SEC Registration No. 0-23198, and is incorporated herein by
reference.

* Filed herewith.

<PAGE>
EXHIBIT 23.2
INDEPENDENT AUDITORS' CONSENT AND REPORT ON SCHEDULES

We consent to the use in this Registration Statement of Interim Services
Inc. on Form S-3 of our report dated July 29, 1996, appearing in the Prospectus,
which is a part of this Registration Statement, and to the references to us
under the headings "Selected Consolidated Financial Data" and "Experts" in such
Prospectus.

Our audits of the supplemental consolidated financial statements referred to
in our aforementioned report also included the supplemental financial statement
schedule of Interim Services Inc., listed in Item 99.1. This supplemental
financial statement schedule is the responsibility of the Company's management.
Our responsibility is to express an opinion based on our audits. In our opinion,
such supplemental financial statement schedule, when considered in relation to
the basic supplemental consolidated financial statements taken as a whole,
present fairly in all material respects the information set forth therein.

DELOITTE & TOUCHE LLP

Fort Lauderdale, Florida
July 29, 1996

<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE COMPANY'S UNAUDITED SUPPLEMENTAL FINANCIAL STATEMENTS FOR THE QUARTER
ENDED MARCH 29, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-24-1996
<PERIOD-END> MAR-29-1996
<CASH> 2,468
<SECURITIES> 15,381
<RECEIVABLES> 152,656
<ALLOWANCES> 2,789
<INVENTORY> 0
<CURRENT-ASSETS> 234,045
<PP&E> 30,289
<DEPRECIATION> 35,026
<TOTAL-ASSETS> 455,395
<CURRENT-LIABILITIES> 163,377
<BONDS> 0
0
0
<COMMON> 154
<OTHER-SE> 231,864
<TOTAL-LIABILITY-AND-EQUITY> 455,395
<SALES> 0
<TOTAL-REVENUES> 264,725
<CGS> 0
<TOTAL-COSTS> 185,728
<OTHER-EXPENSES> 9,182
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,636
<INCOME-PRETAX> 9,836
<INCOME-TAX> 4,347<F1>
<INCOME-CONTINUING> 5,489
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,489
<EPS-PRIMARY> .35
<EPS-DILUTED> 0
<FN>
<F1>Includes merger expenses of $417.

</TABLE>

<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE COMPANY'S AUDITED SUPPLEMENTAL FINANCIAL STATEMENTS FOR THE YEAR ENDED
DECEMBER 29, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-29-1995
<PERIOD-END> DEC-29-1995
<CASH> 4,025
<SECURITIES> 15,675
<RECEIVABLES> 143,209
<ALLOWANCES> 2,176
<INVENTORY> 0
<CURRENT-ASSETS> 222,865
<PP&E> 27,128
<DEPRECIATION> 33,191
<TOTAL-ASSETS> 441,628
<CURRENT-LIABILITIES> 155,339
<BONDS> 0
0
0
<COMMON> 154
<OTHER-SE> 226,135
<TOTAL-LIABILITY-AND-EQUITY> 441,628
<SALES> 0
<TOTAL-REVENUES> 864,247
<CGS> 0
<TOTAL-COSTS> 600,169
<OTHER-EXPENSES> 37,295
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 990
<INCOME-PRETAX> 41,804
<INCOME-TAX> 18,071
<INCOME-CONTINUING> 23,733
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 23,733
<EPS-PRIMARY> 1.52
<EPS-DILUTED> 0

</TABLE>

<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE COMPANY'S AUDITED SUPPLEMENTAL FINANCIAL STATEMENTS FOR THE YEAR ENDED
DECEMBER 30, 1994 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-30-1994
<PERIOD-END> DEC-30-1994
<CASH> 6,872
<SECURITIES> 10,335
<RECEIVABLES> 101,720
<ALLOWANCES> 1,602
<INVENTORY> 0
<CURRENT-ASSETS> 168,748
<PP&E> 20,456
<DEPRECIATION> 26,069
<TOTAL-ASSETS> 291,650
<CURRENT-LIABILITIES> 86,751
<BONDS> 0
0
0
<COMMON> 154
<OTHER-SE> 204,745
<TOTAL-LIABILITY-AND-EQUITY> 291,650
<SALES> 0
<TOTAL-REVENUES> 704,696
<CGS> 0
<TOTAL-COSTS> 491,404
<OTHER-EXPENSES> 33,796
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 112
<INCOME-PRETAX> 35,484
<INCOME-TAX> 16,028
<INCOME-CONTINUING> 19,456
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 19,456
<EPS-PRIMARY> 1.26
<EPS-DILUTED> 0

</TABLE>

<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S AUDITED SUPPLEMENTAL FINANCIAL STATEMENTS FOR THE YEAR ENDED
DECEMBER 31, 1993 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-24-1993
<PERIOD-END> DEC-24-1993
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 574,260
<CGS> 0
<TOTAL-COSTS> 402,039
<OTHER-EXPENSES> 20,586
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 137
<INCOME-PRETAX> 26,064
<INCOME-TAX> 12,241
<INCOME-CONTINUING> 13,823
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,823<F1>
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> For pro forma adjustments, see footnote No. 1 to the Summary
Consolidated Financial Statements.

</TABLE>