SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-K
(Mark One)

[X]  ANNUAL REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES  EXCHANGE
     ACT OF 1934

     For the fiscal year ended     December 31, 1998

[ ]  TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934

     For the transition period from        to

                          Commission file number 0-7282

                             COMPUTER HORIZONS CORP.
             (Exact name of registrant as specified in its charter)

          New York                                          13-2638902
--------------------------------------------------------------------------------
(State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization)                          Identification No.)


    49 Old Bloomfield Avenue
    Mountain Lakes, New Jersey                               07046-1495
--------------------------------------------------------------------------------
(Address of principal executive offices)                     (Zip Code)


Registrant's telephone number,
    including area code:                                  (973) 299-4000

          Securities registered pursuant to Section 12(b) of the Act:

                                               Name of each exchange
Title of each class                            on which registered
-------------------                            -------------------
      None                                            None

          Securities registered pursuant to Section 12(g) of the Act:

                     Common Stock (Par value $.10 per share)
                                (Title of class)

                    Series A Preferred Stock Purchase Rights
                                (Title of class)
<PAGE>
         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes [ X ]   No [   ]

         Indicate by check mark if disclosure of delinquent  filers  pursuant to
Item 405 of Regulation S-K is not contained  herein,  and will not be contained,
to the best of  registrant's  knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment to this Form 10-K. [ ]

         The  aggregate  market value of the  registrant's  voting stock held by
non-affiliates  of the  registrant  as of  March  22,  1999,  was  approximately
$367,883,000.

         Indicate the number of shares  outstanding of each of the  registrant's
classes of common stock as of March 22, 1999: 31,476,647 shares.


                       DOCUMENTS INCORPORATED BY REFERENCE

               There is incorporated  herein by reference the  registrant's  (i)
Annual Report to  Shareholders  for the year ended December 3l, l998, in Part II
of this  Report  and  (ii)  Proxy  Statement  for the  1999  Annual  Meeting  of
Shareholders,  expected to be filed with the Securities and Exchange  Commission
on or before April 12, 1999, in Part III hereof.
<PAGE>
                                     PART I
Item 1.  Business

General

               The  Company  provides  a wide  range of  information  technology
services  and  solutions  to major  corporations.  Historically  a  professional
services staffing firm, the Company has, over the past six years,  developed the
technological  and  managerial  infrastructure  to offer its clients value added
services  including CHC's Signature 2000(TM) solution for the millennium change,
client/server systems development and migration,  enterprise network management,
document imaging  practices,  outsourcing and offshore software  development and
maintenance  ("solutions").  The Company markets  solutions to both existing and
potential  clients  with the  objective  of  becoming a  preferred  provider  of
comprehensive  information  technology  services and solutions for such clients.
Solutions engagements, which represented less than five percent of the Company's
consolidated   revenues  in  1993,   accounted  for  approximately  44%  of  its
consolidated  revenues in 1998. The Company  believes that the range of services
and solutions that it offers,  combined with its worldwide network of 55 offices
and  subsidiary   organizations,   provides  it  with  significant   competitive
advantages in the information technology marketplace.

               The Company's  clients  primarily are Fortune 500 companies  with
significant  information  technology  budgets and recurring staffing or software
development needs. In 1998, the Company provided information technology services
to 768 clients.  During 1998, the Company's largest client,  AT&T, accounted for
8.8% of the Company's  consolidated revenues. The Company's next largest client,
Prudential,  accounted for 8.3% of the Company's  consolidated  revenues with no
other client accounting for more than 5% of such revenues.

               With the trend in the  commercial  market  moving  towards  fully
integrated information systems solutions, the Company offers its clients a broad
range of business and  technical  services as a service  outsourcer  and systems
integrator  capable of providing  complex total solutions.  This total solutions
approach  comprises   proprietary  software  and  tools,  proven  processes  and
methodologies,  tested project management  practices and resource management and
procurement programs.

               The Company offers a range of information technology services and
solutions,  which include (1) professional  services staffing,  (2) the solution
for the millennium change, (3) e-business  development services,  (4) enterprise
network management, (5) outsourcing, and (6) knowledge transfer.

               (1)  Professional  Services  Staffing:  Providing  highly skilled
software  professionals to augment the internal information management staffs of
major  corporations  remains the Company's primary business.  The Company offers
its clients  centralized vendor management,  supplying their staffing needs from
among the Company's over 4,000 software professionals.

               The Company is committed to expanding its  professional  services
staffing operations in conjunction with its solutions business.

               (2) Solution for the Millennium Change:  CHC's Signature 2000(TM)
offering combines an internally developed proprietary software toolkit,  skilled
resources,  proven  methodologies,  experienced project  management,  as well as
significant millennium project experience. It analyzes, locates, reports on, and
then restructures all programs and database  definitions affected by the absence
of a century date field to permit  processing of dates after  December 31, 1999.
The solution is customized  for each  particular  enterprise  and deals with all
collateral issues. In effect, CHC's Signature 2000(TM) provides the Company with
an opportunity to facilitate field expansion, and century date windowing,  while
simultaneously  performing other systems  upgrades such as language  conversions
and platform  migrations.  In addition,  CHC's Signature  2000(TM)  provides the
Company a fully  integrated  testing  solution  across all phases of the testing
life cycle,  including  Testing  Processes,  Software  Products and  experienced
management  and  technical  resources.  The Company also  provides a workstation
solution  for  the  Year  2000,  including  Asset  Management,   assessment  and
correction of spreadsheets and databases,  correction to the workstation clocks,
and third-party vendor compliancy assessment.

               To  manage  an  organization's  Year 2000  program,  the  Company
provides a fully integrated "Program Management Office" (PMO) approach.  The PMO
provides  a  complete  set of  processes,  templates  and  recommended  software
products to support the reporting,  risk  management,  contingency  planning and
program management across the enterprise.

               (3)  E-business   Development  Services:   The  Company  has  the
capability  to  develop  and  implement  open  computer   e-business   strategy,
architecture, and engineering,  design, implementation and operational services.
Such services include project management, selection of viable systems platforms,
creation of migration plans,  development of customized  software  applications,
and systems and database integration.

               (4) Enterprise  Network  Management:  As application  development
migrates  to  distributed  systems  platforms,  so too must the  disciplines  of
systems  management.  The Company's  enterprise network  management  offering is
comprised of experienced  technical  professionals  whose only business focus is
the  development  and  integration  of  centralized   management  platforms  for
mission-critical  distributed systems environments.  The Company's staff handles
large-scale  integration  projects,  including  those  requiring  vendor product
integration and custom software  development  associated with LAN/WAN monitoring
and control,  network  asset  management,  software  distribution  and help desk
support.

               (5)  Outsourcing:   Spurred  by  global   competition  and  rapid
technological  change,  large  companies,  in  particular,  are  downsizing  and
outsourcing for reasons ranging from cost reduction to capital asset improvement
and from improved technology introduction to better strategic focus. In response
to this trend, the Company has created a group of regional  outsourcing  centers
with 24 hour/7  day a week  support,  which are fully  equipped  with the latest
technology  and  communications,  as  well as a  complete  staff  that  includes
experienced  project managers,  technicians and operators.  These  professionals
facilitate essential data functions including: applications development, systems
maintenance, data network management, voice network administration and help desk
operations.

               (6) Knowledge  Transfer:  The Company's Education Division offers
custom-designed and/or existing courseware to enhance the competencies of client
staff in specific technologies,  languages,  methodologies and applications. The
prevailing  focus of the Company is to assist  clients  through  instructor-led,
on-site training and consulting and multimedia curricula in the transitioning IT
organization   of  Fortune  1000   corporations.   To  support  these   changing
technologies,  the Company  has  developed  extensive  curriculum  offerings  in
Operating Systems, Mainframe Technology,  Client/Server and Open Systems, Object
Orientation,      Application     Development,      Information     Engineering,
Internet/Intranet, and ERP packages.

Personnel

               As of December  3l,  1998,  the Company had a staff of 4,834,  of
whom  more  than  4,000  were  computer   professionals.   The  Company  devotes
significant  resources to  recruitment of qualified  professionals  and provides
continuing  in-house  training  and  education,  and a  career  path  management
development program within the Company.

Competition

               The Company  competes in the  commercial  information  technology
services market which is highly  competitive and served by numerous firms,  many
of which  serve  only  their  respective  local  markets.  The  market  includes
participants in a variety of market segments,  including systems  consulting and
integration firms, professional services companies,  application software firms,
temporary  employment  agencies,  the  professional  service  groups of computer
equipment  companies such as  Hewlett-Packard  Company,  Unisys  Corporation and
Digital Equipment Corporation,  facilities management and management information
systems ("MIS") outsourcing companies,  certain "Big Five" accounting firms, and
general  management  consulting  firms.  The Company's  competitors also include
companies  such  as  Andersen  Consulting,   Technology  Solutions  Corporation,
Cambridge Technology Partners, Inc., Cap Gemini America,  Business System Group,
the consulting division of Computer Sciences Corporation, Analysts International
Corp., CIBER, Inc., Computer Task Group Inc., and Keane Inc.

               Many  participants in the information  technology  consulting and
software  solutions market have significantly  greater financial,  technical and
marketing resources and generate greater revenues than the Company.  The Company
believes that the principal  competitive  factors in the commercial  information
technology  services industry include  responsiveness to client needs,  speed of
application software development,  quality of service, price, project management
capability  and technical  expertise.  Pricing has its greatest  importance as a
competitive  factor in the area of professional  service  staffing.  The Company
believes  that its  ability  to  compete  also  depends  in part on a number  of
competitive   factors  outside  its  control,   including  the  ability  of  its
competitors  to hire,  retain and  motivate  skilled  technical  and  management
personnel,  the ownership by competitors of software used by potential  clients,
the  price at which  others  offer  comparable  services  and the  extent of its
competitors' responsiveness to customer needs.

Item 2.   Properties

               The  Company's  Corporate  and  Financial  Headquarters,  its  IT
Services  Division,  its  Education  Division,  as well as its Eastern  Regional
Office,  comprising  approximately  63,000  square  feet,  are located at 49 Old
Bloomfield Avenue, Mountain Lakes, New Jersey. The Mountain Lakes leases are for
terms expiring  December 31, 1999, at a current  annual rental of  approximately
$1,101,000.  As of December 3l, l998, the Company also maintained  facilities in
Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana,
Iowa, Kansas, Kentucky, Maryland, Massachusetts,  Michigan, Minnesota, Missouri,
New Jersey,  New York, North Carolina,  Ohio,  Pennsylvania,  Tennessee,  Texas,
Washington,  Washington D.C. and Wisconsin, as well as international  operations
located in London and Toronto, with an aggregate of approximately 211,600 square
feet. The leases for these  facilities are at a current annual  aggregate rental
of approximately $4,035,000.  These leases expire at various times with no lease
commitment longer than September 30, 2006.

Item 3.   Legal Proceedings
               There are no material pending legal proceedings.

Item 4. Submission of Matters to a Vote of Security Holders
               None.

Executive Officers of the Company

               The following table sets forth certain  information  with respect
to the  executive  officers of the  Company,  who are elected to serve until the
next annual  meeting of the Board of Directors  and until their  successors  are
elected and qualify.  All the positions listed are or were held by such officers
with the Company.
<TABLE>
<CAPTION>
NAME                         AGE                      TITLE                   POSITION HELD
----                         ---                      -----                   -------------
<S>                          <C>             <C>                              <C>
John J. Cassese              54              Chairman of the Board            1982 - Present
                                              and President
                                              Director                        1969 - Present

William J. Murphy            54              Executive Vice President         1997 - Present
                                              and CFO

Michael J. Shea              38               Controller                      1995-Present
                                              Vice President                  1996-Present
</TABLE>
<PAGE>
                                     PART II

Item 5.  Market for Registrant's Common Equity
             and Related Stockholder Matters

               The  information  required  by this item is  contained  under the
caption  "Market and Dividend  Information"  in the  Company's  Annual Report to
Shareholders   for  the  year  ended  December  3l,  1998,   which  material  is
incorporated by reference in this Form 10-K Annual Report.

Item 6.  Selected Financial Data

               The  information  required  by this item is  contained  under the
caption "Selected Financial Data" in the Company's Annual Report to Shareholders
for the year  ended  December  3l,  1998,  which  material  is  incorporated  by
reference in this Form 10-K Annual Report.

Item 7.  Management's Discussion and Analysis of Financial
                 Condition and Results of Operation

               The  information  required  by this item is  contained  under the
caption "Management's Discussion and Analysis" in the Company's Annual Report to
Shareholders   for  the  year  ended  December  3l,  1998,   which  material  is
incorporated by reference in this Form 10-K Annual Report.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

               The  information  required  by this item is  contained  under the
caption "Management's Discussion and Analysis" in the Company's Annual Report to
Shareholders   for  the  year  ended  December  3l,  1998,   which  material  is
incorporated by reference in this Form 10-K Annual Report.

Item 8.  Financial Statements and Supplementary Data

               The  financial  statements  together  with the report  thereon by
Grant Thornton LLP, Independent  Certified Public Accountants,  appearing in the
Company's  Annual Report to  Shareholders  for the year ended December 31, 1998,
are incorporated herein by reference.  Such information is listed in Item 14(a)1
of this Form 10-K Annual Report.

Item 9.  Changes in and Disagreements with Accountants
             on Accounting and Financial Disclosure

               There have been no disagreements  with the Company's  independent
accountants involving accounting and financial disclosure matters.
<PAGE>
                                    PART III

Item 10.  Directors and Executive Officers of the Registrant

               (a)  The  information  called  for by Item  10  with  respect  to
identification  of directors of the Company is incorporated  herein by reference
to the material under the caption "Election of Directors" in the Company's Proxy
Statement for its 1999 Annual  Meeting of  Shareholders  which is expected to be
filed with the  Securities  and Exchange  Commission on or before April 12, 1999
(the "1999 Proxy Statement").

               (b)  The  information  called  for by Item  10  with  respect  to
executive officers of the Company is included in Part I herein under the caption
"Executive Officers of the Company".

Item 11.  Executive Compensation

               The information  called for by Item 11 with respect to management
remuneration  and  transactions  is  incorporated  herein  by  reference  to the
material under the caption "Executive Compensation" in the 1999 Proxy Statement.

Item 12. Security Ownership of Certain Beneficial Owners and Management

               The  information  called for by Item 12 with  respect to security
ownership of certain beneficial owners and management is incorporated  herein by
reference  to  the  material  under  the  caption  "Certain  Holders  of  Voting
Securities" in the 1999 Proxy Statement.

Item 13. Certain Relationships and Related Transactions

               None
<PAGE>
                                     PART IV

Item 14.  Exhibits, Financial Statement
               Schedules, and Reports on Form 8-K

          (a) 1. The following consolidated  financial statements,  appearing in
the Company's 1998 Annual Report to  Shareholders,  are  incorporated  herein by
reference.

-  Consolidated balance sheets as of December 3l, 1998 and 1997

-  Consolidated  statements  of income for each of the three years in the period
   ended December 31, 1998

-  Consolidated statement of shareholders' equity for each of the three years in
   the period ended December 31, 1998

-  Consolidated  statements  of cash  flows for each of the  three  years in the
   period ended December 31, 1998

-  Notes to consolidated financial statements

-  Report  of  independent  certified  public  accountants  on the  consolidated
   financial statements

                 2.  Schedule II - Valuation  and  qualifying  accounts  for the
years ended December 31, 1998, 1997 and 1996.

-  Report  of  independent   certified  public   accountants  on  the  financial
   statements  schedule.  All other  schedules are omitted  because they are not
   applicable or the required information is shown in the consolidated financial
   statements or notes thereto.
              
              3. The exhibit index

              4. Consent of Grant Thornton LLP

              (b) No reports on Form 8K have been filed  during the  quarter for
which this report is filed.
<PAGE>
                                   SIGNATURES


               Pursuant  to the  requirements  of  Section  13 or  15(d)  of the
Securities  Exchange Act of 1934,  the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

                                    COMPUTER HORIZONS CORP.


Date: March 31, 1999             By: /s/John J. Cassese
      --------------                 ------------------
                                     John J. Cassese, Chairman
                                     of the Board and President

               Pursuant to the  requirements  of the Securities  Exchange Act of
1934,  this report has been signed below by the  following  persons on behalf of
the registrant and in the capacities and on the dates indicated.

                                         COMPUTER HORIZONS CORP.


Date:  March 31, 1999                  By: /s/ John J. Cassese   
                                          ------------------- 
                                          John J. Cassese, Chairman
                                          of the Board and President
                                          (Principal Executive Officer) 
                                          and Director

Date:  March 31, 1999                  By: /s/ William J. Murphy 
                                          ----------------------
                                          William J. Murphy,
                                          Executive Vice President and CFO
                                          (Principal Financial Officer)

Date:  March 31, 1999                  By: /s/ Michael J. Shea 
                                          ----------------------
                                          Michael J. Shea
                                          Vice President and Controller
                                          (Principal Accounting Officer)

Date:  March 31, 1999                  By: /s/ Thomas J. Berry 
                                          --------------------
                                          Thomas J. Berry, Director


Date:  March 31, 1999                  By: /s/ William M. Duncan
                                          --------------------
                                          William M. Duncan, Director


Date:  March 31, 1999                  By: /s/ Rocco J. Marano 
                                          ------------------- 
                                          Rocco J. Marano, Director
<PAGE>
                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit          Description                                              Incorporated by Reference to
-------          -----------                                              ----------------------------
<S>              <C>                                                      <C>
3(a-1)           Certificate of Incorporation as                          Exhibit 3(a) to Registration
                 amended through 1971.                                    Statement on Form S-1 (File
                                                                          No. 2--42259).

3(a-2)           Certificate  of Amendment  dated                         Exhibit 3(a-2) to Form 10K
                 May 16, 1983 to  Certificate of                          for the fiscal year ended
                 Incorporation.                                           February 28, 1983.
                 
3(a-3)           Certificate  of Amendment  dated                         Exhibit 3(a-3) to Form 10K
                 June 15, 1988 to Certificate of                          for the fiscal year ended
                 Incorporation.                                           December 31, 1988.
                 
3(a-4)           Certificate  of Amendment  dated                         Exhibit 3(a-4) to Form 10K 
                 July 6, 1989 to  Certificate of                          for the fiscal year ended
                 Incorporation.                                           December 31, 1994.

3(a-5)           Certificate  of Amendment  dated                         Exhibit 3(a-5) to Form 10K
                 February 14, 1990 to Certificate of                      for the fiscal year ended
                 Incorporation.                                           December 31, 1989.

3(a-6)           Certificate  of Amendment  dated                         Exhibit 3(a-6) to Form 10K
                 May 1, 1991 to  Certificate  of                          for the fiscal year ended
                 Incorporation.                                           December 31, 1994.

3(a-7)           Certificate  of Amendment  dated                         Exhibit 3(a-7) to Form 10K 
                 July 12, 1994 to Certificate of                          for the fiscal year ended
                 Incorporation.                                           December 31, 1994.

3(b)             Bylaws, as amended and                                   Exhibit 3(b) to Form 10K for
                 presently in effect.                                     the year ended December 31,
                                                                          1988.

4(a)             Rights  Agreement  dated  as  of                         Exhibit  1 to Registration
                 July 6, 1989 between the                                 Statement on Form 8-A dated
                 Company and Chemical Bank, as                            July 7, 1989.
                 Rights   Agent   ("Rights   Agreement")   which
                 includes  the  form of  Rights  Certificate  as
                 Exhibit B.

4(b)             Amendment No. 1 dated as of                              Exhibit 1 to Amendment No.
                 February 13, 1990 to Rights                              1 on Form 8 dated February
                 Agreement.                                               13, 1990 to Registration
                                                                          Statement on Form 8-A.
<PAGE>
<CAPTION>
Exhibit          Description                                              Incorporated by Reference to
-------          -----------                                              ----------------------------
<S>              <C>                                                      <C>
4(c)             Amendment No. 2 dated as of                              Exhibit 4(c) to Form 10K
                 August 10, 1994 to Rights                                for the fiscal year ended
                 Agreement.                                               December 31, 1994.

4(d)             Employee's Savings Plan and                              Exhibit 4.4 to Registration
                 Amendment Number One.                                    Statement on Form S-8 dated
                                                                          December 5, 1995.

4(e)             Employee's Savings Plan Trust                            Exhibit 4.5 to Registration
                 Agreement as Amended and                                 Statement on Form S-3 dated
                 Restated Effective January 1,                            December 5, 1995.
                 1996.

10(a)            Employment Agreement dated as                            Exhibit 10(a) to Form 10K for
                 of February 16, 1990 between the                         the year ended December 31,
                 Company and John J. Cassese.                             1989.

10(b)            Employment Agreement dated as                            Exhibit 10(g) to Form S-3 dated
                 of January 1, 1997 between the                           August 14, 1997.
                 Company and William J. Murphy.

10(c)            Employment Agreement dated as                            Exhibit 10(c) to Form 10K for
                 of March 6, 1997 between the                             the year ended December 31,
                 Company and Michael J. Shea.                             1996.


10(d)            1991 Directors' Stock Option
                 Plan, as amended.


10(e)            1994 Incentive Stock Option and                           Exhibit 10(h) to Form 10K
                 Appreciation Plan.                                        for the fiscal year ended
                                                                           December 31, 1994.

10(f)            $15,000,000 Discretionary Line of  
                 Credit payable to Chase  Manhattan  
                 Bank dated as of June 30, 1998.    

10(g)            $10,000,000 Discretionary Line                            
                 of Credit from PNC Bank dated                             
                 as of June 5, 1998                                        

13               Annual Report to Security Holders,
                 parts thereof

21               List of Subsidiaries.
</TABLE>
<PAGE>
         REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS ON SCHEDULE

Board of Directors and Shareholders
  Computer Horizons Corporation


In  connection  with  our  audit of the  consolidated  financial  statements  of
Computer  Horizons  Corp.  and  Subsidiaries  referred  to in our  report  dated
February 15, 1999,  which is inlcuded in the 1998 Annual Report to  Shareholders
and  incorporated by reference in this Form 10-K, we have also audited  Schedule
II for each of the years ended December 31, 1998, 1997 and 1996. In our opinion,
this schedule presents fairly in all material respects, the information required
to be set forth herein.

GRANT THORNTON LLP

Parsippany, New Jersey
February 15, 1999
<PAGE>
                   Computer Horizons Corp. and Subsidiaries



                 SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

              For the years ended December 31, 1998, 1997 and 1996
<TABLE>
<CAPTION>
         Column A                           Column B              Column C            Column D            Column E
         --------                           -----------          ------------         -----------         -----------

                                              Balance at            Charged to                             Balance at
                                               beginning             costs and         Deductions -         end of
       Description                             of period             expenses          describe (1)         period
       -----------                          ----------------     -----------------   --------------       ----------
<S>                                            <C>                  <C>                    <C>             <C>       
Year ended December 31, 1998
      Allowance for doubtful accounts          $1,742,000           $                      $               $
                                               ==========           ========               ========        ==========


Year ended December 31, 1997
      Allowance for doubtful accounts          $1,203,000           $575,000              $  36,000        $1,742,000
                                               ==========           ========               ========        ==========


Year ended December 31, 1996
      Allowance for doubtful accounts          $  840,000           $487,000               $124,000        $1,203,000
                                               ==========           ========               ========        ==========
</TABLE>

Notes
-----

    (1)        Uncollectible accounts written off, net of recoveries.
<PAGE>
                    Computer Horizons Corp. and Subsidiaries

                             SELECTED FINANCIAL DATA

                             Year ended December 31,
<TABLE>
<CAPTION>
                                                           1998            1997            1996            1995            1994
                                                       ------------    ------------    ------------    ------------    ------------
                                                                  (dollar amounts in thousands, except per share data)
<S>                                                    <C>             <C>             <C>             <C>             <C>         
Revenues ...........................................   $    514,921    $    350,310    $    261,411    $    224,809    $    173,204

Costs and expenses:
    Direct costs ...................................        326,795         233,574         180,410         156,125         121,402
    Selling, general and administrative ............        113,035          74,165          59,677          48,837          38,534
    Merger-related expenses.........................          4,272             976
                                                       ------------    ------------    ------------    ------------    ------------
Income from operations .............................         70,819          41,595          21,324          19,847          13,268

Other income (expense):
    Interest income ................................          5,334           1,700             404             346              83
    Interest expense ...............................           (750)           (276)           (507)           (667)           (725)
    Equity in net earnings of
        joint venture ..............................            (90)             13             885             361
   Gain on sale of joint vewnture...................          4,180
                                                       ------------    ------------    ------------    ------------    ------------

Income before income
    taxes ..........................................         79,493          43,032          22,106          19,887          12,626

Income taxes .......................................         35,906          18,498           9,031           8,572           5,495
                                                       ------------    ------------    ------------    ------------    ------------

Net income .........................................   $     43,587    $     24,534    $     13,075    $     11,315    $      7,131
                                                       ============    ============    ============    ============    ============

Earnings per share:
      Basic ........................................   $       1.41    $        .89    $        .50    $        .47    $        .32
                                                       ------------    ============    ============    ============    ============

      Diluted ......................................   $       1.35    $        .85    $        .47    $        .44    $        .30
                                                       ------------    ============    ============    ============    ============

Weighted average number of shares outstanding:
        Basic ......................................     30,925,000      27,567,000      26,380,000      24,312,000      22,446,000
                                                       ============    ============    ============    ============    ============

        Diluted ....................................     32,230,000      28,999,000      27,932,000      25,823,000      23,952,000
                                                       ============    ============    ============    ============    ============
</TABLE>
<PAGE>
                    Computer Horizons Corp. and Subsidiaries

                       SELECTED FINANCIAL DATA (continued)

                             Year ended December 31,

<TABLE>
<CAPTION>
                                                           1998            1997            1996            1995            1994
                                                       ------------    ------------    ------------    ------------    ------------
                                                                  (dollar amounts in thousands, except per share data)
<S>                                                    <C>             <C>             <C>             <C>             <C>         
Analysis (%)
    Revenues ...................................             100.0%           100.0%          100.0%           100.0%        100.0%
        Gross margin ...........................              36.6             33.3            31.0             30.5          29.9
        Selling, general and
           administrative ......................              22.0             21.1            22.8             21.7          22.2
    Merger-related expenses.....................                .8               .3
    Income from operations .....................              13.8             11.9             8.2              8.8           7.7
        Interest income/(expense) - net ........                .9               .4                              (.1)          (.4)
        Equity in net earnings of joint
           venture .............................                                                 .3               .1
        Capital Gains ..........................                .8
        Income before income taxes .............              15.5             12.3             8.5              8.8           7.3
    Income taxes ...............................               7.0              5.3             3.5              3.8           3.2

Net income .....................................               8.5              7.0             5.0              5.0           4.1

    Revenue growth YOY .........................              47.0             34.0            16.3             29.8          31.3
    Net income growth YOY ......................              77.7             87.6            15.6             58.7          90.2
    Return on equity, average ..................              20.2             18.9            19.9             25.0          24.5
    Effective tax rate .........................              45.2             43.0            40.9             43.1          43.5

At year-end
    Total assets ...............................     $   296,052      $   217,625      $   96,610       $   63,096       $   54,521
    Working capital ............................         158,759          160,370          55,052           42,553           22,968
    Long-term debt .............................               0                0           1,442            3,324            4,346
    Shareholders' equity .......................         246,534          185,974          73,747           57,931           32,679

    Stock price ................................     $     26.63      $     45.50      $    25.67       $    16.89       $     4.00
    P/E multiple ...............................              19               51              51               36               13

Employees ......................................           4,834            3,794           3,228            2,830            2,419
Clients (during year) ..........................             768              549             556              538              545
Offices (worldwide) ............................              55               49              49               45               39
</TABLE>
<PAGE>




                        REPORT OF INDEPENDENT CERTIFIED
                         PUBLIC ACCOUNTANTS ON SCHEDULE



Board of Directors and Shareholders
   Computer Horizons Corp.



In  connection  with  our  audit of the  consolidated  financial  statements  of
Computer Horizons Corp. and Subidiaries referred to in our report dated February
15,  1999,  which is  included  in the 1998 Annual  Report to  Shareholders  and
incorporated  by reference in this Form 10-K.  We have also audited  Schedule II
for each of the years ended  December 31, 1998,  1997 and 1996.  In our opinion,
this schedule presents fairly in all material respects, the information required
to be set forth therin.






/s/GRANT THORNTON LLP
---------------------
GRANT THORNTON LLP


Parsippany, New Jersey
February 15, 1999