ADP Partners with Microsoft to Offer a Payroll Solution for the 'Do-It-Yourself' Customer; Solution combines the strength of ADP's service and payroll expertise with Microsoft's industry leading software

Business Wire, Nov 5, 2004

ROSELAND, N.J. -- ADP(R) Small Business Services, part of the Employer Services division of Automatic Data Processing, Inc. (NYSE:ADP), a leading provider of payroll and human resources services, today announced the beta launch of a new solution, ADP Payroll for Microsoft Office Small Business Accounting (ADP Payroll). ADP Payroll will be available as part of a new Microsoft Office edition optimized for small business management, which will include Microsoft Office Small Business Accounting, a new financial management solution, and an updated version of Microsoft Office Outlook 2003 with Business Contact Manager. The joint solution is designed for small business owners and accountants who seek an integrated accounting, payroll and tax processing software application. The offering will be available beginning in late calendar 2005.

ADP Payroll combined with the new Microsoft Office Small Business Accounting will provide a flexible hosted payroll and tax processing solution that enables self-serve users to handle all aspects of the payroll function and calculate federal, state and local taxes. Users will have the opportunity to purchase the payroll application online once they have installed Microsoft Office Small Business Accounting, and will be able to choose the level of service and support they would like. As a key part of the new edition of Microsoft Office for small business management, this offering will provide small companies with an end-to-end solution to better manage their daily business processes.

"ADP is focused on providing small businesses with a choice of the best and most innovative business solutions and services for payroll and taxes," said S. Michael Martone, Group President, ADP Employer Services. "This product combines our extensive payroll and service expertise with Microsoft's software and distribution capabilities to provide small businesses and accountants an integrated accounting, payroll and tax processing solution."

The payroll and tax processing application will be easy to set-up, and will feature an intuitive user interface that matches the experience of using the Microsoft Office Small Business Accounting package. In addition to automating and streamlining the payroll and tax filing process, the product will transfer timesheet data into the payroll application and payroll and tax information into the Microsoft Office Small Business Accounting general ledger. This real-time, seamless transfer of information translates into time and cost efficiencies for small businesses.

"ADP has a deep understanding of the needs of the small-business market, and a proven track record in providing comprehensive payroll-related services that meet their needs," said Rajat Taneja, General Manager for Microsoft Business Solutions at Microsoft Corp. "By integrating ADP's payroll platform into Microsoft Office Small Business Accounting, part of our new Microsoft Office edition, we're adding a new dimension to our customers' business operations. They will have the ability to control and manage their company's payroll as an integrated part of their Office tools. We believe the combination of offerings from two market leaders will help redefine business management for small businesses."

ADP Small Business Services provides accurate and convenient payroll and integrated business solutions for accountants and small businesses. Its offerings include payroll management, tax and compliance, human resource management, benefits administration, time and labor management and insurance services. For more information about ADP's accountant or small business offerings call 1-866-4ASK-ADP (1-866-427-5237), or visit www.accountant.adp.com or www.sbs.adp.com.

About ADP

Automatic Data Processing, Inc. (NYSE:ADP), with $7.8 billion in revenues and approximately 550,000 clients, is one of the largest independent computing services firms in the world. ADP Employer Services (ES), a division of ADP, Inc., is a leading provider of integrated business administrative solutions that help its over 475,000 clients efficiently manage their internal processes, allowing them to focus on core competencies. ADP Employer Services' offerings include both traditional and Web-based outsourcing products and services, giving clients the ability to select from ADP's comprehensive range of World Class Service solutions. Services include: payroll, tax regulatory management, HRMS, benefit administration, time and labor management, retirement plan services, online recruiting, PEO services, and employment screening and selection. For more information about ADP Employer Services, or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.adp.com.