Hewitt Associates to Provide HR BPO Services to Mervyns; Firm Expands Retail Client Base in HR BPO

Business Wire, July 18, 2005

LINCOLNSHIRE, Ill. -- Hewitt Associates, a global human resources services firm, announced today it will provide comprehensive HR business process outsourcing (BPO) services to Mervyns, a California-based retailer with more than 250 department stores in 13 states. Mervyns represents Hewitt's second HR BPO retail client, joining Circuit City.

Under a seven-year agreement, Hewitt will provide HR, payroll, defined contribution (401k), and health and welfare administration services to more than 29,000 of Mervyns' U.S. employees. The recent sale of Mervyns and transition to an independent company led them to explore HR BPO as an option.

"We needed to develop a completely new HR infrastructure very quickly, so rather than building it ourselves, we turned to the expert," said Kari Heerdt, Senior Vice President of Human Resources, Mervyns. "Hewitt demonstrates the same type of passion and expertise for HR that we do in serving our customers. We're excited to partner with Hewitt to build a new, efficient and effective HR infrastructure."

"Mervyns was looking for an HR BPO provider with significant breadth and depth to help build its HR function from the ground up," said Bryan Doyle, Hewitt's President of HR Outsourcing. "We are honored they chose to partner with Hewitt and look forward to providing their employees with world-class HR service."

Financial terms of this deal were not disclosed.

About Mervyns

Mervyns LLC, headquartered in the San Francisco Bay Area, is a family-friendly promotional neighborhood department store offering trend-right fashions and home decor for the entire family at affordable prices. With 255 locations in 13 states, Mervyns has a well-earned reputation for its extensive selection of national and private-label fashions and housewares. Community giving has been a cornerstone of the company's business since 1949, with a focus on improving the lives of children and families by giving back to educational programs in its communities. For a list of store locations, or for additional information, visit Mervyns' website at www.mervyns.com.

About Hewitt Associates

With more than 60 years of experience, Hewitt Associates (NYSE: HEW) is the world's foremost provider of human resources outsourcing and consulting services. The firm consults with more than 2,300 companies and administers human resources, health care, payroll and retirement programs on behalf of more than 300 companies to millions of employees and retirees worldwide. Located in 35 countries, Hewitt employs approximately 20,000 associates. For more information, please visit www.hewitt.com.