ADP/SIS Partners with DTCC to Streamline Tax Reporting for 12,000+ Mutual Funds, REITS.

NEW YORK -- ADP Securities Industry Software (ADP/SIS), a division of Automatic Data Processing, Inc.'s (NYSE: ADP) Brokerage Services Group, announced it is teaming up with The Depository Trust & Clearing Corporation (DTCC) to streamline year-end tax reporting for its clients on more than 12,000 mutual funds, real estate investment trusts (REITs) and other securities whose tax status is frequently reclassified at year-end.

ADP/SIS clients that are DTC participants will now have access to the depository's Domestic Tax Reporting Service (DTax), which provides vital year-end tax reclassification information to financial institutions, significantly streamlining their 1099 reporting to customers. DTax replaces the cumbersome, manual collection of this information by fax and phone. DTax information will flow directly into ADP/SIS's year-end reporting system, where ADP/SIS clients can view the information and use it to perform bulk adjustments on the affected transactions.

"With the 2004 tax reporting season quickly approaching," said William J. Salva, group director of DTCC's Tax Product Management group, "we recognize the importance of extending the reach of our tax information products. We teamed up with ADP/SIS to give another group of customers easier and more cost-effective access to our year-end tax reclassification information."

David Swift, senior vice president and general manager of ADP/SIS noted, "ADP/SIS is excited to add DTCC's DTax product to the list of tax reporting services we provide to our clients. The number of income reclassifications has increased dramatically in the past few years, adding to our clients' already burdensome year-end workload. Getting the information from a source as reliable as DTCC will not only streamline the process, but will result in more accurate tax reporting for our clients."

DTax was introduced for tax year 1998 in response to requests from numerous customers to replace their existing costly, paper-intensive processes. In addition to DTax, DTCC provides a range of automated tax solutions to give customers the tools and information needed to keep up with evolving international tax regulations, income tax treaty provisions and withholding requirements.

About ADP Brokerage Services Group

As the premier provider of transaction services to the financial industry, ADP has the capacity and technological expertise to assist its clients in differentiating themselves in the marketplace. ADP brings to financial intermediaries advanced, integrated systems for securities processing, desktop productivity and investor communication services, all focused on providing solutions for straight through processing and World Class Service.

ADP, with $7.8 billion in revenues and approximately 550,000 clients, is one of the largest independent computing services firms in the world. For more information about ADP Brokerage Services Group, please visit our web site at www.bsg.adp.com and for other ADP services and investor information, please visit www.adp.com.

ADP/SIS specializes in serving discount and electronic-based retail brokerages, as well as correspondent clearing, day trading, regional broker dealers, banks and institutional firms. For more information about ADP/SIS, please visit our web site at www.sis.adp.com.

About DTCC

The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities and over-the-counter derivatives. DTCC's depository also provides custody and asset servicing for more than two million securities issues from the United States and 100 other countries and territories. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC has operating facilities in multiple locations in the United States and overseas. For more information on DTCC, visit www.dtcc.com.