ADP Agrees to Sell Peachtree Software.

ROSELAND, N.J.--(BUSINESS WIRE)--Feb. 3, 1999--Automatic Data Processing, Inc. has reached a definitive agreement to sell its Peachtree Software business to The Sage Group plc, for $145 million, Arthur F. Weinbach, chairman and chief executive officer, announced today. The agreement is subject to regulatory approvals and is expected to close during the quarter ending March 31, 1999.

Peachtree is a leading provider of financial and accounting software for small businesses in the U.S. The Sage Group, based in Newcastle, England, is Europe's leading provider of small business financial and accounting software.

Commenting on the transaction, Mr. Weinbach said, "The complementary businesses of Peachtree and Sage provide Peachtree's clients and employees with a unique opportunity for future growth and development."

ADP had previously announced that Peachtree had filed a registration statement as part of a proposed initial public offering. Upon completion of the sale, the initial public offering filing will be withdrawn.

ADP, with over $4.5 billion in revenue and over 425,000 clients, is one of the largest independent computing services firms in the world.

This release contains "forward-looking statements" based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ from those expressed. Factors that could cause differences include: ADP's success in obtaining, retaining and selling additional services to clients; the pricing of products and services; overall economic trends, including interest rate and foreign currency trends; impact of Year 2000; stock market activity; auto sales and related industry changes; employment levels; changes in technology; availability of skilled technical associates; and the impact of new acquisitions.