ADP Awarded Leadership and Performance Honor From the IRS.

ROSELAND, N.J.--(BUSINESS WIRE)--Oct. 21, 1998-

Excellence of Company's Electronic Business Filing Systems Cited

Automatic Data Processing Inc. (ADP (R)), the world's leading provider of integrated human resources, benefits and payroll services, was honored with a first-ever Electronic Tax Administration (ETA) performance award from the Internal Revenue Service (IRS). ADP's leadership, partnership and excellence in developing electronic filing systems for employment taxes were singled out.

According to the IRS, ADP's work with the agency was recognized as "revolutionizing how taxpayers transact and communicate with the IRS" - paving the way for the future. The IRS cited ADP for its industry leadership in pioneering the filing system conversion from magnetic tape to Electronic Data Interchange (EDI). The company was also honored for its "consistently excellent transmission success rate of 99.9 percent."

"As a dedicated partner, ADP is consistently meeting our highest expectations, helping promote our product lines to businesses, and successfully taking electronic filing and electronic payment programs from pilots to fully integrated systems," said Robert Barr, Assistant Commissioner of IRS ETA. "We are proud of our relationship with ADP , and appreciate their dedication, consistency and excellence."

ADP was the IRS' largest pilot partner in its effort to develop a sophisticated, next generation system for electronic filing of employment taxes, for example, Form 941. ADP played a key role in developing the EDI implementation standards and expanding the capacity of the systems which enabled national release of the new filing system.

"We are pleased with this recognition, and value the opportunity to help the IRS develop electronic tax filing systems for businesses," said Ray Marlinga, Senior Vice President and General Manager of ADP's Tax and Financial Services Center. "More importantly, by working with the IRS to implement these systems, we are providing the best possible quality and services to our mutual clients, the business taxpayer."

ADP's Tax Filing Service is part of the company's Tax and Financial Services Center, which has more than 800 dedicated ADP associates who manage complicated administrative and regulatory issues on behalf of ADP clients. Other services offered by the Tax and Financial Center include Unemployment Compensation Services(TM), Full Service Direct Deposit(TM), ADP Check(TM), New Hire Reporting, and Wage Garnishment Processing Service.

ADP electronically files business taxes for over 325,000 clients - an industry record.

About ADP

Automatic Data Processing (NYSE:AUD) is one of the largest independent computing services firms in the world, with more than $4.5 billion in annual revenues and more than 425,000 clients. ADP provides computerized transaction processing, data communications, software and information services in virtually every industry. ADP Employer Services is the world's largest provider of payroll services and human resource administration systems. It offers a comprehensive range of benefits, payroll and business tax deposit and reporting, time and attendance, 401(k) recordkeeping and unemployment compensation management services.

In addition, ADP provides securities transaction processing and investor communications services to the brokerage and financial communities, industry-specific computing and consulting services to auto and truck dealers and computerized automated auto-repair estimating and auto parts availability services to the auto-repair industry.