ADP Expands Fund Administration Services to Better Service Fund Management Marketplace.

Business Editors

JERSEY CITY, N.J.--(BUSINESS WIRE)--April 16, 2001

ADP Brokerage Services Group (ADP BSG), a division of Automatic Data Processing, Inc. (NYSE: ADP), today announced a major expansion in ADP's Fund Administration business.

The expanded service bureau offering allows Hedge Funds, Fund of Funds, and other Alternative Asset Managers to outsource their entire back office operations and accounting functions, significantly reducing the cost to process these transactions.

"The ADP Treasury Service Bureau allows fund managers to focus on their core business: managing money and acquiring new assets," commented Chris Zuech, ADP's Vice President of Fund Accounting. "It provides our clients with a secure and controlled operating environment, virtually eliminating a client's operational risk. It also offers a fully scalable solution that is volume and asset insensitive, and one that can be customized to meet each fund manager's specific needs."

The ADP Service Bureau provides full back office support, including fund accounting, trade and position reconciliation, and daily net-asset value calculations.

ADP is "uniquely qualified" to offer clients secure back office services, according to Zuech, "because we are a financial services outsourcing company, not a broker-dealer or investment advisor. Our clients can be confident that our business plan will not conflict with their objectives."

ADP entered the Fund Administration business through its acquisition of OMR Systems in 1999, which has been providing full back office services to some of the largest financial institutions in the world for more than 15 years. The ADP Treasury Service Bureau currently services more than 160 domestic and international hedge funds and investment advisors, and reconciles more than 1,400 brokerage accounts every day. "Our extensive experience and expertise in this market sector makes ADP's outsourcing solution the most attractive option available in the marketplace. No competitor can offer clients this level of expertise, experience, and security," Zuech concluded.

About ADP and its Brokerage Services Group

As the premier provider of transaction services to the financial industry, ADP Brokerage Services Group has the capacity and technological expertise to assist its clients in differentiating themselves in the marketplace. It brings to financial intermediaries advanced, integrated systems for transaction processing, desktop productivity and investor communication services, all focused on providing unique solutions for global straight through processing and World Class Service. ADP brokerage continually uses technological advancements to develop innovative products that meet the long-term business needs of its clients.

As a leading outsourcing vendor, ADP is leveraging its position to provide competitive, cost-effective services to its clients worldwide. With over $6 billion in annual revenues and more than 500,000 clients, ADP is one of the largest independent computing services firms in the world. For more information about ADP Brokerage Service Group and our Fund Administration product please visit our web site at www.bsg.adp.com and for other ADP services and investor information please visit www.adp.com.