ADP Increases Corporate 529 College Savings Choices; Extension Enables Customers To Provide Multiple College Savings Programs On A Single Integrated Payroll Platform.

Business Editors

ROSELAND, N.J.--(BUSINESS WIRE)--July 28, 2003

ADP(R), Employer Services (ES) division, a leading provider of integrated human resources, benefits, and payroll systems, today announced the expansion of its industry-leading 529 payroll deduction platform with two additional premier 529 program managers, Banc of America Capital Management and PIMCO Advisor. ADP clients will now be able to choose from a portfolio of 529 college savings plans that are fully automated and integrated with payroll services. 529 college savings plans are college investment programs that offer individuals a tax-advantaged way to save for qualified higher education costs. Corporate-sponsored 529 programs help attract and retain employees by offering direct-pay deduction into 529 college savings plans at a time when economic uncertainty makes the rising cost of education a concern among many American workers.

"Since we launched nationally our 529 payroll deduction program last year, employers have responded positively to this exciting new benefit and the ease that ADP brings to the administrative process," said Joe Grana, Vice President of Marketing, ADP 529 Services. "We were asked, however when additional 529 plans would be available through our program." Grana added, "Now, we're pleased to announce that by aligning ourselves with the some of the finest companies in the financial services industry, we're able to offer employees more choice without increasing the administrative burden."

With the initial success of its Alliance Capital offering, ADP has added new nationally-available 529 College Savings Plans including: The Future Scholar Program (managed by Banc of America Capital Management and administered by the Office of the State Treasurer of the State of South Carolina), and CollegeAccess 529 Plan (managed by PIMCO Advisors Distributors and sponsored by the State of South Dakota). Full integration of these programs with the ADP 529 payroll deduction platform was achieved through joint development with PFPC Inc., a member of the PNC Financial Services Group and a premier third-party 529 record keeper and service provider for these plans. CollegeBoundfund (managed by Alliance Capital and sponsored by the State of Rhode Island) was ADP's first 529 partner and continues to be an industry leader. All of the 529 College Savings Plans on ADP's 529 Payroll Deduction Platform are available nationwide to both residents and non-residents of the sponsoring state.

"Joining forces with ADP to payroll enable the Future Scholar 529 College Savings Plan was a natural next step in the evolution of our plan. This feature benefits clients with both expert 529 investment management services through Banc of America Capital Management and full payroll integration through ADP, all in one seamless process," said Beth Hetzel, Managing Director Product Management, Banc of America Capital Management. "The efficiencies provided through the ADP platform will help differentiate our product in the competitive 529 corporate market space."

ADP's 529 Payroll Deduction Program was introduced in August 2002 and simplifies the set-up and on-going administration related to offering this service. ADP's solution enables automatic set-up, payroll deductions, changes and transfer of 529 funds to the program manager. This eliminates the need for the client's HR department to perform these tedious functions thereby allowing employers to implement a key employee benefits at minimal cost - both in terms of dollars and resources. Customers also benefit from increased screening for invalid accounts and incorrect purchases, and the enhanced client and participant reporting that payroll deduction processing allows. The solution also includes a customized employee self-service Web site and live educational and enrollment support.

"Corporate-sponsored 529 College Savings Plans are a relatively new area with untapped potential," said Stephen Jobe, Senior Vice President, Marketing, PIMCO Advisors. "By partnering with ADP, we combine two industry leaders. This pairing leverages ADP's strength in payroll integration, and money movement with PIMCO's expertise in financial management. The beneficiaries are our mutual clients that receive a superior 529 plan that is easy to set-up and administer."

For more information about ADP's 529 Payroll Deduction Program for college savings contact 1-800-565-0367 ext. 527 or visit the company's Web site at www.adp529.com. Plan providers/administrators can learn more about ADP's 529 Partners Program by calling 973-974-2124.

About ADP

Automatic Data Processing, Inc. (NYSE:ADP) is one of the largest independent computing services firms in the world, with $7 billion in revenue and 500,000 clients. ADP Employer Services (ES), a division of ADP, Inc., is a leading provider of integrated business administrative solutions that help its over 450,000 clients efficiently manage their internal processes, allowing them to focus on core competencies. ADP Employer Services' offerings include both traditional and Internet-based outsourcing products and services, giving clients the ability to select from ADP's comprehensive range of World Class Service solutions. Services include: payroll, tax regulatory management, HRMS, benefits administration, time and labor management, retirement plan services, online recruiting, PEO services, and employment screening and selection. For more information about ADP Employer Services, or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.adp.com.