ADP Integrated Medical Solutions Acquires QRS Managed Care Services Inc.; Acquisition Creates `One-Stop Shopping' for Workers' Comp, Managed Care Review Services.

BETHESDA, M.D.--(BUSINESS WIRE)--July 29, 1999--

To give workers' comp payers a one-stop shopping option and streamline their sizeable claims review responsibilities, ADP Integrated Medical Solutions (IMS), a leading provider of medical cost management systems, has acquired QRS Managed Care Services (QRS) Inc.

"This acquisition represents another significant step forward in the workers' compensation claims arena for ADP in response to employers' increasing concerns over the ability to bring greater control to this volatile cost area," said Arthur F. Weinbach, chairman and chief executive officer of Automatic Data Processing (ADP) Inc.

The QRS purchase is the second workers' comp company acquisition for the ADP strategic business unit following a 1998 purchase of a leading workers' comp claims software provider.

"The acquisition of QRS represents an integral part of ADP IMS' initiative into workers' comp outsourcing," said Gary Twigg, executive vice president and general manager of Bethesda-based ADP IMS. "The end result is a real value for payers and their partners who are looking for opportunities to consolidate, under one roof, the multiple claims services disciplines required by workers' comp."

QRS' services include telephonic and field-based case management, provider networks, medical bill review, precertification, utilization review and vocational rehabilitation. These services complement ADP IMS' fully integrated approach to medical claims cost containment in the workers' comp, medical, and auto insurance marketplace.

"QRS is proud to become part of a world class service organization, which will enable us to be the market leader in Workers' Compensation Managed Care," said Joseph Fox, founder of QRS and vice president and general manager of the newly formed strategic business unit. "Partnering with ADP/IMS will give us the opportunity to combine technology and innovative solutions to enhance and exceed the expectations of our clients and employees."

Founded in 1989, QRS provides medical cost containment and managed care services to insurance companies, third party administrators, government agencies and employers. The majority of QRS' business nationwide is in the workers' comp market, in addition to serving the auto insurance arena. QRS has more than 100 major customers and 220 employees. QRS has headquarters in Norristown, Pa., with offices in New Jersey, West Virginia, Florida, Tennessee, Georgia and North Carolina. QRS has headquarters at 2435 Boulevard of the Generals, Suite 200, Norristown, PA 19403, 610/631-7000.

ADP IMS provides the insurance industry and their business partners with a fully integrated approach to medical claims management. The company's areas of expertise include information management, managed care and bill review services. ADP IMS provides the workers' compensation, medical and auto insurance industries with integrated, neutral and independent information services for medical claims management.

ADP IMS is a strategic business unit of Roseland, N.J.-based Automatic Data Processing Inc., (NYSE:AUD) one of the largest independent computing services firms in the world with more than $5 billion in annual revenue and more than 425,000 clients.

ADP IMS has headquarters at 10401 Fernwood Road, Suite 250, Bethesda, MD 20817-1110; 800/205-8881. More information can be obtained about ADP IMS at the company's Web site at http://www.csg.adp.com.