ADP REPORTS 17% EARNINGS PER SHARE INCREASE FOR FISCAL 1995; EXPECTS ABOUT 15% EARNINGS PER SHARE AND REVENUE GROWTH IN FISCAL 1996.

ROSELAND, N.J.--Aug. 14, 1995--(BUSINESS WIRE)--Automatic Data Processing, Inc. achieved record revenue and earnings in its fourth quarter and fiscal year ended June 30, 1995, Josh S. Weston, chairman and chief executive officer, announced today. This represents ADP's 136th consecutive quarter of double-digit earnings per share growth since becoming a public company in 1961.

For fiscal 1995, revenue increased 17% to $2,893,742,000. Earnings per share increased 17% to $2.77 from $2.37. Pretax earnings increased 20% as margins improved from productivity gains and higher interest rates; net earnings advanced 18%.

In the fourth quarter, revenue increased 20% to $799,870,000 and earnings per share increased 16% to $.74 from $.64 last year. Pretax earnings increased 20% and net earnings advanced 17%.

Commenting on overall results, Mr. Weston said, "ADP's revenue and earnings per share growth rates in 1995 were our best in many years. Revenue growth in Employer, Brokerage and Dealer Services was 13%, 8% and 32%, respectively. The strong revenue growth rates in Employer and Dealer Services were from increased market penetration, an expanded array of products and services, improved client retention and several small but strategic acquisitions.

"The leadership positions and untapped potential of our core businesses favorably position us for continued success. For fiscal 1996 ADP expects growth of about 15% in both revenue and earnings per share."

ADP, with approximately $3 billion in revenue and more than 350,000 clients, is one of the largest independent computing services firms in the United States.

Below is a summary of unaudited comparative results.

Three Months Ended Year Ended

June 30 June 30,

1995 1994 1995 1994

(000's omitted except per share data)

Revenue (R) $ 799,870 $ 664,917 $ 2,893,742 $ 2,468,966 Earnings before income taxes and cumulative effect of accounting changes (R) $ 144,490 $ 120,410 534,280 446,330 Provision for income taxes $ 38,550 $ 29,970 $ 139,450 $ 112,210 Net earnings before cumulative effect of accounting changes(R) $ 105,940 $ 90,440 $ 394,830 $ 334,120 Cumulative effect of accounting changes $ --- $ --- --- (4,800)(A) Net earnings (R) $ 105,940 $ 90,440 $ 394,830 $ 329,320 Earnings per share: Before cumulative effect of accounting changes (R) $ .74 $ .64 $ 2.77 $ 2.37 Cumulative effect of accounting changes $ --- $ --- $ --- $ (.03)(A) Net income (R) $ .74 $ .64 $ 2.77 $ 2.34 Average shares outstanding 144,113 140,662 142,556 140,890 (R) Record high (A) Reflects the adoption of certain non-recurring accounting changes required by FASB.

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