ADP REPORTS RECORD THIRD-QUARTER REVENUE AND EARNINGS; EPS INCREASES BY 14% BEFORE IMPACT OF NON-RECURRING CHARGE.

ROSELAND, N.J.--(BUSINESS WIRE)--April 11, 1996--Automatic Data Processing, Inc. achieved record revenue and earnings in its third quarter of fiscal 1996, Josh S. Weston, chairman and chief executive officer, announced today. The quarter's results mark ADP's 139th consecutive quarter of record highs in both revenue and earnings per share.

Revenue was $1,031,864,000 in the quarter ended March 31, 1996, up an unusually strong 29% from last year. About half of the revenue growth is from the recently completed acquisition of GSI. The quarter was also aided by exceptionally strong Brokerage trading volume. Pretax earnings increased 18%, and net earnings increased 15% after the effect of a higher tax rate. Earnings per share, on increased shares outstanding, grew 14% to $.50 before a Federal Trade Commission claim settlement which reduced quarterly earnings per share by $.01. Per share earnings, after the non-recurring charge, grew 11% to $.49 from $.44 last year.

Commenting on the third quarter, Mr. Weston said, "Revenue growth of our three largest businesses, Employer, Brokerage and Dealer Services, was strong at 21%, 19% and 29%, respectively. Each includes some acquisitions. As expected, several acquisitions currently have very low operating margins but should improve as we integrate them into ADP's operations.

"As previously disclosed, the acquisition of GSI, a leading European computer services company, will dilute ADP's fiscal 1996 earnings per share by 1% to 2%.

"Fourth-quarter revenue growth will be less than in the third quarter as several acquisitions pass their first anniversary. The absence of non-recurring items should improve fourth-quarter EPS growth. For the full year, we continue to expect revenue growth over 20% and earnings per share growth close to 15%."

ADP, with over $3 billion in revenue and 350,000 clients, is one of the largest independent computing services firms in the world. -0-

                              Three Months Ended    Nine Months Ended
                                  March 31,             March 31,
                               1996       1995      1996        1995
                               (000's omitted except per share data)

Revenue (R)                 $1,031,864 $ 798,989 $2,598,681 $2,093,872
Earnings before income
 taxes (R)                  $  199,910 $ 169,090 $  461,310 $  389,790
Provision for income taxes  $   56,010 $  43,820 $  126,610 $  100,900
Net earnings (R)            $  143,900 $ 125,270 $  334,700 $  288,890
Earnings per share(a)(R)    $      .49 $     .44 $     1.16 $     1.02
Average shares outstanding     291,311   287,092    289,020    284,038

(a)  Includes a 1996 non-recurring charge of $.01 per share
(R)  Record high

CONTACT: Arthur Schmidt & Associates Inc., New York 

212/953-5555