ADP Reports 13% EPS Increase for Fiscal 1998; Expects 38th Consecutive Year of Double-Digit EPS Growth in Fiscal 1999.

ROSELAND, N.J.--(BUSINESS WIRE)--Aug. 13, 1998--Automatic Data Processing, Inc. achieved record revenue and earnings in its fourth quarter and fiscal year ended June 30, 1998, Arthur F. Weinbach, chairman and chief executive officer, announced today. This represents ADP's 37th consecutive year of double-digit earnings per share growth and the 148th consecutive quarter of record highs in both revenue and earnings per share since becoming a public company in 1961.

For fiscal 1998, revenue increased 17% to $4.8 billion. Prior to non -recurring items recorded in the fourth quarter of fiscal 1997, pretax earnings increased 17%, net earnings advanced 15% and basic earnings per share increased 13% to $2.04 from $1.80 last year. Last year's basic per share earnings, after non-recurring items, were $1.76.

Commenting on overall results, Mr. Weinbach said, "We had a very good year in 1998. Revenue growth for the year in Employer, Brokerage, Dealer and Claims Services was 21%, 23%, 7% and 13%, respectively. Employer Services' accelerated internal growth rate from excellent sales and retention results and very high Brokerage Services' trade and investor communication volumes were highlights of an excellent year. We are especially pleased that our excellent earnings growth was after significant new investments in business expansion and world class service.

"Our market leadership, positive momentum and the significant potential in our core businesses favorably position us for continued success. We expect 1999 to be our 38th consecutive year of double-digit earnings per share growth. For fiscal 1999, ADP expects double-digit revenue growth, improved operating margins and pretax earnings growth in excess of 15%. With a slightly higher anticipated tax rate and increased shares outstanding in 1999, we expect both basic and diluted EPS growth in the area of 13-16% above 1998's levels," Mr. Weinbach concluded. -0-

Below is a summary of comparative results:

                     Three Months Ended            Year Ended
                           June 30,                  June 30,
                      1998         1997         1998          1997

                         (000's omitted except per share data)

Revenue(R)         $1,302,208   $1,079,597   $4,798,061    $4,112,186

Earnings
 before income
  taxes (R)        $  237,160   $  174,570   $  884,200    $  724,010
Provision
 for income
  taxes            $   75,260   $   46,860   $  278,900    $  210,510
Net earnings(R)    $  161,900   $  127,710   $  605,300       513,500
Average shares
 outstanding          301,405      292,639      296,878       290,990
Basic earnings
 per share (R)     $      .54   $      .44(a)$     2.04    $     1.76(a)
Diluted
 net earnings (R)  $  163,082   $  130,539   $  613,133    $  524,802
Diluted
 shares outstanding   312,930      308,076      310,411       306,659
Diluted earnings
 per share (R)     $      .52   $      .42(a)$     1.98    $     1.71(a)

(R) Record high

(a) Non-recurring items in the fourth quarter of fiscal 1997 reduced both basic and diluted earnings per share by $.04.

ADP, with over $4 billion in revenue and over 425,000 clients, is one of the largest independent computing services firms in the world.

    CONTACT:  Arthur Schmidt & Associates, New York
               212/953-5555