ADP Reports Record First Fiscal Quarter; EPS Increases By 14%.

ROSELAND, N.J.--(BUSINESS WIRE)--Oct. 11, 1996--Automatic Data Processing, Inc. achieved record revenue and earnings in its first quarter of fiscal 1997, Arthur F. Weinbach, president and chief executive officer, announced today. This represents ADP's 141st consecutive quarter of record highs in both revenue and earnings per share.

Revenue was $911 million in the quarter ended September 30, 1996, up 22% from last year. Pretax earnings increased 19% and net earnings increased 14% on a higher effective tax rate. Earnings per share increased 14% to $.32 from $.28 last year.

Commenting on the first quarter, Mr. Weinbach said, "Revenue growth in our core businesses, Employer, Brokerage, Dealer and Claims Services, was 23%, 12%, 21% and 21%, respectively. Consolidated margins decreased slightly in the quarter, as expected, because of the impact of prior year acquisitions.

"We are especially pleased to have completed three very important strategic acquisitions during the quarter. With the acquisition of Staff Management Systems we were able to enter the fast growing employee leasing market; Health Benefits America enabled us to broaden our position in the large benefits outsourcing market, and the acquisition of JDC gives us a clear number one market position as the leading provider of auto dealer services in Europe.

"We are pleased with our results and our outlook. While we anticipate revenue growth will slow in the second half of the year as we pass the anniversary date of last year's GSI acquisition, we expect consolidated margins to improve. For the full fiscal year we continue to expect double-digit revenue growth and about 15% growth in earnings per share." -0-

Below is a summary of unaudited comparative results.

                                       Three Months Ended
                                            Sept. 30,
                                        1996         1995
                              (000's omitted except per share data)

Revenue (R)                         $  910,730  $  747,094

Earnings before income taxes (R)    $  132,100  $  110,800

Provision for income taxes          $   38,820  $   28,900

Net earnings (R)                    $   93,280  $   81,900

Earnings per share(R)               $      .32  $      .28

Average shares outstanding     288,368     287,714

(R)  Record high

ADP, with over $3.5 billion in revenue and more than 375,000
clients, is one of the largest independent computing services firms
in the world.

CONTACT: Arthur Schmidt & Associates, Inc.

212/953-5555