ADP Reports Record First Fiscal Quarter; EPS Increases by 13%.

ROSELAND, N.J.--(BUSINESS WIRE)--Oct. 14, 1997--Automatic Data Processing, Inc. achieved record revenue and earnings in its first quarter of fiscal 1998, Arthur F. Weinbach, president and chief executive officer, announced today. This represents ADP's 145th consecutive quarter of record highs in both revenue and earnings per share.

Revenue was $1,038 million in the quarter ended September 30, 1997, up 14% from last year. Pretax earnings increased 16% and net earnings increased 13% on a higher effective tax rate. Earnings per share increased 13% to $.36 from $.32 last year.

Commenting on the first quarter, Mr. Weinbach said, "Revenue growth in each of our core businesses, Employer, Brokerage, Dealer and Claims Services, was 20%, 19%, 9% and 11%, respectively. Highlights of the solid quarter include strong new business sales in Employer Services as well as high Brokerage trade volumes.

"We are especially pleased to have completed three very important strategic acquisitions since our fiscal year-end. The acquisition of Royal Bank of Canada's $50 million payroll and human resource services business solidifies our position as the premier provider of payroll, human resource, and employer services in Canada. The acquisition of a majority interest in a leading provider of payroll, human resource and accounting services in Brazil, with $60 million in annual revenue, gives us an ideal platform for our further development in Latin America. The acquisition of William M. Mercer's $50 million administration business enhances our position as a major provider of benefits administration outsourcing. Finally, we announced, but have not yet closed, an agreement to purchase Audatex Holding, Ltd., a leader in European computerized auto damage claims estimating with revenues exceeding $80 million.

"We are pleased with our results and outlook. After significant new investments in 1998 we continue to expect close to 15% growth in revenue and pretax earnings, and EPS growth in the area of 12 - 14% above 1997's $1.80 per share," Mr. Weinbach concluded.

Below is a summary of unaudited comparative results. -0-

                                     Three Months Ended
                                          Sept. 30,
                                      1997         1996
                           (000's omitted except per share data)

Revenue (R)                     $  1,038,498   $  910,730
Earnings before income
 taxes(R)                       $    153,440   $  132,100
Provision for income taxes      $     48,030   $   38,820

Net earnings(R)                 $    105,410   $   93,280

Earnings per share: (R)         $        .36   $      .32

Average shares outstanding           292,628      288,368

(R)  Record high

-0-

ADP, with over $4 billion in revenue and more than 400,000 clients, is one of the largest independent computing services firms in the world.

CONTACT: Arthur Schmidt & Associates, Inc.

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