ADP TotalSource Introduces Health Savings Accounts Through JPMorgan Chase; HSAs Help Business Owners and Their Employees Control Health Care Costs.

MIAMI -- ADP TotalSource, Inc., one of the nation's largest Professional Employer Organizations (PEOs), and part of the Employer Services division of ADP, Inc., today announced it is expanding its benefits program to offer health plans that are compatible with health savings accounts (HSAs). Effective June 1, 2005, clients may select HSA-compatible high deductible health plans (HDHPs) as part of the comprehensive suite of health benefits offered by ADP TotalSource, Inc. Clients who elect an HDHP through ADP TotalSource, Inc. will make their worksite employees eligible to establish Health Savings Accounts (HSAs) through JPMorgan Chase Bank N.A., a leading provider of HSAs.

HSAs, which were authorized by the Medicare Prescription Drug, Improvement and Modernization Act of 2003, are portable health savings accounts that individuals can use to pay for qualified medical expenses.

"With health care costs far outpacing wage growth during the past several years, employers large and small are challenged to provide affordable coverage," said Carlos Rodriguez, ADP TotalSource's division president. "We're regularly evaluating benefits that we can offer to our clients to help them attract and retain the best employees. The availability of HSA-compatible HDHPs means that employees will be eligible to establish HSAs, and this will provide our clients and worksite employees with a means for reducing the overall cost of health insurance while encouraging employees to be smarter health care consumers. To help our clients decide whether the HDHP/HSA option is right for their business, we offer access to expertise from our human resources representatives and a variety of self-service decision support tools, including cost calculators, educational Web casts and plan comparison tools."

For employees, pre-tax contributions to HSAs reduce their income taxes while allowing them to set aside dollars for their health expenses. Both employers and employees can contribute to HSAs - currently as much as $5,250 annually for a family and $2,650 for individuals. Individuals 55 to 65 may make additional "catch-up" contributions of up to $600 per year.

"As a leading financial services provider to the health care industry and to consumers, JPMorgan Chase is pleased to be providing this new health care savings option to ADP TotalSource participants," said John Prince, senior vice president and health care business development head for the Treasury Services unit of JPMorgan Chase. "JPMorgan Chase is committed to developing new solutions to meet the needs of its clients and to providing less expensive, more efficient and accurate tools for processing health care transactions."

Unlike Flexible Savings Accounts (FSA), where money that is set aside for medical expenses for the year but not used is forfeited, HSA balances accumulate over time. The money in the accounts can also be invested, allowing employees to increase their health care security. Additionally, withdrawals from HSAs are tax-free when used to pay for qualified medical expenses, a benefit that extends through retirement.

ADP TotalSource provides small and medium-size businesses with traditional and Internet-based outsourcing solutions to reduce the complexities and costs related to employment and human resources. The company's integrated employment-related services consist of human resources administration, regulatory and compliance management, safety and risk management, payroll administration, retirement plan services and employee benefits management. For more information about ADP TotalSource, call [phone] or visit http://www.adptotalsource.com.

About JPMorgan Chase

JPMorgan Treasury Services is a unit of JPMorgan Chase Bank, N.A., a subsidiary of JPMorgan Chase & Co. JPMorgan Chase & Co. (NYSE:JPM) is a leading global financial services firm with assets of $1.1 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset and wealth management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. has its corporate headquarters in New York and its U.S. retail financial services and commercial banking headquarters in Chicago. Under the JPMorgan, Chase and Bank One brands, the firm serves millions of consumers in the United States and many of the worlds most prominent corporate, institutional and government clients. Information about the firm is available on the Internet at http://www.jpmorganchase.com.

About ADP

Automatic Data Processing, Inc. (NYSE:ADP), with approximately $8 billion in revenues and 550,000 clients worldwide, is one of the largest providers of a broad range of premier mission-critical, cost-effective transaction processing and information-based business solutions. ADP Employer Services (ES), a division of ADP, Inc., is a leading provider of integrated business administrative solutions that helps its over 475,000 clients efficiently manage their internal processes, allowing them to focus on core competencies. ADP Employer Services' offerings include both traditional and Web-based outsourcing products and services, giving clients the ability to select from ADP's comprehensive range of World Class Service solutions. Services include: payroll, tax regulatory management, HRMS, benefit administration, time and labor management, retirement plan services, online recruiting, PEO services, and employment screening and selection. For more information about ADP Employer Services, or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at http://www.adp.com.