ADP and Kronos Sign Contract to Extend Relationship.

Business Editors

ROSELAND, N.J. & CHELMSFORD, Mass.--(BUSINESS WIRE)--Aug. 13, 2003

ADP(R), Inc. (NYSE: ADP), Employer Services division, a leading provider of integrated outsourced payroll and human resources services, and Kronos(R) Incorporated (Nasdaq: KRON), today announced that they have agreed to continue their current relationship with the signing of a five-year contract extension. Under the current contract, ADP provides Kronos' time and labor solutions under private label to ADP customers as both standalone products and as a component of bundled solutions.

"Today's announcement marks the extension of a very successful relationship," commented Mark Ain, Kronos chief executive officer. "Kronos solutions have been sold into tens of thousands of ADP accounts over the years, so it's clear that customers who desire a service bureau model for their employee-related applications benefit from our partnership."

"Tight integration of Kronos' products, either hosted by ADP or at the client's site, will help to enhance the breadth and depth of services that ADP is able to offer our customers," said Russ Fradin, president, ADP Employer Services. "Our relationship with Kronos, initially formed in 1993, clearly has proven beneficial for both companies. We look forward to continuing to develop this relationship and our ongoing shared success."

About Kronos Incorporated

Kronos Incorporated is a single-source provider of time and labor solutions. Kronos' best-in-class Employee Relationship Management solution enables organizations to reduce costs and increase productivity, improve employee satisfaction, align employee performance with organizational objectives, and put real-time information in the hands of decision makers. More than 40,000 organizations trust Kronos to solve their employee-centric business challenges. Learn more at www.kronos.com.

About ADP

Automatic Data Processing, Inc. (NYSE: ADP) is one of the largest independent computing services firms in the world, with $7 billion in revenue and 500,000 clients. ADP Employer Services (ES), a division of ADP, Inc., is a leading provider of integrated business administrative solutions that help its over 450,000 clients efficiently manage their internal processes, allowing them to focus on core competencies. ADP Employer Services' offerings include both traditional and Internet-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, benefits 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 www.adp.com.

Kronos and the Kronos logo are registered trademarks of Kronos Incorporated or a related company. All other product and company names mentioned are used for identification purposes only and may be trademarks of their respective owners. ADP is a registered trademark of ADP of North America.