ADP and Kronos sign letter of intent to extend relationship.

Business Editors/High-Tech Writers

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

ADP(R), Inc. (NYSE: ADP) and Kronos(R) Incorporated (Nasdaq: KRON) today announced that they have signed a letter of intent to extend their business relationship.

"For the past ten years we have enjoyed a very successful and mutually beneficial relationship with ADP," commented Mark Ain, Kronos chief executive officer. "Today's announcement confirms the commitment of the long-term relationship between our companies, and allows two industry leaders to continue to offer world-class products to customers."

"The real beneficiaries of this agreement are our clients," said Russell Fradin, president, ADP Employer Services North America. "This relationship unites the strength of ADP's broad set of payroll, HR and benefits solutions with Kronos' labor management products. By extending our long-time working arrangement with Kronos, we can continue to provide clients with fully integrated solutions."

Both companies anticipate finalizing the contract by June 2003. The term of the agreement will be five years.

About Kronos Incorporated

Kronos Incorporated is a single-source provider of labor management solutions. Kronos products and services help organizations align their people, processes and technology to improve individual productivity and boost overall business performance. Capitalizing on deep-rooted expertise honed over 25 years, Kronos empowers more than 40,000 organizations worldwide to better manage their workforce. For more information about Kronos solutions call 1-800-225-1561 or visit Kronos on the Web at www.kronos.com.

About ADP

Automatic Data Processing, Inc. (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's 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.