ADP and SAP America announce alliance; Strategic interface links SAP enterprise software clients with ADP's payroll outsourcing.

Processing Inc. (ADP) -- the country's largest provider of fully-integrated payroll, human resources, and benefits solutions -- and SAP (R) America Inc. today announced a business partnership that provides clients of SAP's R/3 enterprise applications software with a standard interface to ADP's widely-used payroll outsourcing services.

The interface offers new avenues for integrated systems for medium-to-large businesses in virtually all industries.

Tim Lamb, president of ADP's national accounts division, said, "SAP has a popular enterprise solution. Their integration of financials, distribution, manufacturing, and HR in the R/3 System will be attractive to many of the same organizations that find ADP outsourcing solutions the answer for payroll."

In addition to complete payroll processing, this interface will allow SAP's customers to use ADP's other value-added services, including Tax Filing, Direct Deposit, and Unemployment Cost Management. The two companies will share prospects and clients with joint marketing and sales efforts.

"This is a valuable component and signifies our commitment to the human resources application suite," said SAP America's President and Chief Executive Officer Klaus P. Beiser. "Partnering with ADP, an established leader in payroll outsourcing, helps our customers streamline this essential business process."

Steve Smith, ADP's division vice president of Strategic Alliances, added, "This alliance extends ADP's ability to offer payroll solutions to companies of every size, as well as the other services they require after payroll checks are cut."

Suburban Propane is using the new ADP functionality to process payroll information for its 3,500 employees. Steve Wells, CIO of Suburban Propane, said, "We chose SAP's entire R/3 client/server suite because integrated business applications simplifies system management. The combination of ADP and SAP allows us to meet our objective, freeing us to focus on other strategic information system requirements."

SAP's R/3 Release 3.0 suite of client/server business applications offers more than 1,000 processes for manufacturing, financial accounting, human resources, sales and distribution departments. Release 3.0 HR functionality includes its own integrated payroll capabilities, allowing customers to do their own payroll in-house or externally.

ADP's payroll services currently meet the needs of thousands of large, complex organizations across the country. Payroll services can also be integrated with ADP's four HR and benefits products; two PC-based systems with local area network options; an enterprise-wide multi-location system; and the client server series HRMS, which also offers the option of on-site payroll processing.

SAP provides flexible, integrated client/server and mainframe-based business applications software that is compatible with most popular hardware, software and database platforms. More than 4,600 companies in 41 countries use SAP software to manage complex financial, manufacturing, sales and human resource requirements. SAP's R/3 client/server suite is installed in more than 4,000 sites worldwide and is accepted as the standard in key industries such as oil, chemicals, consumer packaged goods, and high technology/electronics. Founded in 1972, SAP AG is headquartered in Waldorf, Germany and employs a workforce of over 6,400 worldwide. SAP America is comprised of its corporate headquarters in Philadelphia, a technology development center in Foster City, Calif., and sales and support offices throughout North America, South America and Australia.

ADP provides computerized transaction processing, date communications, software and information services to more than 350,000 clients in virtually every business and industry. The company, founded in 1949, had nearly $2.9 billion in annual revenues in fiscal 1995. In addition to a complete line of employer services, ADP provides market data and back-office services to the brokerage and financial communities, industry-specific services to auto and truck dealerships, and automated car collision repair and estimating. -0- SAP is a registered trademark and R/3 is a trademark of SAP AG.

CONTACT: ADP

Steve Smith, 770/980-6970

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The Devon Group

Jeanne Achille, 908/671-0757

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SAP America Inc.

Peg Culotta, 610/521-4500

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The Weber Group

Gabrielle Friedly, 415/325-8300