ADP announces "Bank Partnership" program; Cooperative marketing of services to small businesses.

ROSELAND, N.J.--(BUSINESS WIRE)--Nov. 3, 1995--Automatic Data Processing, Inc. (ADP) today announced the launch of its new Bank Partnership program.

The program is designed to form strategic partnerships through which ADP and participating banks will cooperatively market products and services to small business customers.

The overall goal of the program, according to Ron Clarke, president of ADP's new Electronic Services Division, is to enhance banks' relationships with small businesses. Products to be marketed under the ADP Bank Partnership program include emerging products such as electronic banking and bill payment, as well as traditional ADP services such as payroll processing, direct deposit, and "official" checks.

One banking executive who commented on the new ADP program was Randy Kahn, senior vice president of First Interstate Bank. Kahn stated, "There is quite a difference from our perspective between a vendor who offers us a product or two, and a partner. ADP is clearly a partner with us in providing solutions to our customers. The Bank Partnership program formalizes an attitude of teamwork and a focus on working with banks to meet their market needs that has been evident to us, and growing, for some time."

The services to be offered through the ADP Bank Partnership program include:

o Full Service Direct Deposit (FSDD): Future bank partners will be able to offer ADP's Full Service Direct Deposit (FSDD). This product is designed to help banks attract and retain small business customers, while reducing the high costs of check processing. By offering FSDD, banks may also establish new account relationships with the employees of companies that use the service. FSDD will be marketed on behalf of bank partners in conjunction with ADP payroll services.

o ADP/CheckFree(R): ADP has formed a strategic alliance with CheckFree, a leading provider of electronic payment services, to provide advanced electronic banking and commercial bill payment solutions. These services are designed to support the banking industry's efforts to increase clients' access to account information, reduce paper transaction costs, and reduce branch traffic. Electronic banking can also help banks avoid funding risks, and encourage customer migration from paper to electronic transactions through the use of favorable pricing strategies.

o "ADPCheck" Service: ADPCheck(SM) is a service that allows companies to process employee payroll checks from an ADP account in a partner's bank. It is designed to reduce a bank's funding risk and reconciliation costs, while allowing them to continue offering the equivalent of an official bank check." With ADPCheck, banks can extend "positive pay" to their small business customers. When coupled with FSDD, ADPCheck enables to increase penetration of direct deposit among their small business clients which will, in turn, create additional new business opportunities.

o Payroll Services: ADP continues to offer banks the ability to offer payroll services to their small business customers through the continuation of ADP's bank referral program. Payroll services will be marketed to bank clients who are referred to ADP by the bank.

ADP, Inc.

ADP provides computerized transaction processing, data communications, software and information services to more than 300,000 clients in virtually every industry. The company, founded in 1949, has approximately $3 billion in annual revenues.

ADP's Employer Services Group, a $1.8 billion division, has consolidated its bank sales efforts into one sales group in order to better serve the needs of its bank partners. This group, combined with ADP's 2,000 person sales staff, provides a supplemental resource through which banks can reach their customers.

"With a portfolio of banking-related services, a nationwide business sales force, and a client base of 300,000 businesses, ADP is uniquely positioned to serve our banking partners," said Clarke, whose newly-formed Electronic Services Division business unit is dedicated to providing electronic solutions to business administration needs.

"Not only will we enable our partners to provide their customers with new services, but we also provide an effective means for banks to increase the reach and awareness of their products and services. As a result, everyone benefits." -0-

ADP is a registered trademark and ADPCheck is a service mark of Automatic Data Processing Inc. CheckFree is a registered trademark of CheckFree Corporation.

CONTACT: Automatic Data Processing (ADP)

Stella Lavy, 201/994-5988