ADP e-XPENSE Services Adds Automated VAT Process - Teams with Corporate VAT Management.

ROSELAND, N.J.--(BUSINESS WIRE)--July 21, 1997--The Employer Services Division of Automatic Data Processing, Inc. (NYSE: AUD) -- today announced that e-XPENSE(TM) Services, their comprehensive T&E solution, will team with Corporate VAT Management (Seattle, WA) to offer integrated value-added tax (VAT) refund processing for all clients of e-XPENSE.

"Our market research told us that many corporations are looking to automate and/or outsource their VAT refund process, from receipt identification to refund request generation," said Robert Brandes, vice president and general manager of ADP's e-XPENSE Services business. "Corporate VAT Management is the industry leader in VAT refund software and processing, so we could not have found a better company to partner with."

VAT Travel Refunds

Value-added tax, or VAT, is a consumption tax levied on business travel in the European Community (EC) that can average $45 per day in refunds. Of the more than $1 billion in refundable VAT paid by US corporations annually, less than 20% is ever reclaimed. Consequently, reclaiming VAT can lead to savings of up to 25% on travel costs to Europe. Typical business travel expense categories which qualify for VAT refunds include: hotels, meals, auto rentals, fuel, transportation, conferences and trade shows, training, and professional fees. In order to receive a refund, the original receipts are sent in along with a special form to the tax ministry in each country where the expenses were incurred. The applications must conform to the specific country tax laws, of which there is little standardization, and are typically required to be in the language of that country. As a result, the refund process is complex and too time consuming for most companies.

Partnership

Under the terms of their agreement, ADP will begin offering Corporate VAT Management's AUTO VAT Integrated(TM) Windows(TM) software program as an optional e-XPENSE module. "By having the e-XPENSE system automatically identify VAT eligible receipts, the system can feed the required information into AUTO VAT and generate all the necessary signature ready refund forms." said John Powell, President of Corporate VAT Management. "And for those corporations that would like to outsource the entire VAT refund process we will generate, submit, and track all eligible refunds on their behalf."

Pricing and Platform

VAT module software prices start at around $6,000, including installation and training, depending on the number of users and features required. Off-site VAT refund processing costs range from 20% to 30% of total dollars reclaimed, plus a one-time installation & training fee. ADP provides all the on-site installation & training for e-XPENSE Services clients.

e-XPENSE is compatible with Windows 3.x(TM), Windows 95(TM), Windows NT(TM), and OS/2-Windows(TM) operating systems, Novell, Banyan, and Microsoft LAN networks, as well as most common e-mail systems. e-XPENSE integrates with all popular financial software packages, accepts credit card data for report pre-population, and can be client server configured.

e-XPENSE Services

e-XPENSE Services, the latest member of ADP's growing family of financial systems solutions, offers completely automated expense report processing administration, including: expense report creation & submission, approval, auditing, reimbursement, financial system's posting, and receipt auditing & archiving. With ADP's e-XPENSE, corporations can choose how they wish to automate T&E, either as a completely on-site software system or as a totally off-site processing service. Either way, e-XPENSE offers electronic software distribution to users, PC/e-mail and phone report input, credit card charge feeds, on- and off-line manager approval, direct deposit employee reimbursement, receipt scanning to CD-ROM, and detailed receipt auditing.

About ADP

ADP provides computerized transaction processing, data communications, software and information services to more than 400,000 clients worldwide in virtually every type of business and industry. The company, founded in 1949, has more than $4 billion in annual revenues. Employer Services, its oldest and largest business, offers a comprehensive range of HRMS, benefits, payroll, payroll tax deposit and reporting, time and attendance, 401(k) recordkeeping, benefits outsourcing, and unemployment compensation management services. In addition, ADP provides market data, securities transaction processing and investor communications services to the brokerage and financial communities; industry-specific computing and consulting services for auto and truck dealers; and computerized auto repair estimating and auto parts availability services.

For more information about ADP, visit our web site at

http://www.adp.com.

About Corporate VAT Management

CVM is a Washington state corporation founded in 1994 to provide VAT management consulting services and technology solutions. The company's sole focus since inception has been to develop expertise in business VAT refunds from Europe and more recently, Canada, and to help companies manage the process efficiently.

For more information about CVM, visit our web site at

http://www.corporatevat.com.

ADP is a registered trademark and e-XPENSE is a registered service mark of Automatic Data Processing, Inc. Windows, Windows 95, Windows NT, and OS/2-Windows are trademarks of Microsoft Corporation. AUTO VAT is a registered trademark of Corporate VAT Management. All other product names are trademarks or registered trademarks of their respective companies.

CONTACT: Anthony Mirenda, 212-880-5243

TMirenda.OA&[e-mail]

or

Linda Strauss, 201-994-5963

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