Advantage Payroll Services Acquires Small Business Unit of Zurich Payroll Solutions Ltd.

Business/Technology Editors

AUBURN, Maine--(BUSINESS WIRE)--Aug. 13, 2001

Advantage Payroll Services, a top five national payroll provider, announced today the acquisition of certain assets of Zurich Payroll Solutions Ltd. ("ZPS"), a national payroll provider with offices throughout the US.

The transaction enables Advantage to provide payroll processing and tax filing services to approximately 3500 small to mid-sized businesses currently served by ZPS. Additionally, Advantage will take over the ZPS facilities in Fort Washington, PA, Westwood, MA, Cranston, RI, Santa Ana, CA, and will hire approximately 85 of ZPS' employees.

"The acquisition of Zurich Payroll Solutions' small to mid-sized client base is our 10th acquisition in the past three years," said Charles W. Lathrop Jr., CEO and President of Advantage Payroll Services. "Acquisitions and geographic expansion into major markets are a key part of our aggressive growth strategy. We are also pleased that this acquisition brings to Advantage so many talented payroll professionals as new employees. Their knowledge of payroll and their commitment to outstanding customer service is consistent with that of our own."

"We are confident that our customers will benefit from Advantage Payroll Services' customer service leadership and technological innovations. They have proven to be a national leader in the payroll and tax processing industry," said Zurich Payroll Solution's President and CEO John Shuck. "Advantage has jumped ahead of the industry with their development of Instant Payroll(R), a full featured Internet-based product. This is a product enhancement our clients have been waiting for," says Shuck.

Based in Auburn, Maine, Advantage Payroll Services was founded in 1967, and is one of the top five payroll service providers in the U.S. It is the only national payroll company that offers direct deposit and tax filing at no additional charge. Instant Payroll, Advantage Payroll's innovative, comprehensive online payroll service allows clients to manage their payroll 24 hours a day, 7 days a week. Advantage services over 41,000 small and mid-sized business clients across the entire U.S. through 40 offices in 26 states. Advantage has the industry's highest Certified Payroll Professional (CPP)-to-client ratio and enjoys a client satisfaction rate exceeding 98%.

Zurich Payroll Solutions is part of Zurich Financial Services, a leader in financial services, property/casualty and life insurance, reinsurance, asset management, and structured financial solutions. Zurich Financial Services offers financial protection and investment solutions to personal, commercial and corporate customers worldwide.