Automatic Data Processing Acquires Leading Dealer Management Systems Provider in the UK.

ROSELAND, N.J. -- Automatic Data Processing, Inc. (NYSE:ADP), has acquired Kerridge Computer Co. Ltd. for approximately $300 million, in cash, Arthur F. Weinbach, chairman and chief executive officer of ADP announced today. Kerridge, with revenues of approximately $150 million, is the leading dealer management systems (DMS) provider to auto dealers in the UK where the company is headquartered. In addition to the UK, Kerridge serves other European markets as well as the Middle East, the Far East and South Africa.

Commenting on the transaction, Mr. Weinbach said, "This acquisition is an important part of ADP's initiative for global expansion. Kerridge is a strategic fit with our Dealer Services (DS) business which provides DMS and other integrated comprehensive solutions to auto, truck, motorcycle, marine and recreational vehicle dealers throughout the United States, Canada and Europe. The addition of Kerridge positions DS as the leading global DMS provider and partner of choice for the industry by expanding its geographic coverage from 14 countries on two continents to a total of 41 countries on four continents.

"We expect this transaction will not impact earnings per share in fiscal year 2006 and anticipate that it will be accretive by approximately $0.01 beginning in fiscal year 2007."

ADP, with $8.5 billion in revenues and approximately 590,000 clients worldwide, is one of the largest providers of a broad range of premier, mission-critical, cost-effective transaction processing and information-based business solutions.

This release and other written or oral statements made from time to time by ADP may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could be" and other words of similar meaning, are forward-looking statements. These statements are based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include: ADP's success in obtaining, retaining and selling additional services to clients; the pricing of products and services; changes in laws regulating payroll taxes, professional employer organizations, employee benefits and registered clearing agencies and broker-dealers; overall market and economic conditions, including interest rate and foreign currency trends; competitive conditions; stock market activity; auto sales and related industry changes; employment and wage levels; changes in technology; availability of skilled technical associates and the impact of new acquisitions and divestitures. ADP disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.