Class Action Suit Filed Against Ceridian and its Officers and Directors Alleging Fraud and Insider Trading.

SAN DIEGO--(BUSINESS WIRE)--Sept. 10, 1997--A securities class action has been commenced in the United States District Court for the District of Minnesota on behalf of those who purchased Ceridian Corporation ("Ceridian") common stock during the period January 23, 1996 to August 26, 1997 ("Class Period").

The complaint alleges that during the Class Period, Ceridian and its senior executives violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing materially false and misleading statements about the development and viability of CII, Ceridian's new payroll processing software, as well as the impact the introduction of CII would have on Ceridian's operations in 1997 and beyond. The complaint charges defendants with concealing the fact that CII was a complete failure and that defendants artificially boosted Ceridian's net income during the Class Period by improperly capitalizing millions of dollars of software development costs incurred in connection with the development of CII. As a consequence of defendants' improper accounting, Ceridian's financial statements for each quarter of fiscal 1996 and the first two quarters of fiscal 1997 and for the fiscal year ended December 31, 1996 were false and presented in violation of Generally Accepted Accounting Principles.

The complaint alleges that the defendants' false statements artificially inflated the price of Ceridian stock to as high as $54 per share, which enabled Ceridian insiders to sell millions of dollars worth of their own Ceridian stock at inflated levels before the defendants revealed that Ceridian was terminating development of CII. Following these disclosures, the price of Ceridian stock fell to less than $34 per share.

Plaintiff seeks to recover damages on behalf of all purchasers of Ceridian common stock during the Class Period (the "Class"). He is represented by several law firms, including Milberg Weiss Bershad Hynes & Lerach LLP and Lockridge Grindal Nauen & Holstein, P.L.L.P., who have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 20 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. Visit the firm's website at www.milberg.com .

If you are a member of the Class described above, you may, no later than 60 days from today, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William S. Lerach or Darren Robbins of Milberg Weiss at 800/348-6192 or via e-mail at [e-mail], Richard Lockridge or Karen Hanson of Lockridge Grindal Nauen & Holstein, P.L.L.P. at 612/339-6900, or via e-mail at [e-mail].

CONTACT: Milberg Weiss

William S. Lerach or Darren Robbins, 800/348-6192

[e-mail]

or

Lockridge Grindal Nauen & Holstein, P.L.L.P.

Richard Lockridge or Karen Hanson, 612/339-6900

[e-mail]