EPIX SELECTS ULTIMATE SOFTWARE'S ULTIPRO PEO FOR MANAGING RAPIDLY GROWING EMPLOYEE POOL.

Ultimate Software (Nasdaq: ULTI), a leading provider of Web-based payroll and employee management solutions, announced that EPIX, one of the nation's largest privately held professional employer organizations (PEO), has selected Ultimate Software's UltiPro PEO for managing the payroll and employee administration requirements of its 50,000 worksite employees.

With approximately 3,000 client companies spread out over 48 states, each with different HR and payroll requirements, EPIX was seeking a new solution to manage its human resources, benefits administration and payroll needs. High on EPIX's priority list was a remote pay entry option and 24/7 Web access for employees to access their personal HR and payroll information.

"Our primary goal was to become Web-enabled and leverage e-commerce," said Steve Rosenthal, co-CEO of EPIX. "We service a broad array of white, gray and blue collar businesses, and UltiPro PEO is flexible enough to meet the specialized needs of these companies. We can provide a New York public relations firm with a detailed analysis of its benefits accruals or a Midwest construction company with a job costing report."

According to Rosenthal, the Web functionality within UltiPro PEO will allow EPIX clients to put human resources, payroll and benefits information online for employee viewing and updating from anywhere in the world, as long as they

have an Internet connection and proper security clearance.

EPIX wanted its clients to see the value of the UltiPro PEO solution as quickly as possible. "In less than a week, we had UltiPro PEO's Web component installed and available for demo purposes for current and prospective clients," added Rosenthal. "It's one thing to say you're going to offer Web services but to actually show them the product gives us additional credibility in the sales process. The same holds true for the depth of functionality within UltiPro PEO."

EPIX has a strong emphasis on people -- from its 450 internal employees to its 50,000 worksite employees -- and they were glad to see Ultimate Software shared the same philosophy. "Like Ultimate Software, we believe a company's greatest asset is its people and in our business, people are everything. We needed a solution that enables us to communicate effectively with employees and is recognized for its reliability and accuracy," added Rosenthal.

With UltiPro PEO, EPIX expects to meet its complicated tax reporting requirements more efficiently since all state tax formulas are stored in the system, eliminating the need for manual calculations. EPIX plans to use UltiPro PEO's business intelligence tools, especially the extensive selection of automated reports as well as the easy custom reporting features. "These tools should enable us to manage labor costs and department efficiencies better," said Rosenthal.

"The number of PEOs selecting UltiPro PEO continues to grow, and we're pleased that a company of EPIX's stature in the industry has chosen our solution," said Greg Swick, senior vice president of sales, Ultimate Software. "We believe our increasing market share in the PEO sector validates our strategy to become the premier infrastructure provider of payroll and employee management solutions over the Internet."

EPIX Holdings Corporation is a portfolio company of Keystone, Inc., an investment vehicle of Robert M. Bass; Insurance Partners, L.P.; Odyssey Partners, L.P.; and Zurich Centre Group Holdings Limited. EPIX provides comprehensive professional employer services, including payroll and benefits administration, risk management and human resources consulting services to clients nationwide. EPIX has regional service centers in Tampa, Fla. and Woodbridge, N.J., and 15 branch offices throughout the United States.

Ultimate Software is a leader in delivering Web-based payroll and employee management solutions, including UltiPro Web, UltiPro HRMS/Payroll and Intersourcing, a hosted solution in partnership with IBM. Headquartered in Florida, Ultimate Software employs approximately 440 professionals nationwide and has licensed its software to more than 1,150 customers, representing approximately 3,500 companies and servicing approximately 1.3 million employees, including Scottsdale Healthcare, John Deere Information Systems, Chiquita Brands International, The Phoenix Suns and Arizona Diamondbacks, The Florida Marlins Baseball Club, Omni Hotels and numerous Professional Employer Organizations (PEOs).