Exult Expands Outsourcing Services for International Paper; Flex Staffing Solution Gives IP Hiring Managers Web Access to Temp Labor Management Resource.

Business Editors

IRVINE, Calif.--(BUSINESS WIRE)--Sept. 9, 2002

Exult, Inc. (Nasdaq:EXLT), the leading provider of integrated Human Resources Business Process Outsourcing to Global 500 companies, today announced that it will expand its original ten-year Human Resource services agreement with International Paper to include a flex staffing services solution.

Exult anticipates this service expansion, which is coterminous with the original agreement, will generate revenue of $90 million over the contract's term. Exult will provide IP with Flex Staffing management services for temporary clerical, administrative and industrial labor through the Exult Service Delivery Model(SM). The deal is expected to increase efficiencies for International Paper by leveraging the broad-based buying power of Exult in the temporary labor marketplace.

"This expansion of our HR administrative outsourcing agreement reflects IP's continued focus on finding new ways to enhance our HR administrative processes and reduce our transactional costs. As we achieve these objectives, we improve service delivery to our employees and enable our organization to better focus on strategic HR and core business issues," said Mark Azzarello, Director, HR Operations for International Paper.

"We are delighted with International Paper's decision to expand our relationship, thank our valued partner for their confidence in Exult's capabilities and look forward to future opportunities to better serve IP," said Kevin Campbell, Exult's chief operating officer. "This arrangement is an excellent example of how Exult's approach to long-term client partnerships creates mutually beneficial opportunities over time and demonstrates the capability of the Exult Service Delivery Model(SM) to benefit our clients by quickly delivering scalability and flexibility to enhance their service offering to employees."

Exult's Flex Staffing solution will create a single-point-of-contact to meet International Paper's U.S. demand for temporary staffing. Through a recently established Exult partnership alliance with IQNavigator, IP's hiring managers will receive enhanced management capabilities and a streamlined process for acquisition of temporary clerical, administrative and industrial labor.

In October 2001, Exult signed a ten-year, $600 million contract with IP to deliver HR services to approximately 70,000 International Paper U.S. based employees. The Exult services to International Paper focus on the transactional and administrative components of key HR processes. These services are delivered via the Exult Service Delivery Model(SM), which is designed to streamline HR processes, reduce costs and improve service to employees through self-service and increased efficiencies.

About Exult: Exult is the market leader in HR business process outsourcing for Global 500 corporations. With headquarters in Irvine, California and client service centers in the U.S. and Europe, Exult offers Exult eHR(SM), a comprehensive service designed to manage clients' entire human resource departments. Exult's strategy is to transform clients' HR departments by implementing the Exult Service Delivery Model(SM) and operating scalable process management solutions. Exult uses its HR process expertise, shared client service centers, expert HR consulting capabilities and its myHR(SM) applications to help Global 500 corporations enhance human capital productivity, reduce costs, streamline processes and provide superior HR services to their employees. For more information, visit www.exult.net.

Forward Looking Statement: Statements in this release about the duration, revenues and scope of services of the International Paper contract, the benefits of the relationship to International Paper, and the operation and benefits of Exult's staffing services are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Exult is still expanding, developing and enhancing its staffing function and other service capabilities and must transition client processes on schedule and transform these processes to a service delivery model that reduces the cost of delivering in-scope services while meeting contractual service level commitments. Exult must meet performance standards and the International Paper contract permits reduction or early termination of the relationship under various circumstances. More information about Exult's risks is available in Exult's annual report on Form 10-K and other filings made from time to time with the Securities and Exchange Commission. Special attention is directed to the portions of those documents entitled "Risk Factors."