Kronos Announces Winners of Its Fifth Annual Best Practices Awards.

Business Editors/High-Tech Writers

LAS VEGAS--(BUSINESS WIRE)--Oct. 20, 2003

Kronos(R) Incorporated (Nasdaq: KRON) opened its Worldwide Customer Conference, KronosWorks, by announcing the winners of its fifth annual Best Practices Awards. The winners of this year's awards, which recognize organizations for achieving excellence in the application of Kronos solutions, are Banner Health, Charleston Area Medical Center, Damstra Mining Services, PepsiCo, and Western New England College. KronosWorks, the industry's largest conference dedicated to the employee relationship management (ERM) market, is being held this week in Las Vegas.

Banner Health, one of the largest, non-profit healthcare systems in the country headquartered in Phoenix, was recognized for its skillful combination of design, training, communication, and support throughout the implementation of its Kronos solution. Banner Health's focus in these areas clearly demonstrated their commitment to a successful implementation and ensured buy-in at all levels of the organization. The benefits they have achieved include the elimination of 17,000 manual time cards, a reduction in the number of manual payroll checks, and an increase in employee satisfaction.

Charleston Area Medical Center (CAMC), the largest hospital in W.Va., was recognized for ensuring successful implementation and adoption of the Kronos solution, by making labor management and labor productivity an integral part of its organization. With Kronos, CAMC is now able to make better labor-related decisions, including the ability to proactively "right-size" its staffing efforts. CAMC experienced significant cost savings and productivity improvements, including a reduction in agency costs by more than 85 percent.

Damstra Mining Services, an Australia-based company with more than 30 years of experience in the mining industry, was recognized for its dedication to ensuring contractor safety and compliance with Australia's Occupational Health and Safety Act. The Kronos solution has allowed Damstra to ensure that all of its employees are trained, competent, and fit for the jobs they are performing. With a solution that allows them to more accurately collect, and provide access to labor data, Damstra Mining Services has reduced labor hours by approximately six percent.

PepsiCo, a world leader in convenient foods and beverages headquartered in Purchase, NY, was recognized for implementing Kronos as part of its company-wide initiative to centralize business applications. Kronos' time and labor applications were the first to be implemented across PepsiCo business units, including Pepsi-Cola, Frito-Lay, and Tropicana in 2001/2002. Quaker Oats will be incorporated in late 2003 and 2004. The Pepsi Bottling Group, PepsiCo's largest bottler, also implemented Kronos applications in 2001/2002. Since rolling out Kronos solutions to more than 47,500 employees and business partners, PepsiCo has realized significant cost savings, streamlined operations, and improved visibility into its diverse workforce.

Western New England College, located in Springfield, Mass., was recognized for successfully streamlining business processes by integrating Kronos' human resources, payroll, and time and labor applications with existing general ledger, student information, and public safety technology systems. The single Kronos solution, rolled out campus-wide in just five months, replaced multiple, predominately manual human resources processes, as well as two different payroll systems. Now offices throughout campus are relying on the Kronos system as the authoritative data source for employee and labor-related information.

"We were extremely pleased by the number of Best Practices Awards nominations that we received this year -- highlighting the diverse industries and sizes of organizations we serve," stated Aron Ain, Kronos chief operating officer. "While the vastness of the applicants' accomplishments made our decisions difficult, it also proved that our customers are excited and proud of the range of efficiencies they have achieved with the use of Kronos solutions. It is rewarding to learn about the goals we have enabled these organizations to reach and we look forward to helping them continue in their successes."

About Kronos Incorporated

Kronos Incorporated is a single-source provider of human resources, payroll, scheduling, and time and labor solutions. Kronos' best-in-class Employee Relationship Management solution enables organizations to reduce costs and increase productivity, put real-time information in the hands of decision makers, align employee performance with organizational objectives, and improve employee satisfaction. More than 40,000 organizations trust Kronos to solve their employee-centric business challenges. Learn more at www.kronos.com.

(C) 2003 Kronos Incorporated. Kronos, Workforce Central, and the Kronos logo are registered trademarks of Kronos Incorporated. All other product and company names mentioned are used for identification purposes only and may be trademarks of their respective owners.