BenefitsEmployee EngagementEnabling TechnologyMulti-process HRPayroll & CompensationSourcing

Adp To Acquire Employease, Capping Successful Strategic Partnership

ROSELAND, New Jersey – August 17, 2006 -The Employer Services Division of Automatic Data Processing, Inc. (NYSE:ADP), today announced it has entered into an agreement to acquire Employease, Inc. a leading provider of web-based solutions and outsourcing options for HR and benefits professionals. The agreement follows a successful partnership between Employease and ADP Major Accounts Services, part of ADP Employer Services. The acquisition is expected to further expand ADP’s presence within the mid-market to fulfill a growing demand for Software-as-a-Service (SaaS) solutions.

In October 2004, ADP Major Accounts Services and Employease entered into a strategic partnership to provide medium-sized businesses with an integrated suite of web-based, hosted payroll, human resources, and benefit administration service solutions. Since then, ADP has sold, implemented and serviced Employease Network solutions under the brand name, ADP HR/Benefits Solutions.

"This acquisition will build on our combined strengths and business momentum," said Vince Coppola, President, ADP Major Accounts Services. "Combining Employease’s top-rated web-based business solutions with ADP’s industry leading payroll, HR, and benefit services enables our clients to address many of today’s most critical business issues, such as rising benefits costs, compliance and employee retention. We are excited to welcome Employease into the ADP family, and proactively meet the rapidly growing demand for hosted, on-demand services."

Gartner named both ADP and Employease as 2006 Magic Quadrant leaders in the mid-market human resource management systems (HRMS) sector. Furthermore, analysts noted that many U.S. mid-market companies are still buying new HRMS solutions and predicted that by 2008, more than half of HRMS purchases in this sector would be for on-demand/software-as-a-service solutions.

"After our successful collaboration with ADP, we are confident this is the right move for our company, our clients, and our associates," said Phil Fauver, CEO of Employease. "ADP shares our commitment to providing quality service and easy-to-use solutions that help employers reduce the administrative burdens of HR and benefits administration. ADP’s global presence and payroll expertise will surely enrich and expand core product features while broadening our reach in the HR/Benefits space."

The acquisition is subject to customary closing conditions, including expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, as amended. Following the completion of the acquisition, Employease will become part of ADP Major Accounts Services. Currently, Employease provides solutions to more than 1,500 clients, and has more than one million client records under management. Upon completion of the transaction, ADP Major Accounts Services will provide its World Class Service to all clients of Employease.

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