SOURCE: ADP

October 30, 2006 16:38 ET

ADP Signs Agreement to Acquire Taxware From First Data

Taxware Solutions Expand ADP's Tax & Financial Services Portfolio

ROSELAND, NJ and DENVER, CO -- (MARKET WIRE) -- October 30, 2006 -- ADP® Employer Services, a division of Automatic Data Processing, Inc. (NYSE: ADP), a leader in HR, payroll and benefit administration solutions, and First Data Corp. (NYSE: FDC), a global leader in electronic transactions and payments, today announced the two companies have entered into a definitive agreement for ADP to acquire Taxware, LP for approximately $125 million in cash. By acquiring Taxware, a leading provider of tax content and compliance solutions for Sales, Use and Value Added Tax, ADP will further expand its suite of tax & financial services offerings, for mid-size, large and global organizations.

"We are well-positioned to enter this business segment and with the acquisition of Taxware, we can help our Employer and Dealer Services clients who require an end-to-end Sales & Use Tax solution," said Laurie Eldridge, Senior Vice President & General Manager, ADP Tax & Financial Services. "Today, ADP provides payroll tax compliance and money movement services for over 500,000 clients, including many Fortune 100 companies. This year, ADP will collect and move over $1 trillion in tax, direct deposit and related funds for its clients. When you combine ADP's expertise, brand and distribution channels with Taxware's market leading capabilities and solid business model, we have a valuable solution to help meet the needs of large and mid-sized companies, domestically and internationally."

Taxware, a part of First Data since 2001, is an industry leader focused exclusively on global commercial tax compliance systems. For more than 25 years, Taxware's products have simplified the tax calculation and compliance process with solutions for sales, use, value added and other consumption taxes for businesses around the globe.

"Taxware has been a strong performer for First Data's Government Solutions unit, doubling in size over the last five years. ADP presented a powerful strategy for even stronger growth in the future that will provide a great opportunity for Taxware employees and customers, and we wish Taxware much continued success," said David Treinen, executive vice president, First Data Corp. "First Data will continue to focus on its core strengths in transaction and payment processing for merchants and financial institutions," Treinen added.

Taxware is an operating subsidiary of First Data Government Solutions, jointly owned by First Data, which owns approximately 75 percent, and its strategic partner, iFormation Group, which has about a 25 percent equity interest. iFormation Group was formed by The Boston Consulting Group Inc., General Atlantic LLC, and The Goldman Sachs Group.

The acquisition is subject to regulatory reviews and other customary closing conditions. It is expected to close by the end of this calendar year.

About ADP

Automatic Data Processing, Inc. (NYSE: ADP), with nearly $9 billion in revenues and more than 570,000 clients worldwide, is one of the largest providers of a broad range of premier, mission-critical, cost-effective transaction processing and information-based business solutions. Employer Services (ES), a division of ADP, offers the widest range of HR, payroll, and benefit administration solutions from a single source, to meet the extensive business needs of employers worldwide. Built with more than 50 years of industry experience, ADP ES' cost-effective, easy-to-use solutions provide superior value to companies of all sizes. Approximately 540,000 companies rely on ADP ES for unparalleled service and compliance expertise, allowing them to focus on other core activities. For more information about ADP ES or to contact a local ADP sales office, reach us at 1.800.225.5237 or visit the company's Web site at www.ADP.com.

About First Data

First Data Corp. (NYSE: FDC) is a leading provider of electronic commerce and payment solutions for businesses worldwide. Serving 4.6 million merchant locations, 1,900 card issuers and their customers, First Data powers the global economy by making it easy, fast and secure for people and businesses around the world to buy goods and services using virtually any form of payment. The company's portfolio of services and solutions includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at 2 million ATM and retail locations. For more information, visit www.firstdata.com.

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