ADP Reports Fiscal 2008 Results; Provides Fiscal 2009 Guidance

Revenues Rise 12.5%; EPS from Continuing Operations Increases 21%
Excluding Current and Prior Fiscal Year Gains

Forecasting Fiscal 2009 Revenue Growth of 7% to 8% and EPS Growth
of 10% to 14%
ROSELAND, N.J.--(Business Wire)--
Automatic Data Processing, Inc. (NYSE:ADP):

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HIGHLIGHTS
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Fiscal 2008 Results
----------------------------------------------------------------------
-- Revenues grew 12.5% to $8.78 billion, benefiting 2% from favorable
foreign exchange rates
-- Pretax earnings from continuing operations grew 12% to $1.81
billion
-- Includes the fiscal 2007 first quarter net one-time gain of
$32.5 million related primarily to the sale of a Dealer Services'
non-core minority investment
-- Includes the fiscal 2008 fourth quarter $16.0 million pretax
gain on the sale of a building
-- 13% growth excluding the fiscal 2007 and 2008 gains noted above
-- Net earnings from continuing operations grew 14% to $1.16 billion
-- 15% growth excluding the fiscal 2007 and 2008 gains noted above
-- Diluted earnings per share from continuing operations grew 20% to
$2.20 from $1.83 on fewer weighted-average diluted shares outstanding
-- 21% growth excluding the fiscal 2007 and 2008 gains noted above
-- ADP acquired 32.9 million shares of its stock for treasury at a
cost of $1.46 billion
-- Cash and marketable securities balances were $1.66 billion at June
30, 2008

Fourth Quarter Fiscal 2008 Results
----------------------------------------------------------------------
-- Revenues grew over 10% to $2.21 billion, compared with the fourth
quarter of fiscal 2007, benefiting approximately 2% from favorable
foreign exchange rates
-- Pretax earnings from continuing operations grew 15% to $354.4
million
-- Includes the fiscal 2008 fourth quarter $16.0 million pretax
gain on the sale of a building
-- 10% growth excluding the fiscal 2008 fourth quarter gain noted
above
-- Net earnings from continuing operations grew 17% to $226.0 million
-- 11% growth excluding the fiscal 2008 fourth quarter gain noted
above
-- Diluted earnings per share from continuing operations grew 23% to
$0.43 from $0.35 a year ago on fewer weighted-average diluted shares
outstanding
-- 20% growth excluding the fiscal 2008 fourth quarter gain noted
above
-- ADP acquired 9.59 million shares of its stock for treasury for
$411.9 million

Fiscal 2009 Forecast
----------------------------------------------------------------------
-- 7% to 8% revenue growth
-- 10% to 14% diluted earnings per share from continuing operations
growth, up from $2.18 in fiscal 2008 excluding the gain on the sale
of a building in the fourth fiscal quarter
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Automatic Data Processing, Inc. (NYSE:ADP) reported 12.5% revenue
growth to $8.78 billion for the fiscal year ended June 30, 2008, Gary
C. Butler, president and chief executive officer, announced today.
Revenue growth benefited 2% from favorable foreign exchange rates
during the year. Excluding the current and prior year gains noted
above, diluted earnings per share from continuing operations grew 21%
from $1.80 to $2.18.

Fourth Quarter and Fiscal Year 2008 Discussion

Commenting on the results, Mr. Butler said, "ADP's results for the
year were strong. We continue to execute against our strategic growth
program and have also continued to return a high level of excess cash
to our shareholders. While certain of our key business metrics, such
as the number of employees on our clients' payrolls, were impacted by
the softening of the economy during the second half of the fiscal
year, they remain positive. Importantly, new business sales in both
Employer Services and Dealer Services continued to grow despite the
challenging economy. We continued to invest in new products,
salesforce expansion, and implementation and client service
resources."

Employer Services

"Employer Services' revenues increased 7% for the fourth quarter,
all organic, and over 9% for the year, 8% organic. In the United
States, revenues from our traditional payroll and payroll tax filing
business grew 4% for the fourth quarter and 7% for the year. Beyond
payroll revenues, excluding PEO Services' revenues, grew 12% for the
fourth quarter and 16% for the year. The increase in the number of
employees on our clients' payrolls slowed in the United States to 0.8%
for the fourth quarter and 1.3% for the year, as measured on a
same-store-sales basis for our clients on our Auto Pay platform. Pay
growth in Europe continued in the fourth quarter and was positive for
the full year compared with a year ago. Worldwide client retention
improved 20 basis points for the year to a new record level. Employer
Services' pretax margin improved nearly 150 basis points and 90 basis
points for the fourth quarter and full year, respectively. The
full-year pretax margin expansion resulted from continued operating
leverage, including benefits from margin expansion initiatives, which
more than offset the impact of our product investments that drive our
five-point strategic growth program."

"Despite challenges that continue to exist in the selling
environment, I am pleased with our execution for the fourth quarter.
Combined Employer Services and PEO Services worldwide new business
sales grew 7% for the quarter and 8% for the year. New business sales
represent annualized recurring revenues anticipated from new orders."

PEO Services

"PEO Services' revenues increased 16.5% for the fourth quarter and
20% for the year, all organic. PEO Services' pretax margin improved
approximately 30 basis points for the fourth quarter and 80 basis
points for the year. Average worksite employees paid by PEO Services
increased 17% for the fourth quarter, and 18% for the year, to
approximately 187,000 and 176,000, respectively."

Dealer Services

"Dealer Services' revenues increased 9% for the fourth quarter and
8.5% for the year, with 6% organic for both the fourth quarter and
full year. I am pleased that, despite market conditions, Dealer
Services had a solid fourth quarter, including very strong sales
growth both domestically and internationally. New business sales
growth was strong for the year, with double-digit growth in both our
North American and International businesses. Dealer Services' pretax
margin expanded over 100 basis points for the fourth quarter and 75
basis points for the year. The quarter and full-year pretax margin
expansion resulted from increased operating leverage, partially offset
by costs relating to the acquisitions of three Autoline distributors
that were completed earlier in the year."

Interest on Funds Held for Clients, Interest Income on Corporate
Funds, and Interest Expense

"Our investment portfolio strategy is to ladder and extend
maturities relating to our client funds. On days when inflows of cash
from clients and maturing investments are not enough to satisfy the
day's obligations we may choose to employ short-term financing to
satisfy client funds obligations. This extended investment strategy
allows us to temper the effects of interest rate fluctuations and
average our way through an interest rate cycle. Additionally, this
strategy impacts interest on funds held for clients, interest income
on corporate funds, and interest expense."

"For the fourth quarter, interest on funds held for clients
declined $8.4 million, or 4.7%, from $178.1 million to $169.7 million,
due to a decline of nearly 40 basis points in the average interest
yield to 4.2%, partially offset by growth of 4.2% in average client
funds balances to $16.1 billion. Interest income on corporate funds
declined $9.2 million, or 20%, from $46.6 million to $37.4 million due
to a lower average interest yield of 100 basis points to 4.0%, as well
as lower average corporate investment balances compared with last
year's fourth quarter which included the cash dividend from the
spin-off of Brokerage Services. Included in interest income on
corporate funds is interest income related to the extended investment
strategy which increased $6.4 million, or 42% from $15.1 to $21.5
million. Interest expense declined $7.6 million, or 38%, from $20.1
million to $12.4 million primarily from interest expense on our
short-term financing related to the extended investment strategy where
the benefit of a 300 basis point decline in average borrowing rates to
2.2% was partially offset by higher average daily borrowings."

"For the fiscal year, interest on funds held for clients grew
$30.9 million, or 4.7%, from $653.6 million to $684.5 million, due to
growth of 6.6% in average client funds balances to $15.7 billion,
partially offset by a decline of nearly 10 basis points in the average
interest yield to 4.4%. Interest income on corporate funds declined
$15.5 million, or 9%, from $165.0 million to $149.5 million due to a
lower average interest yield of 20 basis points to 4.4%, as well as
lower average corporate investment balances. Included in interest
income on corporate funds is interest income related to the extended
investment strategy which increased $9.2 million, or 13%, from $70.1
million to $79.4 million. Interest expense declined $14.4 million, or
15%, from $94.9 million to $80.5 million primarily from interest
expense on our short-term financing related to the extended investment
strategy where the benefit of a 120 basis point decline in average
borrowing rates to 4.1% was partially offset by higher daily average
borrowings."

Fiscal 2009 Forecast

For fiscal 2009, we are assuming no change in the current economic
environment. As a result, we are forecasting revenue growth of 7% to
8%, and diluted earning per share growth of 10% to 14%, up from $2.18
per share from continuing operations in fiscal 2008 excluding the gain
on the sale of a building in the fourth fiscal quarter.

"We anticipate revenue growth of 6% to 7% for Employer Services,
16% to 17% for PEO Services, and 6% to 8% for Dealer Services. We
anticipate at least 50 basis points of pretax margin expansion in each
business segment. We are planning mid single-digit new business sales
growth worldwide for Employer Services and PEO Services on a combined
basis. We anticipate tougher year-over-year comparisons in new
business sales growth during the first half of fiscal 2009 as the
lower growth rates in the second half of fiscal 2008 are expected to
continue as a result of the weakened economic environment."

"The interest assumptions in our forecasts are based on Fed Funds
futures contracts and forward yield curves as of July 28, 2008. The
Fed Funds futures contracts anticipate three increases of 25 basis
points each when the Fed is scheduled to meet in October 2008, and in
January and May 2009, exiting the fiscal year with a Fed funds rate of
2.75%. The forward yield curves indicate fixed income rates increasing
40 to 50 basis points during the fiscal year."

"Interest on funds held for clients is expected to decline $25 to
$30 million, or approximately 4%, from $684.5 million in fiscal 2008
to $655 to $660 million based on an approximate 20 basis point decline
in the average interest yield to nearly 4.2%, partially offset by 1%
to 2% anticipated growth in average client funds balances to $15.8 to
$15.9 billion."

"Interest income on corporate funds is expected to be relatively
flat compared to $149.5 million in fiscal 2008. Included in interest
income on corporate funds is interest income related to the extended
investment strategy which is expected to increase $5 to $10 million
from $79.4 million to $85 to $90 million."

"Interest expense is expected to decline $25 to $30 million from
$80.5 million in fiscal 2008 to $50 to $55 million from lower
short-term interest expense related to the extended investment
strategy due to an anticipated decline of 170 basis points in average
borrowing rates to 2.4%, partially offset by higher anticipated
average daily borrowings."

"This forecast is reflective of the current, challenging economic
environment. We believe that fiscal 2009 will be a very solid year and
ADP's long-term growth outlook remains positive. We are continuing to
invest in ADP's future as we execute successfully against our
five-point strategic growth program. We have returned to our
shareholders almost $1.5 billion through share repurchases and $549
million in dividends during fiscal 2008, and we remain committed to
continuing to return excess cash to our shareholders," Mr. Butler
concluded.

Website Schedules

The schedules of quarterly and full-year revenue and pretax
earnings by reportable segment for fiscal years 2006, 2007, and 2008
have been updated for the fourth quarter and full-year fiscal 2008
results and posted to the Investor Relations home page
(http://www.investquest.com/iq/a/adp/index.htm) of our website
www.adp.com under Financial Data along with the quarterly and
full-year statements of earnings for fiscal 2006 and fiscal 2007.

An analyst conference call will be held today, Thursday, July 31
at 8:30 a.m. EDT. A live webcast of the call will be available to the
public on a listen-only basis. To listen to the webcast and view the
slide presentation, go to ADP's home page, www.adp.com, or ADP's
Investor Relations home page,
http://www.investquest.com/InvestQuest/a/adp/, and click on the
webcast icon. The presentation will be available to download and print
about 60 minutes before the webcast at the ADP Investor Relations home
page at http://www.investquest.com/iq/a/adp/index.htm. ADP's news
releases, current financial information, SEC filings and Investor
Relations presentations are accessible at the same Web site.

About ADP

Automatic Data Processing, Inc. (NYSE: ADP), with nearly $9
billion in revenues and over 585,000 clients, is one of the world's
largest providers of business outsourcing solutions. Leveraging nearly
60 years of experience, ADP offers a wide range of HR, payroll, tax
and benefits administration solutions from a single source. ADP's
easy-to-use, cost-effective solutions for employers provide superior
value to companies of all types and sizes. ADP is also a leading
provider of integrated computing solutions to auto, truck, motorcycle,
marine and recreational vehicle dealers throughout the world. For more
information about ADP 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.

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Automatic Data Processing, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
June 30, June 30,
2008 2007
--------- ---------

Assets
--------------------------------------------------

Cash and cash equivalents/Short-term marketable
securities $ 1,583.8 $ 1,816.5
Other current assets 1,806.2 1,490.0
Assets of discontinued operations - 57.7
--------- ---------
Total current assets before funds held for
clients 3,390.0 3,364.2
Funds held for clients 15,418.9 18,489.2
--------- ---------
Total current assets 18,808.9 21,853.4

Long-term marketable securities (A) 76.5 68.1
Property, plant and equipment, net 742.9 723.8
Other non-current assets 4,106.1 4,003.6
--------- ---------
Total assets $23,734.4 $26,648.9
========= =========

Liabilities and Stockholders' Equity
--------------------------------------------------
Other current liabilities $ 2,046.9 $ 1,771.7
Liabilities of discontinued operations - 19.1
--------- ---------
Total current liabilities before client funds
obligations 2,046.9 1,790.8
Client funds obligations 15,294.7 18,673.0
--------- ---------
Total current liabilities 17,341.6 20,463.8

Long-term debt 52.1 43.5
Other non-current liabilities 1,253.5 993.7
--------- ---------
Total liabilities 18,647.2 21,501.0

Total stockholders' equity 5,087.2 5,147.9
--------- ---------
Total liabilities and stockholders' equity $23,734.4 $26,648.9
========= =========

(A) As of June 30, 2008, long-term marketable securities include $11.7
of securities that have been pledged as collateral under the
Company's reverse repurchase agreement.
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Automatic Data Processing, Inc. and Subsidiaries
Consolidated Statements of Earnings
(In millions, except per share amounts)
(Unaudited)

Three Months Ended Twelve Months Ended
June 30, June 30,
2008 2007 2008 2007
--------- --------- --------- ---------
REVENUES:
Revenues, other than interest
on funds held for clients and
PEO revenues $1,765.2 $1,587.9 $7,038.9 $6,267.4
Interest on funds held for
clients 169.7 178.1 684.5 653.6
PEO revenues (A) 272.2 233.8 1,053.1 879.0
--------- --------- --------- ---------
Total revenues 2,207.1 1,999.8 8,776.5 7,800.0
--------- --------- --------- ---------

EXPENSES:
Costs of revenues:
Operating expenses 994.1 876.0 3,915.7 3,392.3
Systems development and
programming costs 140.8 130.3 525.9 486.1
Depreciation and
amortization 60.6 54.5 238.5 208.9
--------- --------- --------- ---------
Total costs of revenues 1,195.5 1,060.8 4,680.1 4,087.3

Selling, general and
administrative expenses 697.0 649.2 2,370.4 2,206.2
Interest expense 12.4 20.1 80.5 94.9
--------- --------- --------- ---------
Total expenses 1,904.9 1,730.1 7,131.0 6,388.4
--------- --------- --------- ---------

Other income, net (52.2) (37.6) (166.5) (211.9)
--------- --------- --------- ---------

Earnings from continuing
operations before income
taxes 354.4 307.3 1,812.0 1,623.5

Provision for income taxes 128.4 113.5 650.3 602.3

--------- --------- --------- ---------
Net earnings from continuing
operations $ 226.0 $ 193.8 $1,161.7 $1,021.2

Earnings from discontinued
operations, net of (benefit)
/ provision for income taxes
of ($8.5) and $6.8 for the
three months ended June 30,
2008 and 2007, respectively,
and $23.2 and $110.6 for the
twelve months ended June 30,
2008 and June 30, 2007,
respectively 7.5 0.9 74.0 117.5

--------- --------- --------- ---------
Net earnings $ 233.5 $ 194.7 $1,235.7 $1,138.7
========= ========= ========= =========

Basic earnings per share from
continuing operations $ 0.44 $ 0.36 $ 2.23 $ 1.86
Basic earnings per share from
discontinued operations 0.01 - 0.14 0.21
--------- --------- --------- ---------
Basic earnings per share $ 0.45 $ 0.36 $ 2.37 $ 2.07
========= ========= ========= =========

Diluted earnings per share
from continuing operations $ 0.43 $ 0.35 $ 2.20 $ 1.83
Diluted earnings per share
from discontinued operations 0.01 - 0.14 0.21
--------- --------- --------- ---------
Diluted earnings per share $ 0.45 $ 0.35 $ 2.34 $ 2.04
========= ========= ========= =========

Dividends per common share $ 0.2900 $ 0.2300 $ 1.1000 $ 0.8750
========= ========= ========= =========

Detail of diluted earnings per
share from discontinued
operations:
Brokerage Services Group
(BSG) Business $ - $ - $ - $ 0.14
Travel Clearing (B) - 0.01 0.13 0.03
All Other Discontinued
Operations 0.01 (0.01) 0.01 0.03
--------- --------- --------- ---------
Total diluted earnings per
share from discontinued
operations $ 0.01 $ - $ 0.14 $ 0.21
========= ========= ========= =========

(A) Professional Employer Organization ("PEO") revenues are net of
direct pass-through costs, primarily consisting of payroll wages and
payroll taxes, of $2,834.4 and $2,319.4 for the three months ended
June 30, 2008 and 2007, respectively, and $11,247.4 and $9,082.5 for
the twelve months ended June 30, 2008 and 2007, respectively.

(B) The $0.13 in diluted EPS for the twelve months ended June 30, 2008
primarily represents the gain on the sale of the Travel Clearing
business.
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Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data
(Dollars in millions, except per share amounts)
(Unaudited)

Three Months Ended
June 30,
2008 2007 Change % Change
--------- --------- --------- ----------
Revenues (A)
-----------------------------
Employer Services $1,537.4 $1,434.8 $ 102.6 7%
PEO Services 274.2 235.3 38.9 17%
Dealer Services 354.6 326.1 28.5 9%
Other 40.9 3.6 37.3 100+%
--------- --------- ---------
$2,207.1 $1,999.8 $ 207.3 10%
--------- --------- ---------
Pre-tax earnings from
continuing operations (A)
-----------------------------
Employer Services $ 325.4 $ 282.4 $ 43.0 15%
PEO Services 25.5 21.2 4.3 20%
Dealer Services 67.0 58.2 8.8 15%
Other (63.5) (54.5) (9.0) (17)%
--------- --------- ---------
$ 354.4 $ 307.3 $ 47.1 15%
--------- --------- ---------
Pre-tax margin (A)
-----------------------------
Employer Services 21.2% 19.7% 1.5%
PEO Services 9.3% 9.0% 0.3%
Dealer Services 18.9% 17.9% 1.0%
Other n/m n/m n/m
--------- --------- ---------
16.1% 15.4% 0.7%
========= ========= =========

Twelve Months Ended
June 30,
2008 2007 Change % Change
--------- --------- --------- ----------
Revenues (A)
-----------------------------
Employer Services $6,243.1 $5,707.7 $ 535.4 9%
PEO Services 1,060.5 884.8 175.7 20%
Dealer Services 1,364.3 1,257.3 107.0 9%
Other 108.6 (49.8) 158.4 100+%
--------- --------- ---------
$8,776.5 $7,800.0 $ 976.5 13%
--------- --------- ---------
Pre-tax earnings from
continuing operations (A)
-----------------------------
Employer Services $1,601.4 $1,412.4 $ 189.0 13%
PEO Services 104.9 80.4 24.5 30%
Dealer Services 232.0 204.4 27.6 14%
Other (126.3) (73.7) (52.6) (71)%
--------- --------- ---------
$1,812.0 $1,623.5 $ 188.5 12%
--------- --------- ---------
Pre-tax margin (A)
-----------------------------
Employer Services 25.7% 24.7% 0.9%
PEO Services 9.9% 9.1% 0.8%
Dealer Services 17.0% 16.3% 0.7%
Other n/m n/m n/m
--------- --------- ---------
20.6% 20.8% (0.2)%
========= ========= =========

(A) Prior year's segment results were adjusted to reflect fiscal year
2008 budgeted foreign exchange rates.

n/m - not meaningful
----------------------------------------------------------------------

Three Months Ended
June 30,
2008 2007 Change
--------- --------- ---------
Components of other income,
net:
-----------------------------
Interest income on corporate
funds $ (37.4) $ (46.6) $ 9.2
Gain on sale of building (16.0) - (16.0)
Gain on sale of investment - - -
Realized gains on available-
for-sale securities (1.3) (0.3) (1.0)
Realized losses on available-
for-sale securities 3.1 9.3 (6.2)
Other (0.6) - (0.6)
--------- --------- ---------
Total other income, net $ (52.2) $ (37.6) $ (14.6)
========= ========= =========

Twelve Months Ended
June 30,
2008 2007 Change
--------- --------- ---------
Components of other income,
net:
-----------------------------
Interest income on corporate
funds $ (149.5) $ (165.0) $ 15.5
Gain on sale of building (16.0) - (16.0)
Gain on sale of investment - (38.6) 38.6
Realized gains on available-
for-sale securities (10.1) (20.8) 10.7
Realized losses on available-
for-sale securities 11.4 12.5 (1.1)
Other (2.3) - (2.3)
--------- --------- ---------
Total other income, net $ (166.5) $ (211.9) $ 45.4
========= ========= =========

----------------------------------------------------------------------

Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data, Continued
(Dollars in millions, except per share amounts)

(Unaudited)
Three Months Ended
June 30,
2008 2007 Change % Change
--------- --------- --------- ----------
Earnings per share
information:
-----------------------------
Net earnings from continuing
operations $ 226.0 $ 193.8 $ 32.2 17%
Net earnings $ 233.5 $ 194.7 $ 38.8 20%
Basic weighted average shares
outstanding 513.9 544.1 (30.2) (6)%
Basic earnings per share from
continuing operations $ 0.44 $ 0.36 $ 0.08 22%
Basic earnings per share $ 0.45 $ 0.36 $ 0.09 25%

Diluted net earnings from
continuing operations $ 226.0 $ 193.8 $ 32.2 17%
Diluted net earnings $ 233.5 $ 194.7 $ 38.8 20%
Diluted weighted average
shares outstanding 519.6 551.8 (32.2) (6)%
Diluted earnings per share
from continuing operations $ 0.43 $ 0.35 $ 0.08 23%
Diluted earnings per share $ 0.45 $ 0.35 $ 0.10 29%

Twelve Months Ended
June 30,
2008 2007 Change % Change
--------- --------- --------- ----------
Earnings per share
information:
-----------------------------
Net earnings from continuing
operations $1,161.7 $1,021.2 $ 140.5 14%
Net earnings $1,235.7 $1,138.7 $ 97.0 9%
Basic weighted average shares
outstanding 521.5 549.7 (28.2) (5)%
Basic earnings per share from
continuing operations $ 2.23 $ 1.86 $ 0.37 20%
Basic earnings per share $ 2.37 $ 2.07 $ 0.30 14%

Diluted net earnings from
continuing operations $1,161.7 $1,022.3 $ 139.4 14%
Diluted net earnings $1,235.7 $1,139.8 $ 95.9 8%
Diluted weighted average
shares outstanding 527.2 557.9 (30.7) (6)%
Diluted earnings per share
from continuing operations $ 2.20 $ 1.83 $ 0.37 20%
Diluted earnings per share $ 2.34 $ 2.04 $ 0.30 15%

----------------------------------------

Three Months Ended
June 30,
2008 2007
--------- ---------
Key Statistics:
Internal revenue growth:
Employer Services 7% 9%
PEO Services 17% 26%
Dealer Services 6% 7%

Employer Services:
Change in pays per control
- AutoPay product 0.8% 2.0%
Change in client revenue
retention percentage -
worldwide (0.4) pts 0.7 pts
Employer Services/PEO new
business sales growth -
worldwide 7% 5%

PEO Services:
Paid PEO worksite employees
at end of period 188,000 159,000
Average paid PEO worksite
employees during the
period 187,000 160,000

Twelve Months Ended
June 30,
2008 2007
--------- ---------
Key Statistics:
Internal revenue growth:
Employer Services 8% 9%
PEO Services 20% 26%
Dealer Services 6% 6%

Employer Services:
Change in pays per control
- AutoPay product 1.3% 2.3%
Change in client revenue 0.2 pts 0.1 pts
retention percentage -
worldwide
Employer Services/PEO new
business sales growth -
worldwide 8% 11%

PEO Services:
Paid PEO worksite employees
at end of period 188,000 159,000
Average paid PEO worksite
employees during the
period 176,000 149,000

----------------------------------------------------------------------

Automatic Data Processing, Inc. and Subsidiaries
Other Selected Financial Data, Continued
(Dollars in millions, except per share amounts)
(Unaudited)

Three Months Ended
June 30,
2008 2007 Change % Change
--------- --------- --------- ----------
Average investment balances
at cost (in billions):
Corporate investments $ 3.8 $ 3.8 $ - (1.0)%
Funds held for clients 16.1 15.5 0.6 4.2%
--------- --------- ---------
Total $ 19.9 $ 19.3 $ 0.6 3.1%
========= ========= =========

Average interest rates earned
exclusive of realized losses
(gains) on:
Corporate investments 4.0% 5.0%
Funds held for clients 4.2% 4.6%
Total 4.2% 4.7%

Net unrealized gain (loss)
position at end of period $ 142.1 $ (184.9)

Interest on funds held for
clients $ 169.7 $ 178.1 $ (8.4) (4.7)%
Corporate extended interest
income (B) 21.5 15.1 6.4 42.4%
Corporate interest expense-
short-term financing (B) (10.7) (18.8) 8.1 43.2%
--------- --------- ---------
$ 180.5 $ 174.4 $ 6.1

Twelve Months Ended
June 30,
2008 2007 Change % Change
--------- --------- --------- ----------
Average investment balances
at cost (in billions):
Corporate investments $ 3.4 $ 3.6 $ (0.2) (4.8)%
Funds held for clients 15.7 14.7 1.0 6.6%
--------- --------- ---------
Total $ 19.0 $ 18.2 $ 0.8 4.4%
========= ========= =========

Average interest rates earned
exclusive of realized losses
(gains) on:
Corporate investments 4.4% 4.6%
Funds held for clients 4.4% 4.5%
Total 4.4% 4.5%

Net unrealized gain (loss)
position at end of period $ 142.1 $ (184.9)

Interest on funds held for
clients $ 684.5 $ 653.6 $ 30.9 4.7%
Corporate extended interest
income (B) 79.4 70.1 9.2 13.1%
Corporate interest expense-
short-term financing (B) (73.2) (87.8) 14.6 16.6%
--------- --------- ---------
$ 690.7 $ 636.0 $ 54.7

(B) While "Corporate extended interest income" and "Corporate interest
expense -short-term financing" are non-GAAP disclosures, management
believes this information is beneficial to reviewing the financial
statements of ADP. Management believes this information is beneficial
as it allows the reader to understand the extended investment
strategy for ADP's client funds assets, corporate investments and
short-term borrowings. A reconciliation of the non-GAAP measures to
GAAP measures is as follows:

Three Months Ended Twelve Months Ended
June 30, June 30,
2008 2007 2008 2007
--------- --------- --------- ----------

Corporate extended interest
income $ 21.5 $ 15.1 $ 79.4 $ 70.1
All other interest income 15.9 31.5 70.1 94.9
--------- --------- --------- ----------
Total interest income on
corporate funds $ 37.4 $ 46.6 $ 149.5 $ 165.0
========= ========= ========= ==========

Corporate interest expense -
short-term financing $ 10.7 $ 18.8 $ 73.2 $ 87.8
All other interest expense 1.7 1.3 7.3 7.2
--------- --------- --------- ----------
Total interest expense $ 12.4 $ 20.1 $ 80.5 $ 95.0
========= ========= ========= ==========
*T

This document and other written or oral statements made from time
to time by ADP may contain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Statements that are not historical in nature and which may be
identified by the use of words like "expects," "assumes," "projects,"
"anticipates," "estimates," "we believe," "could be" and other words
of similar meaning, are forward-looking statements. These statements
are based on management's expectations and assumptions and are subject
to risks and uncertainties that may cause actual results to differ
materially from those expressed. Factors that could cause actual
results to differ materially from those contemplated by the
forward-looking statements include: ADP's success in obtaining,
retaining and selling additional services to clients; the pricing of
products and services; changes in laws regulating payroll taxes,
professional employer organizations and employee benefits; overall
market and economic conditions, including interest rate and foreign
currency trends; competitive conditions; auto sales and related
industry changes; employment and wage levels; changes in technology;
availability of skilled technical associates and the impact of new
acquisitions and divestitures. ADP disclaims any obligation to update
any forward-looking statements, whether as a result of new
information, future events or otherwise. These risks and
uncertainties, along with the risk factors discussed under "Item 1A. -
Risk Factors" in our Annual Report on Form 10-K for the fiscal year
ended June 30, 2007, should be considered in evaluating any
forward-looking statements contained herein.

ADP Investor Relations
Elena Charles, 973-974-4077
Debbie Morris, 973-974-7821

Copyright Business Wire 2008