ADP Completes Acquisition of U.S. Clearing and BrokerDealer Services from Bank of America

New Division Named ADP Clearing and Outsourcing Services

NEW YORK, NY - November 1, 2004 - ADP Brokerage Services Group (ADP), a division of Automatic Data Processing, Inc. (NYSE: ADP), today said it has completed the previously announced acquisition of the U.S. Clearing and BrokerDealer Services units of Bank of America Corporation. The new business unit, ADP Clearing & Outsourcing Services, is a member of the New York Stock Exchange.

"We are very excited about our three-tier strategy which expands our solution set to include both correspondent clearing and operations outsourcing services," said John Hogan, Group co-President, ADP. "The acquisition of U.S. Clearing and BrokerDealer Services allows us to provide both retail and institutional introducing broker clients a robust, industry-leading solution and enables us to complete our comprehensive three-tier service offering for the industry."

This new strategy will enable ADP to offer any brokerage firm, regardless of size, the appropriate range of outsourcing services to best meet its individual needs on a single technology platform: service bureau, operations outsourcing, or correspondent clearing services.

ADP Clearing Services:
With the completion of the acquisition of U.S. Clearing and BrokerDealer Services, ADP now offers a traditional clearing service to retail and institutional broker/dealers who want to outsource their entire back office function and use ADP's capital to finance their businesses. ADP will offer all of the economies of scale benefits available to Operations Outsourcing clients in addition to all financing functions.

"We are pleased to have U.S. Clearing and BrokerDealer Services as our entry into the correspondent clearing marketplace," said Hogan. "We are excited to welcome the new associates to the ADP family and look forward to building a strong position of leadership in the clearing arena.

ADP Operations Outsourcing:
Operations Outsourcing allows broker dealers to outsource the operational, labor-intensive functions of trade clearance, settlement and custody while continuing to remain a separate self-clearing broker. This service is strictly associated with the labor-related activities necessary to perform typical back office functions. This unique offering will utilize ADP's multi-client system which will allow clients to realize significant economies of scale in the back office while preserving their independent broker dealer accounts for daily settlements with counterparties. This service will allow clients to capitalize their business as they wish and to manage the financing of their business through their own Stock Loan Desk.

"The strategic decision to offer Operations Outsourcing services was made based on client requests for a central operations staff that would allow them to remain self-clearing while realizing the significant economies of scale available through ADP," said Hogan.

ADP Brokerage Processing Services (Service Bureau):
ADP Brokerage Processing Services (BPS) is the industry-leading back-office service bureau - the traditional service ADP has offered for more than 40 years - where self-clearing firms use ADP systems to manage their back-office operations.

ADP BPS services include real-time securities processing systems and desktop productivity applications for the financial services industry, supporting processing of North American equities, options, mutual funds and fixed-income securities. From its industry leading date center, BPS handles everything from order management to clearance and settlement processing, and ensures that all regulatory reporting and other back-office requirements are covered.

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