Boy Thing Have Changed! - EDS Sells Automotive Retail Group to ADP Dealer Services

Move Provides Automotive Dealerships With Expanded Choices of Dealer Management System Solutions

HOFFMAN ESTATES, Ill., Mar. 18 -- The Dealer Services Group of Automatic Data Processing, Inc. today announced its purchase of the Troy, Michigan-based Automotive Retail Group (ARG) of Electronic Data Systems . Terms of the transaction were not disclosed.

ARG was formed shortly after General Motors acquired EDS in 1984 and was focused exclusively on GM dealers until 1996, at which time its split from GM allowed EDS to pursue non-GM dealers.

EDS began a working relationship with Saturn in 1988 to develop a retail application and has since been Saturn's primary dealer management systems provider. Saturn renewed their contract with ARG in 2002.

ADP Dealer Services is a leading provider of integrated computing solutions to more than 16,000 automotive and truck dealers throughout the United States, Canada and Europe. ADP offers a full range of choices of web-enabled dealer management solutions, including w.e.b.Suite1000, w.e.b.Suite2000, and optional w.e.b.AppExtensions to meet the unique needs of all dealership sizes. ADP solutions are available onsite or as an offsite ASP solution.

"Our dealership customers will continue to have a partner with the right solution, long-term vision and ability to invest in the business, while EDS continues to sharpen its focus on the manufacturing industry's core outsourcing opportunities," said Darl Davidson, EDS' vice-president of the U.S. manufacturing industry. "With ADP, our ARG customers will join a company that shares our culture of exemplary customer service and has a proven product development strategy."

This landmark agreement between EDS and ADP delivers strong synergies and tangible benefits to ARG customers:

  -- ADP and EDS are leaders in Application Service Provider (ASP) Managed
     Services and offer dealers the choice of onsite or offsite server
     platforms.  ADP and Saturn will continue the migration of the current
     Saturn Retail Systems applications suite, which over 8,500 users access
     daily for sales, service, parts, accounting, data mining and reporting,
     to a centrally hosted ASP environment, making GM the first US-based
     automotive company to move an entire division's retail community to the
     more efficient ASP model.
  -- Like ARG, ADP is committed to the needs of small- to medium-sized
     dealers and delivers flexible, Web-enabled solutions that meet this
     segment's unique needs, goals and price sensitivities.
  -- Both organizations have solid working relationships with General Motors
     and are committed to addressing the needs of GM and its dealer
     community.
  -- ADP and ARG both provide their dealers with a wide range of product and
     service choices and enable them to customize solutions that best meet
     their needs and budgets.

"We are pleased that ADP has committed to work through our Retail Information Technology (RIT) task force as our new business partner," said Michael Green, retailer, Saturn of Whittier, Calif., and member of the Saturn RIT task force. "ADP has committed to enhance our Saturn DMS products and the ASP delivery model, and fully support our retailer business needs."

Maryann Goebel, Chief Information Officer, GM North America also endorsed the deal. "General Motors is consistently focused on ensuring that the DSPs offer our dealers the best products, services and prices possible. I am confident in ADP's commitment to our dealers and believe that they will support the dealers with the proven solutions and choices they want. Additionally, ADP's leadership and stability as a major provider of DMS services will significantly benefit our dealers during this transition period and beyond."

"ADP is committed to fully supporting the DMS@NET and DMS@NET.NG products and the ARG organization," said Mike Martone, president of ADP Dealer Services. "We will also continue to enhance the existing product line by offering new, integrated solutions to augment the current ARG offerings."

"The transition to ADP will be seamless. We will maintain ARG as a separate operating unit headquartered in Troy, Michigan and continue the high levels of sales, service and product support that ARG dealers currently enjoy today," added Martone. "ADP remains unwaveringly focused on helping dealers sell more cars, parts and service profitably."

About ADP Dealer Services

ADP Dealer Services provides integrated computing solutions to more than 16,000 automotive and truck dealers throughout the United States, Canada and Europe. ADP Dealer Services is the third largest business unit of Automatic Data Processing, Inc. . ADP, with over $7 billion in revenues and approximately 500,000 clients, is one of the largest independent computing services firms in the world. More information on ADP Dealer Services is available on the Internet at http://www.dealersuite.com/.

  ADP is a registered trademark of ADP of North America, Inc.

  About EDS

EDS, the world's most experienced outsourcing services company, delivers superior returns to clients through its cost-effective, high-value services model. EDS' core portfolio comprises information-technology and business process outsourcing services, as well as information-technology transformation services. EDS' two complementary, subsidiary businesses are A.T. Kearney, one of the world's leading high-value management consultancies, and UGS PLM Solutions, a leader in product data management, collaboration and product design software. With 2003 revenue of $21.5 billion, EDS is ranked 80th on the Fortune 500. The company's stock is traded on the New York and London stock exchanges. Learn more at eds.com