Freightliner Chooses ADP To Develop Web-Based System

20 September 1999

Freightliner Chooses ADP To Develop Web-Based System; Sign Letter of Intent for Freightliner's Next-Generation Dealer System

    HOFFMAN ESTATES, Ill.--Sept. 20, 1999--The Dealer Services Group of Automatic Data Processing, Inc. (ADP(R) - NYSE:AUD), and Freightliner Corporation today announced the two parties have signed a letter of intent for ADP to develop a web-based dealer management system designed for Freightliner and Sterling dealers, and for ADP to acquire Key Computer Systems International, Inc. (KCSI) from Freightliner Corporation. These transactions are subject to negotiation and execution of a definitive agreement.
    "Freightliner's goal is to provide dealers with the best software system available to support their business," said James L. Hebe, President and CEO of Freightliner Corporation. "After reviewing the alternatives in the market, we chose ADP as an excellent business partner who can deliver the best technical solution. Together, Freightliner and ADP have the experience and resources to invest in the development of this new system -- giving Freightliner and Sterling dealers a distinct competitive advantage."
    "This agreement with Freightliner is a direct result of our recent acquisition of Dealer Solutions, Inc. (DSI), and is a key component of our strategy to deliver web-enabled solutions to dealers," said Mike Martone, president, ADP Dealer Services. "It also demonstrates our ongoing success in partnering with truck and auto manufacturers in their retail initiatives."
    In May 1999, ADP acquired DSI, the Houston-based developer of a Windows(R)-based client/server dealer management system, as the foundation for next-generation dealer systems and manufacturer-specific applications.
    Freightliner and ADP will partner to develop Freightliner's next generation dealer business system. The new client/server, web-enabled program will interface with Freightliner's existing systems including PartsPro and ServicePro. Currently, Freightliner offers 14 strategic software programs to assist dealers and fleet managers.
    As part of the agreement, ADP intends to acquire and assume management of the KCSI dealer management system. Freightliner Corporation acquired KCSI in 1994 and has developed unique and differentiated systems for its growing dealer network. Until execution of a definitive agreement and closing of the acquisition, KCSI and ADP will continue to operate independently.
    In 1998, Freightliner Corporation earned a record 33.1 percent of the Class 8 heavy truck market. Freightliner Corporation produces, distributes and markets a full range of commercial vehicles, including heavy- and medium-duty trucks, military vehicles, school buses, fire apparatus, shuttle buses, RVs and walk-in delivery vans for a variety of applications.
    Freightliner Corporation, headquartered in Portland, Oregon, is a DaimlerChrysler Company, the world's largest commercial vehicle manufacturer (www.freightliner.com).
    ADP Dealer Services Group is a leading provider of integrated computing solutions to truck and automobile manufacturers and more than 18,000 truck and auto dealers throughout the United States, Canada, and Europe. The Dealer Services Group is the third largest business unit of Automatic Data Processing, Inc. . With more than $5 billion in annual revenue and more than 450,000 clients, ADP is one of the largest independent computing services firms in the world. (www.adp.com)

This release contains "forward-looking statements" based on management's expectations and assumptions and are subject to risks and uncertainties that may cause actual results to differ from those expressed. Factors that could cause differences include: ADP's success in obtaining, retaining and selling additional services to clients; the pricing of products and services, overall economic trends, including interest rate and foreign currency trends; impact of Year 2000; stock market activity; truck sales and related industry changes; employment levels; changes in technology; availability of skilled technical associates; and the impact of new acquisitions.