Brokerage Services

Right: Anthony Portelli (left), Director, SBC Warburg Inc., thanks Tevin Datz (right), Vice President, Account Management, for ADP's support and dedication during the recent merger of SBC Capital Markets Inc., and SG Warburg, which created the new entity SBC Warburg Inc. ADP's proactive planning and solid commitment ensured an efficient and seamless consolidation of the two firms' books and records.

Brokerage Services, ADP's second-largest business, with over 22% of ADP revenue, provides high quality, high speed securities transaction processing, investor support tools, market data services, and investor communications related services to the financial community worldwide. ADP is the largest provider of such third-party processing and retail equity information systems in the U.S. and Canada. Brokerage Services now supplies over 2,600 firms globally with technology-based information solutions.

ADP's new Power Partner system has been chosen by over 30 brokerage firms. It provides 5,500 of their brokers with this advanced market information system, and seamlessly interfaces various desktop software applications.

In the Institutional market- place, Brokerage Services made several acquisitions. The DAIS Group provides sophisticated quantitative models to help port- folio managers assess risk and select stocks. DAIS models combine analytics with real-time quotes and news. Merrin Financial provides securities trade order management and routing solutions for investment managers and securities brokers. ADP and Merrin will bring investors and brokers together using seamless, transparent, end-to-end transaction execution over a secure, reliable network. Information Catalysts (ICI) markets fixed income trading, operations and accounting software for domestic and international banks and securities brokerage firms.

Below: Hussein Khoder (right), ADP Vice President, Account Management, and Bill Anderson (left), Executive Vice President & Chief Information Officer, Prudential Securities, discuss implementing ADP's strategic products on Prudential's technology platform. The Arms recently strengthened their thirteen-year partnership by entering into an agreement to install over 12,000 Power Partner workstations in Prudential's retail offices. worldwide

Global Treasury Information Services (GTIS) keeps its clients in tune with global price information, news and commentary on fixed income, foreign exchange, money markets, futures and metals. Information is contributed directly to GTIS by key institutions (e.g., banks and brokers). GTIS's flexible delivery platform is usable at home via Internet or in the trading room of the world's largest banks.

Above: (from right to left) Bruce Barnett, ICS, VP of Account Management, and Steven DeBernardo, Client Services Director, discuss applications with Bear Stearns & Co. Inc. executives, Joseph Kruszka, Managing Director, and Jeffrey C. Bernstein, Senior Managing Director. Frequent consultation helps both firms identify opportunities. Bear Stearns uses several ADP products and is one of our largest and longest client relationships.

ADP Investor Communication Services (ICS) is the largest independent provider of shareholder communication services in the U.S. and Canada servicing 12,000 publicly traded corporations, mutual funds, and financial institutions on behalf of more than 800 brokerage firms and banks. ICS processed over 235 million mailings during '96, up 15% from '95. In addition, ICS processed shareholder ballots, representing 127 billion shares, through its optical, electronic and telephone voting systems.

ICS also uses the Internet to display quarterly reports, earnings and other corporate information. Proxy Edge, is a unique electronic voting service which dramatically improves voting efficiency. Phone VOTE Services, enables mutual fund shareholders to vote their proxy over the telephone for same-day tabulation.

ICS also processes statements, confirmations, customized messages and prospectus fulfillment. In addition, ICS continually combines technology and marketplace knowledge to engineer valuable new communications services.