Letter from the Chairman

1997 marked my first ADP year in less than a full-time leadership role, and I am pleased to observe the outstanding accomplishments of the current management team under Art Weinbach's leadership. As cited in Art's letter to shareholders, we concluded our 36th year (144 consecutive quarters) of uninterrupted growth in both revenue and earnings per share. According to the Compustat database of 9,500 publicly owned companies, only one other company's growth record has endured half as long as our 144 fiscal quarters. Consistency in continually attaining new heights without occasional financial disappointments is most difficult and unusual. The whole ADP team deserves special recognition for their collective achievement. I am quite confident that four more growth quarters will be added to that record in fiscal '98.

Many shareholders have asked me how my time has been redirected after so many years of more than full-time focus on ADP matters. During the past year, I am pleased to have played a leading role on two government-related "commissions," one to help restructure the Internal Revenue Service and the other to help shift military resources from overhead functions to more cutting-edge, rapid response defense capabilities. In between times, I've also played pro bono roles in several endeavors to enhance our nation's educational and economic development accomplishments.

I think that it is most appropriate for those individuals and companies who have benefited from our society to give back to that society so that others may be assisted.

I thank our shareholders for their support and confidence in ADP. The Board of Directors and our 30,000 ADP associates are committed to providing you with continued growth and good return on your investment.


Josh S. Weston
Chairman

August 13, 1997