On the Cover

ADP's corporate performance is legendary, and its performance has been achieved through the efforts and dedication of its 30,000 associates from around the world. ADP will continue to achieve success through the commitment of its associates to achieving world class service.

TABLE OF CONTENTS About ADP 1997 Significant Events Financial Highlights Letter from the Chief Executive Officer Letter from the Chairman Employer Services Brokerage Services Dealer Services Claims Services Selected Financial Data Management's Discussion and Analysis Statement of Consolidated Earnings Consolidated Balance Sheets Statements of Consolidated Shareholders' Equity Statements of Consolidated Cash Flows Notes to Consolidated Financial Statements Report of Management Independent Auditors' Report Directors and Corporate Officers Corporate Information