Ceridian's SAS 70 Program

The Sarbanes-Oxley Act was passed in 2002 in an effort to help ensure fuller disclosure and fairness in financial reporting. In general, it imposed new compliance and reporting responsibilities on publicly registered companies that include management's quarterly certification of financial results (Section 302) and management's annual assessment of the effectiveness of internal controls over financial reporting (Section 404).

Ceridian is committed to assisting its customers in their Sarbanes-Oxley compliance efforts. As a component of our world-class service, we have dedicated significant resources to provide services intended to help customers meet their Sarbanes-Oxley obligations and minimize the cost and complexity of compliance - so that customers are more free to focus on achieving your company's core objectives.

SAS 70 Reports:

SAS 70 (Statement on Auditing Standards No. 70) is an internationally recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA). A SAS70 report is widely recognized because it follows an in-depth assessment of control activities, which generally include controls over information technology and related processes.

On a regular scheduled basis, independent auditors have examined Ceridian's procedures and accompanying description of controls for a number of Ceridian's products including HR/Payroll, Tax Services, FSA, COBRA, and Health and Welfare. Upon testing these controls, the auditors determine that the controls are operating with sufficient effectiveness to provide assurance that the control objectives were achieved during the period of time testing occurred. The auditor's final reports state that that the procedures for testing Ceridian's controls were carried out to the satisfaction of the independent auditors

SAS70 Type II examinations are regularly completed for many of Ceridian's services. All SAS70 reports for 2006 are unqualified (clean) reports.

As Ceridian customers work to meet their Sarbanes-Oxley obligations, they can look to Ceridian for the following assistance:

• Discussion with Ceridian's Product Compliance Team
• Collaboration and discussion with a customer's Sarbanes-Oxley team and external auditors
• Assistance in determining and describing Ceridian processes and controls within each of our major product or process areas
• A significant SAS70 program, with SAS70 Type II reports issued for many of our services at regular intervals.

Customers and their auditors can obtain copies of Ceridian's SAS70 reports, authored by KPMG, LLC by going to www.myceridian.com and Contact Us, and SAS70 Web Request Form. Completion of the form will result in receipt of the requested SAS70 reports via the mode of delivery requested on the form.