New Software Helps Government Cut Costs, Automate Tax Payments

Award-Winning Solution from Federal Liaison Services, Inc. Provides Web-based Payroll Tax Automation for U.S. Treasury

ORLANDO, FLORIDA - 11/09/1998 - Federal Liaison Services, Inc. (FLS) announced today the successful implementation of a comprehensive software solution for government payroll tax compliance and reporting. The FLS application serves as the payroll tax compliance engine of the new FEDTAX II system, developed by the U.S. Treasury Department's Financial Management Service (FMS). The announcement was made at the annual FLS User and Training Conference in Orlando, Florida.

FEDTAX II is a web-based system that allows federal agencies to make federal tax payments electronically using the Internet. Approximately $40 billion of the $1.5 trillion in Treasury's annual collections are currently handled by the system, with volume expected to increase significantly as new agencies are brought online. Nearly 200 agencies already use the system.

To meet the requirements of multiple federal agencies, FLS developed a solution that directly addresses the unique payroll tax automation needs of government, including data collection, due date assignments, payment generation, production of returns and electronic filing. FLS delivered the application on time to coincide with the beginning of a new quarterly filing period, having only a six-month window for development and implementation.

"Agencies that were previously duplicating payroll tax compliance efforts or managing decentralized processes can now utilize a single, user-friendly application," said Fran Bartlett, president and CEO of FLS. "As government struggles for ways to reduce overhead and improve service, FLS will continue to provide our expertise in both compliance and technology, helping to simplify elaborate processes and reduce the complexity of tax compliance."

FLS developed the system in partnership with CashTax Inc., a division of First Data Corporation. CashTax is a subcontractor to NationsBank, the Treasury's financial agent for the project.

"When we needed a partner for the payroll tax automation portion of the project, FLS was the natural choice," said Peter E. Hosokawa, president of CashTax. "Our strong proficiency in electronic tax processing services for banks and government agencies was backed up by their expertise in payroll tax compliance and reporting. We look forward to ongoing success with FLS in the FEDTAX II project and others."

On Oct. 8, 1998, FMS received an Alexander Hamilton Award for Excellence in Treasury Management. The award, sponsored by the Treasury and Risk Management Magazine, recognized FMS for its technology advancements on the FEDTAX II system. Other award winners included: Microsoft Corporation, Lucent Technologies, and the U.S. Postal Service.

The Financial Management Service (FMS), one of 12 bureaus of the U.S. Department of the Treasury, is the federal government's cash manager. The Service issues more than 850 million payments each year and manages the collection of federal revenues. FMS is responsible for developing and implementing secure and efficient methods to manage the federal government's cash flows.

About CashTax, Inc.

CashTax Inc. is a division of First Data Corporation. Hackensack, NJ-based First Data Corporation is a global leader in payment systems, electronic commerce and information management products and services. First Data and its principal operating units process the information that allows millions of consumers to pay for goods and services by credit, debit or smart card at the point of sale or over the Internet, or by check or wire money. For more information about First Data, please visit the Company on the Internet at www.firstdatacorp.com.

About Federal Liaison Services, Inc. (FLS)

Federal Liaison Services is the leading provider of software solutions and services to employers for payroll tax reporting and compliance - automating the tasks associated with payroll tax payments and filings, wage garnishment processing, and W-2 and 1099 processing. FLS solutions are Windows-based and scalable to enterprises of all sizes. FLS clients include more than 300 members of the Fortune 1000 and major government agencies.

Visit FLS online at www.flsinc.com or call 972/239-8881; fax 972/239-9540. The company's headquarters are located at 12001 N. Central Expressway, Suite 700, Dallas, TX 75243-3715.