Senior IRS Official to Speak at FLS Event

Terence H. Lutes to Address FLS Customers on Issues of Electronic Taxation

DALLAS, TEXAS - 5/21/01 - Federal Liaison Services, Inc. (FLS), a leading supplier of employer compliance software and services, announced today that Terence H. Lutes, Director of Electronic Tax Administration for the Internal Revenue Service (IRS), will be featured as the opening keynote speaker at Discovery 2001, the 8th Annual FLS User and Training Conference.

Mr. Lutes began his career with the IRS in 1977 and has held various positions of increasing responsibility with the agency. In 1996, he was selected as the first Director of Electronic Program Operations under the newly created Electronic Tax Administration organization. He was appointed to the permanent position of Director, Electronic Tax Administration in January of this year.

"One of the key goals of the Electronic Tax Administration is to communicate with businesses about the future of electronic commerce with the IRS," said Mr. Lutes. "The FLS Discovery conference gives us an excellent opportunity to do so, and I'm looking forward to the chance to meet and talk with FLS customers about their needs for e-filing and interaction with government."

Discovery 2001 takes place November 4-7, 2001, in Clearwater, Florida. More than 400 FLS customers, industry partners, and government representatives are expected to attend. Each year the conference attracts hundreds of attendees to learn about issues of tax compliance, best practices, employment regulations, government reinvention, electronic commerce, and new regulations. This year's conference theme, "Discovering Buried Treasure," will focus on how employers can utilize new and existing assets to increase the productivity and profitability of their businesses and careers.

"The Discovery conference gives our attendees the unique ability to directly interact with senior decision makers from all levels of government." said Fran Bartlett, President and CEO of FLS. "Mr. Lutes' extensive experience and IRS background will provide invaluable insight on where the agency is headed and how employers will be affected."

About Federal Liaison Services, Inc. (FLS)

FLS is the leading provider of software solutions and services to employers for government reporting and compliance. FLS solutions automate payroll tax payments and filings, wage garnishment processing, and year-end W-2 and 1099 processing. Applications are Web- and client/server-based, and are scalable to enterprises of all sizes. FLS clients include more than 400 members of the Fortune 1000, as well as several 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.