FLS Launches Oracle® Version of its Popular Web-Native Payroll Tax System

Options for FLS eDP.COMpliance® Include Enterprise Software, Outsourcing

DALLAS, TEXAS - 5/30/02 - Federal Liaison Services, Inc. (FLS) today announced the general availability of its new Web-native payroll tax compliance system, FLS Employer's Direct Pay.COMpliance™ version 2002 (eDP.COMpliance®) for the Oracle® database platform.

FLS was the first company to launch a browser-based application for the payroll tax reporting market. For nearly four years, eDP.COM™ has helped employers comply with thousands of payroll tax regulations imposed by some 10,000 federal, state, and local government agencies. This newest version of the application operates on Oracle version 8i or 9i, and takes advantage of the platform's enhanced performance, scalable architecture, and secure infrastructure.

By automating payroll tax compliance, employers can minimize the risk of penalties, which may reach 10% of a payroll tax deposit or more. Additionally, companies can reduce overhead, and refocus payroll and tax personnel on more productive corporate goals.

"Never before have payroll taxes been more simplified," said Fran Bartlett, President and CEO of FLS. "The combination of Web technology and Oracle performance provides employers with an affordable, scalable, and easy-to-use solution. Whether they choose stand-alone software or outsourcing, companies now have maximum control with minimum effort."

The browser-native architecture of eDP.COM™ lets customers choose the implementation strategy that best fits their needs. The application can be deployed via the Internet, or on a corporate intranet or extranet. All payroll tax compliance processes can be decentralized, so multiple remote users can access the same database in real time from any PC that supports a browser.

The U.S. Department of the Treasury was the first user of eDP.COM™. Since July 1998, The Treasury has utilized the software to make about $40 billion in annual electronic payroll tax payments for over 400 different federal agencies.

Adoption of the new Oracle-based product has proceeded rapidly. Initial users of eDP.COM v. 2002 include Merrill Lynch and Company, Inc., Hoffmann-LaRoche, Inc., and Paytrak Payroll Services, Inc. FLS Compliance Outsourcing Services™ division also utilizes the application to process taxes for its customers who choose to outsource the payroll tax compliance function.

eDP.COM™ includes features to handle federal, state, and local tax deposit calendars, cash management, electronic tax payments, and multiple reporting sites. The software interfaces with most major payroll applications and can export data to accounts payable, treasury, or general ledger systems. The application also links to FLS EPIC™ (Electronic Payment and Information Courier) services to automatically format and transmit electronic tax payments.

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. FLS clients include more than 400 of the Fortune 1000, as well as major government agencies. Visit FLS online at www.flsinc.com or call 972/239-8881. Company headquarters are located at 12001 N. Central Expressway, Suite 700, Dallas, TX 75243-3715.