Abra SQL Competitive Update: ADP Tom Tillman February 24, 2009

2 ADP Overview Employer Services Business –“Employer related business process solutions” –HR, benefits, payroll, tax, compliance, retirement services –Direct sales and service –Three HRMS market-focused BU’s: Emerging (Small Business) <50ee Major Accounts (Mid-Size Business) 50-1,000ee National Accounts (Large Business) >1000ee –PEO (Professional Employer Organization) –HR BPO (Business Process Outsourcing)

3 ADP Major Accounts -- Main HR/Payroll Offerings ADP HR/Benefits (HRB) –Web-based HR; Formerly Employease –SaaS offering with PEPM pricing –Works with Pay eXpert ADP HR eXpert –Web-based HR –SaaS offering with PEPM pricing –Works with Pay eXpert ADP Pay eXpert –Web-based version of PC Payroll for Windows (PCPW) –Client data “Front end” for AutoPay ADP AutoPay –Back office batch payroll processing services

4 ADP HR Capabilities & Pricing Module/FunctionHRB AdvancedHRB BasicHR eXpert HR & complianceYes Benefits adminYes Applicant trackingYes No RecruitmentYes No Training adminNo Employee self service (HR & benefits (info)Yes Employee self service (request/view time off)No Opt (Portal) Employee self service (payroll info)Opt (iPay) Opt (Portal) Manager self service (approvals/workflow)YesNo Benefits enrollmentYes Opt (Portal) Carrier connectivityYes Optional Time & Attendance InformationNo Opt (Link) ReportingYes Base Pricing (PEPM): ee ee 500-1,000ee $7.30 $7.05 $6.60 $5.95 $5.45 $4.85 $1.70 $1.55 $1.40 Base Pricing Implementation: ee ee 500-1,000ee Carrier Set-up (per carrier) Recruitment $6,000 $8,000 $10,000 $2,000 $5,000 $7,000 $9,000 $2,000 $4,000 $6,000 $8,000 N/A

ADP and Abra SQL Comparison

6 ADP HRB vs. Abra SQL Comparison Module/FunctionHRB AdvancedAbra SQL HR & complianceYesAbra HR Benefits adminYesAbra HR Applicant trackingYesAbra eRecruiter RecruitmentYesAbra eRecruiter Training adminNoAbra Train Employee self service (HR & benefits (info)YesAbra ESS Employee self service (request/view time off) NoAbra ESS Employee self service (payroll info)Opt (iPay)Abra ESS Manager self service (approvals/workflow)YesAbra ESS Benefits enrollmentYesAbra BE Carrier connectivityYesABM Time & Attendance informationNoAbra Attendance PayrollOpt (AutoPay)Abra Payroll Tax FilingIncl w/AutopayNo

7 ADP integration Now: Future: X X X Not Today! Must Import Into Pay eXpert!

8 ADP HRB Advanced vs. Abra SQL Pricing Comparison Assumptions Abra Assumptions: –Abra SQL BYOB pricing –HR, Attendance, Payroll –ESS, BE, eRecruiter –5 network seats –ABM 4 carriers –No tax filing ADP Assumptions –HRB Advanced PEPM –Payroll $4.10/pay (1 st 50) $2.15/pay (51+) Includes Pay eXpert, Autopay, Total Tax Plus, data access

9 Abra vs. ADP HRB 300ee Example YR 1YR 2YR 3TOTAL Abra SQL License (no Payroll)$22,650$0 $22,650 ABM Annual Service$5,000$3,000 $11,000 Abra Annual Support$4,435$5,720 $15,875 Total Abra$32,085$8,720 $49,525 nGenX Annual Service$4,320$4,020 $12,360 Total Abra + nGenX$36,405$12,740 $61,885 ADP HRB SaaS Annual Fees$25,300 $75,900 Total HRB$25,300 $75,900

10 Abra vs. ADP HRB/Payroll 300ee Example YR 1YR 2YR 3TOTAL Abra SQL License (with Payroll)$30,150$0 $30,150 ABM Annual Service$5,000$3,000 $11,000 Abra Annual Support$5,935$7,220 $20,375 Total Abra$41,985$10,220 $61,525 nGenX Annual Service$4,320$4,020 $12,360 Total Abra + nGenX$45,405$14,240 $73,885 ADP HRB SaaS Annual Fees$25,300 $75,900 Payroll Annual Fees (24 pays)$17,820 $53,360 Total ADP$43,120 $129,360

11 Positioning The Abra SQL Solution CONFIDENTIAL & PRIVILEGED-Not for Distribution

12 Abra SQL Proposal Tuning vs. ADP HRB functionality missing/weak –No time-off management –No integration to T&A systems –No requisition management –No training admin –File export/import integration between HRB and Pay eXpert –No single sign-on between HRB and Pay eXpert How important is tax filing service? –If need is extensive/important you will need to propose Abra Suite 1 st year outlay a key driver for customer? –Consider financing license/implementation over 3 years (KEF) Total cost of ownership –Emphasize total costs over 3+ years (high SaaS costs NEVER END) Hosting –Understand importance of hosted/SaaS to prospect. ADP is always SaaS. Include nGenX hosting service in proposal (perhaps as option) Customization & Flexibility –Abra can be customized (customers have their own Abra – SaaS is shared) –Customer can host additional applications at small incremental hosting costs (customers have their own dedicated Abra hosting resources)

13 Sage Abra HRMS Positioning Recognized leadership Leader Quadrant – Gartner 2006 Mid-market HRMS MQ Strong Performer – Forrester 2006 Mid-market HRMS Wave “The on-premise HR solution of choice for the…SMB … company segment” – Forrester 2006 Mid-market HRMS Wave Capabilities Single system automates & reduces the costs of HR, Benefits & Payroll administration Software support and services (Sage and Partner) Grows & changes as business needs evolve Modular software and services Multiple database platform support On-premise and hosted deployment options Fits the requirements of any budget Pay for only the capabilities needed now and add-on later Easy to adopt and use technologies (Win, IE, SQL,.Net) Hosting options minimize/eliminate IT impact Market Leader Designed for Mid-Size Organizations Comprehensive Capabilities Flexible & Scalable Low Total Cost of Ownership

14 Sage Abra + nGenX Positioning Sage Abra HRMS + nGenX Sage Abra HRMS leadership; backed by Sage Software PLC nGenX world class data center operations; backed by Q-Comm Complete package Abra software license, implementation, training & support Hardware, system software, facilities, network IT server maintenance, monitoring, data back-up, software upgrades, disaster recovery and business continuity Flexibility of software ownership with convenience of IT outsourcing Sage Abra can be fully customized in the hosted environment Quickly & easily add Abra Modules; add/remove user access Bring Abra on-premise should business needs change Ability to host additional applications along with Abra Can meet the requirements of any business budget Own the Abra license – not perpetual “rental” payments Spread license & other up-front costs over time with financing option Enjoy economies of scale with virtual hosting technology Low, fixed monthly hosting costs do not increase as Abra grows (adding employee records, adding modules) Leading & World Class Solution for Mid-Size organizations Comprehensive Solution Flexibility & Convenience Low Total Cost of Ownership

15 Additional Competitive Resources ADP competitive report – to be posted –abrasqlhrms.com and PRO Nancy Tillman, product marketing manager – x3406 Tom Tillman, product marketing director – x3304

Questions? Thank You!