Human Resources: Nikon Precision Improves TalentManagement Processes with Ultimate Software's Intersourcing

    WESTON, Fla.--(BUSINESS WIRE)--Dec. 13, 2006--Ultimate Software
(Nasdaq:ULTI), a leading provider of end-to-end strategic human
resources, payroll, and talent management solutions, announced today
that Nikon Precision Incorporated has improved its talent management
processes since implementing Ultimate Software's UltiPro through the
hosted service model, Intersourcing.

    Nikon Precision is a wholly owned subsidiary of Nikon Corporation,
one of the world's leading optical companies, and a sister company of
Nikon, Inc. Providing sales, service, and customer support for Nikon
photolithography systems, Nikon Precision has approximately 700
U.S.-based employees working in 20 locations. Prior to implementing
UltiPro in 2003, Nikon had been using a service bureau for its payroll
processes and was conducting many of its HR procedures manually on
spreadsheets. Since the company went "live" on Intersourcing, Nikon
Precision has experienced:

    -- payback in just over 12 months,

    -- significant service improvements to internal customers, and

    -- across-the-board efficiencies in HR, payroll, and benefits
        processes.

    Having migrated from a service bureau environment, Nikon
Precision's HR/payroll department had neither dedicated IT support nor
hands-on experience managing an HRMS, so the team selected
Intersourcing. For its hosted customers, Ultimate Software manages the
hardware, system maintenance, and upgrades associated with UltiPro.

    Susan Levitt, HR director for Nikon Precision, has found
Intersourcing to be a cost-effective way for the company to gain
in-house control of its processes with comprehensive talent management
functionality to help streamline compensation and benefits
administration, performance management, training, and workforce
analytics. By considering both hard and soft cost savings, Levitt
estimates that Intersourcing paid for the company's initial investment
in just over a year.

    "UltiPro made good financial sense for us and there is no question
that the investment began providing a return rather rapidly," said
Levitt. "Plus, with Intersourcing, Ultimate Software is responsible
for the IT side of UltiPro so that we can focus on providing excellent
service to employees, including executives. With UltiPro, strategic HR
reports are available from anywhere at anytime because we access
Intersourcing over the Web. Overall, UltiPro is allowing us to shift
our workload from task-oriented to more strategic projects, making our
role within the company more valuable."

    By giving both employees and managers the ability to collect
relevant HR/payroll information by logging on to the solution, the
HR/payroll team no longer has to spend as much time responding to
questions and requests. Employees can view their individual
information and update their address or phone number when necessary
without e-mails to HR or paper forms. Nikon Precision's more than 100
managers can see employee compensation, job, and performance appraisal
history when they need it, regardless of time zone or day of the week.

    "Our workforce is on duty 24 hours a day, and Intersourcing has
given us a 24-hour HR/payroll department," said Laura Neimann,
business systems manager for Nikon Precision. "Our managers, in
particular, have reacted very positively to self-service because it
eliminates the middleman they'd have to go through for information. We
don't want to be a gatekeeper and don't need to be with UltiPro
because everyone can be given the security rights to the information
that's appropriate for them."

    Just as UltiPro's self-service is benefiting employees and
managers, the solution is also enhancing HR's day-to-day operations by
reducing the paper transactions and manual data entry that the team
used to tackle before UltiPro. For instance, with UltiPro, the
workforce management staff has automated across-the-board wage
increases, paying bonuses, and importing performance appraisal data
twice a year, shaving off days of work and increasing the accuracy of
information.

    "Intersourcing provides the same functionality as our licensed
offering and gives organizations the opportunity to benefit from the
convenience, predictable pricing, and reliability of software as a
service," said Greg Swick, senior vice president of sales for Ultimate
Software. "As Nikon Precision is experiencing, Ultimate Software's
Intersourcing delivers cross-organizational workforce management
advantages."

    About Ultimate Software

    A leading provider of end-to-end, strategic human resources,
payroll and talent management solutions, Ultimate Software markets its
award-winning UltiPro products as licensed software and as on-demand
services through Intersourcing. Employing more than 600 professionals
who are focused on developing the highest quality products and
services, Ultimate Software was positioned in the Leaders quadrant of
Gartner, Inc.'s "Magic Quadrant for U.S. Midmarket Human Resource
Management Systems, 2006" and as a Leader in Forrester Research Inc.'s
2006 U.S. Midmarket HR solutions Wave ranking. Ultimate Software was
also named the 2005 Payroll Provider of the Year by the Human
Resources Outsourcing Association and ranked #3 on the 2006 Top 25
Best Medium-Sized Companies to Work for in America list by the Great
Place to Work Institute. Also in 2006, Ultimate Software won two
customer service awards, one from American Business Awards as the Best
Customer Service Organization and the other a first-place SSPA STAR
Award from Service & Support Professionals Association. Ultimate
Software customers represent diverse industries and include such
organizations as The Container Store, Elizabeth Arden, The Florida
Marlins Baseball Team, The New York Yankees Baseball Team, Nintendo of
America, Ruth's Chris Steak House, and SkyWest Airlines. More
information on Ultimate Software's products and services can be found
at www.ultimatesoftware.com.

    UltiPro and Intersourcing are registered trademarks of The
Ultimate Software Group, Inc. All other trademarks referenced are the
property of their respective owners.

    CONTACT: Ultimate Software, Weston
             Darlene Marcroft, 954-331-7444
             darlene_marcroft[at]ultimatesoftware.com
             or
             For Sales Information:
             Ultimate Software
             800-432-1729
             Web site: www.ultimatesoftware.com