Human Resources: Retailer iParty Reporting Benefits

WESTON, Fla.--(BUSINESS WIRE)--June 5, 2007--Ultimate Software
(Nasdaq:ULTI), a leading provider of end-to-end strategic human
resources, payroll, and talent management solutions, announced today
that iParty, a party goods retailer with 50 locations, began
processing "live" with UltiPro, a human resources management system
delivered through Intersourcing, Ultimate Software's
software-as-a-service model, in April 2007.

   "Intersourcing gives us the opportunity to elevate our HR
operations to a more strategic level by helping us automate many
tactical activities, and we don't have to be concerned about
installing upgrades, conducting backups, or any handling any of the IT
responsibilities associated with supporting an HRMS," said Rick
Schnurbusch, vice president of Human Resources for iParty. "Who better
to manage the software than the company who created it?"

   Prior to UltiPro, iParty determined that the service bureau it had
been using for human resources and payroll could not provide the
control and functionality that the retailer wanted to streamline
processes, reduce costs, and improve service to employees. iParty's
leaders chose Intersourcing so they could have the tools to achieve
their goals without the responsibility of supporting the solution in
house. With Intersourcing, customers also have the advantage of
convenient per-employee, per-month pricing.

   Soon after the retailer went "live" on UltiPro, iParty's human
resources department empowered employees with 24/7 access to their
personal payroll and HR details such as their paychecks. Because
employees could see this information over the Internet, the company
discontinued the costly process of printing, handling, and mailing
direct deposit advices.

   "With UltiPro's employee self-service, we were able to benefit
from cost savings and help the environment almost immediately by
moving to a paperless payroll," said Schnurbusch. "I believe that our
employees feel a greater sense of control over their information since
they can get it from anywhere at anytime."

   Before the rollout of employee self-service, members of the human
resources department communicated with employees and created a formal
Question and Answer document to help the HR team field questions they
thought would arise when employees first used the new solution. To
their surprise, the phones remained quiet in HR after self-service was
introduced.

   "We had a total of seven questions when we rolled out self-service
to more than a thousand employees. They accepted the change with
ease," said Schnurbusch.

   "We are pleased that iParty is already benefiting from the value
of UltiPro as an HR solution and Intersourcing as an on-demand
delivery model," said Greg Swick, senior vice president of sales for
Ultimate Software. "As they continue to roll out more of UltiPro's
end-to-end functionality, we expect that the company's positive
results will continue to increase."

   About iParty Corp.

   Headquartered in Dedham, Massachusetts, iParty Corp. is a party
goods retailer that operates 50 iParty retail stores and licenses the
operation of an Internet site for party goods and party planning at
www.iparty.com. iParty's aim is to make throwing a successful event
both stress-free and fun. With over 20,000 party supplies and costumes
and an online party magazine and party-related content, iParty offers
consumers a sophisticated, yet fun and easy-to-use, resource with an
extensive assortment of products to customize any party, including
birthday bashes, Easter get-togethers, graduation parties, summer
barbecues, and Halloween. iParty aims to offer reliable, time-tested
knowledge of party-perfect trends, and superior customer service to
ensure convenient and comprehensive merchandise selections for every
occasion. Please visit our site at www.iparty.com.

   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 approximately 700
professionals who are focused on developing the highest quality
products and services, Ultimate Software was identified 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