Human Resources: ULTIMATE-SOFTWARE)(ULTI) City of Ann Arbor Selects Ultimate

    WESTON, Fla.--(BUSINESS WIRE)--Feb. 28, 2007--Ultimate Software
(Nasdaq:ULTI), a leading provider of end-to-end strategic human
resources, payroll, and talent management solutions, announced today
that the City of Ann Arbor in Michigan has selected Ultimate
Software's UltiPro delivered through the hosted service model,
Intersourcing.

    The City of Ann Arbor has been using a nonintegrated, in-house
HRMS that requires manual reconciliation of workforce data, lacks
sophisticated reporting capabilities, and poses a burden on internal
IT resources for system maintenance. To replace it, the City of Ann
Arbor's human resource services and payroll teams sought a new
vendor-hosted solution that could help manage the entire employment
lifecycle more efficiently. The City selected Intersourcing in
November 2006.

    "We plan to use Intersourcing to streamline administrative
processes from hire to retire and provide better service to internal
customers with state-of-the-art reporting and Web access for managers
and employees," said Richard Martonchik, manager of human resource
operations for the City of Ann Arbor. "We believe it's critical to
make the best use of taxpayer dollars and, with UltiPro, we estimate a
tangible savings of approximately $400,000 over a 5-year period in
addition to soft-cost savings in efficiencies that we expect to
accrue."

    Another important benefit Ann Arbor expects to see is a reduction
in IT staff time. With Intersourcing, there is no need for companies
to use internal technology resources because the IT functions are
handled by Ultimate Software, leaving staff free to focus on other
projects. Top-level executives in government and in business are
increasingly attracted to Intersourcing as a delivery model since
users do not need to invest in hardware, technology people, or system
software to support a new advanced HRMS.

    "The City of Ann Arbor's human resources and payroll groups will
significantly reduce any reliance on internal IT resources because
Ultimate Software supplies and configures all system hardware and
software, and handles infrastructure setup, software installation,
upgrades, tax updates, and backups," said Deb Carmack, HRMS consultant
for the City of Ann Arbor. "The IT, human resources, and payroll teams
are all excited about moving forward."

    "For municipalities or any organizations that need to create time
for their IT departments to focus on other projects, our Intersourcing
software as a service solution can deliver those benefits and free up
IT resources," said Greg Swick, senior vice president of sales for
Ultimate Software. "We are pleased that the City of Ann Arbor has
joined us and look forward to seeing them achieve their goals."

    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 650
professionals who are focused on developing the highest quality
products and services, Ultimate Software was named 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.