PALO ALTO--- PayCycle Hires Adobe Executive James Heeger as New CEO

PayCycle, the first and only company to offer small businesses an online, comprehensive self-service payroll solution, today announced that James Heeger, senior vice president at Adobe Systems, will join PayCycle as CEO, president and chairman of the board effective March 3, 2005.

Rene Lacerte, co-founder and current CEO, will become CFO and lead the company's finance and business development efforts. Lacerte, who since 1999 has directed the company's rapid growth, will continue to be an active member of the board.

"I had the pleasure of working with Jim at Intuit for several years on the payroll business, and saw first hand how his leadership and experience helped to dramatically grow the company," said Lacerte. "His expertise will accelerate our strong momentum as we continue to innovate and build our small business payroll leadership position."

Heeger has more than 20 years of experience in driving strategy and vision in his various leadership roles at Adobe, Intuit, HP, and Chase Manhattan Bank. Under his guidance at Adobe, the Creative Professional business grew dramatically as he oversaw the launch of the popular Adobe Creative Suite, as well as other flagship products like Adobe Illustrator(R) CS, and Adobe InDesign(R) CS.

"The opportunity to join PayCycle is simply too good to pass up," said Heeger. "Not only do I know and respect the PayCycle team, but the company has an opportunity to truly transform payroll for small businesses. PayCycle's offering is the most innovative I've seen and its customer satisfaction ratings are outstanding. I look forward to helping many more small businesses adopt the PayCycle solution."

Heeger previously served as president and CEO of Fotiva Inc., a photography software company acquired by Adobe in 2001. Prior to Fotiva, he spent several years at Intuit where he was CFO and later senior vice president and general manager of Intuit's Small Business division. There he helped grow the QuickBooks installed base to more than 2 million small businesses and extend the QuickBooks franchise into the payroll category. In addition, he held various management positions at HP, after starting his career in finance at Chase Manhattan Bank in New York.

He steps in to lead PayCycle at a critical growth point for the company. PayCycle's customer base has doubled to 18,000 customers in the last year. To date, only 15 percent of the nation's 5.1 million small employers outsource payroll, presenting a huge market opportunity for PayCycle's unique, Internet-based automated approach.

About PayCycle

Headquartered in Palo Alto, Calif., PayCycle's online self-service solution takes customers through the entire payroll process from paychecks to W-2's. PayCycle is the only self-service payroll offering with complete support for tax deposits and filings in all 50 states and the District of Columbia.

A well-known payroll technology leader, PayCycle has received numerous industry accolades, including a "Five Star Excellence" rating by PC Magazine two years in a row. PayCycle is also listed as one of Accounting Today's "Top 100 Products." The company is the premier IRS development partner for small business XML e-filing standards. Both Microsoft Money(R) and CCH(R), a leading provider of tax and business law information and software, selected PayCycle to be the payroll solution of choice for their customers.

For more information, visit www.paycycle.com.