Employease Named in Leaders Quadrant in 2006 Midmarket HRMS Magic Quadrant Report

ATLANTA, January 30, 2006 - Employease®, the leading provider of on demand HR, benefits administration and outsourcing solutions, announced today that it has been positioned in the "Leaders" quadrant in the Gartner, Inc. "Magic Quadrant for U.S. Midmarket HRMS" report for 2006. According to Gartner, "leaders" are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market.

In the report, Gartner predicts that by 2008, more than 50 percent of new HRMS purchases by U.S. midmarket customers will be made with vendors through the on-demand/software-as-a-service model.* Gartner, Inc.'s Magic Quadrant positions vendors in a particular market segment based on their completeness of vision and ability to execute that vision.

"Almost 10 years ago, Employease pioneered the software as a service model. As we continue to innovate and drive our business forward, Employease is leading the charge towards a revolution in HR," said Phil Fauver, chief executive officer of Employease. "We are focused on raising the bar for what organizations can expect from their human capital management providers in terms of innovation, customer service and results."

Employease provides web-based HR and benefits solutions and outsourcing options for companies of all sizes that give HR professionals the power to choose where and by whom HR tasks are completed. A customer's existing HR and benefits staff can use Employease's applications and/or Employease can use its applications to provide process outsourcing services on a customer's behalf.

The company's applications include full-featured HRIS, benefits administration, employee self-service, manager self-service, leave management, performance management, recruitment and connectivity to internal systems, benefit providers and other service providers. Employease outsourcing solutions include employee call center, carrier billing, invoice reconciliation, enrollment support, fulfillment services, COBRA, HIPAA and flexible spending account administration.

About Employease
Employease®, Inc.(www.employease.com) provides an innovative and proven mix of web-based HR and benefits solutions and outsourcing options, giving organizations the power to choose how to best manage HR and benefits processes. By focusing on people, not paper, more than 1,000 organizations improve service to employees and managers and positively impact their bottom line using Employease.

*Gartner, Inc.: "Magic Quadrant for U.S. Midmarket Human Resource Management Systems, 2006," by James Holincheck and Kirsten L. Recknagel, January 25, 2006.

The Magic Quadrant is copyrighted January 25, 2006, by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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