PerfectSoftware and FLS form Strategic Alliance

Dallas, TX August 27, 2004 -- Federal Liaison Services Inc. (FLS), a premier provider of employer compliance software and services, today announced a new partnership agreement with PerfectSoftware, a technological leader for comprehensive and flexible management of human assets and capital.

With the new alliance, PerfectSoftware becomes the newest member of the FLS CHAMPS™ (Channel and Marketing Partners) alliance program of leading technology and service vendors.
Under the partnership, PerfectSoftware, acting as a reseller, will bundle FLS tax filing services with its own PerfectPayroll software solution. PerfectSoftware customers will have the ability to quickly generate an export file directly from their payroll software, which will include periodic data, wage detail and W 2/1099 data. FLS will utilize the data to process, file, and pay all federal, state and local payroll tax liabilities.

"Payroll tax filing is a corporate football," said Fran Bartlett, president and CEO of FLS. "It's a function that employers frequently like to hand off, due to the exposure to potential penalties and interest. Now with the FLS/PerfectSoftware alliance, businesses can utilize a powerful in-house software solution, coupled with expert outsourced tax filing. The combination provides an ideal balance of internal control and external expertise for employers who are looking to simplify processes and reduce risk."

"We're excited to partner with FLS," said Michael H. Schindel, VP of Strategic Alliances at PerfectSoftware. "This new alliance pairs two industry leaders to create a world-class solution. Employers will benefit from this easy to use, flexible and cost-effective blend of software and services."

Tax filing services for PerfectSoftware clients will be provided by FLS Compliance Outsourcing Services™, an outsourcing division formed by FLS in 1998 to service the growing demand for flexible, cost-effective outsourcing of government reporting and compliance obligations. Available services include both tax filing and wage attachment/garnishment processing.

About PerfectSoftware
PerfectSoftware empowers human resource and payroll professionals with customer-driven solutions that help them recruit, develop, pay and retain key employees. PerfectSoftware focuses on middle market companies and provides its customers with unique features that provide key benefits toward corporate goals and objectives. The solutions help the HR and payroll professionals position the human capital of the company in such a way that revenue and expenses are directly impacted through positive results.

With over 20 years of industry experience, PerfectSoftware provides services in the requirements refinement, implementation, installation, training and support of the HR and payroll departments. Learn more at www.perfectsoftware.com or contact Michael Schindel at .

About Federal Liaison Services, Inc. (FLS)
FLS is the premier provider of software solutions and services to employers for government reporting and compliance. FLS solutions automate payroll tax payments and filings, wage garnishments and year-end W-2/1099 processing for employers of all sizes. Current clients include more than 20 percent of the Fortune 500 as well as hundreds of government agencies. Visit FLS online at www.flsinc.com or call 972.239.8881.

EDITOR'S NOTE: FLS and the FLS logo are trademarks of Federal Liaison Services, Inc. The PerfectSoftware logo is a registered trademark of Aspetuck Systems Inc. PerfectPayroll is a trademark of Aspetuck Systems Inc. All other company names and products are the trademarks or registered trademarks of their respective owners.





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