Overwhelming Majority of Small Business Owners Report Number One Concern is Rising Oil Prices

CHICAGO — June 1, 2006 — SurePayroll Inc., the nation's largest online payroll provider, today announced the results of its SurePayroll Small Business Scorecard Business Survey.

SurePayroll surveyed its customer base of small business owners and determined that despite higher oil prices and sliding consumer confidence, most small business owners remain optimistic. However, the number of small business owners who are optimistic has decreased slightly relative to prior surveys.

"We are seeing a slight decline in optimism relative to prior surveys, but most small business owners still see the glass as being more than halfway full," said SurePayroll president Michael Alter. "We interact with thousands of small businesses each and every day through our payroll service business, and I am constantly amazed at the confidence, tenacity and perseverance that small business owners exude."

The survey results are largely consistent with SurePayroll's economic indicators, derived from the payroll records of over 15,000 small businesses. This data — the SurePayroll Small Business Scorecard — is available at www.surepayroll.com/scorecard.

Oil and Gas Prices Top List of Small Business Concerns
Survey respondents indicated that the rising cost of oil and gas will be the main driver of how the economy fares over the next six months. Small business owners cited the war in Iraq and the cost of healthcare as the second and third most important areas of concern, with softening in the housing and real estate markets coming in fourth place as a key issue that will impact the economy over the next six months.

Economic factors that small business owners considered less important included the possibility of war with Iran, domestic immigration issues, labor shortages and the threat of an Avian Flu pandemic.

Business Outlook: Optimism High But Declining
Most small business owners appear to be optimistic about the small business economy. Of those surveyed, 78% responded that they feel optimistic about the small business economy, with the remainder, 22%, indicating that they are pessimistic.

This level of confidence represents a slight drop in confidence relative to the last time SurePayroll took small business owners' pulse on this topic. In September 2005, 81% of respondents were optimistic and 19% of respondents were pessimistic.

Hiring Trends: Most Small Businesses Did Not Hire New Employees in May
23% of respondents had increased their total number of employees in May, while 8% noted that they decreased their employee headcount in May. The balance of respondents (69%) ended the month of May with the exact same number of employees they had at the end of April.

Salary Trends: Salaries Rising for Many New Hires, Flat or Down for Others
Half the survey respondents indicated that they must pay new employees higher starting salaries now than they paid new employees one year ago. The balance of survey respondents have seen little or no salary inflation, with 47% indicating that starting salaries have not changed and 3% indicating that they can pay lower starting salaries now than they had to pay in the past.

Independent Contractors: Higher Contractor Usage Relative to Previous Surveys
Use of independent contractors appears to be on the rise. In SurePayroll’s September 2005 survey, only 37% of surveyed small business owners used independent contractors. With this latest survey, 40% of small business owners acknowledged that they use independent contractors. Of those who say they do use independent contractors, 53% are using the same number of contractors that they used one year ago, 25% have increased their reliance on contractors, and only 23% are now using fewer contractors than they did one year ago.

About SurePayroll:
Privately held SurePayroll is America's fifth largest payroll provider and the nation's largest online payroll provider. Catering exclusively to the needs of small businesses, SurePayroll provides a simple, reliable and economical way to process payroll in minutes via the Internet. In addition to providing payroll services directly to small business, SurePayroll also provides a private-label payroll service that allows SurePayroll's numerous partners to offer payroll processing to their small business clients. Business partners include ABN AMRO, Pitney Bowes, and MasterCard.

SurePayroll will process nearly $3 billion in employee and contractor payroll payments in 2006.

For Media Inquiries Contact:
Ken Gaebler
Walker Sands Communications
www.walkersands.com
Phone: (312) 543-0654
Email: surepayroll-inquiries@walkersands.com