Mellon HR Solutions To Provide Global Online Human Resources Management Services To American Express

PITTSBURGH, April 26, 2002—Mellon Financial Corporation today announced that its Mellon HR Solutions business will provide American Express with a broad array of global online human resources services, including online compensation and employee policies, payroll administration, learning and other employee services. Terms of the agreement were not disclosed.

The outsourcing arrangement is intended to improve the speed and ease with which American Express employees can access human resource information and update their personal information online, while ensuring data privacy, enhancing employee and management satisfaction, and reducing costs.

"As an ever greater portion of the HR function migrates online, the expertise now integrated into Mellon will play a pivotal role in making this project a success for American Express and its employees," said Jude Metcalfe, president and chief executive officer of Mellon HR Solutions. "Our growth into a world-class provider of strategic HR outsourcing services, with more than 3 million of our clients' employees currently under administration worldwide, demonstrates our commitment to the continuous enhancement of our offerings so that American Express and all our clients can deliver best-in-class HR services to their employees."

"Mellon's proven technology applications and services will facilitate moving more of our global HR work to the Web. It will also enable us to reengineer existing processes so they are more cost-effective and value-added, and allow our internal HR resources to focus more on core, strategic activities," said Ursula Fairbairn, executive vice president of Human Resources at American Express. "Today's announcement is another example of how American Express is creating flexible business models that support growth while containing costs."

Mellon HR Solutions will provide online and through its customer service representatives comprehensive HR and payroll-related process management services; customer support for employees and managers; benefit administration; learning management; and Web-based employee and manager self-service applications.

"Mellon's proven outsourcing solutions and HR consulting expertise were critical factors in our decision to work with them to keep our human resource capabilities on the leading edge," Ms. Fairbairn said.

Mellon Financial Corporation is a global financial services company. Headquartered in Pittsburgh, Mellon is one of the world's leading providers of financial services for institutions, corporations and affluent individuals, providing institutional asset management, mutual funds, private wealth management, asset servicing, human resources services and treasury services. Mellon has more than $2.8 trillion in assets under management, administration or custody, including $610 billion under management. Its asset management companies include The Dreyfus Corporation and U.K.-based Newton Investment Management Limited. News and other information about Mellon is available at www.mellon.com.