Hewitt, RealLife HR, Benefits, Outsourcing, Acquisition

Hewitt Agrees to Acquire RealLife HR

Agreement Enables Hewitt to Enhance Current Benefits Outsourcing Capabilities for Companies in the Middle Market

LINCOLNSHIRE, Ill. – Hewitt Associates, Inc. (NYSE: HEW), a global human resources services company, today announced it is enhancing its portfolio of benefits outsourcing services and solutions for middle-market companies with the acquisition of RealLife HR, a leading provider of benefits management services. Under terms of the agreement, Hewitt will acquire RealLife HR, which delivers health and welfare benefits administration services via an industry-leading, proprietary platform targeted at employers with fewer than 15,000 employees and/or retirees.

"The acquisition of RealLife HR will allow us to grow our Benefits Outsourcing business more rapidly," said Russ Fradin, chairman and chief executive officer of Hewitt Associates. "The middle market represents a large and attractive growth opportunity for us, and by joining forces with RealLife HR, Hewitt will be able to more effectively serve middle-market companies in a way that is consistent with the world-class human resources expertise and solutions we're recognized for in the large market."

Currently, RealLife HR provides services to about 35 clients, all of which will have access to Hewitt's full range of outsourcing and consulting services as part of the combination. Upon closing, Hewitt will assume responsibility for RealLife HR's staff of approximately 85 employees and its facility in Hunt Valley, MD.

"Combining with RealLife HR enables us to build on the success we've already achieved serving large employers," said Jay Rising, president of Hewitt's HR Outsourcing business. "Further expanding into the middle market is a natural extension for our market-leading Benefits Outsourcing business. We chose RealLife HR because its proprietary platform provides robust technology and capabilities that allow us to offer more flexible and efficient solutions that can be easily integrated with our existing suite of services."

"There are true synergies between Hewitt and RealLife HR, as both companies excel at understanding clients' distinct needs, delivering outstanding client service, and offering innovative thinking and solutions that address companies' unique human resources challenges," said Gary Broache, president and chief executive officer of RealLife HR. "We are excited about partnering with Hewitt, bringing together its premier human resources domain expertise and extensive middle-market client base with RealLife HR's leading health and welfare platform. This combination will enable us to advance our long-term strategy of helping organizations address complex benefits issues."

Financial terms of the agreement were not disclosed. The transaction is expected to close at the end of August 2007.

About RealLife HR

A nationwide leader in benefits management automation and outsourcing services, RealLife HR simplifies and automates benefits communications, enrollment and administration. Distinguished by an award-winning, dedicated service delivery model, extensive U.S.-based call center services complement the company's technology foundation. Utilizing proprietary tools, most implementations of the RealLife HR Benefits® solution can be completed within 90 days. RealLife HR clients include a wide array of nationally recognized entities including Magellan Health Systems, Bombardier, adidas, US Airways and the North Carolina Office of State Personnel. For more information, please visit www.reallifehr.com.

About Hewitt Associates

With more than 65 years of experience, Hewitt Associates (NYSE: HEW) is the world's foremost provider of human resources outsourcing and consulting services. The company consults with more than 2,300 organizations and administers human resources, health care, payroll and retirement programs on behalf of more than 340 companies to millions of employees and retirees worldwide. Located in 35 countries, Hewitt employs approximately 24,000 associates. For more information, please visit www.hewitt.com.

Contacts
Maurissa Kanter,  Hewitt Associates,  (847) 771-2531
Genny Pennise,  Hewitt Associates,  (847) 295-5000