EXHIBIT 99.1

PRESS RELEASE OF PAYCHEX, INC. DATED MARCH 28, 2007

PAYCHEX, INC. REPORTS RECORD THIRD QUARTER RESULTS

March 28, 2007

THIRD QUARTER FISCAL 2007 HIGHLIGHTS

	•		Total revenue up 13% to $485.3 million.
	•		Payroll service revenue up 8% to $345.4 million and Human Resource Services revenue grew 25% to $102.2 million.
	•		Operating income excluding interest on funds held for clients, stock-based compensation costs, and an increase to the litigation reserve increased 18% to $155.3 million.
	•		Diluted earnings per share of $0.33 was reduced by $0.02 per share due to the $13.0 million increase to the litigation reserve.

     ROCHESTER, NY, March 28, 2007 — Paychex, Inc. (“we,” “our,” or “us”) (NASDAQ:PAYX) today announced record net income of $126.6 million, or $0.33 diluted earnings per share, for the three months ended February 28, 2007 (the “third quarter”), an 11% increase over net income of $114.5 million, or $0.30 diluted earnings per share, for the same period last year. The third quarter results were impacted by an increase to the litigation reserve of $13.0 million, which reduced diluted earnings per share for the third quarter by approximately $0.02 per share.

     “We have enjoyed another excellent quarter and look forward to our seventeenth consecutive year of record revenues and net income,” commented Jonathan J. Judge, President and Chief Executive Officer of Paychex. “Our third quarter growth in operating income excluding interest on funds held for clients and certain items was very strong at 18%.”

     Human Resource Services revenue increased 25% to $102.2 million for the third quarter from the same period last year. The growth was generated from the following: retirement services client base increased 15% to 43,000 clients; comprehensive human resource outsourcing services increased 30% to 350,000 client employees; and workers’ compensation insurance services client base increased 16% to 59,000 clients. Additionally, the asset value of the retirement services client employees’ funds increased 24% to $7.6 billion.

     Total expenses increased 16% to $312.3 million for the third quarter from the same period last year. Expense growth for the third quarter was impacted by the increase to the litigation reserve. Additionally, we incurred $7.0 million of stock-based compensation costs for the third quarter. Excluding stock-based compensation costs and the increase to the litigation reserve, total expense growth would have been 8%.

     For the third quarter, interest on funds held for clients increased 31% to $37.7 million and corporate investment income increased 65% to $10.5 million, attributable to higher average interest rates and higher average investment balances, as summarized below:

		For the three months ended								For the nine months ended
		February 28,								February 28,
$ in millions		2007				2006				2007				2006
Average investment balances:
Funds held for clients		$	3,633.5			$	3,399.6			$	3,165.6			$	2,958.5
Corporate investments		$	1,137.1			$	866.2			$	1,069.6			$	798.3
Average interest rates earned:
Funds held for clients			4.1	%			3.3	%			4.0	%			3.1	%
Corporate investments			3.7	%			2.9	%			3.7	%			2.7	%

YEAR-TO-DATE FISCAL 2007 HIGHLIGHTS

     The highlights for the nine months ended February 28, 2007 are as follows:

	•		Net income of $394.3 million, or $1.03 diluted earnings per share.
	•		Net income and diluted earnings per share increased 15% and 14%, respectively.
	•		Total revenue increased 13% to $1,399.6 million.
	•		Payroll service revenue was up 9% to $1,012.9 million.
	•		Human Resource Services revenue increased 24% to $289.5 million.
	•		Operating income excluding interest on funds held for clients, stock-based compensation costs, and an increase to the litigation reserve increased 15% to $476.8 million.
	•		Cash flow from operations was $532.2 million.
	•		Utilization of our payroll tax administration services and employee payment services as of February 28, 2007 was 92% and 70%, respectively.

OUTLOOK

     Our current outlook for the full fiscal year ending May 31, 2007 is unchanged from the guidance provided in our Quarterly Report on Form 10-Q for the quarter ended August 31, 2006.

	•		Total service revenue growth is projected to be in the range of 11% to 13%.
	•		Interest on funds held for clients is expected to increase approximately 30% to 35%.
	•		Total revenue growth is estimated to be in the range of 12% to 14%.
	•		Corporate investment income is anticipated to increase approximately 55% to 60%.
	•		Stock-based compensation costs will be primarily included in selling, general and administrative expenses, and are expected to be in the range of $25.0 million to $30.0 million.
	•		Net income growth is expected to be in the range of 13% to 15%.

     Our projections are based on current economic and interest rate conditions continuing with no significant changes.

CONFERENCE CALL

     Interested parties may access the webcast of our Earnings Release Conference Call, scheduled for March 29, 2007 at 10:30 a.m. Eastern Time, at www.paychex.com on the Investor Relations page. The webcast will also be archived on the Investor Relations page for approximately one month. Our news releases, current financial information, SEC filings, and investor presentations are also accessible at www.paychex.com. For more information, contact:

		Investor Relations:		John Morphy, CFO, or Terri Allen		585-383-3406
		Media Inquiries:		Laura Saxby Lynch		585-383-3074

ABOUT PAYCHEX

     Paychex, Inc. is a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, Readychex^®, and check signing. Human Resource Services include 401(k) plan recordkeeping, workers’ compensation administration, section 125 plans, a professional employer organization, time and attendance solutions, and other administrative services for business. Paychex, Inc. was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices and serves approximately 543,000 payroll clients nationwide. For more information about Paychex, Inc. and our products, visit www.paychex.com.

“SAFE HARBOR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

     Certain written and oral statements made by us may constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Forward-looking statements are identified by such words and phrases as “we expect,” “expected to,” “estimates,” “estimated,” “current outlook,” “we look forward to,” “would equate to,” “projects,” “projections,” “projected to be,” “anticipates,” “anticipated,” “we believe,” “could be,” and other similar phrases. All statements addressing operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to revenue growth, earnings, earnings-per-share growth, or similar projections, are forward-looking statements within the meaning of the Reform Act. Because they are forward-looking, they should be evaluated in light of important risk factors. These risk factors include, but are not limited to, those that are described in our filings with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K filed on July 21, 2006. Any of these factors could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known at this time. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of issuance of this release, or to reflect occurrence of unanticipated events.

PAYCHEX, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share amounts)

		For the three months ended												For the nine months ended
		February 28,												February 28,
											%												%
		2007				2006				Change				2007				2006				Change
Revenue:
Payroll service revenue		$	345,406			$	319,992				8	%		$	1,012,853			$	932,512				9	%
Human Resource Services revenue			102,162				81,891				25	%			289,504				232,814				24	%
Total service revenue			447,568				401,883				11	%			1,302,357				1,165,326				12	%
Interest on funds held for clients (A)			37,719				28,703				31	%			97,259				68,790				41	%
Total revenue			485,287				430,586				13	%			1,399,616				1,234,116				13	%
Expenses:
Operating expenses (B)			158,543				145,486				9	%			457,497				414,257				10	%
Selling, general and administrative expenses (B)			153,760				124,500				24	%			400,453				337,834				19	%
Total expenses			312,303				269,986				16	%			857,950				752,091				14	%
Operating income			172,984				160,600				8	%			541,666				482,025				12	%
Investment income, net (A)			10,494				6,358				65	%			29,851				16,769				78	%
Income before income taxes			183,478				166,958				10	%			571,517				498,794				15	%
Income taxes			56,878				52,424				8	%			177,170				156,620				13	%
Net income		$	126,600			$	114,534				11	%		$	394,347			$	342,174				15	%
Basic earnings per share		$	0.33			$	0.30				10	%		$	1.04			$	0.90				16	%
Diluted earnings per share		$	0.33			$	0.30				10	%		$	1.03			$	0.90				14	%
Weighted-average common shares outstanding			381,475				379,680								380,879				379,245
Weighted-average common shares outstanding, assuming dilution			383,335				381,751								382,566				381,055
Cash dividends per common share		$	0.21			$	0.16				31	%		$	0.58			$	0.45				29	%

PAYCHEX, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In thousands, except per share amount)

		February 28,				May 31,
		2007				2006
ASSETS
Cash and cash equivalents		$	80,921			$	137,423
Corporate investments (A)			566,888				440,007
Interest receivable			38,628				38,139
Accounts receivable, net of allowance for doubtful accounts			163,673				189,835
Deferred income taxes			20,503				18,314
Prepaid income taxes			¾				7,574
Prepaid expenses and other current assets			25,759				21,398
Current assets before funds held for clients			896,372				852,690
Funds held for clients (A)			3,547,269				3,591,611
Total current assets			4,443,641				4,444,301
Long-term corporate investments (A)			578,896				384,481
Property and equipment, net of accumulated depreciation			253,485				234,664
Intangible assets, net of accumulated amortization			68,499				60,704
Goodwill			407,712				405,842
Deferred income taxes			13,632				12,783
Other long-term assets			5,949				6,527
Total assets		$	5,771,814			$	5,549,302
LIABILITIES
Accounts payable		$	55,954			$	46,668
Accrued compensation and related items			128,983				130,069
Deferred revenue			7,731				5,809
Accrued income taxes			12,516				¾
Litigation reserve			13,168				15,625
Other current liabilities			41,342				34,008
Current liabilities before client fund deposits			259,694				232,179
Client fund deposits			3,551,790				3,606,193
Total current liabilities			3,811,484				3,838,372
Deferred income taxes			11,659				15,481
Other long-term liabilities			45,635				40,606
Total liabilities			3,868,778				3,894,459
STOCKHOLDERS’ EQUITY
Common stock, $.01 par value; Authorized: 600,000 shares; Issued and outstanding: 381,933 shares as of February 28, 2007, and 380,303 shares as of May 31, 2006, respectively			3,819				3,803
Additional paid-in capital			348,929				284,395
Retained earnings			1,554,254				1,380,971
Accumulated other comprehensive loss			(3,966	)			(14,326	)
Total stockholders’ equity			1,903,036				1,654,843
Total liabilities and stockholders’ equity		$	5,771,814			$	5,549,302