ABR Information Services, Inc. Announces Acquisitions.

PALM HARBOR, Fla.--(BUSINESS WIRE)--Nov. 13, 1998--ABR Information Services, Inc. (Nasdaq:ABRX) today announces the acquisitions of Western Pension Service Corporation ("Western") and BMC Consultants, Inc. ("BMC"). The companies are leading regional providers of qualified plan administration services on the West Coast and in the Rocky Mountain region, respectively.

Western is headquartered in San Rafael, California, and administers over 370 qualified retirement plans. The majority of Western's revenue is derived from defined contribution, daily valuation 401(k) plans.

BMC, headquartered in Englewood, Colorado, is one of the largest independent providers of defined benefit and defined contribution plan services in the Rocky Mountain region. BMC presently administers over 1,700 plans. Approximately 80% of the plans BMC administers are defined contribution plans, consisting mainly of profit sharing and balance forward 401(k) plans.

James E. MacDougald, Chairman and Chief Executive Officer of ABR, commented, "With the addition of Western and BMC, ABR has acquired five regional pension administrators this year. ABR's pension business now services more than 3,500 plans representing over $4 billion in plan assets. Also, these acquisitions provide ABR with a significant new presence in the Northern California and Rocky Mountain regions, which should better enable us to cross-sell our other employee benefits outsourcing services in those markets. We welcome the experienced management and dedicated employees of Western and BMC to the ABR team."

Robert A. Jocelyn, President of Western, said, "This business combination allows us to expand our business horizons immediately. ABR's combined technology, resources and expertise have created a nationally recognizable presence in the 401(k) marketplace. Being a part of ABR, we now have the opportunity to expand our geographic presence, as well as offer our clients a complete menu of related services, such as payroll and tax deposit filings, flexible spending accounts, and COBRA and HIPAA administration."

Jeffrey J. Berends, President of BMC, added, "We are excited about joining with ABR's other recent acquisitions in creating a national presence in the qualified plan market. By combining with ABR, BMC is now a part of one of the largest independent pension/profit sharing recordkeeping businesses in the country. We believe ABR provides the additional resources we will need to meet the challenges that lie ahead as we prepare to move into the next century."

The combined cash purchase price for the two acquired companies is $10.0 million, with contingent payments if certain future profitability targets are achieved. It is expected that Western and BMC will have combined revenues of over $5.8 million for calendar year 1998 and will not materially affect ABR's fiscal 1999 earnings. Both acquisitions will be accounted for using the purchase method of accounting. The Western and BMC purchases were effective as of October 1, 1998, and November 1, 1998, respectively.

ABR Information Services, Inc. provides comprehensive benefits administration, payroll and human resource services to employers seeking to outsource functions such as COBRA, HIPAA, payroll and tax deposit filings, flexible spending accounts, qualified plans and other services. ABR provides services to employers ranging in size from 20 to over 200,000 employees. ABR provides portability (primarily COBRA and HIPAA) services through the trade name CobraServ(R) and payroll and tax deposit filing services through the trade name PayAmerica(R).

ABR operates marketing/service centers in Florida, New Jersey, Virginia, Maryland, California, Wisconsin, South Carolina, Pennsylvania, Arizona, and Colorado. More information about ABR is available on its Web site at: www.abr.com.

THE 'SAFE HARBOR' STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. This press release contains forward-looking statements that involve risks and uncertainties including, but not limited to, risks such as: (i) potential for unfavorable interpretation of government regulations or new government legislation; (ii) the ability to attract and retain qualified sales, information services and management personnel; (iii) potential increases in ABR's costs; (iv) potential loss of any material Western or BMC customer; (v) the financial condition of Western's and BMC'so clients; (vi) the impact of competition from existing and new organizations; (vii) the failure to manage growth and successfully integrate Western and BMC; and (viii) other factors which are described in further detail in ABR's filings with the Securities and Exchange Commission. Such forward-looking statements are based on information available to ABR on the date hereof, and it assumes no obligation to update any such forward-looking statements.