ABR Information Services, Inc. Announces Change in Method of Accounting for Business Computer Services, Inc. Acquisition.

PALM HARBOR, Fla.--(BUSINESS WIRE)--Nov. 13, 1998--ABR Information Services, Inc. (NASDAQ: ABRX) announced today that it will change the method of accounting for its April 30, 1998, acquisition of Business Computer Services, Inc. d.b.a. PayAmerica(R) ("BCSI") from the pooling of interests method of accounting to the purchase method.

After meeting with the Office of the Chief Accountant (OCA) of the Securities and Exchange Commission, the Company was informed that the OCA had decided that the Company's September 25, 1998, announcement regarding action taken by its Board of Directors authorizing the repurchase of shares of its common stock constituted the form of announcement which the OCA considered determinative that ABR had an intention in place to reacquire stock at the time of its April 30, 1998, BCSI transaction. Although the Company had no such intention to repurchase shares of its stock at the time of the BCSI transaction, the OCA determined that the continued use of the pooling of interests treatment for the BCSI transaction was unavailable. Accordingly, the Company's results of operations for the quarters ended April 30 and July 31, 1998, have been restated to reflect this change in the method of accounting for the BCSI transaction.

For the quarter ended April 30, 1998, restated earnings per share was $.17, excluding a non-recurring charge for purchased research and development costs, as compared to $.16, as previously reported. After inclusion of a non-recurring purchased research and development charge of approximately $11.0 million, or $.40 per share, restated earnings (loss) per share was ($.23) for the quarter ended April 30, 1998. For the quarter ended July 31, 1998, restated earnings per share was $.19 as compared to $.20, as previously reported, as a result of approximately $200,000 in additional amortization expense incurred relating to intangible assets acquired in the BCSI transaction. For the year ended July 31, 1998, restated earnings per share was $.63, excluding a non-recurring charge for purchased research and development costs, as compared to $.62, as previously reported. After inclusion of a non-recurring purchased research and development charge of approximately $11.0 million, or $.39 per share, restated earnings per share was $.24. All earnings (loss) per share computations are made on a diluted basis.

The Company also announced that its Annual Report on Form 10-K for the year ended July 31, 1998, was filed with the SEC today reflecting use of the purchase method of accounting for the BCSI transaction. In addition, the Company announced that its amended Form 10-Q for the quarter ended April 30, 1998, and amended Form 8-K relating to the BCSI transaction were filed simultaneously with its 1998 Form 10-K.

As a result of the Company's extension in filing its Form 10-K for the year ended July 31, 1998, the Company's annual meeting with shareholders has been scheduled for December 22, 1998. Additionally, the Company expects to announce its results of operations for the quarter ended October 31, 1998, after the close of business on December 3, 1998.

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, 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 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 ABR customer; (v) the financial condition of ABR's clients; (vi) the impact of competition from existing and new organizations; (vii) the failure to properly manage growth and successfully integrate its recent acquisitions; 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. -0-

                    ABR INFORMATION SERVICES, INC.
          CONSOLIDATED CONDENSED STATEMENTS OF INCOME (LOSS)*
                              (unaudited)

                       Three months ended               Year ended

-------------------------------------      ----------------
               ----------------   ----------------   ----------------
                April 30, 1998     July 31, 1998       July 31, 1998
               ----------------   ----------------   ----------------
Revenue            $ 18,618,383       $ 24,027,808       $ 74,592,273
Cost of services     10,738,345         13,471,192         42,386,859
Selling, general
  and
  administrative      3,342,744          4,518,346         13,849,617
Acquired research
  and development    11,010,000                 --         11,010,000
               ----------------   ----------------   ----------------

  Operating income
    (loss)           (6,472,706)         6,038,270          7,345,797
                ---------------   ----------------   ----------------

Interest income       1,239,015          1,321,665          5,363,957
Lease revenue, net      864,639            812,064          2,817,004
Income taxes          2,073,918          2,654,206          8,800,000
                ----------------  ----------------   ----------------

Net income
  (loss)           $ (6,442,970)       $ 5,517,793        $ 6,726,758
                ================  ================   ================

Net income (loss)
  per share:
  Basic                 $ (0.23)            $ 0.19             $ 0.24
                ===============   ================   ================

  Diluted               $ (0.23)            $ 0.19             $ 0.24
                ===============   ================   ================

Weighted average
  common shares outstanding:
  Basic              27,447,851         28,694,383         27,732,054
               ================   ================   ================
  Diluted            27,447,851         29,084,623         28,194,078
               ================   ================   ================

    (a)Restated to account for the April 30, 1998, Business Computer
Services, Inc. d.b.a. PayAmerica(R) transaction under the purchase
method of accounting. The transaction had previously been accounted
for using the pooling of interests method of accounting.