ABR Information Services announces first client for Total Benefits Outsourcing.

PALM HARBOR, Fla.--(BUSINESS WIRE)--Nov. 6, 1995--ABR Information Services Inc. (NASDAQ:ABRX) announced Monday the signing of a contract to provide Total Benefits Outsourcing to the first major client of its subsidiary, ABR National Service Center Inc.

The contract is for an initial term of five years wherein ABR will design, develop and provide a system on an outsource basis that will process benefits eligibility and enrollment data for employee/retiree benefits plans. Full services start on June 1, 1996.

The client is a Fortune 100 company with approximately 100,000 employees. "We are very excited to have signed a marquee client," said James E. MacDougald, ABR's chief executive officer. "We're doing most of their benefits administration, which means handling everything from annual open enrollment in health care plans to dealing with pensioners."

ABR Information Services Inc. launched ABR National Service Center Inc. in early 1995 to provide Total Benefits Outsourcing for companies with 5,000 or more employees. National Service Center offers its clients an "a la carte" menu of services that include new hire and open enrollment processing, adjudication of eligibility, billing and collecting, and carrier and payroll interface.

This will be done in a high tech environment of Electronic File Transfer (EFT), and Interactive Voice Response (IVR) for employee data collection and updates. MacDougald said that the idea of providing a full array of benefits administration to ABR clients was prompted by Corporate America's growing reliance on outsourcing firms to provide the expertise needed at a time when attention is fixed on their core businesses.

Up to this point, ABR has provided two basic services. Through its CobraServ division, which accounts for 90 percent of the company's revenues, ABR helps businesses comply with COBRA regulations. COBRA requires companies to provide access to health care benefits for employees and their dependents after termination, divorce or other life-changing events. ABR's other main division, Benefits Billing Service, administers retirement benefits for a client company's former employees.

Through its subsidiary, Applied Benefits Research Inc., ABR Information Services is a leading provider of health care benefits administration, information and compliance services relating to the continuation of health care coverage. The company markets its services based on proprietary software and compliance systems.

ABR Information Services currently services more than 18,000 employers and believes that it is the largest provider of COBRA compliance services in the United States. ABR's customers include Fortune 500 and other companies in many industries.

CONTACT: ABR Information Services Inc., Palm Harbor

Vincent Addonisio, Senior Vice President

Chief Financial Officer, 813/785-2819