ABR Information Services announces record second quarter results.

PALM HARBOR, Fla.--(BUSINESS WIRE)--March 12, 1997--ABR Information Services Inc. (NASDAQ:ABRX) announced Wednesday record revenues and net income for the company's second quarter and for the six months ended Jan. 31, 1997.

Revenues increased 71.0% to $11.7 million for the second quarter ended Jan. 31, 1997, compared to revenues of $6.9 million for the same quarter of the prior year. Net income increased 180.3% to $2.9 million for the second quarter compared to $1.0 million for the same quarter of the prior year.

For the six months ended Jan. 31, 1997, revenues increased 77.3% to $22.1 million, compared to $12.5 million for the same period of the prior year. Net income increased 203% to $5.5 million for the first six months of fiscal 1997, compared to $1.8 million for the same period of the prior year.

After adjusting for the two-for-one stock split on Feb. 19, 1997, net income for the second quarter was $.11 per share, up from $.05 for the same period last year, and for the first six months, net income per share was $.20 compared to $.09 for the same period last year.

"We are excited about this quarter's results from a financial and an operational perspective. Our growth and profitability continue at record levels. We formed two new subsidiaries, ABR Qualified Plan Services Inc. ("QPSI") and ABR Coverage Continuation Services Inc. ("CCSI"), and continued our infrastructure expansion," said James E. MacDougald, president and chief executive officer of ABR. He added, "With the addition of QPSI and CCSI, we feel ABR is now poised to respond to the demand of the expanding markets in 401(k) and profit sharing plans, as well as state compliance."

ABR Information Services Inc. provides comprehensive benefits administration, compliance and information services to employers seeking to outsource their benefits administration functions. The company is one of the largest benefits outsourcing firms in the United States, serving more than 21,000 employers with a total employee population exceeding 6.0 million. ABR's customers include Fortune 500 companies, insurance companies, and other employers in various industries.

Summary financial statements for the quarter and the six months ended Jan. 31, 1997 and 1996 and as of Jan. 31, 1997 and July 31, 1996 are attached. -0-

                     ABR INFORMATION SERVICES INC.
                   CONSOLIDATED STATEMENTS OF INCOME
                              (Unaudited)

                        Three Months Ended       Six Months Ended
                            January 31,             January 31,
                         1996        1997        1996        1997

Revenue              $ 6,851,136 $11,714,389 $12,465,439 $22,103,582
Cost of services       3,780,042   6,469,631   6,824,505  12,384 210
Selling, general
 and administrative    1,420,482   2,368,084   2,801,474   4,515,024
Other operating
 expenses                 53,308      79,967     103,177     140,633
  Operating income     1,597,304   2,796,707   2,736,283   5,063,715

Interest income          106,054   1,909,046     266,093   3,869,108
Income taxes             655,726   1,769,288   1,171,308   3,384,995

  Net income         $ 1,047,632 $ 2,936,465 $ 1,831,068 $ 5,547,828

Net income per
 share (a)           $       .05 $       .11 $       .09 $       .20

Weighted average
 common shares
 outstanding (a)      20,516,742  27,938,898  20,418,111  27,399,889

(a) Restated for the two-for-one stock split completed on February
    19, 1997 and an acquisition by a pooling of interest in fiscal
    1996.

                   ABR INFORMATION SERVICES, INC.
                    CONSOLIDATED BALANCE SHEETS

                                                     January 31, 1997
                                       July 31, 1996    (Unaudited)
Assets:
 Cash and cash equivalents             $ 14,088,396    $ 29,451,276
 Investments                            147,111,102     131,112,933
 Accounts receivable, net                 3,870,539       5,146,748
 Prepaid expenses and other               1,282,952       2,109,712
  Total current assets                  166,352,989     167,820,669

Property and equipment, net              14,539,898      18,742,841
Software development costs, net           6,181,973       8,177,056
Goodwill, intangibles and other assets   15,498,745      15,934,276
  Total assets                         $202,573,605    $210,674,842

Liabilities and Shareholders' Equity:
 Accounts payable                      $    615,663    $    573,112
 Accrued expenses                           762,442       1,062,501
 Customer account deposits               18,019,405      18,901,678
 Unearned revenue                           647,093         599,102
 Income taxes payable                       483,663         406,455
  Total current liabilities              20,528,266      21,542,848

Deferred income taxes                       895,555       1,772,795

Stockholders' equity                    181,149,784     187,359,199

  Total liabilities and
   stockholders' equity                $202,573,605    $210,674,842

CONTACT: ABR Information Services Inc., Palm Harbor

James P. O'Drobinak, Chief Financial Officer

813/785-2819