AMS announces financial results for 1995; fourth quarter earnings up by 45%; 1995 earnings up by 26%.

FAIRFAX, Va.--(BUSINESS WIRE)--Feb. 15, 1996--American Management Systems (AMS) today announced 1995 earnings of $29.2 million ($0.72 per common share), an increase of 26% compared to 1994 earnings of $23.1 million ($0.60 per common share).

Revenues were $632 million, up 38% over 1994 revenues of $460 million. For the fourth quarter, earnings were up 45% to $10.2 million ($0.25 per common share) compared to 1994 fourth quarter earnings of $7.0 million ($0.18 per common share). Revenues in the fourth quarter were $177 million, up 35% over 1994 revenues of $131 million. The 1995 and 1994 share and per share numbers have been restated to reflect a 3-for-2 stock split which was effective January 5, 1996.

"The strong revenue and earnings results for 1995 reflect our ongoing investments in people, technology, infrastructure, and innovative solutions to client problems," said Paul A. Brands, chief executive officer of AMS. "Revenue increases in all target markets contributed to earnings growth, with telecommunications increases of 70% and financial services increases of 44% leading the way. Our expansion in the international marketplace continued, with revenues increasing 84%. International business now represents 28% of AMS revenues."

"AMS also benefited from significant growth in our newer practice areas servicing statewide revenue management and human services agencies, health care organizations, and financial institutions in the area of risk management," said Brands. "The powerful combination of our strategic consulting together with our implementation capabilities continues to produce improved performance for our clients and growth in the demand for our services."

AMS's business is to partner with clients to achieve breakthrough performance through the intelligent use of information technology. AMS is a business and information technology consulting firm that provides a full range of services: business reengineeering, change management, systems integration, and systems development and implementation. AMS, which completed its 26th consecutive year of growth, is headquartered in Fairfax, Virginia, with offices in 48 cities throughout North America and Europe. -0-

            American Management Systems, Incorporated
              CONSOLIDATED STATEMENT OF OPERATIONS
             (In thousands, except per share data)

                       For the Quarter       For the Twelve Months
                      Ended December 31,       Ended December 31,
                       1995       1994          1995       1994

REVENUES
Services and
 Products           $155,331    $117,247      $561,472    $408,814
Reimbursed Expenses   21,181      13,426        70,961      51,039
                     176,512     130,673       632,433     459,853
EXPENSES
Client Project
 Expenses             89,483      68,863       348,521     246,836
Other Operating
 Expenses             58,868      40,804       192,314     140,122
Corporate Expenses    10,363       9,024        40,848      32,604
                     158,714     118,691       581,683     419,562
INCOME FROM
 OPERATIONS           17,798      11,982        50,750      40,291

OTHER (INCOME)
 EXPENSE
Interest Expense       1,061         419         2,297       1,361
Other Income            (339)       (209)       (1,345)       (597)
                         722         210           952         764

INCOME BEFORE INCOME
 TAXES                17,076      11,772        49,798      39,527

INCOME TAXES           6,886       4,756        20,629      16,136

NET INCOME            10,190       7,016        29,169      23,391

DIVIDENDS AND
 ACCRETION ON SERIES
 B PREFERRED STOCK      --          --            --           266

NET INCOME TO COMMON
 SHAREHOLDERS       $ 10,190     $ 7,016      $ 29,169    $ 23,125

WEIGHTED AVERAGE
 SHARES AND
 EQUIVALENTS          41,022      39,879        40,708      38,732

NET INCOME PER
 COMMON SHARE       $   0.25     $  0.18      $   0.72    $   0.60

-0-
            American Management Systems, Incorporated
                 CONSOLIDATED REVENUES BY MARKET
                      (In thousands)

                       For the Quarter       For the Twelve Months
                      Ended December 31,       Ended December 31,
                       1995       1994          1995       1994

Telecommunications
 firms               $58,462     $37,984      $205,145    $120,600
Financial Services
 Institutions         37,335      28,075       131,311      91,482
State and Local
 Government and
 Education            27,723      21,023        96,873      81,638
Federal Government
 Agencies             23,427      21,426        95,830      87,459
Other Corporate
 Clients               8,384       8,739        33,313      27,635
Total Services and
 Product Revenues    155,331     117,247       561,472     408,814
Reimbursed Expenses
 Revenues             21,181      13,426        70,961      51,039
Total Revenues      $176,512    $130,673      $632,433    $459,853

CONTACT: American Management Systems 

Jim Marshall 

703/267-5405

or

Ketchum Public Relations 

Rick Leonard

212/878-4650