Acxiom Announces Record Second Quarter Results; New AbiliTec Software Licenses Lead the Quarter.

Business Editors

LITTLE ROCK, Ark.--(BUSINESS WIRE)--Oct. 23, 2000

Acxiom(R) Corporation (Nasdaq:ACXM), the leader in customer data integration supporting customer relationship management, today reported it achieved record revenue and earnings for the second quarter of fiscal 2001 ended September 30, 2000.

Highlights from the quarter:

-- AbiliTec(TM) sales exploded with the completion of 15 new contracts totaling
over $40 million in revenue.

-- Several major corporations signed AbiliTec software license agreements.
These include Citicorp Credit Services, Mercedes-Benz USA, Rodale Press, Palm
Inc., Bank One Services Corp., and American Express.

-- Computer Associates, R.L. Polk & Co., USADATA.com, Digital Archeology and
E.piphany signed AbiliTec internal use agreements, as well as major channel
partner agreements.

-- Revenue increased 28% on continuing operations, excluding the impact of
divested operations.

-- Net earnings were $28.3 million, representing a growth rate of 33%.

-- Earnings per share were $.30 per share, exceeding consensus analysts'
estimates by $.03 per share.

AbiliTec Update

"Obviously, this is a breakout quarter for AbiliTec," said Charles D. Morgan, Acxiom Company Leader. "Our vision for AbiliTec is beginning to be realized in terms of revenue contribution. We believe that the results of this quarter may be a good indication of the future and expect that the next couple of years are going to be exciting times for us at Acxiom, for our customers and for our alliance partners as the implementation of AbiliTec accelerates."

AbiliTec is the foundation for customer data integration, a necessity in executing successful enterprise-wide, real-time customer relationship management programs.

Doug Laney, Vice President in META Group's Application Delivery Strategies service, said, "A company's ability to integrate customer data across the enterprise is a key indicator of how mature that company is in their effort to shift from a product-focused business model to a more customer-centric philosophy."

Other AbiliTec Highlights:

-- Momentum continued to build with several previously announced

Acxiom business partners that have integrated AbiliTec as the

customer data integration component of their customer

relationship management solutions. These include Oracle,

Siebel Systems, Compaq, Hewlett Packard, Lockheed Martin

Integrated Business Solutions and Xchange, Inc.

-- AbiliTec extended its global reach in an agreement with AZ

Bertelsmann Direct (AZB) to develop AbiliTec in Germany early

next year, shortly after its introduction in the United

Kingdom. AZB is the first non-U.S. based company to license

the software.

-- Acxiom Australia Pty Ltd began beta-testing AbiliTec in

cooperation with two major Australian companies.

-- The American Medical Association (AMA) and Acxiom Corporation

created a joint venture called HealthCarePro Connect, which

will use AbiliTec to give physicians greater control over how

they are contacted and the kind of information they receive.

"The AbiliTec momentum is continuing into next quarter," said Rodger S. Kline, Acxiom Operations Leader. "We have already closed two additional AbiliTec licenses since the end of the quarter with Microsoft Corporation and BMC Software. The AbiliTec sales pipeline continues to be very strong."

Record Revenues and Earnings

Revenues for the second quarter ended September 30, were $276.1 million, up 12% from revenues of $246.8 million for the same quarter a year ago. Excluding the impact of divested operations, revenues grew 28% over the prior year. Income from operations was $52.2 million, an increase of 31% compared to income from operations of $39.9 million in the previous year's second quarter.

Net earnings for the quarter were $28.3 million ($.30 diluted earnings per share) compared to $21.3 million ($.24 diluted earnings per share) in the previous year's second quarter, an increase of 33%.

Acxiom reported record revenue for the second quarter in each of its business segments. The Services segment reported revenues of $202.3 million for the quarter, up 10% over the prior year. Excluding the impact of divested operations, the Services segment grew 26% for the quarter. The Data Products segment reported revenues of $76.6 million for the quarter, up 93% from the same quarter in the prior year. Excluding the impact of divested operations, the Data Products segment grew 140%. The Information Technology Management segment reported revenues of $55.1 million for the quarter, up 26% over the prior year.

Acxiom added to its list of long-term contracts in the quarter, completing 25 new or expanded long-term contracts representing approximately $55 million in annual revenue and over $200 million in total revenue over the contract terms, which varied from three to five years. The Outsourcing Division was particularly notable, delivering six new or expanded mainframe and mid-range data center outsourcing and web hosting contracts representing over $150 million in new backlog.

Acxiom Recognition Continues

Other events during the quarter reflected Acxiom's role as an industry leader:

-- Charles Morgan was installed as Chairman of the Direct

Marketing Association at the recent DMA 83rd Annual Conference

and Exhibition in New Orleans.

-- Acxiom and Morgan were recently profiled on CNBC's popular

"The Edge" program with positive comments about the company

and AbiliTec.

-- Acxiom Corporation was announced as the winner of the sixth

annual Excellence in Information Integrity Award from Unitech

Systems. The award is presented to the organization that has

demonstrated exceptional progress toward achieving accurate,

consistent and reliable "Information Integrity" during the

past year. Acxiom joins such previous winners as American

Express and Sprint.

Second Quarter Conference Call to be Conducted on October 24

Acxiom's Leadership will hold its fiscal 2001 second quarter conference call on October 24, 2000, beginning at 9 a.m. CDT. We invite you to listen to the call. The conference call will be broadcast via the Internet at www.vcall.com.

Outlook

The opportunities for AbiliTec continue to grow as companies aggressively implement customer relationship management (CRM) strategies. These CRM efforts are putting focus on the need to aggregate customer information across the enterprise, sometimes on a real time-basis. Acxiom's AbiliTec software provides the customer data integration that can accurately and quickly aggregate all records about an individual. Customer data integration (or CDI) is the foundational data management process for every use of customer information. During the quarter, a number of companies adopted AbiliTec as their software to deliver customer data integration.

The following statements are based on current expectations. These statements are forward looking, and actual results may differ materially. These statements do not include the potential impact of any mergers, acquisitions or other business combinations or divestitures that may be completed after September 30, 2000. As a result of the events outlined above, we believe the opportunities for AbiliTec will enhance our outlook for the balance of fiscal 2001 as follows:

-- The Company expects revenue growth for the remainder of the

fiscal year to be at least 25% above fiscal 2000 after

adjusting for divested operations and any unusual level of

sales of computer equipment (client servers) associated with

delivering data warehouse solutions.

-- The Company expects that AbiliTec revenues for this fiscal

year could be $90 million-$125 million.

-- The tax rate for fiscal 2001 is expected to be 38.5%.

-- Capital expenditures are expected to be $90 million to $100

million for fiscal 2001.

-- Capitalized development of software costs are expected to be

$30 million to $35 million for fiscal 2001.

-- Depreciation and amortization costs are expected to be $100

million to $110 million for fiscal 2001.

Additional applications for AbiliTec also continue to arise, most notably the ability to assist companies in implementing their consumer privacy policy strategies. The recent passage of the Gramm-Leach-Bliley legislation, which has significant ramifications for the financial services industry, represents a significant opportunity for AbiliTec.

Also, Acxiom's channel partner strategy continues to gain momentum as software providers, consultants, system integrators and others realize the power of AbiliTec to enhance the selling of their products and their services.

As a result of the events outlined above, we believe that the opportunities for AbiliTec will enhance our outlook for the balance of fiscal 2001 such that our year over year earnings per share growth could be 20% or higher excluding the net gain on dispositions reported in the first quarter of fiscal 2001. For fiscal 2002, we believe that revenue and earnings per share should grow 25% or more.

In connection with the recent adoption of the new SEC rules on corporate disclosure, Acxiom is changing its procedures for publishing and updating its Outlook forward-looking statements and risk factors statements. Following the publication of Outlook in its quarterly earnings release, Acxiom will continue its current practice of having corporate representatives meet privately during the quarter with investors, the media, investment analysts and others. At these meetings Acxiom may reiterate the Outlook publicly available on its web site ( www.acxiom.com ). Prior to the start of the Quiet Period (described below), the public can continue to rely on the Outlook on the web site as still being Acxiom's current expectations on matters covered, unless Acxiom publishes a notice stating otherwise.

Toward the end of each fiscal quarter, Acxiom will have a "Quiet Period" when it no longer publishes or updates Outlook and Acxiom representatives will not comment concerning Outlook or Acxiom's financial results or expectations. The Quiet Period will extend until the day when Acxiom's next quarterly earnings release is published. For the third quarter, the Quiet Period will be December 23, 2000 through January 23, 2001.

About Acxiom

Acxiom, a global leader in real-time, multi-channel Customer Data Integration, enables businesses to develop and deepen customer relationships by instantly creating a single, accurate view of their customers across the enterprise. Acxiom achieves this by providing data integration software, database management services, and premier data content through its AbiliTec(TM), Solvitur(R), and InfoBase(TM) products, while also offering a broad range of information technology outsourcing services. Founded in 1969, Acxiom (Nasdaq:ACXM) is based in Little Rock, Arkansas, with locations throughout the U.S., and with operations in the United Kingdom, France, Spain and Australia. Acxiom revenues were $1.03 billion for the twelve months ended September 30, 2000. For more information, please visit www.acxiom.com.

This press release contains the following forward-looking statements: (1) that AbiliTec will be a revolutionary customer data integration technology that will successfully support the creation of a real-time, single, accurate, comprehensive and enhanced view of a customer across a business' enterprise; (2) that major companies will continue to include AbiliTec in their strategic enterprise-wide CRM planning; (3) that the next couple of years will be exciting times for Acxiom, its customers and alliance partners; (4) that this quarter may be a good indicator of future results; (5) that Acxiom will continue to be able to sign long-term, multi-million dollar contracts with blue chip companies; (6) that sales of AbiliTec will accelerate and accelerate the sales momentum; (7) that AbiliTec will continue to achieve customer acceptance in the marketplace and result in additional business; (8) that AbiliTec will be perceived and realized as a software capable of allowing its users to better serve consumer privacy and preference interests; (9) that the company will be able to continue to develop relationships with other companies that will be able to successfully incorporate AbiliTec into their products and services in a manner that will yield benefits to Acxiom; (10) that Acxiom will meet the introduction timetables for AbiliTec in Germany, the United Kingdom and Australia; (11) that Acxiom will be able to reach contractual terms with customers who have decided to adopt the Company's solutions and products; (12) future revenue growth; (13) expectations for future AbiliTec revenues; (14) future earnings expectations; (15) expected tax rates; (16) days sales outstanding expectations; (17) capital expenditure expectations; (18) future software development costs; (19) future depreciation and amortization costs; (20) whether additional applications for AbiliTec will continue to arise, and (21) whether the channel partner strategy continues to gain momentum.

The following are important factors that could cause actual results to differ materially from these forward looking statements: With regard to all statements concerning AbiliTec: the complexity and uncertainty regarding the development of new software and high technologies; the loss of market share through competition or the acceptance of these or other Company offerings on a less rapid basis than expected; changes in the length of sales cycles due to the nature of AbiliTec being an enterprise-wide solution; the introduction of competent, competitive products or technologies by other companies; changes in the consumer and/or business information industries and markets; the Company's ability to protect proprietary information and technology or to obtain necessary licenses on commercially reasonable terms; the impact of changing legislative, regulatory and consumer environments in the geographies in which AbiliTec will be deployed. With regard to the statements that generally relate to the business of the Company: all of the above factors; the possibility that economic or other conditions might lead to a reduction in demand for the Company's products and services; the continued ability to attract and retain qualified technical and leadership associates and the possible loss of associates to other organizations; the ability to properly motivate the sales force and other associates of the Company; the ability to achieve cost reductions and avoid unanticipated costs; changes in the legislative, regulatory and consumer environments affecting the Company's business including but not limited to litigation, legislation, regulations and customs relating to the Company's ability to collect, manage, aggregate and use data; data suppliers might withdraw data from the Company, leading to the Company's inability to provide certain products and services; short-term contracts affect the predictability of the Company's revenues; the potential loss of data center capacity or interruption of telecommunication links; postal rate increases that could lead to reduced volumes of business; customers that may cancel or modify their agreements with the Company; the successful integration of any acquired businesses and other competitive factors. With specific reference to all statements that relate to the providing of products or services outside the Company's primary base of operations in the United States: all of the above factors and the difficulty of doing business in numerous sovereign jurisdictions due to differences in culture, laws and regulations. Other factors are detailed from time to time in the Company's periodic reports and registration statements filed with the United States Securities and Exchange Commission. Acxiom believes that it has the product and technology offerings, facilities, associates and competitive and financial resources for continued business success, but future revenues, costs, margins and profits are all influenced by a number of factors, including those discussed above, all of which are inherently difficult to forecast.

                  CONSOLIDATED STATEMENTS OF EARNINGS
                              (Unaudited)
           (Dollars in thousands, except earnings per share)

                                        For the Three Months Ended
                                               September 30,
                                          ----------------------
                                             2000       1999
                                          ---------- -----------

Revenue                                      276,061     246,840

Operating costs and expenses:

    Salaries and benefits                     94,922      91,840

    Computer, communications and
      other equipment                         49,805      38,570

     Data costs                               28,418      29,532

    Other operating costs and expenses        50,680      47,015
                                          ---------- -----------

            Total operating costs
              and expenses                   223,825     206,957
                                          ---------- -----------

Income from operations                        52,236      39,883
                                          ---------- -----------

Other income (expense):
    Interest expense                          (6,040)     (6,534)
    Other, net                                  (256)        731
                                          ---------- -----------

                                              (6,296)     (5,803)
                                          ---------- -----------

Earnings before income taxes                  45,940      34,080

Income taxes                                  17,687      12,780
                                          ---------- -----------

Net earnings                                  28,253      21,300
                                          ========== ===========

Earnings per share:

    Basic                                       0.32        0.25
                                          ========== ===========

    Diluted                                     0.30        0.24
                                          ========== ===========


                  ACXIOM CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF EARNINGS
                              (Unaudited)
           (Dollars in thousands, except earnings per share)

                                         For the Six Months Ended
                                               September 30,
                                          ----------------------
                                             2000       1999
                                          ---------- -----------

Revenue                                      521,618     458,346

Operating costs and expenses:

    Salaries and benefits                    186,170     175,549

    Computer, communications and
      other equipment                         91,879      72,744

     Data costs                               54,093      54,648

    Other operating costs and expenses       104,018      85,276

     Gains, losses and nonrecurring items     (3,064)          -
                                          ---------- -----------

            Total operating costs
              and expenses                   433,096     388,217
                                          ---------- -----------

Income from operations                        88,522      70,129
                                          ---------- -----------

Other income (expense):
    Interest expense                         (11,509)    (12,353)
    Other, net                                 8,639       1,500
                                          ---------- -----------

                                              (2,870)    (10,853)
                                          ---------- -----------

Earnings before income taxes                  85,652      59,276

Income taxes                                  32,976      22,227
                                          ---------- -----------

Net earnings                                  52,676      37,049
                                          ========== ===========

Earnings per share:

    Basic                                       0.60        0.44
                                          ========== ===========

    Diluted                                     0.56        0.42
                                          ========== ===========


                  ACXIOM CORPORATION AND SUBSIDIARIES
                          REVENUES BY SEGMENT
                              (Unaudited)
                        (Dollars in thousands)

                                        For the Three Months Ended
                                               September 30,
                                          ----------------------
                                             2000       1999
                                          ---------- -----------

Services                                     202,289     183,281
Data                                          76,607      39,736
I. T. Management                              55,111      43,650
Intercompany eliminations                    (57,946)    (19,827)
                                          ---------- -----------

Total Revenue                                276,061     246,840
                                          ========== ===========

                                         For the Six Months Ended
                                               September 30,
                                          ----------------------
                                             2000       1999
                                          ---------- -----------

Services                                     378,683     329,443
Data                                         102,189      71,792
I. T. Management                             112,581      88,988
Intercompany eliminations                    (71,835)    (31,877)
                                          ---------- -----------

Total Revenue                                521,618     458,346
                                          ========== ===========


                  ACXIOM CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                              (Unaudited)
                        (Dollars in thousands)

                                        September 30, March 31,
                                             2000       2000
                                          ---------- -----------
          Assets
          ------
Current assets:
  Cash and cash equivalents                  $ 9,271    $ 23,924
  Trade accounts receivable, net             216,213     198,818
  Deferred income taxes                       18,432      18,432
  Other current assets                       141,263      98,872
                                          ---------- -----------
     Total current assets                    385,179     340,046
                                          ---------- -----------
Property and equipment                       411,335     376,459
  Less - Accumulated depreciation
    and amortization                         162,131     126,783
                                          ---------- -----------
Property and equipment, net                  249,204     249,676
                                          ---------- -----------
Software, net of accumulated amortization     60,351      58,964
Excess of cost over fair value
  of net assets acquired                     158,541     145,082
Other assets                                 368,945     311,528
                                          ---------- -----------
                                         $ 1,222,220 $ 1,105,296
                                          ========== ===========

  Liabilities and Stockholders' Equity
  ------------------------------------
Current liabilities:
  Current installments of long-term debt      24,968      23,156
  Trade accounts payable                      55,227      54,016
  Accrued merger and integration costs           740      15,106
  Accrued payroll and related expenses        22,673      26,483
  Other accrued expenses                      35,042      31,779
  Deferred revenue                             4,229      19,995
  Income taxes                                22,332       9,473
                                          ---------- -----------
    Total current liabilities                165,211     180,008
                                          ---------- -----------
Long-term debt, excluding current
  installments                               359,243     289,234
Deferred income taxes                         61,486      48,324
Stockholders' equity:
  Common stock                                 8,859       8,831
  Additional paid-in capital                 325,185     325,729
  Retained earnings                          310,052     257,376
  Accumulated other comprehensive
   income (loss)                              (5,204)     (1,448)
  Treasury stock, at cost                     (2,612)     (2,758)
                                          ---------- -----------
  Total stockholders' equity                 636,280     587,730
                                          ---------- -----------
Commitments and contingencies
                                         $ 1,222,220 $ 1,105,296
                                          ========== ===========


                  ACXIOM CORPORATION AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (Unaudited)
                        (Dollars in thousands)

                                         For the Six Months Ended
                                               September 30,
                                             2000       1999
                                          ---------- -----------
Cash flows from operating activities:
  Net earnings                              $ 52,676      37,049
  Non-cash operating activities:
    Depreciation and amortization             54,712      40,849
    Loss (gain) on disposal of assets        (16,812)        265
    Provision for returns and
      doubtful accounts                        1,499         528
    Changes in operating assets and
     liabilities:
      Accounts receivable                    (22,073)    (23,188)
      Other assets                           (74,082)    (18,100)
      Accounts payable and
       other liabilities                      (1,701)    (13,332)
      Merger and integration costs           (14,366)    (15,422)
                                          ---------- -----------
      Net cash used by operating
        activities                           (20,147)      8,649
                                          ---------- -----------
Cash flows from investing activities:
    Disposition of assets                     34,485       1,211
    Development of software                  (18,738)    (20,736)
    Capital expenditures                     (44,007)    (64,701)
    Proceeds from sale and leaseback
      transaction                                 --      32,513
    Investments in joint ventures            (18,707)     (1,401)
    Net cash paid in acquisitions            (14,133)    (15,581)
                                          ---------- -----------
      Net cash used by investing
        activities                           (61,100)    (68,695)
                                          ---------- -----------
Cash flows from financing activities:
    Proceeds from debt                        78,958      76,076
    Payments of debt                         (11,840)    (77,939)
    Sale of common stock                       9,975      62,636
    Acquisition of Treasury Stock            (10,345)       --
                                          ---------- -----------
      Net cash provided by financing
        activities                            66,748      60,773
                                          ---------- -----------
      Effect of exchange rate changes
        on cash                                 (154)        (16)
                                          ---------- -----------

      Net decrease in cash and cash
        equivalents                          (14,653)        711
  Cash and cash equivalents at beginning
    of period                                 23,924      12,604
                                          ---------- -----------
  Cash and cash equivalents at end
    of period                               $  9,271      13,315
                                          ---------- -----------
Supplemental cash flow information:
    Cash paid during the period for:
      Interest                              $ 14,634      16,454
      Income taxes                             7,034         717
                                          ---------- -----------