Avert Inc. reports record first quarter results; growth trend continues with revenue up 34%.

FORT COLLINS, Colo.--(BUSINESS WIRE)--May 4, 1995--Avert, Inc. (Nasdaq National Market/AVRT), an information services company that provides employment background checks to a growing nationwide customer base, today announced record results for its first quarter ended March 31, 1995.

Avert reported net income of $217,000, or 6 cents per share, on record revenue of $1,311,300, as compared to net income of $206,700, or 8 cents per share, on revenue of $976,200 in the first quarter last year.

Earnings per share were impacted by an increase of 1,000,000 common shares outstanding resulting from the Company's initial public offering in June 1994. The Company raised $4.3 million in expansion capital.

"We continue to see an increase in demand for our products and services as companies realize the risks associated with hiring," said Dean Suposs, president. "We recently attended the Risk Insurance Management trade show in San Francisco which indicated an increasing number of organizations are considering employment background checking services. We are encouraged by the market feedback and believe that our efforts to expand our business on a national basis are being met with an increased awareness of the benefits of our services."

Revenue from criminal history reports continued to grow to $605,600, up 55% from the first quarter a year ago; previous employment reports and credit reports advanced 26% to $95,600; motor vehicle driving records increased 19% to 185,500; and workers compensation histories grew 2.1% to $299,100.

Total expenses increased during the quarter primarily as a result of two factors: 1) a change in the Company's product mix resulting in a greater percentage of lower margin products, mainly criminal history reports and motor vehicle driving records; 2) an increase in marketing expenses associated with hiring and training additional sales personnel to implement the Company's nationwide marketing plan designed to increase market presence. The Company expects these trends to continue for the foreseeable future.

The four regional sales representatives who were hired as full-time employees in January have demonstrated early positive results. An in-depth analysis of the sales results is planned to be completed by the end of the second quarter. If the sales results are favorable, the Company expects to hire up to eight additional regional sales representatives by the end of 1995 using internally-generated cash. The four regional sales representatives are located in St. Louis/Kansas City, Chicago, Portland/Seattle, and Dallas/Ft. Worth.

During the quarter, Avert signed two exclusive agreements to distribute Avert's services to Ace Hardware. In the first agreement with Ace Hardware Corporation, Avert will be the exclusive provider of employment background checking services for Ace Hardware corporate-owned locations. The second agreement is with Loss Prevention Services, Inc. (LPS), a wholly-owned subsidiary of Ace Hardware, to perform marketing services for Avert to promote its employment background services to independently-owned Ace Hardware retailers and other clients or customers of LPS throughout the United States. There is no obligation to purchase any services under either agreement.

Through its headquarters in Fort Collins, Avert is an information services company that provides employment background checking. Products and services include criminal records, workers' compensation histories, driving records, previous employment verification, credit histories, education verification and social security number validation. -0-

EARNINGS RECAP                      First Quarter Ended
                                         March 31,
                                     1995          1994
                                        (unaudited)

Net Revenues                  $   1,311,300   $   976,200
Net income                    $     217,100   $   206,700
Net income
   per common share           $         .06   $       .08
Weighted average
   shares outstanding             3,442,000     2,442,250

BALANCE SHEET DATA                March 31,    December 31,
                                     1995          1994

Working Capital               $   6,632,400   $ 6,444,000
Total Assets                  $   7,689,000   $ 7,499,000
Total Liabilities             $     493,700   $   520,900
Shareholders' Equity          $   7,195,300   $ 6,978,200

CONTACT: Avert Inc., Fort Collins

Dean Suposs, 303/484-7722

or

Pfeiffer Public Relations Inc., Denver

Kim Smith, 303/393-7044