BARRA Reports Record 1st Quarter Results.

BERKELEY, Calif.--(BUSINESS WIRE)--July 27, 1995--BARRA Inc. (NASDAQ:BARZ) today reported a fifth consecutive quarter of record revenues. The company also reported record earnings of 18 cents per share, an increase of 50 percent over the reported 12 cents per share in the same quarter last year.

"With record revenues and profits to build on, we are entering a particularly exciting period for BARRA," said Andrew Rudd, BARRA's chairman and chief executive officer. "We recently released the BARRA Aegis System, our Windows-based equity portfolio risk characterization and optimization software, and our asset management business is beginning to generate revenue after a one-year start-up phase. Additionally, we are seeing the favorable results of increased attention to controlling costs in our business."

First quarter operating revenues were $14,014,105 and net income was $1,419,783, or 18 cents per share. This compares to revenues of $12,071,718 and net income of $956,355, or 12 cents per share, for the same quarter last year. The increase in revenues continues to be the result of growth in subscription and related business, with the strongest growth continuing to come from an increase in sales in the European and Asian markets. The company's asset management subsidiary, Symphony Asset Management Inc., recorded a modest amount of new revenues. Partially offsetting these increases was a decrease in POSIT (Portfolio System for Institutional Trading) royalty revenues.

BARRA recently delivered the first applications in the BARRA Aegis System suite of equity products for the U.S. and U.K. markets. These releases provide Windows-based risk management and new industry-leading optimization capabilities combined with security screening and flexible report writing functionality.

BARRA, founded in 1975, provides innovative analytical models, software and services that enable its more than 800 clients worldwide to make superior investment and trading decisions. BARRA's software and services analyze equity, fixed income, currency and other financial markets and their models are the worldwide standard for communicating portfolio characteristics. Based in Berkeley, Calif., BARRA also has offices in New York, Montreal, London, Frankfurt, Paris, Yokohama, Hong Kong and Sydney. Information on BARRA is also available on-line at http://www.barra.com. -0-

                     BARRA, Inc. and Subsidiaries
                   Consolidated Statements of Income
            For the three months ended June 30, 1995 and 1994
                               (Unaudited)

                                          Three Months Ended
                                                June 30,
                                         1995            1994

Operating Revenues:
 Subscription and related fees        $12,483,412     $10,357,534
 Portfolio System for Institutional
  Trading                               1,264,599       1,346,011
 Seminar fees                             266,094         368,173
   Total operating revenues            14,014,105      12,071,718

Operating Expenses:
 Cost of services                       1,132,640       1,017,210
 Seminar costs                            265,137         293,018
 Compensation and benefits              7,044,812       6,103,989
 Rent expense                             789,025         757,668
 Other operating expenses               2,174,799       2,275,984
   Total operating expenses            11,406,413      10,447,869

Interest Income and Other                 432,610         176,878

Income before equity in net income
 and loss of investees, minority
 interest, and income taxes             3,040,302       1,800,727

Equity in net income and loss
 of investees                            (389,843)       (105,645)

Minority interest                        (106,686)        (40,415)

Income before income taxes              2,543,773       1,654,667

Income taxes                           (1,123,990)       (698,312)

Net income                             $1,419,783        $956,355

Net income per share:
 Primary net income per share               $0.18           $0.12
 Fully diluted net income per share         $0.18           $0.12

Weighted average common and common
 equivalent shares:
 Primary                                7,990,124       7,863,771
 Fully diluted                          8,009,047       7,863,771

                     Barra, Inc. and Subsidiaries
                     Consolidated Balance Sheets
                As of June 30, 1995 and March 31, 1995

                                         June 30,     March 31,
                                           1995         1995
                                        (Unaudited)

ASSETS

Current Liabilities:
 Cash and cash equivalents             $15,250,269   $16,083,444
 Accounts receivable:
  Trade (less allowance for
   doubtful accounts of $133,263
    and $228,258)                        8,363,667     8,464,788
  Other                                    398,599       362,607
  Related parties                          380,740       360,347
  Short-term investments                 7,336,363     5,940,173
 Prepaid expenses                          850,862       839,847
 Prepaid corporate income taxes              6,574       102,686
                                        ----------    ----------
  Total current assets                  32,587,074    32,153,892

Notes Receivable - Related party           413,200       416,320
Non-Marketable investments               7,295,023     7,311,638

Furniture and Equipment:
 Computer equipment                      6,817,859     6,510,264
 Office equipment                          478,573       475,192
 Furniture and fixtures                  2,149,016     2,051,906
  Total furniture and equipment          9,445,448     9,037,362
Less accumulated depreciation and
 amortization                           (5,348,969)   (4,983,493)
                                        -----------   -----------
                                         4,096,479     4,053,869

 Deferred Tax Assets                       636,449       636,449

 Computer Software (less
  accumulated amortization
   of $253,961 and $210,256)               630,717       674,421
Other Assets                             2,021,446     2,062,922
Total                                  $47,680,388   $47,309,511
                                        ----------    ----------

Liabilities and Shareholders' Equity

Current Liabilities:
 Accounts payable                      $   662,544   $   429,175
 Due to related party                      210,533       171,675
 Accrued expenses payable:
  Accrued compensation                   1,463,330     4,337,688
  Accrued corporate income taxes         1,244,867       745,939
  Other accrued expenses                 2,914,698     2,221,271
 Unearned revenues                      10,508,393     9,763,320
                                        ----------    ----------
  Total current liabilities             17,004,365    17,669,068

Other Long-Term Liabilities
 Deferred tax liabilities                1,043,132     1,043,132
 Long-term debt                            498,822       459,293
                                        ----------    ----------
  Total other long-term liabilities      1,541,954     1,502,425

Minority Interest in Equity of
 Subsidiary                              1,139,731     1,010,308

Shareholders' Equity:
 Preferred stock, no par; 10,000,000
  shares authorized; none issued and
  outstanding
 Common stock, no par;
  40,000,000 shares authorized;
  7,665,500 and 7,727,100 shares
  issued and outstanding                10,122,266    10,719,826
 Retained earnings                      17,429,851    16,010,069
 Foreign currency translation
  adjustment                               442,221       397,815
                                        ----------    ----------
  Total shareholders' equity            27,994,338    27,127,710
Total                                  $47,680,388   $47,309,511

CONTACT: BARRA, Inc., Berkeley

James Kirsner or Robert Honeycutt, 510/548-5442