Bell & Howell reports strong fourth quarter and full year 1995 revenue and profitability growth.

SKOKIE, Ill.--(BUSINESS WIRE)--Feb. 14, 1996--Bell & Howell Company's (NYSE:BHW) net sales increased 10%, or $21.8 million, to $239.7 million in the fourth quarter of 1995, reflecting strong sales growth in both its Information Access and Mail Processing Systems business segments.

Operating cash flow increased 19%, or $7.4 million, to $45.7 million with operating income increasing 20%, or $6.1 million, to $36.8 million in the fourth quarter of 1995 (excluding the 1994 restructuring expense). Such improvements resulted from increased profitability associated with the higher sales volumes and leveraged operating costs and expenses, which included increased investment spending related to new product introductions. One of these is the new UMI online system (ProQuest Direct) that was launched in the third quarter of 1995.

1995 sales for the full year of $819.9 million represent a 14% increase over the prior year, with operating cash flow of $120.8 million and operating income of $83.4 million representing increases of 17% and 19%, respectively (excluding the 1994 restructuring expense). The higher sales volumes and leveraged operating costs and expenses resulted in the profitability improvement.

In May of 1995, the company completed its initial public offering of 5 million shares of common stock at $15.50 per share, with the proceeds used to reduce indebtedness. In September of 1995, the company completed a secondary stock offering of 3 million shares at $22.75 per share.

The fourth quarter net earnings per share increased 27% to $.81 in 1995, with the full year net earnings per share increasing 35% to $1.15 versus the prior year (on a pro forma basis for the initial public offering, and excluding extraordinary items and the restructuring expense in 1994).

William J. White, chairman and chief executive officer, said "I'm very pleased with our financial results and the progress we are making across our Company. In our Information Access business segment, revenues continue to expand reflecting increased placement of the Company's electronic database and information management products. We are also delighted with the reception of ProQuest Direct and the opportunities it represents for us in the future. We are also continuing to experience strong sales momentum in our Mail Processing Systems business. 1995 was a very successful year for Bell & Howell marked by significant increases in sales, profitability and value for our shareholders."

Company senior management will review the year-end results in a conference call on Wednesday, Feb. 14, 1996 at 4:00 (CST). The call-in number is 1-800-553-0358.

Bell & Howell Company, headquartered in Skokie, is a leading worldwide provider of solutions for information access and dissemination.

NOTE TO EDITORS: Tables of comparative sales and earnings are listed

below.

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                      BELL & HOWELL COMPANY
                   SALES AND EARNINGS SUMMARY
            (Dollars in Millions, except Per Share Data)

                            Fourth Quarter          Full Year
                         1995          1994       1995      1994

Net Sales                $239.7        $217.9     $819.9    $720.3

Operating Cash Flow(a)     45.7         38.3      120.8     103.2

Operating Income           36.8         30.7(b)     83.4     70.3(b)

Net Interest Expense       12.0          12.4       50.8     48.9

Income Tax Expense          9.9          7.6(b)     13.4      9.9(b)

Net Earnings(c)           $14.9         $10.7(b)   $19.2    $11.5(b)

Net Earnings per
 Common Share(c)           $.81          $.80(b)   $1.15     $.87(b)

Pro Forma Financial Data(d)

Net Interest Expense      $12.0          $10.7    $47.8      $42.1

Net Earnings(c)            14.9           11.7     21.0       15.6

Net Earnings per
 Common Share(c)            .81           .64      1.15        .85

(a) Operating cash flow is defined as operating income before
restructuring expense plus depreciation and amortization.

(b) Excludes restructuring expense of $32.9 million in 1994 ($32.1
million in the fourth quarter), with a resulting tax benefit of
$12.4 million ($12.1 million in the fourth quarter).

(c) Excludes extraordinary losses of $3.2 million and $1.0 million
in 1995 and 1994, respectively, resulting from the retirement of
debt associated with the initial public offering in 1995, and the
retirement of a term loan under the Company's Credit Agreement in
1994.

(d) The pro forma financial data assumes that the initial public
offering of 5 million shares of Common Stock (which were actually
issued in May 1995, with the application of the net proceeds
therefrom to reduce indebtedness) occurred at the beginning of the
respective fiscal periods.

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                     BELL & HOWELL COMPANY
               SALES AND OPERATING CASH FLOW SUMMARY
                    (Dollars in Millions)

                         1995              1994

Net Sales

Information Access

UMI                     $164.1             $152.1
PSC                       99.8               74.0
Information Management   186.0              178.3
                        ------              -----
                         449.9              404.4

Mail Processing Systems  370.0              315.9

Total Net Sales         $819.9             $720.3

Operating Cash Flow(a)

Information Access       $94.1              $78.1

Mail Processing Systems   39.0               36.4

Corporate                (12.3)             (11.3)

Total Operating Cash
 Flow                    $120.8             $103.2

(a) Operating cash flow is defined as operating income before
restructuring expense plus depreciation and amortization.

CONTACT: Nils A. Johansson

Executive Vice President, Chief Financial Officer

847/470-7617