Berlitz International reports results for third quarter 1996.

PRINCETON, N.J.--(BUSINESS WIRE)--Nov. 8, 1996--Berlitz International Inc. (NYSE:BTZ) announced sales of $93.2 million for the quarter ended Sept. 30, 1996, a 1.9% increase over 1995 sales of $91.4 million. Net income for the quarter was $0.4 million, compared with $1.1 million in the prior year. Earnings per share for the third quarter were $0.05 in 1996 compared to $0.11 for 1995.

The company's sales for the nine months ended Sept. 30, 1996 were $273.8 million, a 4.7% increase over 1995 sales of $261.5 million. Net income for the first nine months of 1996 was $1.6 million, compared to net income of $0.6 million in the comparable prior year period. Earnings per share for the nine-month period were $0.17 in 1996 compared to $0.06 for 1995.

Language Instruction sales for the three months ended Sept. 30, 1996 were $69.5 million, 0.9% above the prior year period, primarily as a result of increased volume and average revenue per lesson ("ARPL"), partially offset by unfavorable exchange rate fluctuations of $4.0 million. Lesson volume was approximately 1.3 million, up 4.7% from 1995. For the nine-month period ended Sept. 30, 1996, Language Instruction sales were $206.5 million, an increase of 0.8% from the prior year period, primarily as a result of volume and ARPL increases, partially offset by unfavorable exchange rate fluctuations of $11.7 million. Lesson volume for the first nine months of 1996 was approximately 3.9 million, up 3.8% from 1995.

Translations sales for the quarter ended Sept. 30, 1996 were $20.1 million, up 9.9% from the same period in 1995. Translations sales for the first nine months were $56.1 million in 1996, up 27.2% from the same period in 1995. This growth was attributable to a number of factors including: increased volume from certain key clients, continued new client development, the expansion of software testing services to new and existing clients, and general business expansion, particularly in the Asian languages.

Publishing sales were $3.7 million for the 1996 third quarter, compared with $4.2 million during the same period in 1995, a decline of 11.4%. For the nine months ended Sept. 30, 1996, Publishing sales were $11.6 million, compared with $12.6 million during the same period in 1995, a decline of 7.5%. These declines reflect a general slowdown in the travel publishing segment and decreased licensing revenues.

The company's cost of services and products sold, and selling, general and administrative expenses for the 1996 third quarter were $85.0 million, an increase of $3.3 million, or 4.0 percent, from the same prior year period. For the nine months ended Sept. 30, 1996, these combined costs were $249.4 million, an increase of $11.7 million, or 4.9 percent, from the comparable prior year period. Both the quarter and nine month increases were due mostly to volume increases which were partly offset by exchange rate fluctuations. As a percentage of sales, these combined costs increased from the prior year due in part to lower margins on certain Translation segment contracts with new clients, costs associated with Translation's expansion in the Asian region, a shortfall in Publishing segment revenues from licensing activities, and costs associated with the relocation of Publishing's editorial and production functions from the United Kingdom to Princeton headquarters.

For the nine months ended Sept. 30, 1996, other expense, net increased by $1.5 million from the same prior year period, primarily due to the absence of non-recurring joint venture-related income, which reduced expenses in 1995.

The company's effective tax rates for both the quarter and year-to-date periods in 1996 and 1995 were above the U.S. statutory Federal tax rate primarily as a result of nondeductible charges related to the amortization of goodwill.

"The overall Company's revenue, excluding exchange, is above the prior year", stated Hiromasa Yokoi, vice chairman, chief executive officer and president of the company. "We have also taken steps designed to improve the lower margins experienced in the third quarter, particularly in our Translations segment. We will remain focused on continued improvement, thereby maximizing value to our shareholders."

Berlitz is the premier language services firm providing instruction and translation services in 36 countries throughout the world. The company also publishes Berlitz travel guides, foreign language phrase books, and home study materials which include CD-ROM, video and audio products. -0-

                            BERLITZ INTERNATIONAL INC.
                        FINANCIAL HIGHLIGHTS (UNAUDITED)
                (Dollars in millions, except per share amounts)


                               Three months ended       Nine months ended
                                  September 30            September 30
                                 1996      1995         1996      1995

Sales of services and products  $93.2     $91.4          $273.8   $261.5

Costs and expenses:
  Cost of services and
   products sold                 56.1      54.9           163.7    158.0
  Selling, general and
   administrative                28.9      26.8            85.7     79.7
  Amortization of publishing
   rights, excess of cost over
   net assets acquired, and
   other intangibles              3.2       3.3             9.6     10.1
  Interest expense on long-term
   debt                           1.9       2.2             5.8      6.6
  Other expense, net              1.0       1.1             2.5      0.9

     Total costs and expenses    91.1      88.3           267.3    255.3

  Income before income taxes      2.1       3.1             6.5      6.2
  Income tax expense              1.7       2.0             4.9      5.6

  Net income                    $ 0.4     $ 1.1           $ 1.6    $ 0.6

  Income per share             $ 0.05    $ 0.11          $ 0.17   $ 0.06
  Average number of
    shares (000's)              9,406    10,033           9,623   10,033

CONTACT: Berlitz International Inc., Princeton

Henry D. James, 609/514-3024