Boston Communications Group reports second quarter results.

WOBURN, Mass.--(BUSINESS WIRE)--Aug. 2, 1996--Boston Communications Group, Inc. (NYSE:BCGI) today reported financial results for the second quarter and six months ended June 30, 1996.

This is the Company's first earnings announcement since completing its initial public offering on June 18, 1996.

Net revenues for the second quarter increased 51% to $12,840,000 from $8,513,000 reported in the second quarter of 1995. The net loss available to common shareholders was $70,000, or $0.01 per share, compared with net income available to common shareholders of $172,000, or $0.02 per share reported in last year's second quarter. Per share results for both periods reflect the accretion of dividends on redeemable preferred stock of $214,000 in 1996 and $237,000 in 1995. The weighted average number of shares outstanding was 9,489,000 and 9,178,000 in 1996 and 1995, respectively.

For the six month period ended June 30, 1996, the Company reported net revenues of $23,993,000, a 66% increase over $14,431,000 reported in the same period last year. The net income available to common shareholders was $122,000, or $0.01 per share, compared with a net loss of $214,000, or $0.02 per share reported in the same period last year. Per share results for both periods reflect the accretion of dividends on redeemable preferred stock of $451,000 in 1996 and $474,000 in 1995. The weighted average number of shares outstanding was 9,334,000 and 9,178,000 in 1996 and 1995, respectively.

"In our first announcement since our IPO, we are very pleased to be reporting on-track second quarter and six month results," commented George Hertz, President and Chief Executive Officer of Boston Communications. "The successful completion of our initial public offering on June 18, provided us with the necessary financial resources to fund the build out of BCG's C2C Network for prepaid wireless service and to make essential additions to our infrastructure. We recently moved into our second state-of-the-art call center in Woburn, MA and are in the process of adding key personnel to support our growth. We look forward to continuing to report our progress."

Boston Communications Group, Inc. develops, markets and provides innovative call processing and customer support services to wireless telephone carriers. The Company's roaming services, customer support services and prepaid wireless services are designed to enable wireless telephone carriers to focus internal resources on their core business activities, while increasing revenues, improving service quality and reducing costs. The Company provides one or more of its services to approximately 95 cellular carriers in the United States, Mexico and Canada, including nine of the 10 largest cellular carriers in the United States. -0-

                 BOSTON COMMUNICATIONS GROUP, INC.
                         AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF OPERATIONS
       (In thousands, except share and per share amounts)
                           (Unaudited)

                             Three Months Ended     Six Months Ended
                             6/30/96    6/30/95    6/30/96   6/30/95

Service revenues:
  Calling service revenues    $8,327     $6,579    $15,541   $11,185
  Carrier support service
   revenues                    3,303      1,934      7,150     3,246
  Prepaid network services        69        --          69        --
System revenues                1,141        --       1,233        --
                              12,840      8,513     23,993    14,431

Total operating expenses      12,498      8,006     22,916    13,889

Operating income                 342        507      1,077       542
Interest expense, net             75         35         81        51

Income from continuing operations
  before income taxes            267        472        996       491
Provision for income taxes       123         63        423        65

Income from continuing
 operations                      144        409        573       426

Loss from discontinued operations --         --         --      (166)

Net income                       144        409        573       260
Accretion of dividends on
 redeemable preferred stock     (214)      (237)      (451)     (474)

Net income (loss) available to
 common shareholders            $(70)      $172       $122     $(214)

Net income (loss) available to
 common shareholders per common
 share:
  Continuing operations       $(0.01)     $0.02      $0.01     $0.00

  Net income (loss)           $(0.01)     $0.02      $0.01    $(0.02)

Shares used in computing
 net income (loss) per
 common share                  9,489      9,178      9,334     9,178

             CONDENSED CONSOLIDATED BALANCE SHEET
                        (in thousands)

                                       6/30/96         12/31/95
Cash and cash equivalents             $ 22,847        $     253
Working capital                         27,249            2,082
Total assets                            47,163           13,614
Redeemable preferred stock                 ---           15,896
Shareholders' equity (deficit)          37,941           (8,698)

CONTACT: Boston Communications Group Inc., Woburn

Fritz von Mering, Vice President Finance, 617/692-7000

or

Morgen-Walke Associates, New York 

Naomi Rosenfeld/Andrea Kaimowitz

Press: Lee Foley, 212/850-5600