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CONTROL DATA SYSTEMS REPORTS PROFITABLE FIRST QUARTER

 ARDEN HILLS, Minn., April 22 /PRNewswire/ -- Control Data Systems, Inc. (NASDAQ: CDAT) today reported 1993 first quarter net earnings of $1.3 million, or $0.10 per share, on revenues of $102.7 million. For the 1992 first quarter, Control Data Systems had a net loss of $6.7 million, or $0.63 per share, on revenues of $118.1 million.
 "We are pleased to report our third consecutive profitable quarter since becoming an independent company," said Jim Ousley, president and CEO of Control Data Systems. "In the midst of continued industry change and a tough global economy, we are achieving profitability as a stand- alone company. We are experiencing revenue softness in Europe because of the current weakness in the European economies. And the first quarter is traditionally the weakest quarter for our business. However, we do expect to see improved revenue growth in the balance of the year.
 "We continue to make good progress in our transition to becoming a worldwide provider of open systems solutions," said Ousley. "As a platform-independent systems integrator, we have an advantage over hardware manufacturers since we are not obliged to any supplier but rather offer the best available products for specific customer requirements."
 During the first quarter 1993, Control Data Systems announced its intent to acquire Evernet Systems, Inc., a U.S. network systems integrator. Details of the transaction are still being negotiated. Control Data Systems intends to purchase Evernet with both cash and stock in a deal which is expected to conclude in May 1993.
 Additionally, Control Data Norway has recently signed a letter of intent to acquire a local PC integration company, Dataselskapet A/S. Details of the transaction are still being negotiated. The transaction will be for cash and will likely be completed in May 1993.
 "These acquisitions and other business relationships we are exploring around the world reinforce our commitment to grow our integration business," said Ousley.
 Control Data Systems will hold its first annual meeting for stockholders on May 18, 1993 in New York City.
 Control Data Systems, Inc. is a global systems integrator, applying the skills and experience of its computer professionals -- "Control Data Brainware" -- to the implementation of open systems solutions for the operational problems of customers worldwide. The company focuses its expertise on integrating computer solutions to business specific problems, primarily in manufacturing design, network communication, and database management.
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Dollars in thousands, except per share data)
 Control Data Systems, Inc.
 Three Months Ended
 April 3, March 31,
 1993 1992
 Revenues $102,745 $118,139
 Cost of Revenues 60,033 71,911
 Gross Profit 42,712 46,228
 Operating Expenses:
 Selling, General and Administrative 33,546 42,129
 Technical 8,988 13,919
 Total Operating Expenses 42,534 56,048
 Earnings (Loss) from Operations 178 (9,820)
 Other Income (Expense):
 Interest Expense (688) (520)
 Interest Income 1,794 230
 Other Income (Expense) 1,304 5,137
 Other Income, Net 2,410 4,847
 Earnings (Loss) before
 Income Taxes 2,588 (4,973)
 Provision for Income Taxes 1,250 1,757
 Net Earnings (Loss) $1,338 $(6,730)
 Net Earnings (Loss) per Common Share
 and Common Share Equivalents $0.10 $(0.63)
 Weighted Average Common Shares
 Outstanding (in thousands) 13,309 10,634
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Dollars in thousands)
 Control Data Systems, Inc.
 ASSETS
 April 3, Jan. 2,
 1993 1993
 Current Assets:
 Cash and Cash Equivalents $130,213 $134,423
 Trade and Other Receivables 109,396 110,059
 Inventories 53,027 50,059
 Prepaid Expenses and Other
 Current Assets 8,734 8,720
 Total Current Assets 301,370 303,261
 Property and Equipment, Net 32,738 33,490
 Leased and Data Center Equipment, Net 8,131 9,958
 Other Noncurrent Assets 25,565 26,813
 Total Assets $367,804 $373,522
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current Liabilities:
 Short-Term Debt $5,408 $2,643
 Restructure Reserves,
 Current Portion 24,981 29,000
 Other Accrued Expenses 114,047 110,802
 Total Current Liabilities 144,436 142,445
 Deferred Income Taxes 442 379
 Restructure Reserves, less
 Current Portion 26,552 31,398
 Pension Liabilities 30,084 30,325
 Other Noncurrent Liabilities 3,089 9,768
 Total Liabilities 204,603 214,315
 Stockholders' Equity 163,201 159,207
 Total Liabilities and
 Stockholders' Equity $367,804 $373,522
 -0- 4/22/93
 /CONTACT: Charlotte Fransen, Media Relations, 612-482-4857, or Jerry Johnson, Investor Relations, 612-482-2125, both of Control Data Systems/
 (CDAT)


CO: Control Data Systems, Inc. ST: Minnesota IN: CPR SU: ERN

AL -- MN003 -- 9178 04/22/93 08:33 EDT
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Date:Apr 22, 1993
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