COSI names Wallach president and chief operating officer.

NEW YORK--(BUSINESS WIRE)--May 6, 1996--Computer Outsourcing Services, Inc. ("COSI") (Nasdaq National Market: COSI) today announced that, at the recommendation of Zach Lonstein, the Company's Chief Executive Officer, the Board of Directors appointed Robert B. Wallach President and Chief Operating Officer of the Company.

Most recently, Mr. Wallach served as President of MCC Corporation, an information outsourcing unit of COSI. He is a founder of Horizons Associates, a New York mergers and acquisitions consulting company. Mr. Wallach brings more than 20 years operating experience to the position including senior management roles with Infomatics General (now Sterling Software) and Strategic Information, a division of Ziff-Davis.

Citing COSI's rapid growth, Mr. Lonstein also announced a restructuring of the corporation. Under the revised corporate organization, the Company will be comprised of two distinct operating divisions each designed to service a targeted segment of the growing outsourcing marketplace. Both divisions along with corporate finance and administration will report to Mr. Wallach. Commenting on his announcement, Mr. Lonstein noted, "This move gives us the management structure and organization we need to capitalize on our acquisitions and move us to our next level of growth."

COSI's data processing outsourcing group currently provides outsourcing and related services to publishing, pharmaceutical, transportation, wholesale and retails markets, as well as EDI services for apparel manufacturers.

PayUSA, COSI's payroll and tax filing division, is currently the fourth largest publicly held payroll processing organization in the nation. The unit provides payroll, tax and benefit services to clients nationwide.

Mr. Lonstein will continue in his capacity as Chairman of the Board and Chief Executive Officer. Mr. Wallach will retain his role as President of MCC while also serving as head of operations for the corporation.

COSI provides payroll and tax filing services to approximately 3,600 customers nationwide and offers other data processing services to companies in niche markets including publishing, direct marketing, apparel importing and manufacturing and health care.

Editor's Note: Computer Outsourcing Services, Inc. (COSI) is a NASDAQ listed company providing extensive information processing and outsourcing services to a wide array of industries. Together with its payroll and tax filing services for more than 3,600 customers nationwide, the Company designs and develops information solutions.

CONTACT: Computer Outsourcing Services, Inc., New York

Roger Kaufman, [phone]

or

INVESTOR RELATIONS COUNSEL:

The Equity Group, New York

Robert Goldstein [phone]

Caroline Royall [phone]