CSC's 2nd-quarter earnings per share up 23.5%, excluding nonrecurring merger charge.

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Oct. 29, 1996--Computer Sciences Corp. (NYSE:CSC) reported earnings per share of 63 cents for its second quarter (ended Sept. 27, 1996) before a merger-related, nonrecurring charge.

The 63 cents is a 23.5% increase over the restated 51 cents earned for the same period last year. All results reported for previous periods have been restated to reflect CSC's Aug. 1 acquisition of The Continuum Co. Inc., accounted for on a pooling-of-interests basis.

In connection with the acquisition, a previously announced one-time charge equivalent to 45 cents per share was provided during the second quarter of this year. After this charge, CSC earned 18 cents per share for the quarter.

Excluding the nonrecurring charge, CSC's net income for the second quarter was $49.3 million, compared with $39.6 million a year ago. Including the charge of $48.9 million ($35.3 million after related income tax effects), net income was $14.0 million.

Revenue for the quarter rose to $1.36 billion, up 20.1% from the $1.13 billion for the second quarter of last year. Before the charge, net income for the first six months of this year was $94.6 million vs. the last year's $75.5 million.

Revenue for the first half was $2.66 billion, up 20.2% from the $2.21 billion for the prior year's first half. After the charge, net income was $59.3 million.

``The second quarter is the first since completing our merger with Continuum. Operationally, CSC had an excellent quarter, continuing its strong growth in both revenue and income,'' said Van B. Honeycutt, CSC's president and chief executive officer.

``Earlier today we announced a 10-year, $250 million technology outsourcing contract with ING Financial Services International in Atlanta, together with a 7-year, $35 million contract between a unit of that company and CSC Continuum for systems application development.

``This clearly demonstrates the strength of the CSC and Continuum combination in the global financial services industry.''

Global commercial revenue for the quarter, including both domestic and international activities, totaled $963.1 million, up 27.4%, compared with the $755.7 million for the second quarter of fiscal 1996.

For the quarter just ended, U.S. commercial revenue rose to $524.1 million, an increase of 20.6% from $434.4 million last year. Slightly more than half the growth was provided by information technology outsourcing, with the remainder coming principally from consulting and systems integration activities.

International revenue for the quarter rose to $439.0 million, up 36.6% from $321.3 million. The increase came principally from new outsourcing business signed last year; growth in revenue from CSC's German SAP consulting operations; and from the acquisition earlier this year of 75% of Datacentralen, a major provider of information technology services in Denmark.

U.S. federal revenue for the second quarter was $392.2 million, up 5.2% vs. last year's $372.9 million. The improvement was mainly due to new contract awards. During the quarter, CSC announced nearly $1 billion in new federal contracts, one of the largest quarterly totals in CSC's history.

After restatement for the pooling of interests, CSC had $5.2 billion of revenue for the 12 months ended Sept. 27, 1996. Computer Sciences has headquarters in El Segundo, and has 40,000 employees in nearly 600 offices worldwide.

CSC provides clients with a wide range of professional services, including management consulting, business re-engineering, information systems consulting and integration and outsourcing. -0-

                          Computer Sciences Corp.

Revenue by Market Sector

                                           Second Quarter
                           Sept. 27,      Sept. 29,     % of Total
In millions                  1996           1995      FY97      FY96

U.S. commercial           $   524.1      $   434.4     39%       38%
International                 439.0          321.3     32        28
 Global commercial            963.1          755.7     71        66

Department of Defense         253.4          223.9     19        20
NASA                           75.1           77.5      5         7
Civil agencies                 63.7           71.5      5         7
 U.S. federal government      392.2          372.9     29        34
                          $ 1,355.3      $ 1,128.6    100%      100%

                                           Six Months Ended
                             Fiscal         Fiscal      % of Total
In millions                   1997           1996     1997      1996

U.S. commercial           $   999.5      $   843.0     37%       38%
International                 821.8          613.0     31        28
 Global commercial          1,821.3        1,456.0     68        66

Department of Defense         550.4          448.5     21        20
NASA                          150.6          156.5      6         7
Civil agencies                136.8          150.6      5         7
 U.S. federal agencies        837.8          755.6     32        34
                          $ 2,659.1      $ 2,211.6    100       100

Consolidated Statements of Income
(In thousands, except per-share amounts)

                       Second Quarter            Six Months Ended
                    Sept. 27,    Sept. 29,    Sept. 27,    Sept. 29,
                       1996         1995         1996         1995

Revenues           $1,355,255   $1,128,648   $2,659,147   $2,211,611

Costs of services   1,073,502      881,692    2,110,710    1,731,417
Selling, general
 and administrative   116,306      112,157      232,759      221,190
Depreciation and
 amortization          80,902       63,547      152,509      123,735
Interest expense       10,708        9,284       19,022       18,635
Interest income        (2,102)        (932)      (3,565)      (2,888)
Nonrecurring charge/a  48,929           --       48,929           --
Total costs and
 expenses           1,328,245    1,065,748    2,560,364    2,092,089

Income before taxes    27,010       62,900       98,783      119,522

Taxes on income        13,004       23,331       39,500       44,012

Net income         $   14,006   $   39,569   $   59,283   $   75,510
Earnings per
 common share      $     0.18   $     0.51   $     0.76   $     0.99

Average shares
 and equivalents       78,022       76,858       77,924       76,600

a/ -- The nonrecurring charge represents costs and expenses related
      to the Aug. 1 acquisition of The Continuum Co. Inc.  The
      amount of the charge, net of income tax benefits on the tax
      deductible portion, is $35.3 million, or 45 cents per share,
      and falls within the previously announced range of estimates
      for transaction expenses, costs associated with elimination of
      redundant functions and the write-off of assets impaired due
      to merger-related business realignment.

NOTE: Figures shown herein are unaudited.

CONTACT: Computer Sciences Corp., El Segundo

Bruce Plowman/Spencer Davis, 310/615-0311