CSI Reports Higher Revenues and Net Income for First Quarter Fiscal 2000.

PADUCAH, Ky.--(BUSINESS WIRE)--June 28, 1999--

Computer Services, Inc. (CSI) (stock symbol: CSVI) today reported higher revenues and net income for the first quarter ended May 31, 1999.

"CSI's revenues increased 7% to $12.3 million and net income rose 7% to $1.1 million in the first quarter of fiscal 2000 compared with the same quarter last year," stated Chairman and CEO John A. Williams. "Our improved results reflect our success in cross-selling services to existing customers and new business from bank conversions and newly chartered banks. We have been very successful in cross-selling our check imaging services and added our third check imaging facility during the quarter. We plan to add two more check imaging facilities later this year to meet increased customer demand.

"We continue to focus on leveraging our expertise in systems design, telecommunications and check imaging to develop new services. We believe our core technology provides CSI with a solid foundation to deploy new products and services over the Internet to our existing customers, as well as expanding our marketing opportunities to new customers. We launched feasibility studies to review Internet ventures with the potential to add $20 million in annual revenues within the next three years," continued Mr. Williams.

First quarter revenues increased to $12,291,000 compared with $11,520,000 in the first quarter of fiscal 1999. Recurring revenues from existing customers was the primary contributor to revenue growth as CSI increased cross-selling and benefited from revenue generated from new check imaging business. Revenue growth was somewhat offset by the deconversion of 23 banks during the prior year, the majority of which were acquired and moved to the acquirer's processing system. These banks accounted for approximately $1,070,000 in revenues in the first quarter of last year compared with revenues of $939,000 generated in the first quarter of this year from banks added since the first quarter of last year.

Net income for the first quarter advanced to $1,077,000, or $0.49 per diluted share, compared with $1,011,000, or $0.47 per diluted share, in the first quarter of fiscal 1999. CSI benefited from higher net interest income as a result of lower debt and higher cash balances. The Company's cash flow and balance sheet remain very strong. At the end of the quarter, CSI had no long-term debt, and working capital exceeded $10.4 million.

"We anticipate a slowing in bank conversions during the second half of 1999 as banks postpone moving to new systems until after the first of the year. At this point, most banks' systems have been reviewed by regulators to test for Year 2000 compliance, and a change to a new system would require re-testing and much scrutiny by regulators. Although this will affect near-term prospects for bank conversions, we believe it will create pent-up demand that will result in increased conversion activity after the first of the year.

"Interest in CSI services from de novo, or newly chartered banks, remains strong and is unaffected by the Y2K issue. Last year, we added 13 de novo banks to our customer portfolio. We added two banks during the first quarter and have already signed two more in the second quarter. We also had five banks deconvert during the first quarter. Our marketing team remains focused on both existing bank conversions and de novo banks," concluded Mr. Williams.

CSI, the nation's premier community bank processor, serves over 350 community banks that have combined assets of $27 billion in the states of Kentucky, Illinois, Indiana, Texas, West Virginia, Missouri, Ohio, Tennessee, Arkansas, Louisiana, Michigan, and Mississippi. CSI's address on the World Wide Web is http://www.csiweb.com

All statements except historical statements contained herein constitute "forward-looking statements." These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside of CSI's control, which may cause actual results to differ materially from such statements. Such risks and uncertainties include, but are not limited to, economic, competitive, technological and governmental factors affecting the Company's operations, markets, services, products, prices and other factors. -0-

                        COMPUTER SERVICES, INC.
                   Financial Highlights (Unaudited)
               (In thousands, except per share amounts)

                                                First Quarter
                                                Ended May 31,
                                       ------------------------------
                                           1999               1998
                                       -----------        -----------
Revenues                               $    12,291        $    11,520
Net income                                   1,077              1,011

Net income per share:
   Diluted (a)                         $      0.49        $      0.47
                                       ===========        ===========

Weighted average number of common
   shares outstanding:
       Diluted                               2,218              2,174

(a)  Per share amounts adjusted for a 5% stock dividend issued on
     December 14, 1998.