CUC International Inc. reports record first quarter results.

STAMFORD, CT--(BUSINESS WIRE)--May 22, 1996--CUC International Inc. (NYSE:CU) today announced its financial results for the first quarter ended April 30, 1996.

The Company's revenues for the first quarter increased 20% to $390.0 million, versus $325.1 million for the prior year's first quarter. Net income increased to $48.3 million from $36.0 million for the same period a year ago. On a per share basis, net income was $.25 per share, as compared to $.19 per share for the same quarter a year ago, representing an increase of 32%. The weighted average number of shares outstanding was 196.7 million for the quarter ended April 30, 1996, versus 192.4 million for the same quarter in the prior year.

All financial information has been restated to reflect the fiscal 1996 acquisitions, which were accounted for in accordance with the "pooling-of-interests" method of accounting.

Walter A. Forbes, chairman and chief executive officer of CUC International, said, "Our first quarter results demonstrate the continued strength of our membership business. Currently, CUC International provides consumer services - ranging from travel to shopping, home improvement to financial services - to over 48 million members. With our strong distribution channels, breadth of consumer-service offerings, and creative marketing ideas, we are confident that we will continue our solid growth and broaden our membership base worldwide."

"During the first quarter," he continued, "we launched our wholesale product with the Royal Bank of Scotland, our first entry into the United Kingdom marketplace. This represents our fifth major international bank contract within a year from our European license purchase. With the addition of this bank, we now have over 15 million consumers to whom we can market our wholesale service. We are excited about our rapid global expansion and believe that CUC's membership concept will continue to experience worldwide acceptance and success."

The Company stated that for the first quarter ended April 30, 1996, operating margins were 20.0%, versus 18.1% for the same quarter a year ago. CUC attributed the expansion in operating margins primarily to the increase in both renewing and international members. CUC's international membership base consists mainly of the company's high-margin wholesale members.

CUC International Inc. is a leading membership-services company, currently providing over 48 million consumers with access to a variety of services including home shopping, travel, insurance, auto, dining, home improvement, lifestyle clubs, checking account enhancements and discount coupon programs. -0-

CUC INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
                                          April 30,    January 31,
                                            1996         1996(a)
                                         (Unaudited)
Assets
Current  Assets
    Cash and cash equivalents              $286,344      $269,987
    Receivables                             305,380       297,842
    Prepaid membership materials             42,302        39,061
    Prepaid expenses, defer taxes & other   105,702       100,104
        Total Current Assets                739,728       706,994

Membership solicitations in process          61,663        60,713
Deferred membership acquisition costs       278,001       273,102
Contract renewal rights and
        intangible assets, net              281,545       276,047
Properties, net                              65,491        61,441
Deferred income taxes and other              40,243        36,111
                                         $1,466,671    $1,414,408

Liabilities  and  Shareholders'  Equity
Current  Liabilities
    Accounts payable & accrued expenses    $101,107      $124,902
    Federal & state income taxes payable     12,887        24,943
        Total Current Liabilities           113,994       149,845

Long-term obligations                         3,985         4,088
Deferred membership income                  523,233       513,219
Zero coupon convert notes (net of unamortized
    original issue disc of $178 and $588)    14,709        14,410
Other                                         5,179         5,634

Shareholders' Equity                        805,571       727,212
                                         $1,466,671    $1,414,408

(a) Certain amounts were reclassified to conform with the April 30,
1996 presentation.

CUC INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Dollar amounts in thousands except per share amounts)

Three Months Ended  April 30,            1996          1995

REVENUES
Membership, service fees and other      $390,026      $325,114

     Total Revenues                      390,026       325,114

  EXPENSES
     Operating                           105,801        89,186
     Marketing                           151,962       128,520
     General and administrative           54,408        48,709
     Interest income, net                   (805)         (348)

     Total Expenses                      311,366       266,067

  INCOME BEFORE INCOME TAXES              78,660        59,047

     Provision for income taxes           30,410        23,001

  NET INCOME                             $48,250       $36,046

  Net Income Per Common Share              $0.25         $0.19

  Weighted Average Number of
  Common and Dilutive Common Equivalent
  Shares Outstanding                      196,736      192,371

CUC INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL CASH FLOW DATA (UNAUDITED)
(In thousands)

Three Months Ended   April  30,             1996          1995

Net income                                  $48,250       $36,046
Amort of membership acquisition costs       117,473        97,205
Deferred membership income                    9,776       (10,762)
Membership acquisition costs               (122,372)      (83,874)
Membership solicitations in process            (950)       (4,659)
Amortization of contract rights and
  excess cost                                 5,033         4,503
Amortization of original issue discount
     on convertible notes                       406           426
Depreciation                                  4,287         3,765
Deferred income taxes                        (2,007)        3,784
                                           $ 59,896       $46,434

CONTACT: Laura Plevyak

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