Comdisco, Inc. announces record 1996 net earnings of $2.00 per common share on revenue of $2.4 billion; declares quarterly cash dividends.

ROSEMONT, Ill.--(BUSINESS WIRE)--Nov. 6, 1996--Comdisco, Inc. (NYSE:CDO) today reported operating results for its fourth quarter and fiscal year ended September 30, 1996.

Operating Results:

For the quarter ended September 30, 1996, the Company reported total revenue of $728 million, versus $584 million for the prior year period. Net earnings for the quarter were $28 million, or $.53 per common share, versus $25 million, or $.45 per common share, for the prior year period.

For the year ended September 30, 1996, the Company reported total revenue of $2.4 billion, versus $2.2 billion for the prior year period. Net earnings were $106 million, or $2.00 per common share, versus $96 million, or $1.73 per common share, for the prior year period.

CEO Commentary:

Commenting on the Company's results, Jack Slevin, Chairman and Chief Executive Officer, stated, "1996 was the best year in the Company's history. We set many new records during the year but most notable was the volume of new business that we wrote during the year. We surpassed our internal target by over $400 million and wrote $2.6 billion of new business. A significant part of this increase was due to the performance of our Technology Integration Services and Distributed Systems Groups.

"Our 1996 fourth quarter was our best quarter ever. The Company's new business volume, revenue, and earnings were all records. Comdisco's Business Continuity and Network Services division, as well as our Healthcare subsidiary and Comdisco Ventures division, posted records for both earnings and revenue for the quarter. The Company's lease volume surpassed the $700 million mark for the second consecutive quarter to a record $769 million.

"During the quarter we formed an alliance with VIASOFT (VIAS/NASDAQ/NM) that will add value to our Millennium Testing Services program. We also formed an alliance with Asset Software International Corporation of Canada to cooperatively provide asset management software and services worldwide. These joint ventures are integral components of Comdisco's technology services offerings.

"For the year, we established records in terms of new business volume, revenue, and earnings. One of our value drivers, operating lease revenue, was up 22% from the prior year period. The pretax earnings contribution from our five diversified business areas; Business Continuity and Network Services, Electronics, International, Healthcare and Comdisco Ventures, was $88 million, or 48% of pretax profits, up 28% from last year.

"The Company strengthened its financial position in 1996 and made continued improvements in shareholder value. We repurchased $80 million, or 3.7 million shares, of Comdisco common stock during the year. Despite our aggressive share repurchase program, we increased our stockholders equity to a record $799 million. Our financial performance did not go unnoticed. In April, Standard & Poor's raised our debt rating to BBB+ and in October Moody's raised it to Baa1. Also, the total return of 47% on Comdisco common stock for fiscal 1996 outperformed the S&P 500 Index.

"We experienced great success in 1996 and we anticipate that with the people, strategies and technology services that we have in place, we should achieve an even greater level of success in 1997," Slevin said.

Dividend Information:

On November 5, 1996, the company declared a quarterly cash dividend of $.07 per share to common stockholders. The common stock cash dividend will be payable on December 9, 1996, to stockholders of record on November 15, 1996. The company declared a quarterly cash dividend of $.55 per share to preferred stockholders (Series A and B). The preferred stock cash dividend will be payable on December 15, 1996 to preferred stockholders of record (Series A and B) on November 29, 1996. Comdisco had 49,632,758 shares, and 3,562,600 shares of common and preferred (Series A and B) stock outstanding, respectively, at September 30, 1996.

Safe Harbor:

The third paragraph and the last sentence of the CEO commentary above contain forward-looking statements as to which the Company intends to have the benefit of the safe harbor created by the Private Securities Litigation Reform Act of 1995. While these forward-looking statements are based on assumptions believed by the Company to be reasonable and reflect the Company's current expectations as to future events and financial performance, they are subject to important factors relating to the Company's operations and business environment which may cause the actual results of the Company to be materially different from any future results expressed or implied by such forward-looking statements. Examples of such factors include, but are not limited to, the mix of leases written in a quarter which are a result of a combination of factors, including, but not limited to, changes in customer demands and/or requirements, new product announcements, price changes, changes in delivery dates, changes in maintenance policies and the pricing policies of equipment manufacturers, and price competition from other lessors. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Comdisco Inc. (NYSE:CDO), a technology services company, is one of the world's leading providers of solutions that help organizations reduce technology cost and risk. These services include asset management; equipment leasing and remarketing; business continuity; technology integration; and network services. For more information visit Comdisco's web site at http://www.comdisco.com. -0-

Comdisco, Inc. and Subsidiaries
Consolidated Statements of Earnings
For the Three and Twelve Months Ended September 30, 1996 and 1995
(Dollars in millions except per share data)

                                Three months         Twelve months
                             ended September 30,  ended September 30,
                             ___________________  ___________________
                               1996       1995      1996       1995
                               ____       ____      ____       ____
Revenue
  Leasing
    Operating                 $ 370      $ 305     $1,365     $1,117
    Direct financing             33         43        149        180
    Sales-type                  140         66        283        276
                              _____      _____     ______     ______
      Total leasing             543        414      1,797      1,573

Sales                            83         89        262        358
Business continuity and
 network services                87         70        318        267
Other                            15         11         54         42
                              _____      _____     ______     ______
  Total revenue                 728        584      2,431      2,240
                              _____      _____     ______     ______
Costs and expenses
  Leasing
    Operating                   287        227      1,037        824
    Sales-type                  112         43        209        199
                              _____      _____     ______     ______
      Total leasing             399        270      1,246      1,023

Sales                            73         79        218        304
Business continuity and
 network services                76         62        277        238
Selling, general and
 administrative                  64         61        244        233
Interest                         68         68        262        274
                              _____      _____     ______     ______
  Total costs and expenses      680        540      2,247      2,072
                              _____      _____     ______     ______
Earnings before income taxes     48         44        184        168
Income taxes                     18         17         70         64
                              _____      _____     ______     ______
Net earnings before preferred
 dividends                       30         27        114        104
Preferred dividends              (2)        (2)        (8)        (8)
                              _____      _____     ______     ______
Net earnings available to
 common stockholders          $  28      $  25     $  106     $   96
                              _____      _____     ______     ______
                              _____      _____     ______     ______

Retained earnings at
 beginning of period          $ 831      $ 742     $  764     $  681
Net earnings available to
 common stockholders             28         25        106         96
Cash dividends paid on
 common stock                    (3)        (3)       (14)       (13)
                              _____      _____     ______     ______
Retained earnings at end
 of period                    $ 856      $ 764     $  856     $  764
                              _____      _____     ______     ______
                              _____      _____     ______     ______

Net earnings per common and
 common equivalent share:
   Net earnings available to
    common stockholders       $0.53      $0.45     $ 2.00     $ 1.73
                              _____      _____     ______     ______
                              _____      _____     ______     ______

Common and common equivalent
 shares outstanding              53         55         53         55
                              _____      _____     ______     ______

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CONTACT: Comdisco, Inc.

Investor: James J. Hyland, 847/518-5051

[e-mail]

Media: Mary Moster, 847/518-5147

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