Comdisco, Inc. announces second quarter net earnings up 19% at $31 million, on revenues of $690 million; declares quarterly cash dividend.

ROSEMONT, Ill.--(BUSINESS WIRE)--April 23, 1997--Comdisco, Inc. today reported operating results for its second quarter of fiscal 1997, ended March 31, 1997.

OPERATING RESULTS:

For the quarter ended March 31, 1997, Comdisco reported net earnings of $31 million, or $.58 per common share, compared with $26 million, or $.49 per common share, for the year earlier period. The company also reported revenues of $690 million for the second quarter of fiscal 1997, an increase of 19 percent, compared with $581 million for the prior year period.

Other revenue for the quarter increased by $25 million as a result of a litigation settlement. Other costs reflect a $25 million addition to the equipment valuation allowance for the quarter.

For the six months ended March 31, 1997, the company reported net earnings of $59 million, or $1.13 per common share, up 18 percent on a per share basis compared with $51 million, or $.96 per common share, for the prior year period. Total revenue was up 19 percent at $1.3 billion, compared with $1.1 billion for the prior year period.

CEO COMMENTARY:

"Comdisco has just completed five years of consecutive quarterly earnings growth," said Jack Slevin, chairman and chief executive officer. "Over those five years Comdisco has made the successful transition to a technology services company. Comdisco is a very different company today than it was five years ago and this difference is clearly demonstrated by our growth. During the second quarter we wrote $754 million of new business volume, a second quarter record. Operating lease revenue, the company's primary benchmark for top line growth, was a record $402 million, a 22 percent increase over the prior year period. Remarketing, particularly in our distributed systems area, was strong for the quarter. Continuity and network services posted record pretax earnings of $14 million for the quarter."

Added Slevin, "We set records in terms of new business volume, revenue and earnings for the first six months of any fiscal year in our history. These records reflect the strength of both Comdisco's balance sheet and the company's business model. We are confident that we will set new records for these three categories at the end of fiscal 1997."

DIVIDEND INFORMATION

On April 23, 1997, the Board of Directors declared a quarterly cash dividend of $.07 per share to common stockholders. The common stock cash dividend will be payable on June 16, 1997, to stockholders of record on May 23, 1997.

The company declared a quarterly cash dividend of $.55 per share to preferred stockholders (Series A&B). The preferred stock cash dividend will be payable on June 16, 1997, to preferred stockholders of record (Series A&B) on May 30, 1997. Comdisco had 48,965,173 shares, and 3,562,600 shares of common and preferred (Series A&B) stock outstanding, respectively, at March 31, 1997.

SAFE HARBOR:

The second 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.

COMPANY DESCRIPTION:

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 Six Months Ended March 31, 1997 and 1996
(Dollars in millions except per share data)

                        Three months     %     Six months        %
                       ended March 31,  +/-   ended March 31,   +/-
                       _______________  ___   _______________   ___
                        1997     1996          1997     1996
                       _____     _____        _____     _____
Revenue
 Leasing
  Operating            $ 402     $ 330   22%  $ 792     $ 646   23%
  Direct financing        36        39   -8%     72        79   -9%
  Sales-type              68        49   39%    132        89   48%
                       _____     _____   ___  _____     _____   ___
   Total leasing         506       418   21%    996       814   22%

Sales                     59        74  -20%    105       125  -16%
Continuity and
 network services         85        78    9%    169       148   14%
Other (1)                 40        11  264%     53        24  121%
                       _____     _____   ___  _____     _____   ___
  Total revenue          690       581   19%  1,323     1,111   19%
                       _____     _____   ___  _____     _____   ___
Costs and expenses
Leasing
  Operating              316       249   27%    621       484   28%
  Sales-type              43        35   23%     89        59   51%
                       _____     _____   ___  _____     _____   ___
   Total leasing         359       284   26%    710       543   31%

Sales                     49        59  -17%     79       100  -21%
Continuity and
 network services         71        68    4%    142       129   10%
Selling, general and
 administrative           61        60    2%    120       120    0%
Interest                  73        65   12%    146       130   12%
Other  (2)                25         -   N/A     25         -   N/A
                       _____     _____   ___  _____     _____   ___
  Total costs and
   expenses              638       536   19%  1,222     1,022   20%
                       _____     _____   ___  _____     _____   ___

Earnings before
 income taxes             52        45   16%    101        89   13%
Income taxes              19        17   12%     38        34   12%
                       _____     _____   ___  _____     _____   ___
Net earnings before
 preferred dividends      33        28   18%     63        55   15%
Preferred dividends       (2)       (2)   0%     (4)       (4)   0%
                       _____     _____   ___  _____     _____   ___
Net earnings available
 to common
 stockholders          $  31    $   26   19%  $  59     $  51   16%
                       _____     _____   ___  _____     _____   ___
                       _____     _____   ___  _____     _____   ___

Retained earnings
 at beginning
 of period             $ 881     $ 785        $ 856     $ 764
Net earnings available
 to common stockholders   31        26           59        51
Cash dividends paid on
 common stock             (4)       (3)          (7)       (7)
                       _____     _____        _____     _____
Retained earnings at
 end of period         $ 908     $ 808        $ 908     $ 808
                       _____     _____        _____     _____
                       _____     _____        _____     _____
Net earnings
 per common and
 common equivalent
 share:
 Net earnings available
  to common
  stockholders         $0.58     $0.49   18%  $1.13     $0.96   18%
                       _____     _____   ___  _____     _____   ___
                       _____     _____   ___  _____     _____   ___
Common and common
 equivalent shares
 outstanding              52        53           52        53
                       _____     _____        _____     _____

(1) Other revenue includes a gain of $25 million, ($16 million
after-tax, or $.30 per common share) as a result of amounts received
in settlement of litigation.

(2) In the second quarter of fiscal 1997, the company recorded a
non-cash, non-operating charge of $25 million, ($16 million after-
tax, or $.30 per common share) as a one time addition to the
equipment valuation allowance.

EDITORS' NOTE: There is an "at" symbol preceding "comdisco.com" in the e-mail addresses below. This symbol may not appear properly in some systems.

CONTACT: Comdisco

Investor Contact:

James J. Hyland, 847/518-5051

[e-mail]

or

Media Contact:

Mary Moster, 847/518-5147

[e-mail]