Comdisco announces fourth quarter and 1995 year end results; announces 3-For-2 stock split; increases quarterly cash dividend by 17%; announces $50 million share repurchase program.

ROSEMONT, Ill.--(BUSINESS WIRE)--Nov. 8, 1995--Comdisco, Inc. today reported operating results for its fourth quarter and fiscal year ended September 30, 1995.

Operating Results

For the quarter ended September 30, 1995, the company reported total revenue of $584 million, versus $519 million for the prior-year period. Net earnings for the quarter were $25 million, or $.68 per common share, versus a net loss of ($21) million, or ($.53) per common share, for the prior-year period.

For the year ended September 30, 1995, the company reported total revenue of $2.2 billion, versus $2.1 billion, for the prior-year period. Net earnings were $96 million, or $2.60 per common share, versus $44 million, or $1.16 per common share, for the prior-year period.

During the fourth quarter of fiscal 1994, the company recorded a one-time, after-tax IBM litigation settlement charge of ($42) million, (($1.12) per common share for the quarter, ($1.09) per common share for the year). Therefore, net earnings comparisons, before IBM litigation settlement, are as follows: for the quarter ended September 30, 1995, $25 million, or $.68 per common share, versus $21 million, or $.59 per common share, for the prior-year period; for the year ended September 30, 1995, $96 million, or $2.60 per common share, versus $86 million, or $2.25 per common share, for the prior-year period.

The company also announced that on November 7, 1995, its board of directors declared the following:

Stock split: The company announced a 3-for-2 common stock split in the form of a 50 percent stock dividend. The stock split is the company's ninth since going public in 1971.

Cash dividends: The company increased its quarterly cash dividend by 17 percent to $.07 per share, post-split to common stockholders. The common stock split will be effected and the cash dividend will be payable on December 8, 1995, to stockholders of record as of November 17, 1995.

The company declared a quarterly cash dividend of $.55 per share to preferred stockholders (Series A and B). The preferred stock dividend will be payable on December 15, 1995, to preferred stockholders of record (Series A and B) on November 30, 1995. Comdisco had 34,798,510 shares, and 3,625,800 shares of common and preferred (Series A and B) stock outstanding, respectively, at September 30, 1995.

Share repurchase: The company authorized an expenditure of up to an aggregate of $50 million to purchase shares of the company's currently outstanding common and/or preferred stock or other debt securities of the company. Any further purchases would depend on market and other conditions and would be made in the open market or otherwise at such prices as the company may from time to time approve.

CEO Commentary

Commenting on the company's results, Jack Slevin, president and chief executive officer, stated, "1995 was the best year in Comdisco's history. The company had a record year in terms of revenue, lease volume, and earnings per share. During 1995, we made significant progress in the areas of operating performance and shareholder value.

"Our diversified businesses continued their upward trend in 1995, contributing 42 percent of pre-tax earnings, up 50 percent from 1994's contribution. We anticipate that these Comdisco businesses -- Disaster Recovery Services, Electronics, International, Medical and Venture Lease -- will contribute almost half of our pre-tax earnings in 1996. Foremost among our successes in 1995 was Disaster Recovery Services, with a 61 percent pre-tax earnings increase over the prior year. Also, our fastest growing business, Electronics, saw its revenue more than double for 1995, exceeding the $100 million mark after only its third year of operation.

"Comdisco recently acquired NetforceMTI, one of the nations premier enterprise network services organizations. This acquisition will complement Comdisco's network experience in leasing, remarketing and business continuity and will play an important role in the company's systems integration and desktop asset management services. "In 1995, we made great strides in increasing shareholder value. Our stockholders experienced a total return of 45 percent on their investment in Comdisco. The company repurchased over 2.5 million shares of its common stock. We believe Comdisco stock is a good investment and we will continue to utilize our growing free cash flow to repurchase shares of the company's stock.

"We have put in place successful operating strategies that will increase the services aspect of our business. We feel these strategies will help us deliver stronger global results in 1996 and continue to maximize shareholder return."

Comdisco (NYSE:CDO) is one of the world's leading providers of solutions that help organizations reduce technology cost and risk. These services include equipment leasing and remarketing; business continuity and related consulting services; desktop asset management tools and services; systems integration; and more. -0-

Comdisco, Inc. and Subsidiaries
Consolidated Statements of Earnings
For the Three and Twelve Months Ended September 30, 1995 and 1994
(Dollars in millions except per share data)

                                 Three months        Twelve months
                                     ended               ended
                                 September 30,        September 30,
                              __________________   __________________
                               1995        1994     1995        1994
Revenue                       ______      ______   ______      ______
 Leasing
  Operating                   $ 305       $ 242   $1,117      $1,002
  Direct financing               43          47      180         186
  Sales-type                     66          95      276         350
                              ______      ______   ______      ______
   Total leasing                414         384    1,573       1,538

Sales                            89          64      358         271
Disaster recovery                70          64      267         242
Other                            11           7       42          47
                              ______      ______   ______      ______
  Total revenue                 584         519    2,240       2,098
                              ______      ______   ______      ______
Costs and expenses
Leasing
  Operating                     227         182      824         746
  Sales-type                     43          64      199         258
                              ______      ______   ______      ______
   Total leasing                270         246    1,023       1,004

Sales                            79          54      304         225
Disaster recovery                62          58      238         224
Selling, general and
 administrative                  61          56      233         213
IBM litigation settlement         -          70        -          70
Litigation charge                 -           -        -          10
Interest                         68          65      274         263
                              ______      ______   ______      ______
  Total costs and expenses      540         549    2,072       2,009
                              ______      ______   ______      ______
Earnings (loss) before
 income taxes                    44         (30)     168          89
Income taxes (benefit)           17         (12)      64          36
                              ______      ______   ______      ______
Net earnings (loss) before
 preferred dividends             27         (18)     104          53
Preferred dividends              (2)         (3)      (8)         (9)
                              ______      ______   ______      ______
Net earnings (loss) to
 common stockholders          $  25       $ (21)   $  96       $  44
                              ______      ______   ______      ______
Retained earnings at
 beginning of period          $ 742       $ 705    $ 681       $ 650
Net earnings (loss) to
 common stockholders             25         (21)      96          44
Cash dividends paid on
 common stock                    (3)         (3)     (13)        (13)
                              ______      ______   ______      ______
Retained earnings at
 end of period                $ 764       $ 681    $ 764       $ 681
                              ______      ______   ______      ______
Net earnings (loss) per
 common and common
 equivalent share:
    Net earnings (loss)
     to common stockholders  $ 0.68      ($0.53)  $ 2.60      $ 1.16
                              ______      ______   ______      ______
Common and common
 equivalent shares
 outstanding                     37          37       37          39
                              ______      ______   ______      ______

CONTACT: Comdisco, Inc., Rosemont

Mary Moster, 708/518-5147

James J. Hyland, 708/518-5051