CompuTrac Announces Fourth Quarter and Year-End Results.

Business Editors

RICHARDSON, Texas--(BUSINESS WIRE)--May 15, 2001

CompuTrac, Inc. (AMEX:LLB) announced today a fourth quarter loss of $(885,338) or $(0.14) per share compared to a net loss of $(374,872) or $(0.06) per share for the comparable prior quarter.

A fiscal year net loss of $(2,284,927) or $(0.36) per share was reported compared to a net loss of $(164,064) or $(0.03) per share for the comparable prior fiscal year.

In January 2001, the last month of the Company's 2001 fiscal year, the company began implementing substantial reorganization changes, which included the resignation of its president, the termination of the long-term employment agreement with its CEO (currently employed on a monthly basis at substantially reduced compensation), and the reduction and re-organization of the Company's workforce. These changes are intended to bring the Company's operating revenues and expenses in line with each other as well as with the business and economic environment in which the Company operates. The charges associated with these changes are reflected in the Company's fiscal 2001 reported results. Since implementing these changes, the company has experienced positive results in its operations, customer relations and financial results.

STATEMENTS OF OPERATIONS

                      Three-month period        Twelve-month period
                       ended January 31,          ended January 31,
                   ------------------------- -------------------------
                       2001         2000         2001          2000
Revenues:
System sales       $   128,880  $   121,203  $   305,987  $ 1,078,903
Service and support    688,082      887,513    2,965,283    4,148,429
                   ------------ ------------ ------------ ------------
                       816,962    1,008,716    3,271,270    5,227,332
                   ------------ ------------ ------------ ------------

Costs and expenses:
Cost of system
 sales                  49,874       67,320      122,875      431,052
Cost of services
 and support            60,089       64,822      230,750      249,293
Amortization of
 capitalized
 software              100,000       92,766      435,532      371,064
Write-down of
 capitalized
 software              519,440           --      519,440
Operating expenses     371,503      287,602    1,220,294    1,215,014
Selling, general
 and administrative
 expenses            1,748,007      814,955    3,869,038    2,753,699
Software research
 and development
 costs                 130,079      145,000      520,129      505,130
                   ------------ ------------ ------------ ------------
                     2,978,992    1,472,465    6,918,058    5,525,252

Operating income
 (loss)             (2,162,030)    (430,849)  (3,646,788)    (297,920)
Gain on sale
 of land             1,243,967                 1,243,967
Interest income,
 net                    32,725       55,977      118,094      133,856
                   ------------ ------------ ------------ ------------
Net income (loss)  $  (885,338) $  (374,872) $(2,284,727) $  (164,064)
                   ============ ============ ============ ============

Net income (loss)
 per share - basic
 and diluted       $     (0.14) $     (0.06) $     (0.36) $     (0.03)
                   ============ ============ ============ ============

Weighted average
 number of common
 shares - basic
 and diluted         6,331,379    6,441,287    6,320,311    6,391,463
                   ============ ============ ============ ============


BALANCE SHEETS

                                            January 31,
                                     2001                2000
                                ----------------   ----------------
ASSETS:
Cash and short-term investments     $ 2,382,649        $ 2,552,970
Other current assets                    442,290                987
Other assets                          2,974,126          4,127,494
                                ----------------   ----------------
Total assets                        $ 5,799,065        $ 7,667,927
                                ================   ================

LIABILITIES:
Accounts payable and
 accrued expenses                   $   347,902        $   287,289
Other current liabilities               909,852            625,375
Other liabilities                                           23,193
                                ----------------   ----------------
                                      1,257,754            935,857

SHAREHOLDERS EQUITY:                  4,541,311          6,732,070
                                ----------------   ----------------
Total liabilities and
 shareholders' equity               $ 5,799,065        $ 7,667,927
                                ================   ================

CompuTrac develops, markets, services and supports software designed specifically for the legal profession. Visit CompuTrac on the World Wide Web at http://www.computrac.com. For information on CompuTrac, contact George P. (Sandy) Pardue ([e-mail]). For information on CompuTrac LFMS for Windows contact Jay Stromberg ([e-mail]).

CompuTrac is a registered trademark of CompuTrac, Inc. Microsoft and Windows are registered trademarks of Microsoft Corporation in the United States and/or other countries. Point your browser to the Microsoft legal industry home page at http://www.microsoft.com/industry/legal/.