Computer Concepts Corp. Reports 2nd Quarter Results.

Business Editors

BOHEMIA, N.Y.--(BUSINESS WIRE)--Aug. 16, 2000

COMPUTER CONCEPTS CORP. (NASDAQ:CCEE) today announced its unaudited financial results for the three and six months ended June 30, 2000.

The Company reported a net loss for the three month period ended June 30, 2000, of $827,000 as compared to net income of $8,068,000 for the three month period ended June 30, 1999, which included a $14,410,000 gain on the partial distribution of its subsidiary, Softworks Inc. Revenue for the three and six months ended June 30, 2000, was $500,000 and $1,026,000 as compared to $9,645,000 and $23,613,000 for the three and six months ended June 30, 1999. Effective April 1, 1999, the company's ownership of its Softworks, Inc ("Softworks") subsidiary fell below 50%. Accordingly, Softworks was accounted for as a consolidated subsidiary through March 31, 1999, and commencing April 1, 1999, Softworks' results have been accounted for applying the equity method of accounting. The following tables reflect Softworks accounted for using the equity method for the six months ended June 30, 1999 on a consistent basis with actual results for the six months ended June 30, 2000.

Basic and diluted net income (loss) per share for the three months ended June 30, 2000, and June 30, 1999 was $(0.04) and $0.39, respectively. For the six months ended June 30, 2000, basic and diluted net income per share were $0.89 and $0.87, respectively. For the six months ended June 30, 1999, basic and diluted net income per share was $0.13.

   BALANCE SHEET            June 30, 2000     December 31, 1999
   -------------            -------------     -----------------
                             (Unaudited)         (Audited)
                             -----------         ---------

 Total Current Assets        $32,207,000         $28,384,000
 Total Assets                $34,002,000         $30,024,000
 Total Liabilities            $8,718,000          $5,538,000
 Total Shareholders' Equity  $25,284,000         $24,486,000


Statement of Operations

                  For The       For The       For The      For The
               Three Months  Three Months   Six Months    Six Months
                   Ended         Ended         Ended        Ended
               June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
                 Unaudited     Unaudited     Unaudited    Unaudited
                  (Actual)      (Actual)      (Actual)   (Pro Forma)


Revenue          $ 500,000  $ 9,645,000  $  1,026,000  $ 13,355,000
Operating
  Loss(1)     ($ 1,424,000)($ 6,244,000) ($25,618,000) ($13,646,000)
Other
  Income(2)      $ 212,000  $14,312,000  $ 56,891,000  $ 16,378,000
(Provision
  for)/Benefit
  from income
  taxes          $ 385,000  $        --  ($12,427,000)     ($15,000)
Net Income
  (Loss)         ($827,000) $ 8,068,000  $ 18,846,000  $  2,717,000
Basic net
  income (loss)
  per share         ($0.04) $      0.39  $       0.89  $       0.13
Diluted net
  income (loss)
  per share         ($0.04) $      0.39  $       0.87  $       0.13

(1) Includes non-recurring restructure charges of $192,000 recorded in
    the Quarter ended June 30, 2000 and $15,005,000 for the six months
    ended June 30, 2000.

(2) Includes gain on sale of Softworks and ComputerCOP of $56,347,000
    in the six months end June 30, 2000, $16,441,000 in the six months
    ended June 30,1999 and $14,410,000 in the three months ended June
    30, 1999.

President Anthony Coppola noted that overhead and operating costs have been significantly reduced as a result of the restructuring which is reflected in the second quarter's results. He also noted that in the continuing effort to improve shareholder value, the company paid an aggregate dividend to its shareholders in excess of $2 million on May 1, 2000. He further indicated that consistent with the restructuring and based on current company growth projections, "the entire organization remains firmly committed to attaining profitability from operations. We believe the expanded capabilities of the Server Farm to process in excess of one billion records of call detail information, along with the recent launch of the company's new division which offers a unique telecommunications contract compliance service, should enable us to achieve our goal." Mr. Coppola reiterated that he remains confident "that the company is positioned to become a leader in the telecommunications call detail market."

The selected financial information shown above for the three and six month periods ended June 30, 2000, and June 30, 1999, have been abstracted from the unaudited condensed consolidated financial statements of the Company as contained in Form 10-Q for the quarter ended June 30, 2000, and should be read in conjunction therewith. The results of operations for the three months ended June 30, 2000, are not necessarily indicative of results that may be expected for any other interim period or for the full year.

This release contains forward looking statements which are based on current information and on management assumptions, and are subject to other important factors disclosed from time to time in the company's Form 10-K and Form 10-Q , Registration Statements and other Security and Exchange Commission filings including specifically, among other factors, changing political, marketing and economic conditions, adoption and timely roll-out of its products by licensees and acceptance of the company's Internet based d.b.Express applications. Quarterly results are not indicative of annual results and substantial variances from quarter to quarter may occur. Actual results may differ materially from any forward-looking statements in the release.

Computer Concepts develops software tools including d.b.Express that assist end users in the retrieval and visualization of all types of data with an application focus in the telecommunications billing and call detail market. The d.b.Express Internet Server(TM) and JAVA Applet have overcome a major Internet problem, that of high data volume and limited bandwidth, currently responsible for the lengthy delays associated with data downloading.

Located in Bohemia, New York, Computer Concepts employs a staff of 34. For more information about Computer Concepts, call [phone] or visit Computer Concepts' web site at www.computerconcepts.com.