Computer Language Research, Inc. reports 3rd quarter 1995 results and cash dividend declaration.

Language Research, Inc. (Nasdaq/NM:CLRI), a leading supplier of application software to the tax, accounting and real estate industries today announced that revenue increased in its third quarter and for the nine months ended Sept. 30, 1995.

Profits from continuing operations decreased, as expected, for the third quarter and first nine months of 1995 compared to the same periods in 1994. The Company expects higher revenues and earnings in its fourth quarter than last year and expects its total year's results from continuing operations to be ahead of 1994.

Net income decreased to $1.1 million, or $0.08 per share, for the third quarter of 1995 from $2.3 million, or $0.16 per share, for the same period in 1994. Revenue from continuing operations increased by 3.5% to $22.4 million for the third quarter of 1995 from $21.7 million for the same period in 1994. Income from continuing operations for the third quarter decreased by 39.4% to $1.1 million in 1995 compared to $1.8 million in 1994 reflecting the Company's decreased revenue as a result of a government contract awarded in the third quarter of 1994. That contract's renewal options contributed to revenue and profits to a lesser extent in 1995.

Net income increased to $12.9 million, or $0.89 per share, for the first nine months of 1995 from $9.3 million, or $0.65 per share, for the same period in 1994. Included in the 1995 results was income and a one time gain from the sale of the Company's forms division during the second quarter of $4.8 million, or $0.33 per share. Revenue from continuing operations increased by 7.0% to $75.8 million for the first nine months of 1995 from $70.8 million for the same period in 1994. Income from continuing operations for the first nine months decreased by 5.3% to $8.1 million in 1995 compared to $8.5 million in 1994.

The Company ended the quarter with $32.1 million in cash and short-term investments, which represents 35.5% of total assets. At its October 24th meeting, the Board of Directors declared a dividend for the third quarter of 1995 at the rate of $0.10 per share. The dividend is payable Nov. 22, 1995, to shareholders of record on Nov. 8, 1995.

The Board of Directors of CLR recently approved an expanded mission statement for the Company as follows:

"CLR is in the business of providing specialized business

application software and services that help our clients

improve profits. We prefer applications that (i) have at

least $20 million in revenue potential, (ii) are market

share leaders in vertical business markets, (iii) generate

high recurring revenue streams, and (iv) are synergistic

with our existing sales and technology infrastructure."

According to Stephen Winn, Chief Executive Officer of CLR, "this expanding mission statement will guide our actions and planning over the next few years. In support of this expanded mission, CLR recently acquired two companies that develop and market real estate property management software to the multi-family residential apartment industry. We are marketing our property management software under the trade name Rent Roll. Rent Roll software is the market share leader and is currently used by over 8,000 apartment communities to manage over 2 million apartment units. We believe the realizable market for property management software is approximately 43,000 apartment sites with over 7.8 million units. This represents apartment communities managed by property management companies generating in excess of $1 million per year in annual revenue. Our goal is to expand the number of apartment communities that use Rent Roll through internal growth and acquisitions of related software applications. In addition, we plan to add additional products and services that add recurring revenue streams to our core property management software."

Computer Language Research, Inc., is headquartered in Carrollton, Texas, and maintains sales and support facilities throughout the United States. The Company provides tax and accounting software to accounting firms, banks, corporations, and partnerships under the trade name Fast-Tax. The Company also develops and markets residential real estate property management software to large property management firms and owners of multi-family apartment complexes under the trade names Rent Roll and On-Site. -0-

                      Computer Language Research, Inc.
                Condensed Consolidated Statements of Income
               (In thousands, except for per share amounts)

                          Three Months Ended  Nine Months Ended
                           9/30/95   9/30/94  9/30/95  9/30/94
Revenues                   $22,441   $21,679  $75,797  $70,822
Costs and expenses          21,324    18,849   65,054   57,818
Operating income             1,117     2,830   10,743   13,004
Interest income                526       274    1,185      778
Interest expense                 -        16        8      320
(Loss) gain on disposals
 of property and equipment      (3)     (151)     (57)     340
Income from continuing
 operations before taxes     1,640     2,937   11,863   13,802
Provision for income
 taxes                         542     1,125    3,796    5,282
Income from continuing
 operations                  1,098     1,812    8,067    8,520
Discontinued operations:(a)
Income from discontinued
 operations                      -       518       76      813
Gain on disposal of
 discontinued operations         -         -    4,720        -
Net income                 $ 1,098   $ 2,330  $12,863  $ 9,333
Earnings per share         $  0.08   $  0.16  $  0.89  $  0.65
Weighted average number
 of common and common
 equivalent shares
 outstanding                14,455    14,280   14,391   14,256

                    Condensed Consolidated Balance Sheets
                                (in thousands)

                                         At
                                9/30/95      9/30/94
Assets:
Cash and cash equivalents       $32,130      $17,221
Short-term investments                -        8,142
Accounts receivable, net          8,074        8,138
Other current assets              3,152        2,155
Net current assets of
 discontinued operations(a)           -        3,839
Total current assets             43,356       39,495
Property and equipment, net      20,626       21,135
Software, net                    17,152        8,215
Intangibles and other
 assets, net                      9,357        5,553
Net noncurrent assets of
 discontinued operations              -          805
Total assets                    $90,491      $75,203
Liabilities and shareholders'
 equity:
Current liabilities             $16,815      $13,620
Noncurrent liabilities            5,750        3,919
Shareholders' equity             67,926       57,664
Total liabilities and
 shareholders' equity           $90,491      $75,203

    (a) In June 1995, the Company sold substantially all of the
assets of its wholly owned subsidiary, Electronic Form Systems
Incorporated ("EFS").  The operating results of EFS have been
treated as discontinued operations, and all periods presented have
been restated to conform with this presentation.

CONTACT: Computer Language Research, Inc., Carrollton

Robert H. Dilworth, 214/250-8679