Computrac, Inc. Announces Preliminary Year-end Results Reflecting Significant Improvement in Financial Performance.

Business Editors

RICHARDSON, Texas--(BUSINESS WIRE)--March 28, 2000

CompuTrac, Inc. (AMEX:LLB) announced today that it expects to report an estimated net loss of approximately $165,000 or $0.03 per share for the twelve-months ended Jan. 31, 2000 compared to a net loss of $629,000 in the prior comparable period.

The loss reflects a 4th quarter revenue decline and an increase in expenses associated with the launch of a new product expanding the Company's market focus to include the large law firm market. For the year, revenues increased to over $5.2 million from $4.9 million in the prior period. The loss per share decreased from $.10 in fiscal 1999 to $.03 in fiscal 2000. This significant improvement in overall financial performance is attributable to an increase in new systems sales and services revenue as well as a decrease in net expenses between periods.

Notwithstanding the loss, the Company was generally pleased with the performance during the year, having sustained three consecutive quarters of positive earnings during the first part of the year. The Company's slowdown in new sales revenue during the fourth quarter was typical of what was experienced by the legal software industry as a result of the culmination of Y2K purchasing by law firms.

In January of this year the Company announced the release of LFMS 2000, a Microsoft SQL-Server based product for both mid and large size law firms. LFMS 2000 not only provides a long awaited migration path for the Company's large law firm customer base, but additionally will become the primary source of new sales revenue in an expanded market for its products and services. A major product introduction, such as what is now under way, could result in a near term decrease in revenue as well as an increase in marketing efforts and expense.

A significant number of law firms delayed their search for a new system until after all of their other Y2K issues were behind them. In many cases, this product search is either just now beginning or has yet to be started. Accordingly, this purchasing lag in the market place has provided the Company with an opportunity to launch its new product in January 2000 and start the sales process. As a result, the Company is now able to compete for business not previously available.

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 Roger Young ([e-mail]). For information on CompuTrac LFMS 2000 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/.