Concentra Announces Record Revenues and Fiscal Third Quarter Results Software Revenue up 106 Percent.

BURLINGTON, Mass.--(BUSINESS WIRE)--Jan. 16, 1997--Concentra Corporation (Nasdaq: CTRA), a leading supplier of sales and engineering automation software solutions, today announced its financial results for the third quarter and the first nine months ending December 31, 1996. Revenues for the third quarter of fiscal year 1997 were $7.9 million, an 86 percent increase over revenues of $4.3 million for the same period last year.

Net income for the third quarter was $802,000, or $0.14 per share, compared with a net loss of $1.2 million, or $0.23 per share, for the same period last year. Software revenue increased 106 percent to $6.3 million compared with $3.1 million during the third quarter of last year.

Revenues for the nine months ending December 31, 1996 were $20.0 million compared with $13.9 million for the same period last year, an increase of 44 percent. Net income for the nine-month period ending December 31, 1996 was $1.4 million, or $0.24 per share, compared with a net loss of $815,000, or $0.15 per share, for the same period last year. Included in net income for the current period was an after tax gain of $329,000 from the sale of securities held by a subsidiary. Software revenue for the first nine months of fiscal 1997 increased 77 percent to $14.7 million from $8.3 million for the first nine months of last year.

"We are very pleased by the strength of our software revenue growth which increased 106 percent compared with the third quarter last year and 77 percent for the nine month comparison," said Lawrence W. Rosenfeld, chairman and chief executive officer. "Concentra continues to expand its business with both new and existing customers. We received significant orders for The ICAD System from Ford, British Aerospace, Corning Glass, York and a large order from a company that supplies software to a major international aerospace company. We closed six major SellingPoint(tm) deals within the quarter, including orders from Dayco (a division of Mark IV Industries), Caradon Everest and Standex.

"This was an eventful quarter for new product introductions and alliances," Rosenfeld added. "The Integrated Car Engineer (I.C.E.), an engineering automation environment designed specifically to meet the needs of the automotive market, made its U.S. debut at the Autofact Show in Detroit during November. I.C.E. is built on The ICAD System which has been used extensively in the design of the highly acclaimed Jaguar XK-8. The Company also launched a broader partnership with Oracle, jointly marketing I.C.E. RFQ , a SellingPoint-based product that is used by automotive suppliers to rapidly respond to requests for quotations from the auto manufacturers. In addition, our OEM group has signed an agreement with a third-party solution provider who is building our SellingPoint technology into an application that the customer will market."

"We believe that our strategy of organizing into Global Industry Business Units -- building and delivering vertical solutions in aerospace, automotive, industrial products and high technology -- is working," Rosenfeld continued. "The sales pipeline is very strong and our customers can now see how our focus on their industry enables Concentra to deliver even greater value."

The statements in this press release about the Company's prospects, including those relating to the anticipated timing and benefits of the Company's product strategies, are forward-looking statements based on assumptions that may not be realized for various reasons. Any such statements are subject to risks that could cause the actual results or needs to vary materially. The Company discusses such risks in detail in its Form 10-K for the year ended March 31, 1996.

Concentra Corporation is the leading provider of object-oriented sales and engineering software solutions. Using Concentra's software, market-leading companies worldwide in the aerospace, automotive, industrial equipment and construction industries are creating customer-driven designs, product configurations and sales proposals in minutes, not months. Headquartered in Massachusetts, the company operates offices across the United States, Europe and Asia.

For more information, contact Concentra Corporation, 21 North Avenue, Burlington, MA 01803-3301, Tel: [phone], Fax: [phone], www.concentra.com or [e-mail].

                          CONCENTRA CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                 (in thousands, except per share data)

                              Three months ended     Nine months ended
                                  December 31,          December 31,
                               1996        1995       1996       1995
Revenues
 Software                    $6,329      $3,077    $14,656     $8,296
 Services                     1,605       1,197      5,336      5,597
Total revenues                7,934       4,274     19,992     13,893

Operating expenses
 Cost of software licenses      531         318      1,502        888
 Cost of services             1,000         686      2,641      1,705
 Sales and marketing          3,839       3,077     10,297      8,388
 Research and development       972         756      2,426      2,247
 General and administrative     627         712      1,921      1,906
 Restructuring                    -         196          -        196
Total operating expenses      6,969       5,745     18,787     15,330

Income (loss) from operations   965      (1,471)     1,205     (1,437)

Interest income, net             49         166        171        561
Other income (expense)           55          (8)       462         61
Income (loss) before income
 taxes                        1,069      (1,313)     1,838       (815)

Provision (benefit) for
 income taxes                   267         (99)       460          -
Net income (loss)              $802     ($1,214)    $1,378      ($815)

Net income (loss) per common
 and common equivalent shares $0.14      ($0.23)     $0.24     ($0.15)

Weighted average number of
 common and common equivalent
 shares outstanding           5,852       5,315      5,700      5,283

-0-

                        CONCENTRA CORPORATION
                CONDENSED CONSOLIDATED BALANCE SHEETS
                           (in thousands)

                                 December 31,          March 31,
                                     1996                1996
ASSETS:

Cash and cash equivalents          $5,232              $9,121
Accounts receivable                13,755               8,284
Property and equipment, net         2,950               3,241
Intangible assets and capitalized
 software, net                      3,231               3,500
Other assets                        1,083                 963

TOTAL ASSETS                      $26,251             $25,109


LIABILITIES AND STOCKHOLDERS' EQUITY:

Liabilities
 Accounts payable and accrued
  expenses                         $3,112              $3,350
 Deferred revenue                   1,440               2,091
Other liabilities                   1,600               1,361
Total liabilities                  $6,152              $6,802

Total stockholders' equity        $20,099             $18,307

TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY             $26,251             $25,109

CONTACT: Concentra

Alex Braverman or Janet Page

617-229-4660 617-229-4669

[e-mail]

[e-mail]