D&B Expects Blueprint for Growth Strategy to Continue to Create Value for Shareholders in 2003.

Business Editors

SHORT HILLS, N.J.--(BUSINESS WIRE)--Jan. 13, 2003

Identifies $75 Million of Additional Financial Flexibility

Actions; 2003 Outlook Reflects Solid Growth

D&B (NYSE: DNB), the leading provider of global business information and technology solutions, expects its Blueprint for Growth strategy to continue to create value for shareholders in 2003.

Launched in October 2000, the Blueprint strategy is focused on transforming D&B into a growth company with an important presence on the Web. An integral component of this strategy is creating financial flexibility to fund investments for growth and to create shareholder value during the transformation.

"Since the launch of the Blueprint, we have focused on transforming our business model to create funds to invest for growth and to create shareholder value," said Allan Z. Loren, D&B Chairman and Chief Executive Officer. "We call this process 'creating financial flexibility.' With this mindset, we continually examine every aspect of what we do, and look for opportunities to improve our performance in terms of quality and cost. Our ability to invest for growth while delivering strong earnings during our transformation is a direct result of our financial flexibility initiatives," Loren said.

D&B announces $75 million of additional financial flexibility initiatives

Consistent with this process, D&B today announced the Blueprint's next series of financial flexibility initiatives. On an annualized basis, these initiatives are expected to create approximately $75 million in funds that can be reallocated to growth areas of the business, of which $50 million will be generated in 2003. These funds are in addition to the $280 million in reallocated funds available for investment in 2003 as a result of the previous phases of the financial flexibility program. The Company expects to incur one-time transition costs of approximately $9 million in 2003 to implement this next series of actions.

With this phase of financial flexibility initiatives, D&B will continue to streamline sales and marketing functions, consolidate data operations, and reallocate technology spending to products with greater growth potential.

With the plans announced today, approximately 550 people worldwide are expected to have their positions eliminated by July 2003. As a result, the Company expects to incur restructuring charges in 2003 totaling approximately $16 million pre-tax, or $0.14 per share, primarily for severance and termination costs associated with this series of initiatives.

D&B to create additional flexibility by monetizing a non-core asset in 2003

Another important component of creating financial flexibility is asset monetization -- the sale of non-core businesses and assets. D&B is currently in negotiations to monetize its European headquarters building in the United Kingdom, while continuing to operate from the building for a multi-year period of time. In connection with the anticipated transaction, D&B expects to recognize a non-cash loss of approximately $13 million pre-tax, or $0.17 per share. The amount of cash proceeds from the monetization will be disclosed when the transaction closes.

D&B's 2003 outlook reflects solid growth

"Even in these challenging times, our Blueprint strategy has provided us with the ability to deliver on our commitment to increase shareholder value as we transform D&B into a growth company," said Loren. "Because we initiated our financial flexibility actions over two years ago, we now have funds to invest for growth and to improve the bottom line. As a result, we feel good about our progress, and we are confident that we can deliver solid growth in 2003 assuming the current economic conditions in the United States and Europe continue."

The Company's fourth quarter 2002 results are scheduled to be released after the financial markets close on Wednesday, February 5, 2003. A copy of the release will be posted on D&B's Web site at www.dnb.com.

For 2003, the Company expects full year core revenue growth in the range of 4 to 5 percent before the effect of foreign exchange. This growth rate assumes that D&B completes its recently-announced acquisition of Hoover's Inc. during the first quarter of 2003. Hoover's is expected to contribute approximately 1.5 points of full year revenue growth to D&B's 2003 results.

In the first quarter of 2003, the Company received cash of approximately $7 million pre-tax, or $0.06 per share, in settlement of its insurance claim to recover losses related to the events of September 11, 2001. This cash recovery will be recorded as non-operating income, and will provide further funds for the Company to invest for growth and to create value for shareholders.

The Company expects 2003 diluted earnings per share to be between $2.25 and $2.29, including the restructuring charges, loss on monetization of real estate, and insurance recovery totaling $0.25 per share, described above. It expects 2003 diluted earnings per share to be between $2.50 and $2.54 before these one-time items. Current 2003 First Call estimates are between $2.42 and $2.55.

The Company's 2003 outlook will be described more fully later in the current quarter.

President of D&B - Europe resigns

Separately, the Company said today that Bruno de la Riviere, senior vice president of D&B and president of D&B - Europe, has announced his intention to leave D&B after a period of transition to pursue other business interests. An interim leader has been appointed while the Company searches for a new leader.

D&B (NYSE: DNB) provides the information, tools and expertise to help customers Decide with Confidence. D&B enables customers quick access to objective, global information whenever and wherever they need it. Customers use D&B Risk Management Solutions to manage credit exposure, D&B Sales & Marketing Solutions to find profitable customers and D&B Supply Management Solutions to manage suppliers efficiently. D&B's E-Business Solutions are also used to provide Web-based access to trusted business information for current customers as well as new small business and other non-traditional customers. Over 90 percent of the Business Week Global 1000 rely on D&B as a trusted partner to make confident business decisions. For more information, please visit www.dnb.com.

Forward-Looking Statements 

Certain statements in this press release are forward-looking. Statements that are not historical facts are forward-looking statements. In addition, words such as "expects," "anticipates," "believes," "plans," "guidance" and similar expressions are intended to identify forward-looking statements. All such forward-looking statements are based on D&B's reasonable expectations at the time that they are made. However, forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions that may prove to be incorrect and that may cause D&B's actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. The risks, uncertainties and assumptions that may affect D&B's performance include: the possibility that economic or other conditions might lead to a reduction in the demand for D&B products and services worldwide and/or the lengthening of sales cycles; the possibility that the current economic slowdown may worsen and/or persist for an unpredictable period of time; D&B's ability to successfully implement its Blueprint for Growth, including the ability to achieve its financial flexibility objectives on terms and conditions contemplated by D&B; changes in the business information and risk management industries and markets, including changes in customer preferences for products and product delivery formats resulting from advances in information technology; competitive pressures causing price reductions and/or loss of market share; risks associated with investments and operations in foreign countries, including foreign economic conditions, exchange rate fluctuations, regulatory environment, and cultural factors; D&B's ability to successfully integrate recent and future acquisitions, alliances and investments; D&B's ability to protect its proprietary information and technology or to obtain necessary licenses and services on commercially reasonable terms; the potential loss of key business assets, including data center capacity, or interruption of telecommunication links or power sources; changes in the legislative, accounting, regulatory and commercial environments affecting D&B's ability to collect, manage, aggregate, use and distribute data; and D&B's ability to attract and retain key employees. D&B undertakes no obligations to update any forward-looking statements to reflect future events or circumstances.

In addition, risks, uncertainties and assumptions that may cause actual results to differ materially with respect to any forward looking statements concerning the acquisition of Hoover's include: the possibility that the closing conditions contained in the merger agreement will not be satisfied, the uncertainties associated with certain litigation filed against Hoover's in connection with the acquisition, including the risk of an adverse judgment, the risk that revenue growth opportunities expected to result from the merger will not be attained, the loss of key employees, data suppliers, customers and distributors, and the inability to continue to generate unique visitors to Hoover's website and to convert such visitors into sales leads and paid subscriptions at forecasted rates.