Daily Journal Corporation Announces Financial Results for Fiscal Year Ended September 30, 2006.

LOS ANGELES -- Revenues of Daily Journal Corporation (NASDAQ:DJCO) were $32,369,000 and $33,272,000 for fiscal 2006 and 2005, respectively. This decrease of $903,000 (3%) was primarily attributable to a decline in consulting revenues of our Sustain Technologies subsidiary due to higher than average revenues in the 2005 period and temporary delays in several California court projects, and a decline in circulation revenues. This decrease was partially offset by the increased revenues from commercial and legal advertising.

Our traditional publishing business segment pretax profit increased by $1,096,000 (23%) to $5,823,000 from $4,727,000 primarily resulting from increased advertising revenues and decreased expenses, partially offset by decreased circulation revenues. Sustain's business segment pretax loss increased $1,355,000 from $230,000 to $1,585,000, primarily because of the decline in Sustain's consulting revenues due to the deferral of about $1.5 million of contracted projects into fiscal 2007. Projected consulting revenues are subject to uncertainty because they depend on (i) the timing of the acceptance of the completed consulting tasks and (ii) the unpredictable needs of Sustain's existing customers and its ability to secure new customers.

Consolidated net income was $2,438,000 and $4,287,000 for fiscal 2006 and 2005, respectively. On a pretax profit of $4,238,000 for fiscal 2006, the Company recorded a tax provision of $1,800,000, which includes an adjustment to the prior tax carry-forwards. Still under review by the Internal Revenue Service is the status of the Research and Development credit of $800,000 which was utilized by the Company in the prior two years. Any adjustment to the credit amount would result in an additional federal income tax assessment, although the amount of any possible adjustment is not known at this time. The tax provision was only $210,000 on a pretax profit of $4,497,000 for fiscal 2005 because the Company was able to utilize the state tax benefit from Sustain-segment operating loss carry-forwards and federal research and development tax credits. Net income per share decreased to $1.68 from $2.95.

Summarized financial information concerning our reportable segments is shown in the following table. (All figures are in thousands except for the numbers for common stock outstanding and the per share amounts.)

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Daily Journal Corporation publishes newspapers and web sites covering California, Arizona and Nevada, as well as the California Lawyer and 8-K magazines, and produces several specialized information services. Sustain Technologies, Inc., a 93% owned subsidiary, supplies case management software systems and related products to courts and other justice agencies, including district attorney offices and administrative law organizations.

Daily Journal Corporation's Form 10-K for the fiscal year ended September 30, 2006 is expected to be filed electronically with the Securities and Exchange Commission on December 28, 2006. We invite your attention to the Form 10-K which contains our audited consolidated financial statements, management's discussion and analysis of financial condition and results of operations, and other information.

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this press release are "forward-looking" statements that involve risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements. Words such as "expects," "intends," "anticipates," "should," "believes," "will," "plans," "estimates," "may," variations of such words and similar expressions are intended to identify such forward-looking statements. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements are disclosed in the Form 10-K referred to above. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in other documents we file with the Securities and Exchange Commission.