Data Broadcasting Announces First-Quarter Results; eSignal Subscribers Surpass 17,000.

JACKSON, Wyo.--(BUSINESS WIRE)--Nov. 15, 1999--

Data Broadcasting Corp. (Nasdaq:DBCC) Monday reported results for its first fiscal quarter ended Sept. 30, 1999.

Earlier Monday, Data Broadcasting also announced an agreement to merge with the specialist asset valuation business (FTAM) of the Financial Times group, part of Pearson plc, the international media company.

The expanded business, which is expected to have pro forma revenues in 1999 of approximately $320 million, will position the company to provide more comprehensive service to every sector of the global money management community and develop more rapidly a wider range of Internet-delivered products.

For the first quarter, revenues were $27.7 million and earnings before interest, taxes, depreciation and amortization (EBITDA) were $3.6 million, or $0.10 per share. Data Broadcasting recorded a net loss of $3.0 million, or $0.09 per share, after giving effect to pre-tax losses of $5.6 million from the company's equity stake in MarketWatch.com Inc. (Nasdaq:MKTW).

The equity in losses of MarketWatch reduced the company's earnings by $0.10 for the quarter, but had no impact on cash flow.

In the corresponding prior-year quarter, revenues were $25.7 million and EBITDA was $4.8 million, or $0.15 per share. Net income was $0.1 million, or $0.00 per share, including equity in losses of MarketWatch of $0.9 million ($0.01 per share).

Revenues for the first quarter increased 8% over the comparable prior-year period due to explosive growth in eSignal Internet subscribers, 18% growth in BondEdge revenue, the acquisition of Global Treasury Information Services (GTIS) in September 1998, and the initial market acceptance of InSite, offset by a 28% decline in broadcast subscribers. Excluding the legacy broadcast products, which are declining as expected, revenues increased 63%.

"Data Broadcasting's eSignal subscriber base now exceeds 17,000, a clear indication that our Internet strategy is working," said Alan Hirschfield and Allan Tessler, co-chief executive officers. "The robust growth we are experiencing with eSignal continues to be reinforced through more than 60 key strategic alliances with online brokerage firms, including Charles Schwab, Dreyfus and Ameritrade.

"Importantly, eSignal's leadership position includes technological prowess and innovation involving the most advanced, fully integrated market data and trading solutions available for active traders. Our recently released eSignal 5.2 supports extended hours trading and offers several additional new features to meet the evolving needs of active traders and investors.

"On the horizon for eSignal is an Internet browser-based Java solution that we believe will greatly expand the potential market for real-time streaming data to the growing population of online investors.

"We are pleased to note that InSite has continued to gain acceptance in the professional and institutional space, as screen count has now risen to 1,400, a significant increase from last quarter. We believe the enthusiasm for InSite demonstrates that an efficiently priced and comprehensive Internet-delivered market data system is very attractive to institutional investors."

Hirschfield and Tessler continued, "Capital Management Sciences' BondEdge enjoyed a stellar quarter. We experienced solid revenue and profit benefits from the exit of a competitor from the business, and initial success from our recently announced joint venture with RBC Dominion Securities in Canada."

EBITDA declined quarter-over-quarter due to the lower broadcast revenues, with little reduction in broadcast's fixed distribution expense and substantial increases in sales and marketing expenses for eSignal and InSite, offset by growth in EBITDA from BondEdge. Net income declined due to the reduced EBITDA and the increase in Data Broadcasting's equity in losses of MarketWatch.

Data Broadcasting's 32%-owned MarketWatch reported revenues of $7.0 million for its quarter ended Sept. 30, 1999, a 287% increase as compared with the comparable prior-year period. Net losses for the quarter were $20.0 million as compared with $3.6 million in the comparable prior-year quarter.

A significant portion of the $20.0 million in losses ($15.6 million) was attributable to non-cash charges for network advertising and promotion provided by CBS and the amortization of goodwill and other intangible assets resulting from MarketWatch's acquisition of Big Charts Inc.

MarketWatch's Web sites served 434 million page views in the quarter ended Sept. 30, 1999, a 310 million increase, or 250%, over the comparable quarter of 1998 and an increase of 124 million, or 40%, over the quarter ended June 30, 1999. According to DoubleClick, unique users grew to an average of 4.6 million per month in the quarter.

Because Data Broadcasting owns more than 20% but less than 50% of MarketWatch, Data Broadcasting records its share of MarketWatch's net losses in accordance with the equity accounting rules. Although these losses had a material negative impact on Data Broadcasting's earnings per share for the quarter, there was no impact on Data Broadcasting's cash flow.

Data Broadcasting Corp. is the leading provider of real-time market data to the individual trader and investor. The company delivers real-time stock quotes, financial information and news to the PCs, laptops and hand-held devices of millions of users via the Internet, dedicated lines, wireless FM, cable and satellite.

With the BondEdge service from its Capital Management Sciences division, Data Broadcasting also is the leading provider of fixed income portfolio analytics used for valuation and risk management purposes.

Data Broadcasting's Internet presence includes http://www.dbc.com, http://www.eSignal.com, http://cbs.marketwatch.com, http://insite.dbc.com, http://www.bondedge.com, http://sports.dbc.com and http://www.dbceuro.com.

Matters discussed in this release include forward-looking statements that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ include the response of competitors to the company's new services, acceptance of the Internet as a valid real-time distribution platform by institutional customers, activity levels in the securities markets and other risk factors listed in the company's 10-K and 10-Q reports to the Securities and Exchange Commission. -0-

            DATA BROADCASTING CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF OPERATIONS
                 (In thousands, except per share data)

                                              Three Months Ended
                                                 September 30,
                                              1999           1998

REVENUES                                   $27,738        $25,670

COSTS AND EXPENSES
   Cost of services                         14,564         12,530
   Selling, general and administrative       9,549          8,336
   Depreciation and amortization             3,185          4,041

        Total costs and expenses            27,298         24,907

INCOME FROM OPERATIONS                         440            763
   Losses from MarketWatch.com Inc.         (5,643)          (923)
   Interest and other income (expense), net    420            343

INCOME (LOSS) BEFORE INCOME TAXES           (4,783)           183
Provision (benefit) for income taxes        (1,814)           112

NET INCOME (LOSS)                          ($2,969)           $71

Basic and Diluted EPS:
   Net income (loss)                        ($0.09)         $0.00

Weighted Average Common Shares Outstanding
   Basic and Diluted                        34,579         32,967
-0-

                     DATA BROADCASTING CORPORATION
                   ADDITIONAL FINANCIAL INFORMATION
                        (dollars in thousands)

                                        Three Months Ended
                            September 30,     September 30,      %
                                 1999              1998        Change

REVENUES:
eSignal                        $6,760            $2,412        180%
Broadcast                      10,532            15,138        -30%
Institutional                   3,943             2,598         52%
BondEdge                        6,503             5,522         18%

        Total                 $27,738           $25,670          8%

EBITDA:
Market Data                    $1,422            $2,667        -47%
BondEdge                        3,556             3,051         17%
Corporate and unallocated      (1,353)             (914)       -48%

        Total                  $3,625            $4,804        -25%

OPERATING INCOME (LOSS):
Market Data                     ($853)            ($372)      -129%
BondEdge                        2,652             2,055         29%
Corporate and unallocated      (1,359)             (920)       -48%

        Total                    $440              $763        -42%

CAPITAL EXPENDITURES:
Property and equipment          3,137             3,273         -4%
Software development              333               306          9%


                                       September 30,        June 30,
                                           1999              1999

BALANCE SHEET DATA:
Cash                                     $39,900           $41,507
Total current assets                      58,449            59,519
Total assets                             183,886           182,499
Total current liabilities                 32,782            26,856
Long-term debt                                 0                 0
Total stockholders' equity               149,395           154,158