Data Broadcasting Reports Results for Third Fiscal Quarter -- Internet Subscribers Grow 70%; eSignal Successfully Launched.

JACKSON, Wyo.--(BUSINESS WIRE)--May 14, 1999--

Data Broadcasting Corporation (Nasdaq:DBCC) today reported results for its third fiscal quarter and nine-month periods ended March 31, 1999.

For the third quarter, the company reported revenues of $24.2 million, earnings before interest, taxes, depreciation and amortization (EBITDA) of $2.1 million and a loss from operations of $1.6 million.

The company recorded a net loss of $1.9 million, or $0.05 per share, after giving effect to pre-tax losses of $1.2 million from MarketWatch.com, the company's joint venture with CBS Broadcasting Inc., which completed an initial public offering in January 1999.

The current quarter also included a pre-tax expense of $1.8 million in special bonuses paid to DBC's employees. These bonuses were compensation for the efforts of employees who participated in the formation, development and initial public offering of MarketWatch.com. Its initial public offering in January contributed significantly to DBC's assets and market value. The net impact of the MarketWatch.com losses and the bonuses was $0.06 per share.

In the corresponding prior-year quarter, revenues were $22.2 million, EBITDA was $5.3 million, income from operations was $1.2 million, and net income was $0.7 million, or $0.02 per share.

The company attributes the increase in revenues for the quarter to growth in Internet subscribers; growth from its Capital Management Sciences' operation (CMS); and the acquisition of Global Treasury Information Services (GTIS) during the first quarter of 1999.

"We are aggressively pursuing our Internet incubation strategy and are pleased to announce the attainment of more than 5,000 net new subscribers since December 31, 1998. This brings our total Internet customer base to over 12,000," said Alan Hirschfield and Allan Tessler, co-chief executive officers.

For the nine-month period, revenues were $70.9 million, EBITDA was $11.7 million, the loss from operations was $0.1 million, and the loss from continuing operations and the net loss were $1.9 million, or $0.06 per share. The net loss for the current nine-month period included pre-tax losses of $3.3 million from MarketWatch.com and the pre-tax expense of $1.8 million in special bonuses.

The net impact of the MarketWatch.com losses and the bonuses was $0.09 per share. For the corresponding prior-year period, revenues were $68.3 million, EBITDA was $17.6 million, income from operations was $5.9 million, income from continuing operations was $3.4 million, or $0.10 per share, and the net loss was $4.4 million, or $0.13 per share, including a $7.8 million loss, or $0.23 per share, for discontinued operations.

The company has continued to generate strong cash flow during the year, finishing the quarter with $42.3 million in cash, a 61% increase from the 1999 fiscal second quarter. Operating cash flows for the nine months increased 8% over the corresponding prior-year period. In addition, the current quarter included $8.5 million of cash generated from the exercise of stock options.

Hirschfield and Tessler continued: "The 70% increase in Internet subscriptions since the end of the second quarter reflected the solid momentum in our subscriber base and new customers gained through more than 45 online brokerage relationships.

"The company has recently launched its most powerful investment product to-date -- eSignal. This product features full-text news, Nasdaq Level II, options montage displays, intra-day and historical charts, as well as connect to leading third party software for advanced charting, analytics and portfolio management. eSignal provides investors with the fastest, most-comprehensive Internet-delivered investment product in the marketplace.

"The company is introducing eSignal with an aggressive marketing campaign, which commenced in early May. Our rapid growth in Internet subscribers leads us to believe that online investors will continue to subscribe to DBC's eSignal in record numbers as a necessary information component in connection with their online brokers.

"Moreover, as eSignal continues to accelerate its remarkable growth, the company intends to maximize the value of eSignal, www.eSignal.com, to shareholders through appropriate strategies."

Results at CMS showed strong growth during the quarter as revenues increased 19 percent to $6.0 million from $5.0 million in the prior-year period. Profitability for CMS also increased sharply as operating income rose 33% to $2.2 million. Numerous BondEdge customers now receive CMS data via the Internet.

Hirschfield and Tessler added, "Capital Management Sciences continues to strengthen its leadership position in providing institutions with leading fixed income portfolio analytics. Recent developments in the competitive landscape of this business provide optimism for continued and accelerating growth as a competitor has recently exited the business."

"Turning to MarketWatch.com, we are pleased with the excellent results this company is enjoying. We firmly believe the successful IPO during the quarter and positive positioning of MarketWatch.com in the Internet space validate our Internet incubation strategy in bringing value to shareholders," Hirschfield and Tessler said.

DBC's 37% owned MarketWatch.com's Web site experienced 235 million page views and 3.3 million average unique monthly visitors during its first fiscal quarter ended March 31, 1999, representing a 130% and 313% increase, respectively, from the comparable quarter in the prior-year period. In addition, MarketWatch.com Inc. reported a 168% increase in revenue over the comparable period of the previous year.

MarketWatch.com has benefited from the creation of "the MarketWatch minute" in CBS' 60 Minutes II, as well as from increased marketing activity and national radio exposure through a venture with Westwood One. On April 29, 1999, MarketWatch.com Inc. announced it has signed a definitive agreement to acquire BigCharts Inc., one of the top-ten trafficked financial information Web sites, www.BigCharts.com. The transaction is valued at approximately $166 million.

Data Broadcasting 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 3 million users via PCs, wireless FM, cable, satellite and the Internet. With its Capital Management Sciences division, Data Broadcasting also is the leading provider of fixed income portfolio analytics used for valuation and risk management purposes.

DBC's Internet presence includes http://www.dbc.com, http://www.eSignal.com, http://cbs.marketwatch.com, http://insite.dbc.com, http://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 CORP. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF OPERATIONS
                 (In thousands, except per share data)

                        Three Months Ended       Nine Months Ended
                             March 31,                 March 31,
                       1999           1998      1999           1998

REVENUES             $24,196        $22,245   $70,862        $68,289

COSTS AND
 EXPENSES
Cost of
 services             10,861          8,599    30,570         26,460
Selling,
 general and
 administrative       11,207          8,307    28,642         24,196
Depreciation and
 amortization          3,689          4,146    11,787         11,742

Total costs
 and expenses         25,757         21,052    70,999         62,398
INCOME (LOSS)
 FROM OPERATIONS      (1,561)         1,193      (137)         5,891
Losses from
 MarketWatch.com
  Inc.                (1,223)           (51)   (3,312)           (46)
Interest and
 other income
 (expense), net          407            109     1,027            317
INCOME (LOSS)
 FROM CONTINUING
  OPERATIONS BEFORE
  INCOME TAXES        (2,377)         1,251    (2,422)         6,162

Provision (benefit)
 for income taxes       (456)           563      (484)         2,773
INCOME (LOSS) FROM
 CONTINUING
 OPERATIONS           (1,921)           688    (1,938)         3,389
Loss from
 discontinued
 operations,
 net of tax              --             --       --           (1,647)
Loss on disposal
 of discontinued
 operations,
 including taxes         --             --       --           (6,109)
Total discontinued
 operations              --             --       --           (7,756)
NET INCOME (LOSS)    ($1,921)          $688   ($1,938)       ($4,367)

Basic  EPS:
 Income (loss)
  from continuing
  operations        ($  0.06)      $   0.02   ($ 0.06)      $   0.10
 Loss from
  discontinued
  operations             --             --       --            (0.23)
                    ($  0.06)      $   0.02   ($ 0.06)      ($  0.13)

Diluted EPS:
 Income (loss)
  from continuing
  operations        ($  0.05)      $   0.02   ($ 0.06)      $   0.10
 Loss from
  discontinued
  operations             --             --       --            (0.23)
                    ($  0.05)      $   0.02   ($ 0.06)     ($   0.13)

Weighted Average
 Common Shares
 Outstanding
  Basic               34,860         32,856    33,527         32,787
  Diluted             35,915         33,233    34,386         33,342


                        DATA BROADCASTING CORP.
                   ADDITIONAL FINANCIAL INFORMATION
                        (dollars in thousands)

                                      Three Months Ended
                                            March 31,          %
                                      1999           1998    Change
REVENUES:
DBC - market data and news          $ 18,228      $ 17,217     +6%
CMS - fixed income data
  and analytics                        5,968         5,028    +19%
Total                               $ 24,196      $ 22,245     +9%

OPERATING INCOME (LOSS):
DBC - market data and news          ($   965)     $    454   -313%
CMS - fixed income data
  and analytics                        2,226         1,670    +33%
Corporate and unallocated             (2,822)         (931)  -203%
Total                               ($ 1,561)     $  1,193   -231%

EBITDA:
DBC - market data and news          $  1,744      $  3,583    -51%
CMS - fixed income data
  and analytics                        3,200         2,678    +19%
Corporate and unallocated             (2,816)         (922)  -205%
Total                               $  2,128      $  5,339    -60%

CAPITAL EXPENDITURES:
 Property and equipment                1,736         2,160    -20%
 Software development                    443           556    -20%


REVENUES:
DBC - market data and news          $ 53,477      $ 53,449      0%
CMS - fixed income data
  and analytics                       17,385        14,840    +17%
Total                               $ 70,862      $ 68,289     +4%

OPERATING INCOME (LOSS):
DBC - market data and news          ($ 1,821)     $  4,362   -142%
CMS - fixed income data
  and analytics                        6,478         4,388    +48%
Corporate and unallocated             (4,794)       (2,859)   -68%
Total                               ($   137)     $  5,891   -102%
 EBITDA:
 DBC - market data and news         $  6,975      $ 13,083    -47%
 CMS - fixed income data
   and analytics                       9,450         7,382    +28%
 Corporate and unallocated            (4,775)       (2,832)   -69%
 Total                              $ 11,650      $ 17,633    -34%

 CAPITAL EXPENDITURES:
  Property and equipment               6,300         6,333     -1%
  Software development                 1,149         1,565    -27%

                                          Mar 31,        Jun 30,
                                           1999           1998
BALANCE SHEET DATA:
Cash                                     $ 42,310      $ 26,256
Total current assets                       53,525        36,960
Total assets                              161,947       126,464
Total current liabilities                  23,766        22,076
Long-term debt                                  0           500
Total stockholders' equity                137,201       102,525