Data Broadcasting posts record fiscal year-end and fourth-quarter revenues and operating profit.

JACKSON, Wyo.--(BUSINESS WIRE)--Aug. 13, 1996--Data Broadcasting Corp. (Nasdaq:DBCC) Tuesday reported record quarterly revenues of $30.4 million for its fiscal fourth quarter ended June 30, 1996, up 86% from the corresponding quarter last year.

For the full fiscal year ended June 30, 1996, revenues reached $114.6 million, a 54% increase. The increases reflect continued subscriber growth in the company's core information service businesses and a full year's contribution from Broadcast International (BI), which was acquired on June 30, 1995.

Net income for the fourth quarter, excluding non-recurring gains, merger and consolidation charges and an extraordinary loss from the early extinguishment of debt, rose 72% to $2 million, compared with $1.2 million last year. On a per share basis, calculated on 34% more primary weighted average shares outstanding, net income rose to $0.06 compared with $0.05 a year ago.

The increased shares principally reflect 6.1 million shares issued in connection with the BI acquisition.

Net income for the year, excluding non-recurring gains, merger and consolidation charges and an extraordinary loss from the early extinguishment of debt, reached $8.3 million, a 60% increase from $5.2 million last year. Net income per share, based on 33% more primary weighted average shares outstanding, rose to $0.26 from $0.22 last year.

Additionally, the company's fiscal 1996 performance includes a previously reported non-recurring pretax gain of $3.3 million, resulting in added income per share of $0.06. The gain relates to the 1991 sale of certain media assets to the Consumer News and Business Channel.

Data Broadcasting's fiscal 1995 results include a non-recurring pretax gain of $14.1 million, equal to $0.37 per share, from the same 1991 sale. This year's payment resulted from an arbitration proceeding initiated by Data Broadcasting, and is the final contingent payment from the 1991 sale.

Merger and consolidation costs related to the BI acquisition totaled $1.9 million, or $0.03 per share, for the year ended June 30, 1996, versus $0.9 million, or $0.02 per share, last year.

In this year's fourth quarter, the company recorded an extraordinary loss on the early extinguishment of debt of $0.2 million, net of tax, or $0.01 per share.

In last year's fourth quarter, Data Broadcasting realized a pretax gain of $5.4 million, or $0.11 per share, from the sale of its Shark Information Services operations to a subsidiary of Automatic Data Processing Inc.

Data Broadcasting's effective income tax rate rose to almost 44% in fiscal 1996 from 40% last year due principally to the non-deductible goodwill amortization associated with the BI acquisition.

Revenues from the company's Information Services Division -- consisting of DBC West, BMI (acquired with BI) and Capital Management Sciences (CMS) -- rose 52% in the fourth quarter to $22.1 million from $14.5 million a year ago. The increase reflects the revenue contribution of $5.1 million from BMI, a 14% increase in DBC West subscribers and an 11% increase in CMS subscribers.

For the full year, the Information Services Division recorded revenues of $81.7 million, up 51% from a year ago, including $17.8 million from BMI.

The company's Business Services Division -- consisting of the Instore Satellite Network and CheckRite International, both acquired with BI -- had revenues of $8.4 million and $33 million, respectively, for the fourth quarter and full year ended June 30, 1996.

Results for the fiscal 1995 fourth quarter and full year include revenues from Shark Information Services of $1.8 million and $20.2 million, respectively. Shark was sold effective May 1, 1995.

"We are gratified that the acquisition of Broadcast International last June has proven to be the strong strategic move we expected, especially in our core information service business," said Alan Hirschfield and Allan Tessler, Data Broadcasting's co-chief executive officers.

"We achieved record revenues and operating profit, and DBC's earnings before interest, taxes, depreciation and amortization (EBITDA) exceeded $32 million for the year. At the same time, we expensed more than $5 million in the year on the development of DBC's online services, CMS's BondVu product and our international expansion.

"DBC finished the year with almost $20 million in cash, long-term debt of less than $3 million and unused credit facilities of $33 million. In short, the company is positioned well for the future."

Data Broadcasting noted that its strong financial performance for the year did not include any significant revenues from new product offerings -- BondVu, DBC Online Services including MarketWatch, and BusinessVision.

"The recent launch of BondVu, which provides fixed income security data to retail brokers, small money managers and other market professionals serving individual investor clients, positions us well to serve a market at price points not available previously. This business has the potential to grow as large as CMS' existing business within a few years," Hirschfield and Tessler added.

"Our DBC Online services, which include MarketWatch, Brand Label Quotes, Internet Financial Network's real-time EDGAR service and DBC's World Wide Web page (www.dbc.com), are fully operational. Data Broadcasting's Web site is the most visited independent quote site on the Internet with inquiries averaging almost two million hits a day.

"DBC's Brand Label Quote partnerships with USA Today, The Washington Post, T. Rowe Price and more than 30 others are driving significant numbers of users to our Web site, and we have recently begun to sell advertising to a number of companies, including Microsoft, Netscape, Fidelity Advisors and Excite.

"MarketWatch, the company's real-time quote product delivered over the Internet for $29.95 per month, was launched on April 19 and finished the year with more than 1,100 subscribers," they continued.

"BusinessVision, Instore Satellite Network's new product launched during our fourth quarter, offers businesses the ability to subscribe to high quality management training and motivational programming at monthly subscription rates far less than otherwise available. The programming is delivered over an 18-inch direct broadcast satellite (DBS) dish.

"Our enthusiasm for BusinessVision's prospects is matched by our excitement for the power of the DBS technology, and we have initiated development of a DBS solution for delivery of financial market data," Hirschfield and Tessler concluded.

Data Broadcasting is America's leading provider of real-time market data to the individual investor. Through its DBC West and BMI services, the company delivers real-time stock quotes, financial and sports news and betting odds to more than 36,000 subscribers via wireless FM, cable and satellite transmission, as well as through online services and the Internet (www.dbc.com).

DBC's Capital Management Sciences subsidiary is the leading provider of fixed income portfolio analytics used for valuation and risk management purposes. The Instore Satellite Network division provides private satellite communications networks and services for retail, commercial and media businesses. CheckRite International provides electronic check verification data as well as credit and bank card services to retail merchant customers. -0-

               DATA BROADCASTING CORP. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per share data)

                         Three Months Ended          Year Ended
                              June 30,                June 30,
                       1996    1995      %     1996      1995       %
                                      change                      change

Revenues:
DBC West             $12,718  $10,920  +16% $48,048    $40,732   +18%
BMI                    5,061       --        17,831         --
Capital Management
 Sciences              4,297    3,597  +19%  15,785     13,329   +18%
Instore Satellite
 Network               4,338       --        17,948         --
CheckRite
 International         4,022       --        15,021         --
Shark Information
 Services                 --    1,847            --     20,182
Total revenues        30,436   16,364  +86% 114,633     74,243   +54%

Costs and expenses:
Cost of services
 and sales            12,362    5,853        45,055     30,547
Selling, general and
 administrative       10,314    6,003        37,431     24,516
Depreciation and
 amortization          4,401    2,367        16,621     10,012
Total costs and
 expenses             27,077   14,223        99,107     65,075
Income from operations
 before merger and
 consolidation costs   3,359    2,141  +57%  15,526      9,168   +69%
Merger and
 consolidation costs      48      923         1,913        923
Income from operations 3,311    1,218        13,613      8,245
Gain on sale of Shark     --    5,410            --      5,410
Interest and other
 (expense) income, net   158      161          (774)      (869)
Income before
 reorganization items
 and income taxes      3,469    6,789        12,839      12,786
CNBC proceeds, net
of obligations            --       --         3,299      14,135
Other reorganization
 items, net               --      (44)           --         263
Income before income
 taxes                 3,469    6,745        16,138      27,184
Provision for
 income taxes          1,468    3,279         7,042      10,819
Income before
 extraordinary item    2,001    3,466         9,096      16,365
Extraordinary item      (225)      --          (225)         --
Net income           $ 1,776  $ 3,466(a)    $ 8,871(b,c)$16,365(a,d,e)
Net income per share:
 Primary
 Before extraordinary
  item               $  0.06  $   0.15      $  0.28     $  0.68
 Extraordinary item       --        --           --          --
 Net income          $  0.06  $   0.15      $  0.28     $  0.68

 Fully diluted
 Before extraordinary
  item               $  0.06  $   0.14      $  0.28     $  0.67
 Extraordinary item    (0.01)       --        (0.01)         --
 Net income          $  0.05  $   0.14     $   0.27     $  0.67
Weighted average
 shares outstanding:
 Primary              31,834    23,762 +34%  31,936      24,015  +33%
 Fully diluted        33,081    24,925 +33%  32,891      24,350  +35%

(a) Includes gain on sale of Shark of $5,410, equal to $0.11 per share.
(b) Includes CNBC proceeds, net of obligations of $3,299, equal to
    $0.06 per share.
(c) Includes non-recurring merger and consolidation charges of
    $1,913, equal to $0.03 per share.
(d) Includes CNBC proceeds, net of obligations, and other
    reorganization items of $14,398, equal to $0.37 per share.
(e) Includes non-recurring merger and consolidation charges of
    $923, equal to $0.02 per share.

CONTACT: Data Broadcasting Corp., Jackson

Mark F. Imperiale, 307/733-9742

or

Pondel Parsons & Wilkinson, Los Angeles

Cecilia A. Wilkinson/Ina McGuinness, 310/207-9300

Internet: [e-mail]