Data Broadcasting posts record quarterly revenues; company also reports non-recurring gain on final payment received from CNBC.

JACKSON, Wyo.--(BUSINESS WIRE)--April 22, 1996--Data Broadcasting Corp. (NASDAQ:DBCC) Monday reported record quarterly revenues of $28.4 million for the third fiscal quarter ended March 31, 1996, up 45 percent from the corresponding quarter last year.

For the first nine months of fiscal 1996, revenues reached $84.2 million, also a 45 percent increase.

Net income for the third quarter, excluding non-recurring gains and merger and consolidation charges, was $2.3 million, or $0.07 per share, compared with $1.3 million, or $0.06 per share a year ago. This is a 69 percent increase in income and an increase of $0.01 per share over a year ago, despite a 35 percent increase in weighted average shares outstanding resulting from the issuance of 6.1 million new shares in the Broadcast International (BI) merger.

Net income for the nine months, excluding non-recurring gains and merger and consolidation charges, was $6.3 million, equal to $0.20 per primary share, compared with $3.8 million, or $0.16 per share last year. This is a 66 percent increase in income and an increase of $0.04 per share on 33 percent more weighted average shares outstanding.

The company attributed its strong performance to continued subscriber growth in its core financial market data businesses and to its acquisition of BI on June 30, 1995.

Additionally, the company recorded in the third quarter and nine-month fiscal 1996 periods a non-recurring pre-tax gain of $3.3 million, or an added net income per share of $0.06, relating to the 1991 sale of certain media assets to Consumer News and Business Channel (CNBC).

Data Broadcasting's fiscal 1995 third quarter results include a non-recurring pretax gain of $14.1 million, equal to net income per share of $0.37, 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 were minimal in the current third quarter, having been substantially completed by Dec. 31, 1995, and totaled $1.9 million, or $0.03 per share, for the nine months. The company's effective income tax rate rose to 44 percent in fiscal 1996 from 37 percent a year ago, principally due to the non-deductible goodwill amortization associated with the BI acquisition.

Revenues for the company's Information Services Division -- consisting of DBC West, BMI (acquired with BI) and Capital Management Sciences (CMS) -- rose 51 percent in the third quarter to $20.6 million from $13.7 million a year ago.

The increase reflects the contribution of BMI, a 15 percent increase in DBC West subscribers over a year ago, and a 9 percent increase in CMS subscribers. For the nine months, the Information Services Division recorded revenues of $59.6 million, up 51 percent from a year ago.

The company's Business Services Division -- consisting of Instore Satellite Network, Business Television and CheckRite International, all acquired with BI -- had revenues of $7.8 million and $24.6 million, respectively, for the current third quarter and nine-month periods.

Results for the fiscal 1995 third quarter and nine-month periods include revenues from Shark Information Services of $5.9 million and $18.3 million, respectively. Shark was sold effective May 1, 1995.

"Data Broadcasting's core information service businesses are continuing their steady string of double-digit subscriber and revenue growth, and our profitability remains strong," said Alan Hirschfield and Allan Tessler, Data Broadcasting's co-chief executive officers.

The company noted that its strong performance this past quarter does not include any contributions from three major new product offerings -- MarketWatch, BusinessVision and BondVu.

MarketWatch, the company's real-time stock market quote service, delivered over the Internet for $29.95 per month, was launched April 19 and has been enthusiastically received with more than 3,500 subscribers registered to date.

"Data Broadcasting's Web site is the most visited independent quote site on the Internet with inquiries averaging between 2 and 3 million hits a day. The site has already made its first advertising sales to Netscape, Fidelity Advisors and others. It is benefiting significantly from its brand label quote partnerships with Microsoft, USA Today, T. Rowe Price and over 30 others.

"In addition, we expect to announce significant new brand label quote partners within the next 30 days," Hirschfield and Tessler added.

BusinessVision, launched April 1, is a new business education service offered by Instore Satellite Network/Business Television. The service can be received using a small, direct broadcast satellite (DBS) dish. Subscribers for this new product total more than 300 thus far, including Merck, Nestles and the U.S. Postal Service, at monthly rates of approximately $300.

CMS' new BondVu fixed-income product remains on track for launch this summer, and CMS is currently negotiating a distribution agreement for BondVu with a major information provider to Wall Street professionals.

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 34,000 subscribers via wireless FM, cable and satellite transmission, as well as through on-line 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 and Business Television divisions provide 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
                                            March 31,        Percent
                                         1996       1995     increase
Revenues:
 DBC West                              $11,937    $10,269      +16%
 BMI                                     4,633         --
 Capital Management Sciences             4,043      3,404      +19%
 InStore Satellite Network               3,673         --
 CheckRite International                 4,078         --
 Shark Information Services                 --      5,891
    Total revenues                      28,364     19,564      +45%
Costs and expenses:
 Cost of services and sales             10,929      8,220
 Selling, general and administrative     9,218      6,243
 Depreciation and amortization           4,094      2,634
    Total costs and expenses            24,241     17,097
Income from operations before merger
 and consolidation costs                 4,123      2,467      +67%
Merger and consolidation costs             155         --
Income from operations                   3,968      2,467      +61%
Interest and other (expense) income,
 net                                      (283)      (363)
Income before reorganization items
 and income taxes                        3,685      2,104      +75%
CNBC proceeds, net of obligations        3,299     14,135
Other reorganization items, net             --        (18)
Income before income taxes               6,984     16,221
Provision for income taxes               2,864      5,897
Net income                             $ 4,120/a  $10,324/b
Net income per share:
 Primary                               $  0.13    $  0.43
 Fully diluted                         $  0.12    $  0.43

Weighted average shares outstanding:
 Primary                                32,145     23,881      +35%
 Fully diluted                          33,276     24,021      +39%

-0-

                                         Nine Months Ended
                                            March 31,         Percent
                                         1996        1995     increase
Revenues:
 DBC West                              $35,330     $29,812      +19%
 BMI                                    12,770          --
 Capital Management Sciences            11,488       9,732      +18%
 InStore Satellite Network              13,610          --
 CheckRite International                10,999          --
 Shark Information Services                 --      18,335
    Total revenues                      84,197      57,879      +45%
Costs and expenses:
 Cost of services and sales             32,693      24,694
 Selling, general and administrative    27,117      18,513
 Depreciation and amortization          12,220       7,645
    Total costs and expenses            72,030      50,852
Income from operations before merger
 and consolidation costs                12,167       7,027      +73%
Merger and consolidation costs           1,865          --
Income from operations                  10,302       7,027      +47%
Interest and other (expense) income,
 net                                      (932)     (1,030)
Income before reorganization items
 and income taxes                        9,370       5,997      +56%
CNBC proceeds, net of obligations        3,299      14,135
Other reorganization items, net             --         307
Income before income taxes              12,669      20,439
Provision for income taxes               5,574       7,540
Net income                             $ 7,095/a/c $12,899/d
Net income per share:
 Primary                               $  0.22     $  0.54
 Fully diluted                         $  0.22     $  0.53

Weighted average shares outstanding:
 Primary                                31,974      24,100      +33%
 Fully diluted                          32,827      24,159      +36%

(a)  Includes CNBC proceeds, net of obligations of $3,299, equal
     to $0.06 per share.
(b)  Includes CNBC proceeds, net of obligations, and other
     reorganization items of $14,117, equal to $0.37 per share.
(c)  Includes non-recurring merger and consolidation charges of
     $1,865, equal to $0.03 per share.
(d)  Includes CNBC proceeds, net of obligations, and other
     reorganization items of $14,442, equal to $0.38 per share.

CONTACT: Data Broadcasting Corp.

Mark F. Imperiale, 307/733-9742 or 201/736-4710

or

Pondel Parsons & Wilkinson

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

Internet: [e-mail]