Data Documents reports net income from operations rises 115% in fourth quarter on 26% gain in net sales.

OMAHA, Neb.--(BUSINESS WIRE)--Feb. 1, 1996--Data Documents Incorporated (Nasdaq:DDII), today reported sales and operating earnings for the fourth quarter and year ended December 31, 1995.

For the fourth quarter, net sales increased 26.3% to $65.3 million, up from $51.7 million for the same period in 1994. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 54.1% to $8.0 million from $5.2 million in the prior year's quarter. Operating income for the quarter increased 115.4% to $5.8 million from $2.7 million a year ago.

For the quarter, per share net income before extraordinary expense increased to $0.17 from a loss of $0.02 in the 1994 period. The Company recorded an extraordinary charge in the 1995 fourth quarter in connection with the redemption of debt from the proceeds of Data Documents' initial public offering. The Company also recorded an extraordinary charge in the 1994 fourth quarter related to the early extinguishment of debt. After these extraordinary charges, Data Documents recorded a net loss of $1.3 million, or $0.13 per share, for the 1995 fourth quarter compared to a loss of $0.34 for the prior year's quarter. Primary weighted average common shares outstanding increased by 14.4% to 9,883,864 from 8,643,595 primary shares for the 1994 fourth quarter.

For the year ended December 31, 1995, net sales increased 25.1% to $242.2 million from $193.6 million reported for the fiscal 1994 year. Earnings before interest, taxes, depreciation and amortization increased 42.9% to $28.9 million from $20.3 million in the prior year. Operating income increased 71.4% to $20.7 million from $12.1 million a year ago.

Net income before the extraordinary item for the year increased 133.4% to $4.3 million, or $0.61 per share, compared to $1.8 million, or $0.13 per share, for the prior year. Primary weighted average common shares outstanding were 7,333,864 for 1995 compared to 9,453,494 primary shares outstanding for 1994.

The Company noted that in October 1995, it completed the sale of 3,400,000 shares of its Common Stock to the public in an initial public offering. This share total includes the Company's portion of the underwriters' over-allotment option, which was exercised in full. "We are very pleased with the strong growth in EBITDA and operating earnings in Data Documents' first quarter as a public company," noted Walter Kearns, Chairman and Chief Executive Officer. "These increases reflect the year-long growth we have experienced in our custom forms and pressure-sensitive label businesses."

Mr. Kearns added, "Our results confirm the benefits of Data Documents' position as a value-added provider of forms management and outsourcing services. Looking to 1996, our strategies for continued profitable growth include further sales of our Odyssey Integrated ServicesSM program, and its Windows-based Software System, Odyssey NetworkSM. We will also grow our pressure-sensitive label business as well as exploit capacity increases in our direct mail business."

Data Documents Incorporated, is a leading designer and provider of custom business forms, pressure-sensitive label products and forms management systems that enable its customers to enhance productivity and reduce costs associated with managing information. Additionally, the Company's InteliMail Division provides specialized direct mail products and services nationwide. -0-

                DATA DOCUMENTS INCORPORATED AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF OPERATIONS
     (Columnar Amounts in Thousands, Except Share and Per Share Data)
                                (Unaudited)

                          Three Months Ended     Year Ended
                              December 31,       December 31,
                           1995       1994      1995      1994

NET SALES               $ 65,251   $ 51,678  $242,238  $193,626

COST OF GOODS SOLD        50,147     40,124   186,011   148,797

 Gross Profit             15,104     11,554    56,227    44,829

SELLING, GENERAL
 AND ADMINISTRATIVE
 EXPENSES                  9,274      8,847    35,334    32,729

STOCK COMPENSATION
CHARGE                         -          -       156         -

 Operating Income          5,830      2,707    20,737    12,100

DEBT EXPENSE,
 including amortization
 of $224,000, $307,000,
 $1,312,000 and
 $1,072,000                2,882      2,595    13,335     8,735

INCOME BEFORE INCOME
 TAXES                     2,948        112     7,402     3,365
INCOME TAX EXPENSE         1,280        151     3,127     1,533
NET INCOME (LOSS)
 BEFORE EXTRAORDINARY
 EXPENSE                   1,688        (39)    4,275     1,832
EXTRAORDINARY EXPENSE,
 NET OF TAX (a)            2,921      2,795     2,921     2,795
NET INCOME (LOSS)         (1,253)    (2,834)    1,354      (963)
LESS PREFERRED
 DIVIDENDS                     -        108         -       620

NET INCOME (LOSS)
 AVAILABLE FOR
 COMMON STOCK           $ (1,253)  $ (2,942) $  1,354  $ (1,583)

EARNINGS PER COMMON SHARE:
Primary:
  Income (loss) before
  extraordinary         $   0.17   $  (0.02) $   0.61  $   0.13
  Extraordinary items      (0.30)     (0.32)    (0.40)    (0.30)
Net income (loss)       $  (0.13)  $  (0.34) $   0.21  $  (0.17)

Fully diluted:
  Income (loss) before
  extraordinary         $   0.17   $   0.00  $   0.61  $   0.11
  Extraordinary items      (0.30)     (0.20)    (0.40)    (0.17)
Net income (loss)       $  (0.13)  $  (0.20) $   0.21  $  (0.06)

WEIGHTED AVERAGE COMMON AND
 COMMON EQUIVALENT SHARES
 OUTSTANDING:
  Primary              9,883,864  8,643,595 7,333,864  9,453,494

  Fully diluted        9,883,864 14,067,657 7,333,864 16,911,580

(a) In the fourth quarter of 1995, the Company redeemed $24 million
in principal amount of its outstanding Senior Secured Notes due 2002
with the net proceeds from its initial public offering.  In
connection with the Senior Secured Noted redemption, the Company
recorded a $2.9 million extraordinary charge (net of tax benefit)
resulting from the 11.4% cash call premium and the related write-off
of unamortized original discount and deferred financing costs.  In
the fourth quarter of 1994, the Company recorded a $2.8 million
extraordinary charge associated with the early termination of debt in
connection with the issuance of the Senior Secured Notes in November
of 1994.

CONTACT: Morgen-Walke Associates

Investor Relations:

David Walke/Howard Zar/Melissa Garelick

Press: Stan Froelich

212-850-5600