Data Documents reports preliminary sales and operating earnings for the third quarter and nine months ended Sept. 30, 1995.

OMAHA, Neb.--(BUSINESS WIRE)--Oct. 26, 1995--Data Documents Incorporated (NASDAQ: DDII) today reported preliminary sales and operating earnings for the third quarter and nine months ended September 30, 1995.

Sales were $62.8 million and $177.0 million for the third quarter and nine months, respectively, an increase of 34.2% and 24.7%, over the comparable periods in 1994. Operating earnings were $5.7 million and $14.9 million in the quarter and nine months ended September 30, 1995, an increase of 97.9% and 58.7% over the same respective periods in 1994.

For the third quarter and nine months ended September 30, 1995, earnings before interest, taxes, depreciation and amortization (EBITDA) increased 61.0% and 39.0% to $7.7 million and $20.9 million respectively. EBITDA for the nine months ended September 30, 1995 exceeded the EBITDA for the full year ended December 31, 1994. Debt expense was $3.5 million and $10.5 million for the quarter and nine months ended September 30, 1995, compared to $2.1 million and $6.1 million in the comparable 1994 periods. Net income was $1.3 million and $2.6 million compared to $0.4 million and $1.9 million in the respective 1994 periods.

In October 1995, the Company completed the sale 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. The Company announced yesterday that it will redeem $24 million in principal amount of its outstanding Senior Secured Notes due 2002 with the net proceeds from this offering. In addition, Cal Emblem Labels Inc., of Fresno, California, with revenues of nearly $23 million, was acquired on August 25, 1995, and became a wholly owned subsidiary of Data Documents.

The Company, with headquarters in Omaha, Nebraska, 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(R) Division provides specialized direct mail products and services nationwide.

Data Documents will be holding a conference call at 4:30 p.m. (Eastern Time) today, Thursday, October 26, 1995 to discuss the Company's third quarter results. The call is open to anyone who wishes to listen by dialing [phone] at the above mentioned time.

Following are the income statement and earnings summary. -0-

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

                             Three Months Ended    Nine Months Ended
                                 September 30,       September 30,
                             ------------------    -----------------
                             1995         1994     1995        1994
                                (Unaudited)           (Unaudited)

NET SALES                  $ 62,757    $46,765   $176,987  $141,948
COST OF GOODS SOLD           48,239     36,158    135,864   108,673
                             ------     ------    -------   -------
  Gross Profit               14,518     10,607     41,123    33,275

SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES      8,840      7,738     26,060    23,882

STOCK COMPENSATION CHARGE
 (Note E)                        -         -          156       -
                             ------     ------    -------   -------
  Operating Income            5,678      2,869     14,907     9,393

DEBT EXPENSE, including
 amortization of $360,000,
 $276,000, $1,089,000 and
 $786,000                    3,547       2,116     10,453     6,140
                             ------     -------   --------   ------

INCOME BEFORE INCOME TAXES   2,131         753      4,454     3,253

INCOME TAX EXPENSE             854         332      1,847     1,382
                             ------     -------    -------    -----
NET INCOME                   1,277         421      2,607     1,871

LESS PREFERRED DIVIDENDS       -           171         -        512
                             ------     --------   -------   ------

NET INCOME AVAILABLE FOR
 COMMON STOCK               $1,277      $  250     $2,607    $1,359
                            -------     -------    -------   ------

EARNINGS PER COMMON SHARE:
  Primary                   $ 0.21      $ 0.03     $ 0.43    $ 0.14
                            -------     -------    -------  -------

  Fully diluted             $ 0.21      $ 0.02     $ 0.43    $ 0.10
                            -------     --------   -------  -------

WEIGHTED AVERAGE COMMON
  AND COMMON EQUIVALENT
  SHARES OUTSTANDING (a):
   Primary              6,483,864   9,723,461  6,483,864  9,723,461
                        ---------   ---------  ---------  ---------

   Fully diluted        6,483,864   17,859,554  6,483,864 17,859,554
                        ---------   ----------  --------- ----------

(a) Prior year shares outstanding include shares repurchased in
connection with the Company's senior note sale in November 1994.

CONTACT: Data Documents Inc., Omaha

Joseph C. Addison, V.P. Finance & CFO or

Anita M. Meints, Dir. Corp. Comm.,

402/339-0900