Datatel Reaches Record Revenue in 2003; Higher Education Solutions and Services Provider Celebrates 35th Consecutive Year of Profitable Operation and the Signing of 35 New Clients.

Business Editors/High-Tech Writers

FAIRFAX, Va.--(BUSINESS WIRE)--Feb. 2, 2004

Datatel, Inc., the leading provider of technology solutions and professional services for higher education, today announced its 35th consecutive year of profitable operation. The company posted record revenues exceeding $80 million for 2003, and signed 35 new client institutions. The company also reported high rates in employee satisfaction and retention.

"This past year has been another outstanding one for our company," said H. Russell Griffith, Datatel president and CEO. "We achieved record revenues, signed 35 new clients, and grew our business through several strategic partnerships. We continue to be a strong and vibrant company in the higher education industry, and look forward to further growth in 2004."

Datatel's new strategic and marketing partners include FRx Software Corp., Perceptive Vision Inc., and Verifications, Inc. As announced last month, Datatel completed its planned acquisition of all outstanding shares of LiquidMatrix Corporation, an innovative provider of student recruiting and alumni outreach Web-based software and services. According to Mr. Griffith, this acquisition will enhance Datatel's ability to deliver comprehensive Web-based solutions for colleges and universities.

In 2003, Datatel achieved a 90 percent job satisfaction rate, based on an anonymous survey responded to by 96 percent of employees. The company also realized a 91 percent employee retention rate.

Datatel's higher education clients span North America, with a broad base of private and public four-year institutions, as well as community colleges. Sixty percent of the colleges and universities who became Datatel clients in 2003 were four-year private institutions. Fifty-five percent of Datatel's client base is comprised of four-year institutions, while 41 percent is two-year colleges. In total, Datatel client institutions serve nearly four million students.

About Datatel, Inc.

Datatel, an employee-owned company, is the leading provider of fully integrated enterprise information management solutions for higher education. Headquartered in Fairfax, VA, the company has more than 620 client institutions throughout North America. For 25 years, Datatel has exclusively focused on meeting the needs of colleges and universities, helping institutions operate more efficiently so they may better serve their constituents. More information about Datatel is available at www.datatel.com.

Datatel is a registered trademark of Datatel, Inc. All names, products, and services mentioned are the trademarks or registered trademarks of their respective companies.