Gartner Group, Inc. Reports Another Record Quarter of Revenue and Profit Growth.

STAMFORD, Conn.--(BUSINESS WIRE)--January 17, 1996--Gartner Group, Inc. (NASDAQ:GART) today announced results for the first fiscal quarter ended December 31, 1995. Current and historical reported earnings have been restated to reflect the acquisition of Dataquest, Inc. in a manner similar to pooling of interest accounting.

Total revenues for the quarter increased 35 percent to $96.5 million from $71.3 million recorded in the first quarter of fiscal 1995. Operating income of $19.3 million increased 45 percent over the $13.3 million recorded during the same period a year earlier and included a nonrecurring expense of $1.7 million related to the acquisition of Dataquest. Net income for the quarter increased 51 percent to $11.5 million compared with $7.6 million for the same period a year earlier. Without the cost related to the Dataquest transaction, net income would have increased 63 percent. Reported earnings per share were $0.24, a 50 percent increase over the $0.16 per share reported for the same period a year earlier, however, without the one time charge, earnings per share would have been $0.26 per share. Operating contribution increased 42 percent year-over-year to $20.1 million or 20.8 percent of total revenues, compared with $14.2 million or 19.9 percent of total revenues for the same period a year earlier.

Chairman and CEO Manny Fernandez stated, "The positive contribution from the Dataquest acquisition coupled with Gartner Group's strong growth is reflective of our continued success in expanding our product offerings and distribution channels." Fernandez continued, "Market opportunities for our core services continue to expand as well as the demand for our complementary services such as consulting, conferences and training products. We also anticipate growing momentum in the IT marketplace for our services through enhanced electronic products and delivery formats."

Contract value totaled $308.7 million at December 31, 1995, an increase of 30 percent from the same period a year earlier. The Company defines contract value as the aggregate annualized subscription fees under all outstanding continuous service contracts in effect at a given point in time, without regard to the duration of the contracts outstanding at such time.

Gartner Group is the world's leading provider of information technology advisory and market research services. Founded in 1979 and headquartered in Stamford, Conn., Gartner Group has more than 1,400 employees located in 40 countries worldwide. Research centers and sales offices are located in North and South America, Europe, Asia, Australia and Africa. -0-

OPERATING RESULTS
(Dollars in thousands, except per share data)

                                 Quarter Ended     Dec. 31,
                                       1995           1994   % Change
Revenues
   Continuous services               $72,006        $54,828       31
   Other                              24,468         16,478       48
      Total revenues                  96,474         71,306       35

Operating expenses
   Cost of services and product
    development                       37,078         26,896       38
   Sales & marketing                  24,906         19,525       28
   General & administrative           10,481          9,010       16
   Transaction costs                   1,665              0
   Depreciation                        2,237          1,702       31
      Total costs and expenses        76,367         57,133       34

Operating contribution                20,107         14,173       42

Amortization                             772            867      (11)
Operating income                      19,335         13,306       45

Net interest income (expense)            802            335        F
Income before minority interest
 and taxes                            20,137         13,641       48

Minority interest                        (25)           __
Income before taxes                   20,162         13,641       48

Provision for income taxes             8,669          6,006       44
Net income                           $11,493         $7,635       51

Net income per common share            $0.24          $0.16       50

Weighted average shares outstanding   48,691         46,534

BALANCE SHEET DATA
(Dollars in thousands)                  Balance Sheet as of
                                       Dec. 31      Sept. 30
                                        1995         1995     % Change
ASSETS
   Total current assets             $224,899       $221,228    2
   Furniture and equipment, net       25,047         24,328    3
   Intangibles, net                   67,295         62,871    7
   Other assets                        5,109          5,494   (7)
      Total assets                  $322,350       $313,921    3

LIABILITIES & STOCKHOLDERS' EQUITY
   Total current liabilities        $246,217       $255,193   (4)
   Noncurrent liabilities              4,352          3,473   25
      Total liabilities              250,569        258,666   (3)

   Total stockholders' equity         71,781         55,255   30
   Total liabilities and
    stockholders' equity            $322,350       $313,921    3

SELECTED STATISTICAL DATA                 As of Dec. 31,
(Dollars in thousands)                  1995         1994   % Change

Contract Value (1)                  $308,664       $236,799   30
Client Organizations (2)               5,479          4,563   20
Client Memberships (2)                19,346         14,715   31
Continuous Services Offered (2)           53             38   39

(1) Restated to include acquisition of Dataquest
(2) Gartner Group data only - does not reflect impact of Dataquest
acquisition

CONTACT: Gartner Group, Inc.

Jennifer L. Schlueter

Director, Investor Relations

[phone]