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NATIONAL DATA ANNOUNCES AGREEMENT TO SETTLE SHAREHOLDER LITIGATION

 ATLANTA, Sept. 7 /PRNewswire/ -- National Data Corporation (NASDAQ: NDTA) today announced that it has reached an agreement in principle to settle the pending National Data Corporation Shareholder Litigation, a certified class action.
 The agreement is subject to several conditions, including approval of the agreement by the court and acceptance of the settlement by a sufficient number of company shareholders.
 The total amount of the settlement is $6,950,000. The cost to the company, net of income taxes and insurance proceeds, will be approximately $1.5 million. This will be reflected as a one-time adjustment to the current quarter's results. Given the strength of the company's balance sheet and its cash position, the settlement will not have a material effect on the financial position or future prospects of the company.
 The litigation, which involves the company and certain of its previous officers, has been pending since May 1990, and relates to matters that allegedly occurred between September 1989 and May 1990. E. Michael Ingram, the company's senior vice president and general counsel, said: "We continue to believe that the company and individual defendants did not do anything wrong and have meritorious defenses to the allegations made by the plaintiffs; however, we also believe that this settlement is in the best interests of the company at this time."
 Robert A. Yellowlees, National Data's chairman and CEO, stated: "This agreement in principle should be viewed very positively by our shareholders and customers. It removes the uncertainty, cost burden and management diversion associated with further defending this type of complex matter."
 National Data Corporation is a worldwide leader in the provision of value-added application systems and services for the healthcare, retail and government/corporate markets.
 -0- 9/7/93
 /CONTACT: E. Michael Ingram of National Data Corporation, 404-728-2504/
 (NDTA)


CO: National Data Corporation ST: Georgia IN: CPR SU:

RA-BN -- AT009 -- 9459 09/07/93 16:08 EDT
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Publication:PR Newswire
Date:Sep 7, 1993
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