SCB COMPUTER TECHNOLOGY REPORTS RECORD YEAR-END RESULTS.

MEMPHIS, Tenn.--(BUSINESS WIRE)--June 10, 1997--SCB Computer Technology, Inc. (Nasdaq:NM/SCBI) today announced record results for its fiscal year and fourth quarter ended April 30, 1997. Results include the effects of the Company's September 1996 combination with Delta Software Systems, Inc. ("Delta Software"), which was accounted for as a pooling of interests; and prior periods have been restated to reflect the effects of the Delta Software merger. For purposes of earnings per share calculations, the shares issued in the combination with Delta Software have been treated as outstanding for all periods presented.

Net income for the year increased 158% to $5,063,000 (7.9% of revenues), or $0.67 per share, for fiscal 1997 compared with $1,957,000 (3.5% of revenues), or $0.31 per share, for the year ended April 30, 1996. Net income per share takes into account a 21% increase in the average shares outstanding resulting primarily from SCB's initial public offering of 1,495,000 shares in February 1996. Revenues increased 14% to $64,064,000 compared with $56,024,000 a year ago.

Net income for the fourth quarter ended April 30, 1997, increased 43% to $1,286,000 (7.4% of revenues), or $0.17 per share on 7,502,000 average shares outstanding, compared with $896,000 (6.2% of revenues), or $0.12 per share on 7,203,000 average shares outstanding, in the fourth quarter of fiscal 1996 and was in line with analysts' expectations, adjusted for TVA and acquisition related expenses. Revenues for fourth quarter increased 20% to $17,407,000 compared with $14,511,000 in the fourth quarter of fiscal 1996.

Commenting on the results, Ben C. Bryant, Jr., president and chief executive officer, said, "We are pleased with the results of the past year. Our strong financial performance primarily reflects the successful acquisitions made last year and getting our internal growth back on track. We continue to implement our growth strategy to capitalize on the favorable trends occurring within the information technology (IT) services industry.

"During the past year, SCB completed two acquisitions. The combination with Delta Software Systems, Inc., an IT consulting company and custom software programmer based in Memphis, Tennessee, in September 1996, has proved to be an excellent strategic fit. We also completed the acquisition of substantially all of the assets of Technology Management Resources, Inc., a consulting services company with expertise in providing services to state departments of human services, in March 1997. This acquisition also complements and enhances the services SCB provides.

"Our Pro2000(SM) suite of services introduced last year to address compliance with Year 2000 has been developed to help organizations effectively manage the challenge caused by the Year 2000 date change. Our services have been well received as demonstrated by SCB's recently announced agreement with AT&T. In addition, we have expanded our services to include development tools for the assessment and repair of fourth generation computer languages such as FOCUS and SAS, and have established key strategic relationships with selected vendors to better provide service in dealing with Year 2000 opportunities. We believe the results of all these efforts have strengthened the capability of SCB to deliver its broad array of services.

"In July 1997, SCB will establish its first of five planned Emerging Technology Centers. The Memphis Emerging Technology Center is being used for offsite development, outsourcing, Year 2000 assessment and repairs and for providing our experienced professionals with additional training. SCB's most valuable assets are its employees, and we are committed to providing them with the best possible training in order to focus their talents and capabilities to achieve cost-effective IT solutions for clients.

"As we look toward the future, we remain confident of SCB's ability to leverage its many strengths and to continue its rapid growth in the years ahead."

As previously disclosed, SCB has continued to incur legal and accounting fees, primarily in connection with the government's continuing investigation of the Company's consulting contract with the Tennessee Valley Authority (TVA) which was completed in February 1996. The expenses related to this matter and acquisitions in the fourth quarter were approximately $197,000, or $0.02 per share, after taxes. The Company expects that expenses associated with the TVA investigation will diminish significantly as a percentage of revenue on a going-forward basis.

This release contains certain forward-looking statements regarding the anticipated financial and operating results of the Company. The Company undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. The Company's actual results may differ materially from those projected in forward-looking statements made by, or on behalf of, the Company.

SCB Computer Technology is a rapidly growing provider of information technology (IT) management and technical services. Its services are divided into three general categories: (1) consulting services, including advising clients on acquiring and utilizing IT systems, planning and designing new IT systems, and redesigning existing IT systems; (2) outsourcing, including IT professionals for support, maintenance and programing; software development and data center management; and (3) professional staffing services, which provide skilled technical employees on an as-needed basis. The Company~s primary customers are state and local governments, public utilities, Fortune 500 companies and other large organizations. -0-

                        SCB COMPUTER TECHNOLOGY, INC.
                            Financial Highlights
                  (in thousands, except  per share amounts)

                                 Year Ended             Quarter Ended
                            4/30/97       4/30/96    4/30/97     4/30/96

Revenue                    $ 64,064      $  56,024  $ 17,407     $14,511
Cost of services             46,586         39,508    12,720      10,116
Gross profit                 17,478         16,516     4,687       4,395

Income from operations        7,360          3,170     2,054       1,513
Other income (expense)          756            (27)       70         155
Income before income taxes    8,116          3,143     2,124       1,668
Total income tax expense      3,053          1,186       838         772
Net income                 $  5,063      $   1,957  $  1,286     $   896

Net income per share       $    .67      $     .31  $   . 17     $   .12

Weighted average of common
   and common equivalent
   shares outstanding         7,512          6,222     7,502       7,203

                         Selected Balance Sheet Highlights

                                                     4/30/97      4/30/96
Cash and cash equivalents                        $    11,815  $    19,401

Current assets                                   $    23,729  $    27,035
Total assets                                     $    35,094  $    29,272
Shareholders' equity                             $    31,633  $    26,796

CONTACT: SCB Computer Technology Inc., Memphis

Ben C. Bryant, Jr., 901-754-6577