SCB COMPUTER TECHNOLOGY REPORTS SECOND QUARTER NET INCOME ROSE 51%.

MEMPHIS, Tenn.--(BUSINESS WIRE)--Nov. 19, 1997--SCB Computer Technology, Inc. (Nasdaq:NM/SCBI) today announced record revenues and profits for its second quarter and six months ended October 31, 1997.

Net income for the quarter increased 51% to $2.0 million, or $0.18 per share, compared with $1.3 million, or $0.12 per share, for the second quarter ended October 31, 1996. Revenues for second quarter increased 80% to $28.1 million compared with $15.6 million a year ago. All share and per share amounts have been adjusted to reflect the three-for-two stock split effected in September 1997.

For the six months ended October 31, 1997, revenues increased 58% to $49.4 million compared with $31.2 million for the six months ended October 31, 1996. Net income increased 46% to 3.8 million, or $0.33 per share, compared with $2.6 million, or $0.23 per share, for the first six months of fiscal 1997.

These results reflect 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. The results for the six months ended October 31, 1996, have been restated to reflect the effects of the transaction. Prior to the merger, Delta Software was an "S" corporation for federal income tax purposes. Pro forma information is presented as if Delta had been a "C" corporation during the six months ended October 31, 1996. 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. The February 1997 acquisition of Technology Management Resources, Inc. and the June 30, 1997, acquisition of Partners Resources, Inc. and Partners Capital Group have been accounted for using the purchase method of accounting.

Commenting on the results, Ben C. Bryant, Jr., president and chief executive officer, said, "During the second quarter we announced several new and extended contracts with clients that total over $18 million in revenues as well as adding to our client base and expanding work with several Fortune 500 companies. The previously announced contracts reflect some of the opportunities being created from our recent acquisitions. We also continued the roll out of our Pro2000(SM) suite of services, which include our proprietary software tool for the assessment of primarily fourth generation computer languages called ProVision(SM). The contract awarded by the state of Mississippi during our second quarter for Year 2000 conversion and consulting work is a good example of the use of our expertise in this rapidly expanding area and demonstrates our ability to grow our Year 2000 business. In addition, we have recently been selected as a consulting alliance partner for Baan Software, an ERP solution, which continues to broaden our array of services.

"Our Emerging Technology Centers located in Memphis and Nashville, Tennessee, are providing excellent opportunities for employee training, offsite development, outsourcing, and Year 2000 assessment and repairs. Our current plan calls for opening additional centers in our New York, Dallas and Atlanta regions. These resources are allowing SCB to focus its efforts on the higher margin consulting and outsourcing business being brought about by the favorable trends occurring within the information technology (IT) services industry. We continue to believe SCB is well positioned to continue to benefit from these trends."

In an unrelated matter, the Company announced that the U.S. Attorney, in response to a long-standing Company request, has offered the Company an opportunity to discuss the matters relating to the previously disclosed grand jury investigation into alleged billing improprieties related to a TVA consulting contract, which contract was completed in February 1996. The Company also reported that Scott Cobb, its Chairman; Steve White, an Executive Vice President; and their administrative assistant have received letters from the U.S. Attorney's office for the Western District of Tennessee notifying them that they are targets of such investigation. "It is the Company's policy not to comment on ongoing legal matters," Mr. Bryant said. "We continue to believe, however, that the investigation and its outcome will not have a long-term material adverse effect on the Company's financial condition or results of operations. We expect to continue to cooperate with the investigation, which, according to the government, is coming to a close."

This release contains certain forward-looking statements regarding the anticipated financial and operating results of the Company. The Company's actual results may differ materially from those projected in forward-looking statements made by, or on behalf of, the Company. These forward-looking statements may be affected by certain risks and uncertainties described in the Company's filings with the Securities and Exchange Commission.

SCB Computer Technology is a provider of information technology (IT) management and technical services. Its services are divided into five general categories: (1) consulting, including advising clients on acquiring and utilizing systems, planning and designing new systems, and re-engineering existing systems; (2) outsourcing, including maintenance, software development and data center management; (3) professional staffing services, including providing skilled technical employees on an as-needed basis; (4) telecommunications consulting, including ProWatch(SM), a proactive enterprise systems monitoring and management tool for voice and data communications networks; and (5) Year 2000 consulting, including Pro2000(SM), a suite of services that address solutions to the millennium transition. 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)


                   Three Months Ended       Six Months Ended
               10/31/97       10/31/96   10/31/97     10/31/96
Revenue       $  28,054        $15,584    $49,387     $ 31,165
Cost of
 services        19,357         11,243     34,211       22,305
Gross profit      8,697          4,341     15,176        8,860
Income from
 operations       3,839          1,899      6,803        3,647
Other income
 (expense)         (553)           240       (590)         455
Income before
 income taxes     3,286          2,139      6,213        4,101
Income tax
 expense          1,268            804      2,406        1,489
Net income    $   2,018      $   1,335   $  3,807      $ 2,612

Net income
 per share    $    0.18      $    0.12   $   0.33      $  0.23

Net income    $   2,018      $   1,335   $  3,807      $ 2,612
Pro forma tax
 expense
 adjustment          --             64         --          177
Pro forma
 net income   $   2,018      $   1,271   $  3,807      $ 2,435

Pro forma net
 income per
 share         $   0.18      $    0.11   $   0.33      $  0.22

Weighted average
 of common
 and common
 equivalent
 shares
 outstanding 11,454,938     11,274,212 11,416,932   11,279,338


                     Selected Balance Sheet Highlights

                           10/31/97       4/30/97
Cash and cash
 equivalents               $  1,464      $11,815
Current assets             $ 21,756      $23,729
Total assets               $ 84,990      $35,094
Shareholders' equity       $ 35,640      $31,633

    NOTE: All share and per share amounts have been adjusted to
reflect the three-for-two stock split effected in September 1997.

CONTACT: SCB Computer Technology, Memphis

Ben C. Bryant, Jr. or Gary E. McCarter, 901/754-6577