SCB Computer Technology Reports Third Quarter Results Net Income Rose 32%.

MEMPHIS, Tenn.--(BUSINESS WIRE)--Feb. 19, 1998--SCB Computer Technology, Inc. (Nasdaq:NM/SCBI) today announced record revenues for its third quarter and record revenues and profits for the nine months ended January 31, 1998.

Net income for the quarter increased 32% to $1,539,000, or $0.14 per share (diluted), compared with $1,165,000, or $0.10 per share (diluted), for the third quarter ended January 31, 1997. Revenues for the third quarter increased 83% to a record $28.3 million compared with $15.5 million a year ago.

For the nine months ended January 31, 1998, revenues increased 67% to $77.8 million compared with $46.7 million for the nine months ended January 31, 1997. Net income increased 42% to $5,361,000, or $0.47 per share (diluted), compared with $3,777,000, or $0.34 per share (diluted), for the first nine months of fiscal 1997.

All share and per share amounts reflect the three-for-two stock split effected in September 1997. These results also 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 nine months ended January 31, 1997, 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 nine months ended January 31, 1997. 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 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, "We are pleased to report the increase in quarterly results which were in line with analysts estimates. During the third quarter, SCB continued to focus on expanding its higher margin consulting and outsourcing businesses. We are pleased with the significant progress achieved to broaden our Year 2000 conversion and consulting work, add to our client base, and expand work in the enterprise resource planning (ERP) software area. In addition, we continued to capitalize on synergistic opportunities resulting from our acquisitions.

"The growth in Year 2000 business is increasing the demand for our Pro2000(SM) suite of services, which include our proprietary software tool for the assessment of primarily fourth generation computer languages called ProVision(SM). SCB recently received certification from Information Technology Association of America (ITAA), for its processes and methods related to Year 2000 software conversions. ITAA 2000 certification further establishes that SCB has the core capabilities needed to address the Year 2000 challenge.

Bryant went on to say, "We are experiencing an increase in the number of requests for proposals and have achieved preferred vendor status with several clients. Also, the recently established consulting alliance with Baan Software, an ERP solution, has strengthened our internal capabilities and is providing SCB with important opportunities to provide functional and technical consulting and outsourcing to companies with revenues between $100 to $500 million.

"The favorable trends occurring within the information technology (IT) services industry remain well intact, and we continue to believe SCB is well positioned to continue to benefit from these trends," Bryant concluded.

This release may be deemed to contain 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     Nine Months Ended
                          --------------------- ---------------------

                           1/31/98    1/31/97    1/31/98    1/31/97
                          ---------- ---------- ---------- ----------
Revenue                   $   28,275 $   15,491 $   77,791 $   46,656
Cost of services              19,680     11,561     54,107     33,866
                          ---------- ---------- ---------- ----------
    Gross profit               8,595      3,930     23,684     12,790

Selling, general and
    administrative expenses    5,081      2,270     13,352      7,483
                          ---------- ---------- ---------- ----------
Income from operations         3,514      1,660     10,332      5,307

Other income (expenses):
    Interest income/other         48        265        286        760
    Interest expense            (622)        --     (1,123)        --

    Other, net                  (212)       (34)      (539)       (75)
                          ---------- ---------- ---------- ----------
        Total other income
            (expenses)          (786)       231     (1,376)       685

Income before taxes            2,728      1,891      8,956      5,992
Income tax expense             1,189        726      3,595      2,215
                          ---------- ---------- ---------- ----------

Net income                $    1,539 $    1,165 $    5,361 $    3,777
                          ========== ========== ========== ==========

Net income per share:
    Basic                 $     0.14 $     0.10 $     0.48 $     0.34
    Diluted               $     0.14 $     0.10 $     0.47 $     0.34

Net income                                                 $    3,777
Pro forma tax expense adjustment                                  177
                                                          -----------
Pro forma net income                                       $    3,600
                                                          ===========

Pro forma net income per share:
    Basic                                                  $     0.32
    Diluted                                                $     0.32

Weighted average of common
    and common equivalent
    shares outstanding
    (basic)               11,236,427 11,215,679 11,228,866 11,215,679
Weighted average of common
    and common equivalent
    shares outstanding
   (diluted)              11,372,332 11,242,173 11,352,185 11,250,221

                   Selected Balance Sheet Highlights
                                                 1/31/98      4/30/97
                                                ---------    --------
Cash and cash equivalents                       $   1,936    $ 11,815
Current assets                                  $  24,291    $ 23,729
Total assets                                    $  88,799    $ 35,094
Shareholders' equity                            $  37,114    $ 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

or