Track Data Reports Second Quarter Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--August 8, 2002

Track Data Corporation (Nasdaq NMS: TRAC) today announced results for its second quarter ended June 30, 2002.

Revenues for the second quarter ended June 30, 2002 were $13,239,000 compared to $16,322,000 for the same period in 2001, a decrease of 19%. Net income for the second quarter of 2002 was $444,000, or $.01 per share, compared to $1,534,000, or $.03 per share in 2001. The decline in revenues in 2002 was due principally to significantly reduced revenues from the Company's myTrack non-professional trading and market data services, and to a lesser extent, from a reduction in the professional market data services that is expected to continue during the second half of 2002 due to layoffs in the securities industry. The decline in revenues was partially offset by an increase in revenues of approximately $1 million from the Company's new Track ECN. The 2002 period includes an after-tax gain on marketable securities of $448,000 compared to a gain of $401,000 in the 2001 period. The Company wrote down its investment in two private companies aggregating $310,000, after taxes, in the second quarter of 2002. The Company's tax rate in 2002 is 40%. Taxes in the second quarter of 2001 were at a rate of approximately 64% to adjust for taxes not recognized in the first quarter of that year.

Revenues for the six months ended June 30, 2002 were $26,375,000 compared to $33,714,000 for the same period in 2001, a decrease of 22%. Net income for the 2002 period was $517,000, or $.01 per share, compared to $6,890,000, or $.11 per share in 2001. The decline in revenues in 2002 was due principally to significantly reduced revenues from the Company's myTrack non-professional trading and market data services, and to a lesser extent, from a reduction in the professional market data services due to layoffs in the securities industry. The decline in revenues was partially offset by an increase in revenues of approximately $1 million from the Company's new Track ECN. The 2002 period includes an after-tax loss on marketable securities of $184,000 compared to a gain of $1,395,000 in the 2001 period. In the fourth quarter of 2001, the Company expanded its arbitrage trading program to include a greater risk profile trading program. The Company has continued its arbitrage trading program but discontinued the greater risk trading program during the first quarter. The Company wrote down its investment in two private companies aggregating $310,000, after taxes, in the second quarter of 2002.

Barry Hertz, Chairman and CEO, commented, "We are pleased with the Track ECN's progress in signing new subscribers, but as previously reported, there has been little effect on the bottom line."

Track Data is a New York-based financial services company that provides direct access brokerage, real-time financial market data, news, and research to institutional and individual investors through dedicated telecommunication lines and the Internet.

For professional investors, Track's wholly-owned broker-dealer, Track Data Securities, offers proTrack, a direct access trading platform with fully integrated market data. proTrack offers unbiased trade routing, allowing clients control over where their orders are sent. proTrack is also available to broker-dealers as an execution platform.

The Company also owns the Track ECN, an Electronic Communications Network that enables traders to display and match limit orders for stocks. Track ECN supplements its liquidity by participating in SuperSoes(SM), Nasdaq's primary order routing and automatic execution system for Nasdaq National Market securities. This participation allows access to Track ECN by customers who are not direct subscribers. Customers adding liquidity (limit orders that are posted to the Track ECN order book when there is no existing matching order for execution) are offered the biggest rebate in the industry--up to $5 per thousand shares.

For individual investors, Track Data Securities offers myTrack, a fully integrated, Internet-based online trading and market data system. myTrack's direct access online trading has equity commissions starting at $12.95 per trade and allows users the choice of where to route their orders. myTrack also offers trading in options at all options markets, and over 6,000 mutual funds. In addition, futures trading in the E-Minis is available, with cross-collateralization of accounts. Futures trades are routed directly to the CME at $14 per contract per round trip.

myTrack's continuous, dynamic stream of live market data is powered by application-based software and a constant server connection similar to systems used by professionals, making it faster than the HTML web-based static pages offered by most of its competitors. myTrack supplies free market data to its brokerage account holders: streaming delayed quotes, company news, charting for technical analysis, and a proprietary library of intra-day market statistics. In addition, myTrack offers users a selection of paid data and research, including streaming real-time quotes, Nasdaq Level II, and Pink Sheets Level II. myTrack offers access through PCs, browser phones, and PDAs, such as Palm Organizers made by Palm Inc. and Visors made by Handspring.

myTrack offers the first week of trading commission-free. To open a trading account, go to http://www.mytrack.com or call 1-800-myTrack.

For additional information, please contact Rafi Reguer, Vice President, Corporate Communications, at 718-522-0222 or by e-mail: [e-mail].

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "plan," "anticipate" and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based largely on the Company's current expectations and are subject to a number of risks and uncertainties, including without limitation, volatility in the stock market, changes in external market factors including the economy, changes in the Company's business or growth strategy or an inability to execute its strategy due to changes in its industry and other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Forms 10-K, 10-Q, S-3 and S-8. Actual results could differ materially from the results referred to in the forward-looking statements.

FINANCIAL HIGHLIGHTS

                Three Months Ended           Six Months Ended
                      June 30,                   June 30,
                  2002         2001          2002         2001
Revenues       $13,239,000  $16,322,000   $26,375,000  $33,714,000
Income before
 taxes             741,000    4,213,000(A)    863,000    9,569,000(A)
Net income         444,000(B) 1,534,000(C)    517,000(B) 6,890,000(C)
Basic and
 diluted
 income per share     $.01         $.03         $.01          $.11

(A) Includes $-0- for the three months and $276,000 for the six
months of income from equity in an affiliate
(B) Includes a gain on sale of securities, after taxes, of $448,000
for the three months, and a loss of $184,000 for the six months of
2002
(C) Includes a gain on sale of securities, after taxes, of
$401,000 for the three months and $1,395,000 for the six months of
2001