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ACI Telecentrics, Incorporated Reports Third Quarter Results

MINNEAPOLIS, Nov. 26 /PRNewswire/ -- ACI Telecentrics, Incorporated (Nasdaq: ACIT) today announced third quarter revenues of $2,159,000 compared to $1,315,000 in the third quarter of 1995. Despite the increase in revenues the Company reported a proforma net loss of $131,745 or $0.03 per share compared to a proforma net profit of $25,343 or $0.01 per share in 1995. For the nine months ended September 30, 1996 revenues were $6,191,000, a 48.5% increase over 1995 revenues of $4,170,000. Proforma net income was $125,413 or $0.03 per share for the nine months in 1996 compared to $150,712 or $0.04 in 1995. Net income is reported on a proforma basis as the Company elected to be treated as an S Corporation under the Internal Revenue Code until October 21, 1996, the effective date of its public offering. Until that date, taxes were the responsibility of the shareholders. The Company utilized a 40% effective rate on a proforma basis for federal and state taxes in the calculation of proforma net income.

Rick N. Diamond, Chief Executive Officer, stated that "despite our period-to-period revenue increases, which were the result of ACI's ability to take advantage of increased production capacity, demand for outbound telemarketing services typically decreases in the third quarter as clients tend to cut back the volume of telemarketing projects during the summer months." Mr. Diamond added that "these fluctuations in workload caused our telemarketing centers to operate less efficiently. In addition, selling, general and administrative expenses increased as the Company added additional personnel in the sales and administrative areas as the Company geared up for its IPO and for its 1997 programs. As a result our third quarter earnings suffered."

The third quarter net loss of $131,745 compares favorably to what the Company had previously forecast in its prospectus dated October 21, 1996. At that time the Company estimated that the third quarter pretax loss could approximate $350,000 which would have equated to a proforma net loss of $210,000 compared to the $131,745 reported.

Gary B. Cohen, President, commented "we had our most successful month ever in October and we are looking for a strong fourth quarter on a operating basis." The Company's fourth quarter net earnings will be adversely affected by a one-time income tax expense resulting from the switch from an S Corporation to a C Corporation in connection with the IPO. This tax expense commonly occurs to companies that make this switch due to the tax effect of the cumulative differences between the financial reporting and income tax basis of certain assets and liabilities.

This press release contains forward looking statements about the Company's financial results and operations. There are risk factors that could potentially have a material effect on the Company's financial results and operations, including the continued demand for the Company's services and the competitive pressures in the Company's industry. Additional risks are contained in the Company's prospectus dated October 21, 1996 filed with the Securities and Exchange Commission.

ACI provides outbound teleservices to clients primarily in the telecommunications, financial services and publishing industries through its five call centers.

CHART:
 ACI Telecentrics, Incorporated
 Statements of Operations
 Three Months Ended Nine Months Ended
 September 30, September 30,
 1996 1995 1996 1995


TELEMARKETING REVENUES $ 2,159,375 $ 1,314,683 $ 6,191,437 $ 4,170,043
 COST OF SERVICES 1,286,135 651,463 3,233,829 2,167,083


SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES 1,047,252 599,019 2,630,240 1,691,766
 OPERATING INCOME (174,012) 64,201 327,368 311,194
 OTHER INCOME (EXPENSE) (45,733) (21,858) (118,955) (59,482)
 NET INCOME (LOSS) $ (219,745) $ 42,343 $ 208,413 $ 251,712


PRO FORMA DATA

Historical net
 (loss) income $ (219,745) $ 42,343 $ 208,413 $ 251,712


Pro forma provision

for income tax
 benefit (expense) 88,000 (17,000) (83,000) (101,000)


Pro forma net (loss)
 income (131,745) 25,343 125,413 150,712


Pro forma net income
 per share $ (0.03) $ 0.01 $ 0.03 $ 0.04


Shares used in computing

pro forma net income
 per share 4,288,000 4,288,000 4,288,000 4,288,000


SOURCE ACI Telecentrics, Incorporated
 -0- 11/26/96


/CONTACT: Steven A. Kahn, Vice President and CFO of ACI Telecentrics, 612-928-4700/

(ACIT)

CO: ACI Telecentrics, Incorporated ST: Minnesota IN: TLS SU: ERN

KG-MR -- MNTU013 -- 6116 11/26/96 13:47 EST http://www.prnewswire.com
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Date:Nov 26, 1996
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