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CONTROL DATA ANNOUNCES SIGNIFICANT INCREASE IN FOURTH QUARTER PROFITS

 ARDEN HILLS, Minn., Feb. 4 /PRNewswire/ -- Control Data Systems, Inc. (NASDAQ: CDAT) today reported 1992 fourth quarter net earnings of $10.0 million, or $.81 per share, on revenues of $151.6 million. For the 1991 fourth quarter, Control Data Systems had a net loss of $28.3 million, or $2.67 per share, on revenues of $148.9 million.
 For the two quarters ended January 2, 1993, which is the period following the spin-off from Ceridian Corporation, Control Data Systems reported net earnings of $10.2 million, or $.83 per share, on revenues of $266.6 million.
 For the year ended Jan. 2, 1993, including the first two quarters as part of Ceridian, the company reported a net loss of $134.0 million, or $12.03 per share, on revenues of $517.0 million, which included $129.8 million in restructuring and other charges taken in the second quarter associated with the spin-off from Ceridian. In 1991, the company had a net loss of $44.0 million, or $4.14 per share, on revenues of $573.6 million.
 As previously announced, results for the fourth quarter 1992 include $20.4 million of revenue from part of a contract with Russia's Research and Development Institute of Power Engineering (RDIPE) for six computers to monitor and improve safety at nuclear power plants.
 "In the midst of difficult worldwide economic and industry conditions, we are pleased to report a profit for the quarter and for our first two quarters since becoming a separate company," said Jim Ousley, president and chief executive officer of Control Data Systems. "As an independent company, we have made good progress financially, including a very strong balance sheet, and we've continued to refocus our business towards becoming a leading open systems integration company. We see 1993 continuing to be economically challenging, but we expect to make further progress in the achievement of our goals."
 During the 1992 fourth quarter, Control Data Systems concluded strategic partnership agreements with NEC Corporation and Intergraph Corporation. NEC Corporation purchased approximately five percent of Control Data Systems stock for $5.3 million in December 1992. The two companies are negotiating an expanded marketing and technology relationship, under which Control Data expects to sell a broader range of NEC's UNIX RISC products.
 Control Data also finalized an agreement with Intergraph Corporation in the fourth quarter to develop a next-generation software product in the CAD/CAM (computer-aided design/computer-aided manufacturing) area. As part of that agreement, Control Data increased its equity ownership in ICEM Systems, a joint venture with Volkswagen, and Intergraph obtained an option to acquire a minority ownership in the venture. As a result of Control Data's increased ownership, results of ICEM Systems operations have been consolidated into the company's operations for 1992.
 "At the time Control Data Systems separated from Ceridian, we established several financial and strategic goals, including continued integrated solutions revenue growth and equity partnerships with Silicon Graphics and NEC, to be completed by the end of the year," said Ousley. "I'm very pleased we were able to achieve all of these important objectives, which strengthens our competitive position going into 1993."
 Control Data Systems, Inc. integrates high-performance computer solutions for technical markets and for managing large, complex databases and communications networks in government and commercial markets. The company is located in Arden Hills, Minnesota and does business in 40 countries worldwide. Control Data's major strategic partners include Silicon Graphics, Inc.; NEC Corporation; Structural Dynamics Research Corporation (SDRC); and Intergraph Corporation.
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Dollars in thousands, except per share data)
 Control Data Systems, Inc.
 Three Months Ended Year Ended
 1/2/93 12/31/91 1/2/93 12/31/91
 Revenues $151,592 $148,882 $516,979 $573,643
 Cost of Revenues 90,015 102,640 310,209 375,327
 Gross Profit 61,577 46,242 206,770 198,316
 Operating Expenses:
 Selling, General and
 Administrative 41,665 44,095 164,312 161,510
 Technical 11,303 12,084 50,472 55,052
 Change in the
 Valuation of
 Spare Parts
 Inventory - - 14,900 -
 Restructuring - 14,811 114,900 23,894
 Total Operating
 Expenses 52,968 70,990 344,584 240,456
 Earning (Loss) from
 Operations 8,609 (24,748) (137,814) (42,140)
 Other Income (Expense):
 Interest Expense (435) (1,292) (2,212) (4,158)
 Interest Income 1,254 618 2,391 2,570
 Other Income
 (Expense) 1,568 (1,361) 5,159 4,257
 Total Other Income
 (Expense) 2,387 (2,035) 5,338 2,669
 Earnings (Loss)
 Before Income Taxes 10,996 (26,783) (132,476) (39,471)
 Provision for Income
 Taxes 1,000 1,600 1,558 4,523
 Net Earnings (Loss) $9,996 $(28,383) $(134,034) $(43,994)
 Net Earnings (Loss)
 per Common Share
 and Common Share
 Equivalent $0.81 $(2.67) $(12.03) $(4.14)
 Weighted Average
 Common Shares
 Outstanding 12,265 10,632 11,138 10,632
 (in thousands)
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Dollars in thousands)
 Control Data Systems, Inc.
 ASSETS 1/2/93 12/31/91
 Current Assets:
 Cash and Cash Equivalents $134,423 $13,504
 Trade and Other Receivables 110,059 145,650
 Inventories 50,059 108,383
 Prepaid Expenses and Other
 Current Assets 8,720 9,599
 Total Current Assets 303,261 277,136
 Property and Equipment, Net 33,490 42,739
 Leased and Data Center
 Equipment, Net 9,958 22,245
 Other Noncurrent Assets 26,813 31,365
 Total Assets $373,522 $373,485
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current Liabilities:
 Short-Term Debt $2,643 $16,016
 Restructure Reserves,
 Current Portion 25,000 8,261
 Other Accrued Expenses 114,750 126,077
 Total Current Liabilities 142,393 150,354
 Deferred Income Taxes 379 1,640
 Restructure Reserves, Less
 Current Portion 31,398 -
 Pension Liabilities 30,325 21,900
 Other Noncurrent Liabilities 9,820 7,561
 Total Liabilities 214,315 181,455
 Stockholders' Equity 159,207 192,030
 Total Liabilities
 and Stockholders' Equity $373,522 $373,485
 -0- 2/4/93
 /CONTACT: (Media Relations) Charlotte Fransen, 612-482-4857; or (Investor Relations) Jerry Johnson, 612-482-2125, both of Control Data/
 (CDAT)


CO: Control Data Systems, Inc. ST: Minnesota IN: CPR SU: ERN

KH -- MN002 -- 2755 02/04/93 08:30 EST
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