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International Business Schools reports third quarter results; private placement of convertible debentures completed.

NORTH YORK, Ontario--(BUSINESS WIRE)--Nov. 22, 1996-- International Business Schools Inc. (Nasdaq: Small-Cap: IBSDF) announced revenues of $5.6 million for the three months ended July 31, 1996, an 11.1% increase over the $5.0 million reported for the year-earlier period. Net income for the three months ended July 31, 1996, was $92,652, or $0.04 per share, a 3.3% increase over the $89,686, also $0.04 per share, earned in the year- earlier third quarter.

For the nine months ended July 31, 1996, revenues were $18.1 million, an 8.5% increase over the $16.7 million reported for the nine months ended July 31, 1995. Net income for the nine months ended July 31, 1996, was $865,627, or $0.37 per share, an 11.6% increase over the $775,726, or $0.34 per share, earned in the first nine months of 1995.

All figures are stated in Canadian dollars.

Commenting on the results, Allan N. Ebedes, Chairman and Chief Executive Officer, said, "We were pleased overall with the gains in revenues and profits we reported. The third quarter was the first full period that included the results from the March, 1996 acquisition of the Mississauga Campus of The Toronto School of Business. This location, and the Barrie Campus, which was acquired in January, 1996, are beginning to make more positive contributions to results. Our typical practice following the acquisition of franchises, as in these situations, is to accelerate our promotional activities to assure that these new corporate- owned campuses receive the benefit of our proven marketing programs. While the expenses associated with these efforts raise our costs over a quarter or two, the longer term benefits more than offset this cost as we have already begun to experience enrollment increases at these campuses. We continue to look for similar opportunities to acquire franchised campuses as their agreements mature."

In another corporate development, the Company completed the private placement of (U.S.)$5 million of 10% Convertible Subordinated Debentures due 2001. The debentures are convertible into 1,258,750 shares of common stock and have attached 629,375 five year common share warrants exerciseable at (U.S.)$5.00 per share. The proceeds will be used for the possible acquisition of Company franchised schools, the opening of additional corporate schools and the establishment of new FutureSkills Interactive Learning Centers, which are self-paced, interactive, multimedia training centers.

International Business Schools Inc. is one of the largest private operators and franchisers of post-secondary business career schools in Canada, with 47 schools in seven Canadian provinces, Mexico City and Beijing. The Company and its franchisees employ over 1,000 full and part-time personnel and train over 18,000 students annually. -0-
 Financial Highlights

 Three Months Nine Months
 Ended Ended
 July 31, July 31,
 1996 1995 1996 1995

Revenues $5,610,041 $5,049,267 $18,127,051 $16,699,593
Net income 92,652 89,686 865,627 775,726

Earnings per share $0.04 $0.04 $0.37 $0.34

Weighted avg. common
 shares outst. 2,391,832 2,316,832 2,350,226 2,316,832

CONTACT: Allan Ebedes, Chief Executive Officer,

Ron Taube, Chief Financial Officer

International Business Schools Inc.

tel. (416) 733-4452


Hal Levine/Marty Cohen

The Levine Group

tel. (212) 682-8875
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Publication:Business Wire
Date:Nov 22, 1996
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