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St. Louis, Missouri, April 20, 2000. Data Research Associates, Inc. (DRA) (NASDAQ: DRAI) announced today that revenues for its second quarter of fiscal 2000, ended March 31, were $7.0 million, at the same level reported for the second quarter of fiscal 1999. Earnings for the second quarter of fiscal 2000 were $309,000, or seven cents per share basic and diluted, compared with $211,000, or four cents per share basic and diluted, for the same period in fiscal 1999.

Michael J. Mellinger, DRA President and CEO, attributed the company 's margin improvement primarily to the reduction of expenses in the current quarter and to a lesser extent to a one-time event. "Although salary and benefits were up $77,000, primarily as a result of annual increases given in January, general and administrative expenses decreased $264,000 and depreciation and amortization decreased $30,000 in the current quarter when several groups of fixed assets became fully depreciated," he said. "At a time when travel prices are rising, DRA has been able to achieve significant savings in travel expenses by having a dedicated travel planner on our staff and by encouraging more careful travel planning by employees."

Mellinger further stated that the one-time event that resulted in an $84,000 pre-tax benefit to the company during the current quarter was a change in the handling of intercompany sales tax between DRA and its Canadian subsidiary. The change in procedures will result in some ongoing reduction in the total sales tax paid by the company on a consolidated basis.

Hardware revenues were consistent between the two quarters at $435,000 in the current quarter versus $448,000 in the prior year, and software revenues declined approximately $600,000 in the current quarter to $1.3 million from $1.9 million in the same quarter in 1999. Although DRA did have revenue from one Taos contract in the second quarter of fiscal 2000 and no Taos revenue in the same quarter of fiscal 1999, the fiscal 1999 second quarter had over $500,000 in software revenue from a large Classic customer. The Company 's service and other revenues increased $605,000 from $4.6 million in the second quarter of fiscal 1999 to $5.2 million in the second quarter of fiscal 2000.

"The increase in service and other revenues represents higher maintenance revenues as a result of some fiscal 1999 contracts beginning to pay monthly maintenance and to an increase in Business Internet revenue during the current quarter," Mellinger continued.

Mellinger also noted that subsequent to the end of the quarter DRA released Web2 version 1.3, the latest release of the company 's Web-based public access product. "This release of Web2 incorporates many new features that both our Classic and Taos customers have requested," he said. Mellinger went on to say that also subsequent to the end of the quarter, the company reached a significant milestone for its Taos product when the serials component was sent to three test sites to be tested on both the Sun and NT platforms. Projected release of serials is summer 2000.

During the quarter the company continued to purchase it 's stock on the open market and subsequent to the end of the quarter completed its current authorization from the board of directors to make such purchases. The company still maintained a cash position of $15.9 million at the end of the current quarter.

Data Research Associates, Inc., headquartered in St. Louis, is a leading systems integrator for libraries and other information providers, offering its own proprietary information services software; third-party software and hardware; Internet, World Wide Web and other networking services; and other related support services.

This news release contains forward-looking statements, including statements as to anticipated or expected results, beliefs, opinions and future financial performance. These forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause DRA 's actual results to differ materially. Specific risk factors for the statements contained herein include, but are not limited to, the company's ability to continue to enhance the Taos product; customer acceptance of that Product; DRA's ability to meet installation schedules; and timing of negotiations for sites who have selected Taos but have not yet signed a contract. Some of these risk factors, as well as additional risk factors, are discussed in detail in DRA 's Annual Report and in Exhibit 99-1 of its Form 10-K for fiscal year 1999. DRA does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Data Research Associates, Inc. (NASDAQ: DRAI)
Summary of Results (in thousands, except per-share data)