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St. Louis, Missouri, USA --Data Research Associates, Inc. (DRA) (Nasdaq: DRAI) announced today that revenues for its third quarter of fiscal 2000, ended June 30, were $7.0 million, compared with $7.7 million for the third quarter of fiscal 1999. Earnings for the third quarter of fiscal 2000 were $507,000, or 11 cents per share, compared with $736,000, or 14 cents per share, for the same period of fiscal 1999.

DRA President and CEO Michael J. Mellinger noted that while both hardware and software revenues decreased in the third quarter of fiscal 2000 from the third quarter of fiscal 1999, the company's service and other revenues increased $377,000, or 8%, over the same quarter of last year. He attributed the increase in this revenue segment primarily to software maintenance generated by previous software sales. He also cited an increase in the company's business internet revenues as contributing to the increase in service and other revenues.

"The ongoing stream of software maintenance revenue from our legacy products -DRA Classic, Inlex 3000 and MultiLis- coupled with our strong cash position continues to provide a sound financial basis for DRA operations as we make the transition from those legacy products to our next-generation library automation system, Taos," Mellinger commented. At June 30, 2000, DRA had $17.7 million in cash, cash equivalents and short-term investments.

"During this period of lower revenues," Mellinger continued, "we have helped maintain the company's profitability by taking steps to control expenses in several areas. General and administrative expenses declined $77,000 and salaries and employee benefits increased only $35,000 in the current quarter from the third quarter of fiscal 1999. Through use of a dedicated travel planner we have achieved a lower per-ticket cost for air travel. In addition, effective May 1, 2000, DRA closed its Melbourne, Australia, office and arranged for its Australian customers to be supported by a company that we have worked with in New Zealand since the mid 1980's. We also are constantly evaluating the most effective means of controlling salary and benefits costs in the current highly competitive job market, while still providing a competitive package and continuing to hire all qualified programmers for Taos that we can hire."

During the quarter ended June 30, 2000, the company had revenue from one new Taos contract and continued working with several customers who the company expects will implement Taos in the fourth quarter of this fiscal year. During the fourth quarter the company expects to release the Taos serials component that is currently being tested by three customers.

"We expect that the release of the Taos serials module this summer and the acquisitions module in fiscal 2001, coupled with libraries having increased exposure to Taos as our new installations are completed, will establish a solid base for revenue and earnings improvement in the next fiscal year," Mellinger concluded.

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.
Summary of Quarterly Results (in thousands, except per share data)