CA IS RIGHT ON THE MONEY; Money Magazine Picks Software Developer As One Of Eight S&P Stocks To Buy

Business Wire, Nov 17, 1995

ISLANDIA, N.Y.--(BUSINESS WIRE)--Nov. 17, 1995--Computer Associates International, Inc., has been singled-out by financial experts as one of eight S&P 500 stocks to buy now, according to the December issue of Money Magazine. The experts, as polled by the magazine, anticipate that CA will outdo the S&P 500 index over the next 12 months.

Sharing the spotlight with CA were Texas Instruments, Cigna, Citicorp, Chemical Bank, King World Productions, Philip Morris and Mobil. Selection criteria included earnings strength, price/earnings ratios, cash flows and technical indicators.

According to Money Magazine, CA has "transformed itself in the past dozen years from a sleepy developer of software for IBM mainframes into a $2.7 billion business software leader."

Money Magazine said CA's purchase last summer of Legent Corporation makes the company "a powerhouse" in client/server environments (systems that link computers in offices) and systems management products (which help computer networks run smoothly by doing tasks like storing and backing up files, managing data flow and maintaining security).

Revenues from such products are expected to double this year and next, according to Money Magazine, and analysts believe that the scheduled mid '96 release of an upgraded version of CA-Unicenter, CA's market-leading network and systems management solution, will help the company sustain its strong growth.

"The demand for Unicenter remains remarkably high," Joe Farley, an analyst with UBS Securities, said in the article. "It is becoming the de facto industry standard."

Bank of America's Daniel Cardell is quoted as predicting annual earnings growth for CA in excess of 20% over the next three years. Even though CA's stock jumped 16% in mid-October on stronger-than-expected earnings, Cardell told Money Magazine it is still a good value.

Money Magazine's ranking of CA came just days after a leading author included CA in his best selling book, The 100 Best Stocks To Own in America, published by Dearborn Financial Publishing. CA was one of only 21 new outstanding performers to be added to the prestigious list by Gene Walden, a veteran journalist and investment columnist.

Computer Associates International, Inc., (NYSE: CA), with headquarters in Islandia, N.Y., is the world leader in mission-critical business software. The company develops, licenses and supports more than 500 integrated products that include systems and database management, application development, manufacturing and financial applications. CA has 9,000 people in 130 offices in 36 countries and had revenue of $2.6 billion in its 1995 fiscal year. CA can be reached by visiting its homepage on the worldwide web (http://www.cai.com). -0- All referenced product names are trademarks of their respective companies.

CONTACT: Computer Associates International, Inc.

Douglas Robinson, (516) 342-2745