Dun & Bradstreet reports second consecutive quarter of strong pro forma earnings growth; EPS for Three New Companies Increases by 11.1 Percent On Combined Pro Forma Basis

Business Wire, July 17, 1996

WILTON, Conn.--(BUSINESS WIRE)--July 17, 1996--Dun & Bradstreet, which plans to split into three public corporations in October, today posted second-quarter combined pro forma earnings of 80 cents a share, up 11.1 percent from 72 cents a share, for Cognizant Corporation, the 'new' D&B and ACNielsen. Today's Dun & Bradstreet posted consolidated quarterly earnings of 86 cents a share, unchanged from a year ago, excluding previously announced one-time costs related to the split. Including a one-time $163 million after-tax charge related to three recently announced divestitures, and $9 million in strategic restructuring transaction costs, the company reported a second-quarter loss of 15 cents a share.

"For the second quarter in a row, our three-company strategy has delivered enhanced EPS results," said Robert E. Weissman, chairman and CEO of Dun & Bradstreet. "Business fundamentals improved in the second quarter. Highlights of stronger operating performance included strong revenue growth at Cognizant, turnaround progress demonstrated by a swing to profitability at ACNielsen, and a continuing solid performance at 'new' D&B."

"We are on track to meet our October 1 spin-off target," continued Weissman. "Initial board appointments for Cognizant and 'new' D&B were announced, the new management teams are in place, and the divestitures now underway will be completed shortly. I'm encouraged by the excellent progress that has been made in building our new companies." -0-

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Earnings Per Share of Common Stock $0.37 (B) $1.50 (75.3)

Dividends Paid Per Share of Common Stock $1.32 $1.31 0.8

-------- -------- Average Number of Shares Outstanding 169.8 169.6 0.1

Effective Tax Rate 41.1% 27.7% 48.4

(A) Includes a previously announced one-time $212.3 million pre-tax

charge ($163.0 million after-tax) in the second quarter related

to the planned divestiture of Dun & Bradstreet Software and

American Credit Indemnity and the sale of the Southern

California proprietary directory operations. Also includes $9.0

million in strategic restructuring transaction costs.

(B) Includes one-time transaction costs as described above totalling

$1.01 per share.

(C) Includes a $28 million restructuring gain in the first quarter

from the sale of warrants received in connection with the

divestiture of Donnelley Marketing in 1991.

CONTACT: The Dun & Bradstreet Corporation, New York

Reid H. Gearhart, 212/593-6727