Computer Horizons Sells Stake in Birla-Horizons International for $5.75 Million

Business Wire, May 26, 1998

MOUNTAIN LAKES, N.J.--(BUSINESS WIRE)--May 26, 1998--Computer Horizons Corp. (NASDAQ: CHRZ) today announced its decision to sell its 50% share in Birla-Horizons International (BHI) to its partner, the CK Birla Group, for $5.75 million. In 1995, Computer Horizons invested only $500,000 to start the joint venture. The sale is pending government approval, which Computer Horizons expects to receive early this summer.

Computer Horizons will use the proceeds from the sale of Birla-Horizons to continue investing in outsourcing and offshore ventures. The company considers its outsourcing center in Toronto, Canada to be the model for its future efforts. Opened late last year, the outsourcing center is already serving customers in three countries with more than 100 professionals.

"We look forward to replicating both the international outsourcing and financial success we've enjoyed with BHI in future overseas ventures," said David Reingold, Senior Vice President, Computer Horizons and Vice Chairman, BHI. "Computer Horizons currently has facilities in Canada and the UK, and we're actively pursuing opportunities in other international markets.

"Our decision to exit the partnership in Birla-Horizons International was driven by our attention to our clients' needs, improvement in project management and future growth," Reingold continued. "For the same reason, we are working to invest further into the Indian market with a new model, allowing us to benefit from even greater control and input into IT processes and revenue decisions."

Computer Horizons Corp., founded in 1969, is a diversified information technology services company with 4,000 employees worldwide. Through its international network of 50 offices in the U.S., UK, Canada and India, it provides clients with resource augmentation and advanced technology solutions to business problems through applications development, client/server migration, network management, emerging technologies, and legacy systems maintenance, including its industry-leading solution to the millennium date-change problem, Signature 2000(tm). Please visit our Web site at http://www.computerhorizons.com or e-mail information@chc.fabrik.com.

This press release includes certain "forward-looking statements" for purposes of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties that could cause actual results to differ materially. Such statements are based upon, among other things, assumptions made by, and information currently available to management, including management's own knowledge and assessment of the Company's industry and competition.

CONTACT: Laura Hupprich/Dahlia Goldenberg

Ruder Finn

212/593-6387/583-2775

or

David Reingold

Computer Horizons

973/299-4000/800/321-2421