Interactive Data Reports Second-Quarter 2005 Results and Updates 2005 Outlook; Second-Quarter Service Revenue Increases by 11.9% and Net Income Increases by 17.6%

Business Wire, July 21, 2005

BEDFORD, Mass. -- Interactive Data Corporation (NYSE: IDC) today reported its financial results for the second quarter ended June 30, 2005. Second-quarter 2005 service revenue grew 11.9% to $133.0 million from $118.9 million in the second quarter of 2004. Net income for the second quarter of 2005 increased by 17.6% to $22.4 million, or $0.23 per diluted share, from $19.1 million, or $0.20 per diluted share, in the same quarter last year.

"The second quarter of 2005 was marked by good progress in many key areas of the business," stated Stuart Clark, president and chief executive officer. "The increase in Interactive Data's second-quarter 2005 service revenue reflects growth in each of our core businesses as well as the contribution resulting from last year's acquisition of the FutureSource assets. Excluding the FutureSource contribution and the effects of foreign exchange, we generated organic service revenue growth of 7.2%. Our net income growth was primarily driven by the combination of higher service revenue, prudent spending and higher other income."

Clark commented, "Within our Institutional Services segment, overall renewal rates remained at or above 95%. Market conditions were unchanged during the second quarter of 2005 compared with recent quarters as customers continued to control spending on market data and related services. FT Interactive Data's business experienced good growth in North America during the second quarter of 2005 and reported its third consecutive quarter of service revenue growth in Europe. Both ComStock and CMS BondEdge generated modest growth while making progress with important product and business development initiatives. In our Active Trader Services segment, eSignal continued expanding its customer base while also integrating FutureSource into its operations."

"Interactive Data ended the second quarter of 2005 with cash and marketable securities of $238.1 million with no debt. Our strong financial position enabled us to declare a special dividend of $0.80 per common share, which was paid on July 7, 2005, and implement a new one million share repurchase program. As we move forward, we are well positioned to continue growing as we invest in new product development initiatives and pursue strategic alliances and acquisitions," Clark concluded.

Other Second-Quarter Operating and Financial Highlights

Effects of Foreign Exchange:

--Interactive Data's second-quarter 2005 service revenue was positively impacted by $0.9 million due to the effects of foreign exchange. Second-quarter 2005 service revenue before the effects of foreign exchange grew by $13.2 million, or 11.1%, over the comparable period in 2004. Total costs and expenses in the second quarter of 2005 were negatively impacted by $0.8 million due to the effects of foreign exchange. Second-quarter 2005 total costs and expenses before the effects of foreign exchange increased by $8.5 million, or 9.7%, over the second quarter of last year. The net effect of foreign exchange in the second quarter of 2005 was a $0.1 million increase in income from operations.

Institutional Services Segment:

--FT Interactive Data's second-quarter 2005 service revenue of $87.7 million grew 9.7% over the prior year's second quarter (or an increase of 8.9% before the effects of foreign exchange). North American service revenue for the second quarter of 2005 increased 10.0% over the prior year's second quarter, driven by significant new sales that occurred during the fourth quarter of 2004 combined with sustained high demand for evaluated pricing and descriptive data services. Second-quarter 2005 European service revenue increased by 8.4% (or an increase of 5.2% before the effects of foreign exchange) from the second quarter of last year. FT Interactive Data's second-quarter 2005 highlights included the introduction of a new European Union Savings Directive data module that assists firms in addressing recently enacted tax legislation. FT Interactive Data's Asia-Pacific second-quarter 2005 service revenue increased 11.8% (or an increase of 5.2% before the effects of foreign exchange) compared with the prior year's second quarter.

--ComStock generated second-quarter 2005 service revenue of $19.7 million, an increase of 4.0% over the same quarter last year (or an increase of 2.8% before the effects of foreign exchange) due to progress in winning new business. In late June 2005, ComStock unveiled two new strategic product introductions designed to further enhance client support and ease of use. ComStock's new Application Programming Interface for its real-time datafeed service is designed to simplify and expedite integration of the datafeed into client applications, and its new market data server allows clients to catalog and retrieve value-added content such as detailed time and sales information, and historical data.

--CMS BondEdge's service revenue for the second quarter of 2005 increased by 3.2% over last year's second quarter to $8.1 million. CMS BondEdge's second-quarter performance was highlighted by a reduction in client cancellations compared with the first quarter of 2005, 10 new client installations and a new sales distribution partnership with Thomson Financial, which will market the BondEdge analytics system in tandem with its own solutions in Europe.