Equifax Posts New First Quarter Record; Earnings Per Share Climb 24%

Atlanta, April 15, 1997 -- Equifax Inc. today reported record revenues and earnings for the first quarter of 1997, including a 24% increase in earnings per share.

Revenues for the period ending March 31, 1997, climbed 13% compared to the prior year period, setting an all-time first quarter record of $478.2 million. Operating income of $80.7 million increased 22.5% over the comparable period, while earnings per share rose from $.25 during the same period last year to $.31 for the first quarter of 1997.

"Equifax is starting the year with continued momentum and record-setting results," said Equifax President and Chief Executive Officer Daniel W. McGlaughlin. "Demand for our products and services in the majority of our businesses remains strong. We continue to prepare for the spinoff of the Insurance Services Group, which we have named ChoicePoint. We expect to complete the spinoff mid-year, pending a favorable ruling by the IRS."

Chief Financial Officer Dave Post said, "The operating leverage inherent in our business remains evident, as the operating income margin for the first quarter was 16.9% versus 15.6% in 1996."

During the first quarter, Equifax incurred expenses of $1 million related to Year 2000 compliance. Equifax has been addressing the issue to ensure its systems are ready well in advance of the Millennium.

SEGMENT RESULTS

Revenues in Financial Services increased 16.7% to $309.1 million. Credit Services revenue increased 5.7% and operating income increased 9.6% primarily due to growth in Credit Reporting Services, Credit Marketing Services and Risk Management. Credit Reporting Services revenue benefited from strong demand within the finance and telecommunications industries. Lower refinancing activity impacted mortgage services revenue, which was down almost 50% this quarter. Payment Services revenue grew 38% led by strong growth in Card Services. Check Services revenue increased in the high single digits, and Card Services revenue grew 68% as a result of increased business and the acquisition of CSG Card Services. International Operations revenue grew 16.4% as a result of Canadian and European credit operations and acquisitions. In April, Equifax announced that it had purchased the remaining 50% interest of DICOM in Chile, effective March 27th. Operating income in Financial Services increased 17.9% as a result of profitability growth across most businesses.

The Insurance Services Group reported revenue growth of 22.8%. The strong performance of Data Services and Osborn Labs contributed to this growth, as well as acquisitions. Insurance Services also announced in April that it had an agreement in principle to acquire Kroll Associates, the world's foremost provider of corporate intelligence and risk management consulting services. The acquisition is expected to be completed shortly after the spinoff is completed. Operating income in Insurance Services increased 34.6% with improved performance in most businesses.

Revenue in General Information Services, which now solely consists of revenue associated with the lottery subcontract, was $2.4 million.

Equifax Inc. (NYSE:EFX), is the leading provider of information services that help businesses grant credit, authorize and process credit card and check transactions and insure lives and property. Established in 1899 in Atlanta, Equifax today employs 14,000 people throughout North and South America, the United Kingdom, and continental Europe. Revenues for the 12 months ended March 31, 1997, totaled almost $1.9 billion.