Equifax Posts New Second Quarter E.P.S. Record

ATLANTA, July 17, 1997-- Equifax Inc. today reported record earnings for the second quarter of 1997 of $.39 per share versus $.28 per share in the second quarter of 1996. Excluding certain 1997 one-time items discussed below, earnings per share were $.36, a 29% increase versus the second quarter 1996.

"We are very pleased with the continued strong momentum of our business - this makes twenty-two consecutive quarters of year over year earnings per share growth averaging more than 20%, before unusual items," said Equifax President and Chief Executive Officer, Daniel W. McGlaughlin.

Equifax announced earlier today that the spinoff of its Insurance Services Group, renamed ChoicePoint, would be completed August 7th for shareholders of record as of July 24th. "We are excited about the opportunities which lie ahead for both companies once the spinoff is complete, as they each begin a new era with a continued strong operating performance in the second quarter," added Mr. McGlaughlin. As a result of the pending spinoff, Insurance Services results are now accounted for as discontinued operations (see financial highlights attachment). Second quarter revenue for Equifax, including discontinued operations, totaled $517.1 million, an increase of 16% over the prior year period.

Chief Financial Officer Dave Post said, "In April, the Board approved an additional $100 million share repurchase authorization, and during the quarter the Company was very active, repurchasing 1.5 million shares of stock for $44.8 million. Approximately $100 million remained available for repurchase as of June 30, 1997."

SECOND QUARTER RESULTS Revenues from continuing operations for the quarter ending June 30, 1997 of $343.0 million, climbed 14% compared to the prior year period revenue of $300.8 million. Excluding an unusual item in the second quarter of 1996, operating income from continuing operations of $77.8 million increased 25% over the comparable period. Second quarter earnings were favorably impacted by a $.12 per share gain from the sale of National Decision Systems. During the second quarter, Equifax also recorded a charge of $15.0 million, ($12.9 million after tax or $.09 per share) related to expenses and other items associated with the spinoff of its Insurance Services Group. For the quarter, earnings per share from continuing operations excluding the gain from the sale of National Decision Systems were $.30 versus $.24 in 1996 and earnings per share from discontinued operations were $.06 versus $.04 in 1996.

During the second quarter, Equifax incurred expenses of $1.7 million or about $.01 per share related to Year 2000 compliance. Equifax has been addressing the issue to ensure its systems are ready well in advance of the Millennium. For the year, Equifax had estimated Year 2000 compliance expenses of $.04 to $.05 per share. With the spinoff of its Insurance Services segment, Equifax estimates that its continuing operations Year 2000 compliance expenses during the second half of the year will be about $.02 per share.

SEGMENT RESULTS The continuing Equifax will consist of what is today the Financial Services Group: comprising global operations in consumer and commercial credit information services, payment services, software, modeling, analytics and consulting, and direct-to-consumer services. Equifax will serve industries that include banking, finance, retail, telecommunications, utilities, healthcare, and others.

Credit Services revenue of $155.5 million increased 5.7% and operating income of $56.8 million increased 10.7%, primarily due to growth in Credit Reporting Services, Credit Marketing Services and Risk Management, but revenue was negatively impacted by the second quarter divestiture of National Decision Systems. Credit Reporting Services revenue benefited from strong demand within the telecommunications industry.

Payment Services revenue of $105.5 million grew 33.1% led by strong growth in Card Services. Card Services revenue grew 61% as a result of increased business and the acquisition of CSG Card Services. Check Services revenue increased in the mid-single digits. Payment Services operating income of $18.5 million increased 28.2% benefitting from the strong revenue growth in Card Services.

Revenue in International Operations of $79.5 million grew 37.6% as a result of Canadian and European credit operations, acquisitions in Canada and the purchase of the remaining 50% interest of DICOM in Chile. Operating income in International Operations of $12.9 million increased 63.6% as a result of strong performance of U.K. operations, continuing operating leverage from the integration of European acquisitions and the DICOM acquisition.

Revenue in General Information Services, which now solely consists of revenue associated with the lottery subcontract, was $2.4 million, and operating income was $2.2 million.

Equifax also announced during the quarter that it had signed a strategic alliance with VNU MIS, in connection with the second quarter sale of National Decision Systems to this company, to co-develop a wide range of marketing and analytical solutions. The sale of NDS resulted in a gain of $42.8 million, recorded as other income ($17.9 million after tax or $.12 per share).

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.