BCS Posts Strong 1997 Results

Hamilton, BERMUDA (March 27, 1998) -- Chairman of Bermuda Computer Services Limited, Mr. Donald P. Lines, released the results of the Company for the 14 month period ended December 31, 1997 in which consolidated earnings amounted to $721,958 or $2.40 per share. On an annualized basis the profits in 1997 of $619,070 were slightly lower than last year's record high $639,410. Expectations for the current year are very positive but he cautioned shareholders that we are in a very competitive industry requiring investments to maintain our leadership position.

The Company continues to show a balance sheet with a very strong ratio of liquid assets of $3,676,078 compared to current liabilities of $1,715,225 and capital of over $2 million.

Mr. Lines noted that the year end was changed to December 31 to facilitate reporting to IBM with respect to the agency business where there has been significant growth in the software support services area.

At the Board Meeting held today Mr. Barry Wilson, Computer Systems Manager, who has overall responsibility for the management of the agency business, was elected a Director to fill the vacancy arising as a result of the death of Mr. David Wilkinson.

Notice of the Annual General Meeting together with financial statements and proxy material will be sent to shareholders fairly shortly. The AGM of the Company has been called for May 7, 1998 at 4:00 p.m. at the offices of the Company, 30 Victoria Street, Hamilton.