IntelliQuest Expects Fourth Quarter Loss

Austin, TX-based IntelliQuest
Information Group Inc. said it expects to report revenues for the
fourth quarter ended December 31 in the range of $8.6 million to $9.1
million versus revenue of $9.1 million in the fourth quarter of 1996.

The company said it expects to report net income for the fourth quarter in
the range of $300,000 to $500,000, excluding the effect of $1.6 million for
one-time charges and direct and indirect expenses related to reorganization
efforts. After the effect of the reorganization costs, the company said it
expects to report a net loss for the fourth quarter in the range of $600,000
to $800,000.

IntelliQuest provides information-based marketing services, using its
proprietary databases and software to help technology companies track product
performance and customer satisfaction, measure advertising effectiveness,
assess brand strength and competitive position, determine price sensitivity
and evaluate new products and markets. The company also licenses custom
proprietary software applications.

The company expects to report revenues for the year ended in the range of
$36.1 million to $36.6 million, representing approximately 27% to 29% growth
over revenue of $ 28.4 million in 1996. Net income for the year is expected
to be in the range of $3.1 million to $3.3 million, excluding the effect of
one-time charges. After the effect of the reorganization costs, the company
expects to report net income of $2 million to $2.2 million.

“We did not deliver on the revenue increases we expected in Q4, although we
succeeded in building a strong pipeline of potential business for 1998,” said
Brian Sharples, president and chief executive officer.

Separately, the company said its board of directors has authorized the
repurchase from time to time of up to 850,000 shares of its common stock in
open market transactions.