NEWS RELEASE
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Media Contacts: Christopher Ljungkull Daryn Teague
Legal Research Center Teague Communications
(800) 776-9377 or [email protected] (661) 297-5292 or [email protected]
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Legal Research Center Announces
Record Quarterly Revenues
-- Company Also Announces Investment in E-Commerce Partner --
Minneapolis - August 3, 2000 - Legal Research Center, Inc. (OTC: LRCI), the
nation's leading provider of outsourced legal research and writing services,
today reported its results for the second quarter ended June 30, 2000.
For the quarter, revenues increased 19 percent to $1,317,373, compared to
$1,107,593 for the second quarter of 1999. This represents a record high for
quarterly revenues.
The company also maintained its strong margins at 54% and continued to post
healthy earnings, reporting net income for the second quarter of $238,515, or
$.09 per share, compared to $244,058, or $.10 per share, for the same period a
year ago. Year-to-date earnings also hit a record $.18 per share compared to
$.14 for the first half of 1999.
The company also announced today that it has completed the transaction to
acquire an equity stake in Integrity Interactive Corporation, the industry
leader in Web-based legal compliance training. The current market for legal and
regulatory compliance training is currently in excess of $1 billion per year,
with less than one percent spent on online education programs. Since independent
research suggests that percentage will increase to at least 50 percent within
three years, the annual market for online compliance training is projected at
more than $500 million by 2003. In June, the company announced an agreement with
Integrity to provide legal research content for the online courses, as well as
assisting in the marketing and selling of the Integrity product.
(more)
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Legal Research Center Announces 2Q00 Results
Page Two
"We're very proud to post another record quarter for revenues and maintain
the company's strong profit margins," said Christopher Ljungkull, chief
executive officer of Minneapolis-based LRC. "Net income was down slightly from
last year due to some important investments we made, such as costs associated
with Integrity, the expansion of our marketing efforts and the hiring of
additional sales account managers. However, revenues for the year are right on
budget and margins are actually better than forecasted because of our continuing
success in reducing costs."
"Thanks to the excellence of our Research Attorneys and our sales and
marketing team, the second quarter was an exciting period of sales growth for
LRC in our core business of legal research and writing, and we expect to
maintain this momentum in the third and fourth quarters of the year," said James
Seidl, LRC's president. "LRC's alliance with Integrity has rapidly moved us into
a booming e-commerce business niche that holds enormous growth potential for
LRC's revenues and earnings."
Legal Research Center (http://www.lrci.com) offers legal research and
writing services to attorneys in corporate and private practice throughout the
world. Founded in 1978, LRC's work products include compliance-related
multijurisdictional surveys, office memoranda, and formal court-ready documents
such as trial and appellate briefs. LRC's knowledge management services include
work product database design and facilitation, website content creation, and
compliance training content development. LRC's nationally recognized Research
Attorneys are honors graduates who have practiced law for at least two years,
and many for over 25, in major law firms and corporate law departments
throughout the U.S.
Statements contained here, other than historical data, may be forward-looking
and subject to risks and uncertainties including, but not limited to the
continuation of revenues through the company's strategic alliances and the
successful development of other new business, as well as those set forth in the
company's 10-KSB, 10-QSB and other SEC filings.
# # #
(Consolidated statements of income follow)
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LEGAL RESEARCH CENTER, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
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Three Months Six Months
Ended June 30, Ended June 30,
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2000 1999 2000 1999
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Revenues $1,317,373 $1,107,593 $2,539,332 $1,927,264
Income from operations $ 215,119 $ 241,337 $ 427,323 $ 319,212
Net income $ 238,515 $ 244,058 $ 471,434 $ 323,081
Net income per common share
Basic $ 0.09 $ 0.10 $ 0.18 $ 0.14
Diluted $ 0.09 $ 0.10 $ 0.17 $ 0.13
Weighted average common
shares outstanding Basic 2,563,907 2,329,113 2,563,508 2,329,113
Diluted 2,785,037 2,532,063 2,784,879 2,495,648
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CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
June 30,
2000
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Current assets $2,655,046
Furniture and equipment 11,679
Intangible assets 77,548
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Total assets $2,744,273
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Current liabilities $ 383,414
Stockholders' equity 2,360,859
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Total liabilities and stockholders' equity $2,744,273
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