Bell & Howell Reports Strong First Quarter, Reaffirms Full Year Guidance

-- Announces Sale of Mail & Messaging Unit's International Operations --



Apr 18, 2001, 01:00 ET from Bell & Howell Company

    ANN ARBOR, Mich., April 18 /PRNewswire/ -- Bell & Howell Company
 (NYSE:   BHW), a leading provider of content to education, automotive and
 powersports markets, reported today continued strong growth in revenues and
 earnings before interest and taxes for the first quarter.  Furthermore,
 management reiterated its confidence that the Company is on target to achieve
 its financial and strategic objectives for the full year with revenue growth
 of 11% to 13% and operating earnings growth of 30% - 35%.
     For the first quarter, the Company reported earnings before interest and
 taxes of $14.2 million, an 89% increase from a year earlier, while revenues
 increased 8% to $95.9 million.  Due to the ongoing transition of the Company,
 all reported results reflect continuing operations, presented on a consistent
 basis, before minority equity investments, restructuring charges and gains and
 losses on the sale of assets, unless otherwise noted.  This approach provides
 the best means of comparability for the continuing businesses.
     James Roemer, chairman and chief executive officer said the first quarter
 results reflect solid organic revenue growth and prudent expense management.
 "We are pleased with our revenue and EBIT growth, which reinforces our
 confidence in achieving our financial objectives for the year as we introduce
 several new digital products into the education, automotive and powersports
 markets," commented Roemer.
     Roemer added that the Company's ongoing restructuring efforts passed
 another significant milestone with the separate announcement today that the
 Company is selling a majority of its international Mail and Messaging
 operations based in the U.K. to Pitney Bowes for $51 million.
     Roemer continued, "The transaction is subject to regulatory approval in
 Germany, and we anticipate closing the sale within 60 days.  We will now turn
 our attention to completing the sale of the remaining portion of the business,
 which represents about 80% of Mail and Messaging's total revenues."
 
     Information & Learning
     In its Information and Learning business, where Bell & Howell is a leader
 in electronic products and content delivery for educational institutions and
 libraries, first quarter revenues rose 11% over a year ago to $55.9 million.
 The Company's flagship product, ProQuest On-line grew 18% in the quarter.
 First quarter sales of other, non-subscription digital products to libraries
 were below expectations due to delayed orders, which are expected to occur
 later this year.  Earnings before interest and taxes for the quarter grew 91%
 over a year ago to $9.0 million due to continued growth in ProQuest On-line
 and expense management.
     "Our Digital Vault Initiative offers existing and new subscribers a wide
 range of content that has never before been digitized including the entire
 published archive of The New York Times, The Wall Street Journal, and The
 Christian Science Monitor.  We are adding more content everyday and we're
 working to bring more of the world's leading publishers to this initiative.
 The Wall Street Journal and The New York Times digital products are available
 now, with decades of content being added each month.  Response from libraries
 has been encouraging and pre-publication interest for trials and purchase of
 these products has exceeded our expectations," added Roemer.
     The digital vault product initiative is one way Bell & Howell is
 leveraging its strong position as a content provider to public, K-12 school
 and academic libraries, and other users across the globe.  "Another key
 initiative," noted Roemer, "is our recently launched XanEdu line of classroom
 products for college and university courses which is a perfect example of our
 ability to deliver content to a whole new customer base."  XanEdu recently
 announced a new strategic partnership with John Wiley & Sons, with both
 companies cross-licensing content and distributing products to the college and
 university markets.
 
     Publishing Services
     Sales at Publishing Services, which supplies electronic content and
 services to auto and powersports dealers grew 5% in the first quarter to
 $40.0 million, while earnings before interest and taxes totaled $8.5 million,
 29% above a year ago.  Electronic content and services accounted for 89% of
 total sales and grew 10% in the quarter.  Sales of new and renewal
 subscriptions of electronic parts catalogs increased while sales of computer
 hardware and microfilm declined, as anticipated.  Hardware sales are generally
 at margins considerably lower than that of electronic content.  These factors
 contributed to dramatically improved profits and a four percentage point
 increase in the EBIT margin from 17% to 21%.  Roemer commented, "Publishing
 Services performed according to expectations in the first quarter and based on
 the current sales trends and prospects, they are on course to grow at 8%-10%
 for the full year."
     The Company recently made several key personnel appointments.  Bruce
 Rhoades was named to the position of co-president of Publishing Services,
 sharing the management of this business for the remainder of the year with Mr.
 Roemer.  Mr. Rhoades has worked with Bell & Howell in a variety of management
 and technical positions.  Lee Poseidon, a veteran of the automotive
 information services business, joined Publishing Services as senior vice
 president and general manager of its Global Automotive business.
 Additionally, in March, Robert McBratney was named senior vice president and
 general manager of Powersports.  Mr. McBratney has been with Bell & Howell
 since 1997, bringing a background in technology and marketing.
 
     Discontinued Operations
     Sales in discontinued operations, which now include only the Mail &
 Messaging business, were up about 3% versus last year, and operating cash flow
 increased 34%, benefiting from the results of the expense reduction and
 controls implemented last year.  Despite somewhat weaker than expected backlog
 and order intake, the mailing business overall performed as expected in the
 first quarter.  Service revenue, which represents over 50% of the revenue,
 increased 7% in the quarter, and the scanner business had a significantly
 improved quarter from the prior year.  "We are on track for a much better year
 this year from an operating earnings and cash flow viewpoint, which should
 bode well for the prospects of selling the remaining Mail & Messaging business
 this year," Roemer said.
 
     Shelf Registration Filing
     The Company also announced today that it is filing a shelf registration
 covering 4,362,999 shares (18.5% of shares outstanding) of Bell & Howell
 common stock owned by Keystone, Inc., a major shareholder.
     Keystone, a private investment firm controlled by Texas financier Robert
 Bass, informed the Company that it desired such a registration to facilitate
 its own internal financing activities and that it has no present intent to
 sell any shares pursuant to the registration statement.
     "We have no current plans to sell these shares," said J.T. Crandall, vice
 president and chief operating officer for Keystone, Inc.  "This move is done
 simply to improve our liquidity position with respect to certain other
 financial obligations.  We have been and continue to be strong believers in
 the long-term prospects for Bell & Howell -- particularly as it transforms
 more completely to a provider of electronic content to educational and
 business markets."
 
     2001 Outlook and Guidance
     Roemer says ProQuest is on track to achieve revenue and earnings goals for
 continuing operations this year and explained, "We are confident that ProQuest
 will generate $410 to $420 million in revenues for 2001, up 11%-13% from
 $374.4 million in 2000, with operating EBIT growth of 30%-35%.  Additionally,
 we are using the proceeds from the sale of the discontinued businesses and our
 free cash flow to reduce debt, which we expect will decrease to under
 $200 million by year end, down from over $500 million at the end of 2000."
     "Both the number and quality of new products and services initiated by our
 teams reflect the initiative and creativity of our talented staff and the
 value of our franchise in the content marketplace," Roemer concluded.  "We
 look forward to reporting on further progress in building the products already
 launched, and by introducing more new products and services, as the year
 progresses."
     The anticipated sale of the remaining Mail & Messaging business is the
 final step in the Company's strategy to transform itself into a focused
 electronic publisher, providing value-added content to targeted audiences.  In
 light of the pending sale of the Mail & Messaging international business, the
 Company will formally adopt the name of ProQuest Company on June 6 of this
 year.
     "This new name reflects our new business model as an electronic learning
 and electronic publishing company," said Roemer.  "ProQuest will be a focused,
 growing, highly profitable and predictable enterprise providing
 mission-critical information to academic and business customers on a long-term
 subscription basis.  It is our intent to make this new company easy to follow
 and understand for our investors, and easy to do business with for our
 customers.  We're very excited about the many opportunities before us."
 
     Conference Call
     To participate in a review and question and answer session regarding first
 quarter results with Bell & Howell's senior management, call 773-756-4619,
 using the password BHW, at 5:00 p.m. (EST) on Wed., April 18, 2001.  For your
 convenience, the call will be taped and archived until May 18, 2001 and can be
 accessed by calling 402/530-7685.  This conference call may also be accessed
 over the Internet through Vcall at http://www.vcall.com .  To listen to the
 live call, please go to the web site at least fifteen minutes early to
 register, download, and install any necessary audio software.  For those who
 cannot listen to the live broadcast, a replay will be available shortly after
 the call at Vcall's website.
 
     Risk Factors
     Except for the historical information and discussions contained herein,
 statements contained in this release may constitute "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995.  These statements involve a number of risks, uncertainties and other
 factors, including without limitation, the cost and availability of
 intellectual property from third parties, decreases in the ability to attract
 and retain employees for the existing Bell & Howell, obtain capital, including
 interest rate risks, unexpected merger-related effects, timing and market
 conditions relating to the sale of the Mail & Messaging Technologies business
 as well as business execution risk and risk of new competitors, and any
 necessary regulatory approvals, decreases in funding for Internet access as
 well as overall acceptance and usage of the Internet in the education and
 library markets, the availability of free or advertising supported research
 information on the Internet, decreases or shifts in mail volumes, rate of
 acceptance of electronic-based mailings, including effects of and rate of
 acceptance of internet-based solutions, including the automotive business,
 changes in the business services market, changes in the automotive industry,
 and general economic conditions, all of which could cause actual results to
 differ materially, and such other risks as discussed in the Company's filings
 with the Securities and Exchange Commission.
 
     About Bell & Howell
     Headquartered in Ann Arbor, Michigan, Bell & Howell Company (NYSE:   BHW) is
 a leading information solutions and services provider to industries worldwide.
 In each of its businesses, the Company transforms information through software
 and services, helping its customers operate more effectively and efficiently.
 Additional information on Bell & Howell can be found at www.bellhowell.com .
 
     Note to Editors: Bell & Howell's news releases are available on the
 Internet at http://www.prnewswire.com or by fax.  A list of releases, or a
 specific news release, can be obtained by fax by calling toll-free
 800-758-5804, ext. 114098.
 
                             BELL & HOWELL COMPANY
                           SALES AND EARNINGS SUMMARY
                  (Dollars in Millions, Except Per Share Data)
 
                                                        First Quarter
                                                 2001         2000      Better/
                                                                        (Worse)
 
     Net Sales                                  $95.9        $88.6          8%
 
     EBIT (a)                                    14.2          7.5         89%
 
     EBITDA (b)                                  27.8         20.7         34%
 
     Net Interest Expense                         6.1          7.9         23%
 
     Income Tax Expense                           3.2          0.2         NM
 
     Earnings from Continuing Operations (c)     $4.9         $0.2         NM
 
     Earnings per Common Share from
      Continuing Operations (3)
       - Basic                                  $0.21       $(0.01)
       - Diluted                                $0.21       $(0.01)
 
     (a) EBIT is defined as income from continuing operations before gains on
         sale of assets, interest and taxes
     (b) EBITDA is defined as EBIT plus depreciation and amortization
     (c) Excludes net gain on sale of assets, discontinued operations, equity
         interest in loss from bigchalk.com, as displayed below:
 
 
                                                          First Quarter
                                                       2001              2000
 
     Gain on Sale of Assets                           $43.6              $0.8
     Earnings from Discontinued
      Operations:
       Imaging                                         $0.4              $3.0
       Mail and Messaging Technologies                 $0.8              $0.7
     Earnings (Loss) from Equity Interest             $(5.5)            $(3.7)
 
     Earnings (Loss) per Common Share:
 
      from Gain on Sales of Assets:
       - Basic                                        $1.85             $0.03
       - Diluted                                      $1.84             $0.03
 
      from Discontinued Operations:
       Imaging
        - Basic                                       $0.02             $0.13
        - Diluted                                     $0.02             $0.12
 
      from Discontinued Operations:
       Mail and Messaging Technologies
        - Basic                                        $0.03             $0.03
        - Diluted                                      $0.03             $0.03
 
     from Equity Interest:
      - Basic/Diluted                                 $(0.23)           $(0.16)
 
 
                             BELL & HOWELL COMPANY
                           SALES AND EARNINGS DETAIL
                  (Dollars in Millions, Except Per Share Data)
 
                                                         First Quarter
                                                  2001        2000      Better/
                                                                        (Worse)
 
     Net Sales
     Continuing Operations
     Information and Learning                    $55.9        $50.4        11%
     Publishing Services                          40.0         38.2         5%
     Net Sales -- Continuing Operations          $95.9        $88.6         8%
 
     Discontinued Operations (a)                $103.2       $100.6         3%
 
     EBIT (b)
     Continuing Operations
     Information and Learning                     $9.0         $4.7        91%
     Publishing Services                           8.5          6.6        29%
     Corp. / Other                                (3.3)        (3.8)       13%
     EBIT -- Continuing Operations               $14.2         $7.5        89%
 
     Discontinued Operations (a)                  $5.1         $3.0        70%
 
     EBITDA (c)
     Continuing Operations
     Information and Learning                    $20.5        $15.8        30%
     Publishing Services                          10.5          8.3        27%
     Corp. / Other                                (3.2)        (3.4)        6%
     EBITDA -- Continuing Operations             $27.8        $20.7        34%
 
     Discontinued Operations (a)                  $7.5         $5.6        34%
 
     Other Financial Data -- Continuing
      Operations
     Capital Expenditures                        $12.5        $10.1        24%
 
     Net Debt                                   $403.9       $528.4        24%
 
     (a) Discontinued Operations includes MMT only; Imaging has been removed
         from both years as it was sold February 3, 2001
     (b) EBIT is defined as income from continuing operations before gains on
         sale of assets, interest and taxes
     (c) EBITDA is defined as EBIT plus depreciation and amortization
 
 

SOURCE Bell & Howell Company
    ANN ARBOR, Mich., April 18 /PRNewswire/ -- Bell & Howell Company
 (NYSE:   BHW), a leading provider of content to education, automotive and
 powersports markets, reported today continued strong growth in revenues and
 earnings before interest and taxes for the first quarter.  Furthermore,
 management reiterated its confidence that the Company is on target to achieve
 its financial and strategic objectives for the full year with revenue growth
 of 11% to 13% and operating earnings growth of 30% - 35%.
     For the first quarter, the Company reported earnings before interest and
 taxes of $14.2 million, an 89% increase from a year earlier, while revenues
 increased 8% to $95.9 million.  Due to the ongoing transition of the Company,
 all reported results reflect continuing operations, presented on a consistent
 basis, before minority equity investments, restructuring charges and gains and
 losses on the sale of assets, unless otherwise noted.  This approach provides
 the best means of comparability for the continuing businesses.
     James Roemer, chairman and chief executive officer said the first quarter
 results reflect solid organic revenue growth and prudent expense management.
 "We are pleased with our revenue and EBIT growth, which reinforces our
 confidence in achieving our financial objectives for the year as we introduce
 several new digital products into the education, automotive and powersports
 markets," commented Roemer.
     Roemer added that the Company's ongoing restructuring efforts passed
 another significant milestone with the separate announcement today that the
 Company is selling a majority of its international Mail and Messaging
 operations based in the U.K. to Pitney Bowes for $51 million.
     Roemer continued, "The transaction is subject to regulatory approval in
 Germany, and we anticipate closing the sale within 60 days.  We will now turn
 our attention to completing the sale of the remaining portion of the business,
 which represents about 80% of Mail and Messaging's total revenues."
 
     Information & Learning
     In its Information and Learning business, where Bell & Howell is a leader
 in electronic products and content delivery for educational institutions and
 libraries, first quarter revenues rose 11% over a year ago to $55.9 million.
 The Company's flagship product, ProQuest On-line grew 18% in the quarter.
 First quarter sales of other, non-subscription digital products to libraries
 were below expectations due to delayed orders, which are expected to occur
 later this year.  Earnings before interest and taxes for the quarter grew 91%
 over a year ago to $9.0 million due to continued growth in ProQuest On-line
 and expense management.
     "Our Digital Vault Initiative offers existing and new subscribers a wide
 range of content that has never before been digitized including the entire
 published archive of The New York Times, The Wall Street Journal, and The
 Christian Science Monitor.  We are adding more content everyday and we're
 working to bring more of the world's leading publishers to this initiative.
 The Wall Street Journal and The New York Times digital products are available
 now, with decades of content being added each month.  Response from libraries
 has been encouraging and pre-publication interest for trials and purchase of
 these products has exceeded our expectations," added Roemer.
     The digital vault product initiative is one way Bell & Howell is
 leveraging its strong position as a content provider to public, K-12 school
 and academic libraries, and other users across the globe.  "Another key
 initiative," noted Roemer, "is our recently launched XanEdu line of classroom
 products for college and university courses which is a perfect example of our
 ability to deliver content to a whole new customer base."  XanEdu recently
 announced a new strategic partnership with John Wiley & Sons, with both
 companies cross-licensing content and distributing products to the college and
 university markets.
 
     Publishing Services
     Sales at Publishing Services, which supplies electronic content and
 services to auto and powersports dealers grew 5% in the first quarter to
 $40.0 million, while earnings before interest and taxes totaled $8.5 million,
 29% above a year ago.  Electronic content and services accounted for 89% of
 total sales and grew 10% in the quarter.  Sales of new and renewal
 subscriptions of electronic parts catalogs increased while sales of computer
 hardware and microfilm declined, as anticipated.  Hardware sales are generally
 at margins considerably lower than that of electronic content.  These factors
 contributed to dramatically improved profits and a four percentage point
 increase in the EBIT margin from 17% to 21%.  Roemer commented, "Publishing
 Services performed according to expectations in the first quarter and based on
 the current sales trends and prospects, they are on course to grow at 8%-10%
 for the full year."
     The Company recently made several key personnel appointments.  Bruce
 Rhoades was named to the position of co-president of Publishing Services,
 sharing the management of this business for the remainder of the year with Mr.
 Roemer.  Mr. Rhoades has worked with Bell & Howell in a variety of management
 and technical positions.  Lee Poseidon, a veteran of the automotive
 information services business, joined Publishing Services as senior vice
 president and general manager of its Global Automotive business.
 Additionally, in March, Robert McBratney was named senior vice president and
 general manager of Powersports.  Mr. McBratney has been with Bell & Howell
 since 1997, bringing a background in technology and marketing.
 
     Discontinued Operations
     Sales in discontinued operations, which now include only the Mail &
 Messaging business, were up about 3% versus last year, and operating cash flow
 increased 34%, benefiting from the results of the expense reduction and
 controls implemented last year.  Despite somewhat weaker than expected backlog
 and order intake, the mailing business overall performed as expected in the
 first quarter.  Service revenue, which represents over 50% of the revenue,
 increased 7% in the quarter, and the scanner business had a significantly
 improved quarter from the prior year.  "We are on track for a much better year
 this year from an operating earnings and cash flow viewpoint, which should
 bode well for the prospects of selling the remaining Mail & Messaging business
 this year," Roemer said.
 
     Shelf Registration Filing
     The Company also announced today that it is filing a shelf registration
 covering 4,362,999 shares (18.5% of shares outstanding) of Bell & Howell
 common stock owned by Keystone, Inc., a major shareholder.
     Keystone, a private investment firm controlled by Texas financier Robert
 Bass, informed the Company that it desired such a registration to facilitate
 its own internal financing activities and that it has no present intent to
 sell any shares pursuant to the registration statement.
     "We have no current plans to sell these shares," said J.T. Crandall, vice
 president and chief operating officer for Keystone, Inc.  "This move is done
 simply to improve our liquidity position with respect to certain other
 financial obligations.  We have been and continue to be strong believers in
 the long-term prospects for Bell & Howell -- particularly as it transforms
 more completely to a provider of electronic content to educational and
 business markets."
 
     2001 Outlook and Guidance
     Roemer says ProQuest is on track to achieve revenue and earnings goals for
 continuing operations this year and explained, "We are confident that ProQuest
 will generate $410 to $420 million in revenues for 2001, up 11%-13% from
 $374.4 million in 2000, with operating EBIT growth of 30%-35%.  Additionally,
 we are using the proceeds from the sale of the discontinued businesses and our
 free cash flow to reduce debt, which we expect will decrease to under
 $200 million by year end, down from over $500 million at the end of 2000."
     "Both the number and quality of new products and services initiated by our
 teams reflect the initiative and creativity of our talented staff and the
 value of our franchise in the content marketplace," Roemer concluded.  "We
 look forward to reporting on further progress in building the products already
 launched, and by introducing more new products and services, as the year
 progresses."
     The anticipated sale of the remaining Mail & Messaging business is the
 final step in the Company's strategy to transform itself into a focused
 electronic publisher, providing value-added content to targeted audiences.  In
 light of the pending sale of the Mail & Messaging international business, the
 Company will formally adopt the name of ProQuest Company on June 6 of this
 year.
     "This new name reflects our new business model as an electronic learning
 and electronic publishing company," said Roemer.  "ProQuest will be a focused,
 growing, highly profitable and predictable enterprise providing
 mission-critical information to academic and business customers on a long-term
 subscription basis.  It is our intent to make this new company easy to follow
 and understand for our investors, and easy to do business with for our
 customers.  We're very excited about the many opportunities before us."
 
     Conference Call
     To participate in a review and question and answer session regarding first
 quarter results with Bell & Howell's senior management, call 773-756-4619,
 using the password BHW, at 5:00 p.m. (EST) on Wed., April 18, 2001.  For your
 convenience, the call will be taped and archived until May 18, 2001 and can be
 accessed by calling 402/530-7685.  This conference call may also be accessed
 over the Internet through Vcall at http://www.vcall.com .  To listen to the
 live call, please go to the web site at least fifteen minutes early to
 register, download, and install any necessary audio software.  For those who
 cannot listen to the live broadcast, a replay will be available shortly after
 the call at Vcall's website.
 
     Risk Factors
     Except for the historical information and discussions contained herein,
 statements contained in this release may constitute "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995.  These statements involve a number of risks, uncertainties and other
 factors, including without limitation, the cost and availability of
 intellectual property from third parties, decreases in the ability to attract
 and retain employees for the existing Bell & Howell, obtain capital, including
 interest rate risks, unexpected merger-related effects, timing and market
 conditions relating to the sale of the Mail & Messaging Technologies business
 as well as business execution risk and risk of new competitors, and any
 necessary regulatory approvals, decreases in funding for Internet access as
 well as overall acceptance and usage of the Internet in the education and
 library markets, the availability of free or advertising supported research
 information on the Internet, decreases or shifts in mail volumes, rate of
 acceptance of electronic-based mailings, including effects of and rate of
 acceptance of internet-based solutions, including the automotive business,
 changes in the business services market, changes in the automotive industry,
 and general economic conditions, all of which could cause actual results to
 differ materially, and such other risks as discussed in the Company's filings
 with the Securities and Exchange Commission.
 
     About Bell & Howell
     Headquartered in Ann Arbor, Michigan, Bell & Howell Company (NYSE:   BHW) is
 a leading information solutions and services provider to industries worldwide.
 In each of its businesses, the Company transforms information through software
 and services, helping its customers operate more effectively and efficiently.
 Additional information on Bell & Howell can be found at www.bellhowell.com .
 
     Note to Editors: Bell & Howell's news releases are available on the
 Internet at http://www.prnewswire.com or by fax.  A list of releases, or a
 specific news release, can be obtained by fax by calling toll-free
 800-758-5804, ext. 114098.
 
                             BELL & HOWELL COMPANY
                           SALES AND EARNINGS SUMMARY
                  (Dollars in Millions, Except Per Share Data)
 
                                                        First Quarter
                                                 2001         2000      Better/
                                                                        (Worse)
 
     Net Sales                                  $95.9        $88.6          8%
 
     EBIT (a)                                    14.2          7.5         89%
 
     EBITDA (b)                                  27.8         20.7         34%
 
     Net Interest Expense                         6.1          7.9         23%
 
     Income Tax Expense                           3.2          0.2         NM
 
     Earnings from Continuing Operations (c)     $4.9         $0.2         NM
 
     Earnings per Common Share from
      Continuing Operations (3)
       - Basic                                  $0.21       $(0.01)
       - Diluted                                $0.21       $(0.01)
 
     (a) EBIT is defined as income from continuing operations before gains on
         sale of assets, interest and taxes
     (b) EBITDA is defined as EBIT plus depreciation and amortization
     (c) Excludes net gain on sale of assets, discontinued operations, equity
         interest in loss from bigchalk.com, as displayed below:
 
 
                                                          First Quarter
                                                       2001              2000
 
     Gain on Sale of Assets                           $43.6              $0.8
     Earnings from Discontinued
      Operations:
       Imaging                                         $0.4              $3.0
       Mail and Messaging Technologies                 $0.8              $0.7
     Earnings (Loss) from Equity Interest             $(5.5)            $(3.7)
 
     Earnings (Loss) per Common Share:
 
      from Gain on Sales of Assets:
       - Basic                                        $1.85             $0.03
       - Diluted                                      $1.84             $0.03
 
      from Discontinued Operations:
       Imaging
        - Basic                                       $0.02             $0.13
        - Diluted                                     $0.02             $0.12
 
      from Discontinued Operations:
       Mail and Messaging Technologies
        - Basic                                        $0.03             $0.03
        - Diluted                                      $0.03             $0.03
 
     from Equity Interest:
      - Basic/Diluted                                 $(0.23)           $(0.16)
 
 
                             BELL & HOWELL COMPANY
                           SALES AND EARNINGS DETAIL
                  (Dollars in Millions, Except Per Share Data)
 
                                                         First Quarter
                                                  2001        2000      Better/
                                                                        (Worse)
 
     Net Sales
     Continuing Operations
     Information and Learning                    $55.9        $50.4        11%
     Publishing Services                          40.0         38.2         5%
     Net Sales -- Continuing Operations          $95.9        $88.6         8%
 
     Discontinued Operations (a)                $103.2       $100.6         3%
 
     EBIT (b)
     Continuing Operations
     Information and Learning                     $9.0         $4.7        91%
     Publishing Services                           8.5          6.6        29%
     Corp. / Other                                (3.3)        (3.8)       13%
     EBIT -- Continuing Operations               $14.2         $7.5        89%
 
     Discontinued Operations (a)                  $5.1         $3.0        70%
 
     EBITDA (c)
     Continuing Operations
     Information and Learning                    $20.5        $15.8        30%
     Publishing Services                          10.5          8.3        27%
     Corp. / Other                                (3.2)        (3.4)        6%
     EBITDA -- Continuing Operations             $27.8        $20.7        34%
 
     Discontinued Operations (a)                  $7.5         $5.6        34%
 
     Other Financial Data -- Continuing
      Operations
     Capital Expenditures                        $12.5        $10.1        24%
 
     Net Debt                                   $403.9       $528.4        24%
 
     (a) Discontinued Operations includes MMT only; Imaging has been removed
         from both years as it was sold February 3, 2001
     (b) EBIT is defined as income from continuing operations before gains on
         sale of assets, interest and taxes
     (c) EBITDA is defined as EBIT plus depreciation and amortization
 
 SOURCE  Bell & Howell Company

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