Thursday, February 6, 1997

Ontrack announces record fourth quarter and year-end financial results

Ontrack Data International, Inc. (Nasdaq: ONDI) today announced record results for the fourth quarter and year ended December 31, 1996. Revenues for the fourth quarter increased to a record $8,190,000, or 52% above revenues of $5,394,000 in the fourth quarter of 1995.  Net income for the fourth quarter grew 91% to $1,168,000, from $613,000 in the same period a year ago.  Fourth quarter earnings per share grew 50% to $.12, based on 9,534,374 weighted average shares outstanding, from $.08 in the fourth quarter of 1995, based on 7,794,457 weighted average shares outstanding.

Revenues for the year ended December 31, 1996 increased to a record $26,763,000, or 56% above revenues of $17,145,000 for 1995.  Net income for 1996 grew 42% to $3,124,000, from $2,205,000 in 1995.   1996 earnings per share grew 36% to $.38 in the current year, based on 8,219,181 weighted average shares outstanding, from $.28 in 1995, based on 7,794,457 weighted average shares outstanding.

Fourth quarter service revenues increased 73% to $6,483,000, while annual service revenues increased 63% to $19,654,000 for the year ended 1996.  Fourth quarter software revenues increased 4% to $1,707,000, while annual software revenues increased 39% to $7,109,000 for the year ended 1996.  Ontrack recently celebrated the shipment of the 25 millionth copy of Disk Manager, its best selling disk installation utility.

"We are pleased with our fourth quarter and overall 1996 financial performance," said Mike Rogers, Chairman and CEO of Ontrack.  "Underlying these accomplishments is our increased global presence, our investment in research and development, and our commitment to existing and new sales, marketing, and service distribution channels.  We continue to believe that our ongoing mission, as the world's leading provider of data recovery services, is to educate potential customers that data recovery is a viable solution to the inevitable occurrence of data loss."

Ontrack took steps during the quarter to strengthen its leadership position in the worldwide data recovery market.  In November, Ontrack opened a new office in Stuttgart, Germany, which complements Ontrack's existing European presence in London.  Ontrack also leveraged its data recovery expertise with the introduction of the Computer Evidence Services program, a new service aimed at the legal community.

Ontrack Data International, Inc. is a leading vendor of services and software designed to maximize the integrity and security of hard disk drive data.  Ontrack's wholly-owned subsidiary, Ontrack Data Recovery, Inc., specializes in recovering lost or corrupted data from any hard drive or alternative storage device that has fallen victim to a hardware or system malfunction, human error, computer virus, natural disaster or computer crime. Understanding that time is critical, Ontrack offers emergency, weekend, on-site and priority service to help users avoid expensive downtime. Ontrack is headquartered at 6321 Bury Drive, Minneapolis, Minnesota 55346, and can be reached by phone at 800-872-2599 (612-937-5161) and via the Internet at www.ontrack.com.  In addition to its Minneapolis location, Ontrack also operates data recovery labs in Los Angeles, Washington, D.C., Tokyo, London and Stuttgart.

Statements in this release concerning Ontrack's future prospects are "forward-looking statements" under the Federal securities laws.  There can be no assurance that future results will be achieved, and actual results could differ materially from forecasts, estimates, and summary information contained in this press release.  Important factors that could cause actual results to differ materially are included but are not limited to those listed in Ontrack's prospectus dated October 21, 1996.

#####