REY Reynolds Reynolds A

President and CEO Fin O'Neill says Reynolds has "opportunity for sustained, profitable growth" DAYTON, Ohio, June 15 /PRNewswire-FirstCall/ -- The Reynolds and Reynolds Company (NYSE:REY) today announced that its shareholders re-elected Cleve Killingsworth; Finbarr O'Neill and Renato Zambonini to the Reynolds board of directors at the company's annual meeting of shareholders. The meeting was held at Reynolds' Research Park headquarters in Dayton, Ohio. Killingsworth is president and chief executive officer of Blue Cross Blue Shield of Massachusetts. He joined the Reynolds board in 1997. O'Neill, Reynolds' president and CEO, joined the board in 2005. Zambonini, who has been a Reynolds director since 2003, is chairman of the board of Cognos Incorporated. Shareholders also ratified the re-appointment of Deloitte & Touche LLP as the company's independent registered public accounting firm. In his remarks at the meeting, O'Neill said that the company has obtained new insight into areas where dealers and department managers are looking for answers through a process called "dealer-led ideation." "Being market-driven means asking our customers what they value. We talk to them about the outcomes they want to achieve -- what they are trying to accomplish -- not simply the products they use to do their jobs. For us, the important question is, how can we help them achieve those outcomes?" O'Neill said that the company's cornerstone for growth is the REYNOLDSYSTEM(TM), its integrated, dealer-driven approach to bringing the right set of experienced people, proven practices, and comprehensive solutions to dealers. "I am convinced, and our market research shows, that Reynolds has an opportunity for sustained, profitable growth. The market is clearly underserved in several areas. Dealers are willing to spend for products and services that have a demonstrable return on investment," he said. Greg Geswein, senior vice president and chief financial officer, also addressed shareholders at the meeting. Geswein reiterated the guidance the company provided in its June 8 earnings release for the company's first and second fiscal quarters. The guidance excludes the impact of any future acquisition (such as the proposed acquisition of DCS Group PLC announced May 24) or divestiture. For the third quarter ending June 30, the company expects earnings per diluted Class A common share to be between $0.39 and $0.42. As announced June 8, for the 2006 fiscal year (which ends September 30), the company anticipates: - Revenues will be approximately 2% higher than in 2005 (using GAAP basis comparisons) - Earnings per diluted Class A common share for the year will be approximately $1.55 to $1.60 (including the benefit of the accounting change related to stock compensation). - Operating margins will be in the mid teens. - Net capital expenditures will range from $15 million to $20 million. - Depreciation and amortization will total approximately $27 million. - Research and development expenses will range from approximately $75 million to $80 million. - Its tax rate will be approximately 40%. Cautionary Notice Regarding Forward-Looking Statements Certain statements contain forward-looking statements, including statements relating to results of operations. These forward-looking statements are based on current expectations, estimates, forecasts and projections of future company or industry performance based on management's judgment, beliefs, current trends and market conditions. Actual outcomes and results may differ materially from what is expressed, forecasted or implied in any forward-looking statement. Forward-looking statements made by the company may be identified by the use of words such as "will," "expects," "intends," "plans," "anticipates," "believes," "seeks," "estimates," and similar expressions. Forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict, including the following: the timing of the initiation, progress or cancellation of significant contracts or arrangements, the mix and timing of services sold in a particular period; competitive factors; the inability to attract sufficient customers in new markets; general economic and business conditions. These and other factors that could cause actual results to differ materially from those expressed or implied are discussed under "Risk Factors" in the Business section of our most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission. The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. About Reynolds Reynolds and Reynolds (http://www.reyrey.com/) helps automobile dealers sell cars and take care of customers. Serving dealers since 1927, it is a leading provider of dealer management systems in the U.S. and Canada. The Company's award-winning product, service and training solutions include a full range of retail Web and Customer Relationship Management solutions, e-learning and consulting services, documents, data management and integration, networking and support and leasing services. Reynolds serves automotive retailers and OEMs globally through its incadea solution and a worldwide partner network, as well as through its consulting practice. DATASOURCE: The Reynolds and Reynolds Company CONTACT: Media, Mark Feighery, +1-937-485-8107, or , or Investors, John E. Shave, +1-937-485-1633, or , both of The Reynolds and Reynolds Company Web site: http://www.reyrey.com/

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