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EARNINGS

August 21, 1996

CompuServe said it lost $17.1 million from operations in its fiscal first quarter, more than Wall Street forecasters expected, and said it was cutting jobs and some other costs. The second-biggest online company had forecast a loss several weeks ago, noting a decline in subscribers, lower revenue per subscriber and higher expenses. It said it was taking steps to eliminate $20 million in expenses by the end of the year, including selling a portion of its Internet division, closing some offices and restructuring contracts. The steps also eliminate 150 jobs, about 4% of its work force. For the quarter, the loss amounted to 19 cents per share in the three months ended July 31. Including an after-tax charge of $12.5 million for the cost of the job eliminations and asset sales, CompuServe lost $29.6 million, or 32 cents per share. A year ago, CompuServe earned $26.8 million, or 36 cents a share, in the same period.

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