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 TRACK DATA REPORTS FOURTH QUARTER AND ANNUAL RESULTS

 

Brooklyn, New York – March 29, 2007 – Track Data Corporation (Nasdaq: TRAC) today announced results for its fourth quarter and year ended December 31, 2006.

 

Revenues for the fourth quarter ended December 31, 2006 were $9,144,000 compared to $8,709,000 for the same period in 2005, an increase of 5%.  Net loss for the fourth quarter of 2006 was $(290,000), or $(.03) per share, compared to net income of $256,000, or $.03 per share, for the comparable period in 2005.  The 2005 period includes an after-tax gain of $247,000, or $.03 per share, from the sale of investments in private companies.  The increased revenues were principally attributable to Track ECN. However, these increased revenues are realized with very little profit margin. Until the end of October 2006, Track ECN conducted its business on the Nasdaq trading platform.  Track ECN has since moved its business to the Alternative Display Facility (ADF) and the National Stock Exchange (NSX). Management cannot determine how these moves will affect revenues in the long-term, but it has resulted in short term declines in revenue. The Company continues to experience declines in revenues from its market data services to the professional market. Management expects this trend to continue through 2007, negatively impacting revenues and profits. One customer, with monthly revenues of approximately $90,000, cancelled a customized market data service in March, 2007.

 

Revenues for the year ended December 31, 2006 were $41,986,000 compared to $36,094,000 for the same period in 2005, an increase of 16%. Net income for the year ended December 31, 2006 was $1,549,000, or $.18 per share, compared to a net loss of $(37,000), or $(.00) per share, for the comparable period in 2005.  The 2006 and 2005 periods include after-tax gains of $1,066,000, or $.13 per share, and $887,000, or $.10 per share, respectively, from the sale of Innodata and Edgar Online common stock and investments in private companies.  The 2005 period also includes after-tax income of $369,000, or $.04 per share, from telecommunications credits and the reversal of a judgment on sales taxes assessed.  The increase in revenues was attributable to the ECN and was due principally to the factors set forth above. 

 

Track Data is a New York-based financial services company that provides direct access brokerage, real-time financial market data, news, and research to institutional and individual investors through dedicated telecommunication lines and the Internet.

 

For professional investors, Track Data Securities offers proTrack, a direct access trading platform with fully integrated market data.  proTrack offers unbiased trade routing, allowing clients control over where their orders are sent.  proTrack is also available to broker-dealers under a service bureau arrangement as an execution platform.

 

The Company also owns and operates the Track ECN, an electronic communications network that allows traders to display and match limit orders for stocks. Track ECN offers subscribers the highest published rebate in the industry.

 

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For individual investors, Track Data Securities offers myTrack and myTrackPro, both fully integrated, Internet-based online trading and market data systems. Each platform offers direct access online trading, allowing users the choice of where to route their equity and options orders. myTrack and myTrackPro offer continuous, dynamic streams of live market data powered by application-based software and a constant server connection similar to systems used by professionals.

 

For all investors, the Company’s NewsWare division offers NewsWatch, a PC-based application that aggregates news from thousands of sources.  Featuring real-time full text filtering and complex queries, its real-time alerting functions allow users to choose topics of interest and be among the first to know when news breaks.

 

For additional information, please contact Rafi Reguer, Vice President, Corporate Communications, at
718-522-0222 or by e-mail: rafi_reguer@trackdata.com.

 

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The words "believe," "expect," "plan," "anticipate" and other similar expressions generally identify forward-looking statements.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.  These forward-looking statements are based largely on the Company's current expectations and are subject to a number of risks and uncertainties, including without limitation, volatility in the stock market, changes in external market factors including the economy, changes in the Company's business or growth strategy or an inability to execute its strategy due to changes in its industry and other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Forms 10-K, 8-K, 10-Q, S-3 and S-8.  Actual results could differ materially from the results referred to in the forward-looking statements.

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