Daily Journal Corporation Announces Preliminary Financial Results for the Six Months Ended March 31, 2014

Daily Journal Corporation Announces Preliminary Financial Results for the Six
Months Ended March 31, 2014

LOS ANGELES, May 12, 2014 (GLOBE NEWSWIRE) -- Daily Journal Corporation
(Nasdaq:DJCO) today announced preliminary financial results for the six months
ended March 31, 2014. The results are preliminary because the Company's
independent registered public accounting firm, Ernst & Young, LLP, has not
completed its audit of the Company's financial statements or its audit of the
Company's internal control over financial reporting for the fiscal year ended
September 30, 2013. Accordingly, the Company is not yet able to file with the
Securities and Exchange Commission its Form 10-K for fiscal 2013 or its Forms
10-Q for the first and second quarters of fiscal 2014 and is announcing these
preliminary results to provide the market with important information about the
Company's performance for the six months ended March 31, 2014. Meanwhile,
NASDAQ has granted the Company an exception to regain compliance with its
listing rules by June 30, 2014 provided that all required reports are filed by
then.

Consolidated revenues were $20,779,000 and $17,446,000 for the six months
ended March 31, 2014 and 2013, respectively. This increase of $3,333,000 (19%)
was primarily from additional New Dawn (acquired in December 2012) and ISD
(acquired in September 2013) revenues of $5,833,000, partially offset by a
reduction in trustee sale notice and related service fee revenues of
$2,548,000, which is consistent with the recent trend in those revenues.

During the six months ended March 31, 2014, the Company had a consolidated
pretax loss of $473,000 as compared to pretax income of $2,925,000 in the
prior year period. This was a decrease in profits of $3,398,000 that included
$1,983,000 of additional amortizations of intangible acquisition costs. The
Company's traditional business segment pretax income decreased by $2,875,000
(56%) to $2,293,000 from $5,168,000, primarily resulting from the reduction in
trustee sale notice and related service fee revenues. The Company's technology
business segment had a pretax loss of $2,766,000 compared to $2,243,000 in the
prior year period. The expenses in the 2014 period included $2,618,000 of
intangible amortization expenses related to the two acquisitions.

At March 31, 2014, the Company held marketable securities valued at
$168,028,000, including unrealized gains of $120,051,000. It accrued a
liability of $46,917,000 for income taxes due only upon the sales of the net
appreciated securities. The marketable securities consist of common stocks of
three Fortune 200 companies, two foreign companies and certain bonds of a
sixth, and most of the unrealized gains were in the common stocks.

Comprehensive income includes net (loss) income and unrealized net gains on
investments, net of taxes, as summarized below:

Comprehensive Income
                                                    Six months ended March 31
                                                    2014          2013
                                                                 
Net (loss) income                                    $ (373,000) $ 1,985,000
Net change in unrealized appreciation of investments 18,725,000   10,915,000
(net of taxes)
Comprehensive income                                 $18,352,000   $12,900,000

During the six months ended March 31, 2014, there was a preliminary
consolidated net loss of $373,000 versus net income of $1,985,000 for the six
months ended March 31, 2013. The preliminary net loss per share was $.27 as
compared with net income of $1.44 per share in the prior year period.

Financial Information for the Company's Reportable Segments

                                Traditional  The Technology 
                                  business     Companies*     Total
Six months ended March 31, 2014                             
Revenues                          $9,997,000  $ 10,782,000  $ 20,779,000
Income (loss) from operations     1,134,000    (2,817,000)   (1,683,000)
Pretax income (loss)              2,293,000    (2,766,000)   (473,000)
Income tax (expense) benefit      (1,190,000) 1,290,000      100,000
Net income (loss)                 1,103,000    (1,476,000)   (373,000)
Amortization of intangible assets  ---    2,618,000     2,618,000
                                                           
                                 Traditional  Sustain &      
                                  business     New Dawn**     Total
Six months ended March 31, 2013                             
Revenues                          $12,439,000 $5,007,000   $17,446,000
Income (loss) from operations     4,122,000    (2,264,000)   1,858,000
Pretax income (loss)              5,168,000    (2,243,000)   2,925,000
Income tax (expense) benefit      (1,660,000) 720,000        (940,000)
Net income (loss)                 3,508,000    (1,523,000)   1,985,000
Amortization of intangible assets ---         635,000       635,000

* Included (i) New Dawn's financial results with revenues of $4,298,000 and
expenses of $6,115,000 (including intangible amortization expenses of
$950,000) and (ii) ISD's financial results with revenues of $5,224,000 and
expenses of $4,113,000 (including intangible amortization expenses of
$1,668,000).

** Included New Dawn's financial results from December 5, 2012 through March
31, 2013 with revenues of $3,690,000 and expenses of $4,046,000 (including
intangible amortization expenses of $635,000).

These preliminary results are based on management's review of operations for
the six months ended March 31, 2014 and remain subject to the completion of
our auditor's review.

Daily Journal Corporation publishes newspapers and web sites covering
California and Arizona, as well as the California Lawyer magazine, and
produces several specialized information services. Sustain Technologies, Inc.,
New Dawn Technologies, Inc. and ISD Technologies, Inc. are wholly-owned
subsidiaries and supply case management software systems and related products
to courts and other justice agencies.

This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Certain statements contained in
this press release are "forward-looking" statements that involve risks and
uncertainties that may cause actual future events or results to differ
materially from those described in the forward-looking statements. Words such
as "expects," "intends," "anticipates," "should," "believes," "will," "plans,"
"estimates," "may," variations of such words and similar expressions are
intended to identify such forward-looking statements. We disclaim any
intention or obligation to revise any forward-looking statements whether as a
result of new information, future developments, or otherwise. Although we
believe that the expectations reflected in such forward-looking statements are
reasonable, we can give no assurance that such expectations will prove to have
been correct. Additional information concerning factors that could cause
actual results to differ materially from those in the forward-looking
statements is contained from time to time in documents we file with the
Securities and Exchange Commission.

CONTACT: Tu To
         (213) 229-5436
 
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