Reynolds and Reynolds Provides Updates

DAYTON, Ohio, Jan. 10, 2006 -- The Reynolds and Reynolds Company today announced that it has obtained waivers from all of its bank lenders through March 31, 2006, in connection with the company's previously announced delay in filing its annual report on Form 10-K for the fiscal year ended September 30, 2005.

Reynolds announced December 15 that it expected to receive the waivers.

As also announced on December 15, the delay has resulted from the company's review of its revenue recognition policy in response to comments received from the SEC Staff. The company plans to file its 2005 10-K when the review is complete and its financial statements are prepared and audited.

Reynolds also announced today that it expects to delay release of results for the quarter ended December 31, 2005, until the completion of the 2005 10- K. As a result, the company expects to delay its regularly scheduled earnings conference call and the filing of its Form 10-Q for the first fiscal quarter ended December 31, 2005. Because of the ongoing revenue recognition policy review and the response to SEC Staff comments, the company is unable to estimate when the process will be completed and the filings made.

As previously announced, the company will seek necessary waivers from its public bond holders for its $100 million public debt or, if necessary, will consider defeasance of such debt. The company continues to believe that its cash balances of $133 million as of September 30, 2005, and approximately $170 million as of December 31, 2005, would be sufficient to defease its $100 million public debt, if necessary.

About Reynolds

Reynolds and Reynolds (www.reyrey.com) helps automobile dealers sell cars and take care of customers. Serving dealers since 1927, it is the leading provider of dealer management systems in the U.S. and Canada. Reynolds ranked first among major DMS providers in the most recent study of dealership satisfaction by the National Automobile Dealers Association. 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. Seventy of the Ward's Dealer Business e- Dealer 100 leaders rely on Reynolds Web Solutions to manage their presence on the Internet. Reynolds serves automotive retailers and OEMs globally through its incadea solution and a worldwide partner network, as well as through its consulting practice.