EXHIBIT 99.1


                PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
                        SAFE HARBOR COMPLIANCE STATEMENT
                         FOR FORWARD-LOOKING STATEMENTS

     In passing the Private Securities Litigation Reform Act of 1995 (the
"Reform Act"), 15 U.S.C.A. Sections 77z-2 and 78u-5 (Supp. 1996), Congress
encouraged public companies to make "forward-looking statements" by creating a
safe harbor to protect companies from securities law liability in connection
with forward-looking statements.  National Data Corporation ("NDC" or the
"Company") intends to qualify both its written and oral forward-looking
statements for protection under the Reform Act and any other similar safe harbor
Provisions.

     "Forward-looking statements" are defined by the Reform Act. Generally,
forward-looking statements include expressed expectations of future events and
the assumptions on which the expressed expectations are based. All forward-
looking statements are inherently uncertain as they are based on various
expectations and assumptions concerning future events and they are subject to
numerous known and unknown risks and uncertainties which could cause actual
events or results to differ materially from those projected. Due to those
uncertainties and risks, the investment community is urged not to place undue
reliance on written or oral forward-looking statements of NDC. The Company
undertakes no obligation to update or revise this Safe Harbor Compliance
Statement for Forward-Looking Statements (the "Safe Harbor Statement") to
reflect future developments. In addition, NDC undertakes no obligation to update
or revise forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating results over
time.

     NDC provides the following risk factor disclosure in connection with its
continuing effort to qualify its written and oral forward-looking statements for
the safe harbor protection of the Reform Act and any other similar safe harbor
provisions. Important factors currently known to management that could cause
actual results to differ materially from those in forward-looking statements
include the disclosures contained in the Annual Report on Form 10-K to which
this statement is appended as an exhibit and also include the following:

COMPETITION AND CONSOLIDATION

     The markets for the applications systems and services offered by NDC are
highly competitive. Competition in the health care transaction processing and
payment systems markets affects NDC's ability to gain new customers and the
prices it can charge. The key competitive factors for NDC are functionality of
products, quality of service and price. Some of NDC's competitors have access to
significant capital and management, marketing and technological resources that
are equal to or greater than those of NDC, and there can be no assurance that
NDC will continue to be able to compete successfully with them. In addition, NDC
competes with businesses that internally perform data processing or other
services offered by NDC.

     In addition, there has been and continues to be significant consolidation
in the banking and health care provider industries.  The Company markets its
credit, charge and debit card transaction services through several marketing
channels, including banks.  As a result of consolidation, banks that market the
Company's financial services may be acquired by banks that compete with the
Company or by banks that have a relationship with one or more of the Company's

 
competitors, thereby potentially depriving the Company of a distribution
channel.  The consolidation of health care providers reduces the number of
potential customers for the Company's health care related services and the
increased bargaining power of these larger consolidated organizations could lead
to reductions in the amounts paid for such services.  The overall impact of such
consolidation in the banking and health care industries is difficult to predict
and could have a material adverse effect on the Company's business, financial
condition and results of operations.

MARKETS AND APPLICATIONS

     NDC's future growth and profitability will depend, in part, upon the
further expansion of the health care transaction processing and payment systems
markets, the emergence of other markets for electronic transaction processing
services and NDC's ability to penetrate such markets. Further expansion of these
markets is dependent upon the continued growth in the number of transactions
available to be processed and the continued automation of traditional paper-
based processing systems. NDC's ability to penetrate such markets will depend,
in turn, upon its ability to apply its existing technology, or to develop new
technology, to meet the particular service needs of each new market. There can
be no assurance that markets for NDC's services will continue to expand and
develop or that NDC will be successful in its efforts, or have adequate
financial, marketing and technological resources to penetrate new markets.

HEALTH INFORMATION SERVICES

     Federal and state governments have recently focused significant attention
on health care reform. It is not possible to predict which, if any, proposal
that has been or will be considered will be adopted. There can be no assurance
that the health care regulatory environment will not change so as to restrict
the existing operations of, impose additional requirements on or limit the
expansion of NDC. Costs of compliance with changes in government regulations may
not be subject to recovery by NDC through price increases.

     Significant media and public attention has recently been focused on the
health care industry due to ongoing federal and state investigations purportedly
related to certain referral and billing practices. The Office of the Inspector
General and the Department of Justice have initiated hospital laboratory billing
review projects in certain states and are expected to extend such projects to
additional states, including states in which NDC operates. These projects
increase the likelihood of governmental investigations of hospitals,
laboratories and other institutions for which NDC perform services.  Although
NDC currently monitors billing practices and arrangements to ensure compliance
with prevailing industry practices under applicable laws, such laws are complex
and constantly evolving and there can be no assurance that governmental
investigators will not take positions that are inconsistent with industry
practices, including NDC's practices.

ELECTRONIC COMMERCE BUSINESS

     NDC's direct merchant customers have liability for charges disputed by
cardholders.  However, in the case of merchant fraud, or insolvency or
bankruptcy of the merchant, NDC may be liable for any of such charges disputed
by cardholders.  NDC requires cash deposits and other types of collateral by
certain merchants to minimize any such contingent liability. Based on its
historical loss experience, NDC has established reserves, which management
believes are adequate, for estimated losses on transactions processed. There can

 
be no assurance, however, that such reserves for losses will be adequate. Any
such losses in excess of reserves could have a material adverse effect on the
financial condition and results of operations of NDC.

ACQUISITION RISKS

     NDC completed six acquisitions in fiscal 1998 and intends to seek
additional acquisition opportunities and alliance relationships with other
businesses that will allow it to increase its market penetration, technological
capabilities, product offerings and distribution capabilities. There can be no
assurance that NDC will be able successfully to identify suitable acquisition
candidates, complete acquisitions or expand into new markets. As a result of the
acquisitions of each of Source Informatics Inc. ("Source"), PMSI Database
Holdings Inc. ("PMSI Database") and Physician Support Systems, Inc. ("PHSS"),
NDC is currently devoting significant management and other resources toward the
assimilation of these businesses with NDC, particularly PHSS. There can be no
assurance that NDC will be able to successfully integrate the operations of
acquired businesses into NDC's operations. In addition, there can also be no
assurance that future acquisitions will not have an adverse effect upon NDC's
operating results, particularly in the fiscal quarters immediately following the
completion of such acquisitions while the operations of the acquired business
are being integrated into NDC's operations. Once integrated, acquired operations
may not achieve levels of revenue growth, profitability or productivity
comparable with those achieved by NDC's existing operations, or otherwise
perform as expected. Specifically, with regard to the acquisition of Source,
certain products currently under development may never reach technological
feasibility, which could have a material adverse effect upon NDC's operating
results. NDC may incur indebtedness in the future, including through borrowings
under a credit facility, if a credit facility is available, to finance
acquisitions. As a result, NDC expects to be subject to risks associated with
debt financing, including the risk that interest rates may increase, the risk
that NDC's cash flow will be insufficient to meet required payments on its debt
and the risk that NDC may be unable to refinance or repay the debt as it comes
due. In addition, NDC competes for acquisition and expansion opportunities with
companies that have substantially greater resources.

ANTI-TAKEOVER PROVISIONS OF DELAWARE LAW, CERTAIN CHARTER AND BY-LAW
PROVISIONS AND STOCKHOLDER RIGHTS PLAN

     Certain provisions of NDC's Certificate of Incorporation and By-laws could
delay, defer or prevent a takeover attempt that a stockholder might consider in
its best interest. These provisions may adversely affect prevailing market
prices for NDC Common Stock. These provisions, among other things, classify
NDC's Board of Directors into three classes as nearly equal in number as the
total number of directors permits, each of which serve for different three-year
terms, and authorize the Board of Directors to issue preferred stock in one or
more classes or series and to determine the price, rights, preferences,
privileges and restrictions, including voting rights, of those shares without
any action on the part of the stockholders. The rights of the holders of NDC
Common Stock will be subject to, and may be adversely affected by, the rights of
the holders of any preferred stock that may be issued in the future. The
issuance of preferred stock, while providing desirable flexibility in connection
with possible acquisitions and other corporate purposes, could have the effect
of making it more difficult for a third party to acquire a majority of the
outstanding voting stock of NDC. NDC has no current plans to issue shares of
preferred stock. NDC also maintains a stockholder rights plan which entitles the

 
stockholders of NDC, upon the happening of certain events, to purchase preferred
stock of NDC.  These NDC Rights (hereinafter defined) may have certain anti-
takeover effects because the rights will cause substantial dilution to a person
or group that attempts to acquire NDC on terms not approved by the Board of
Directors of NDC unless the offer is conditioned on a substantial number of NDC
Rights being acquired.  In addition, Section 203 of the Delaware General
Corporation Law (the "DGCL") prohibits certain persons from engaging in business
combinations with NDC, which may also have the effect of delaying, deterring or
preventing a change of control of NDC.


NEW PRODUCT INTRODUCTIONS

     With NDC's acquisition of Source, PMSI Database and PHSS, NDC plans to
introduce products and services different from those NDC has traditionally
provided.  The market for these products and services is characterized by rapid
technological change, frequent new product introductions, evolving industry
standards and changing customer needs.  There can be no assurance that NDC will
be successful in developing and marketing these new products and services or
that current or new products and services of Source and PHSS will adequately
meet the quickly changing demands of their customers.  In addition, in order to
meet its customers' demands, Source and PHSS are continually involved in a
number of development projects, including Source's efforts to update its core
mainframe-based products.  Because it is generally not possible to predict the
time required and costs involved in reaching certain research, development and
engineering objectives, estimated product development schedules could require
extensions.  NDC believes that the future success of its newly acquired
businesses will depend in large part on its ability to maintain and enhance its
current product and service offerings and to continually develop and introduce
new products and services that will keep pace with technological advances and
satisfy evolving customer requirements.  Further, there can be no assurance that
NDC will not experience difficulties that could delay or prevent the successful
development, introduction and marketing of these products and services.  If NDC
is unable to develop and introduce new products and services in a timely manner,
or if a new or updated product does not achieve market acceptance, NDC's
financial condition and results of operations could be materially adversely
affected.

 
YEAR 2000 COMPLIANCE

    The Year 2000 issue is the result of computer programs being written using 
two digits rather than four to define the applicable year. Any of the Company's 
computer programs that have time/date-sensitive software and hardware may 
recognize a date using "00" as the year 1900 rather than the year 2000. This 
could result in a major system failure or miscalculation. The Company presently 
believes that, with modification to existing software and hardware, the Year 
2000 issue will pose no significant operational problems for the Company's 
systems, as so modified and converted.

    The Company has a Program Office to define, evaluate and conduct audits of 
the Company and its progress toward Year 2000 compliance. The Company also has a
Year 2000 Senior Advisory Board comprised of nine members of senior management 
and a Year 2000 Task Force comprised of representatives from various departments
from each of the Company's operating subsidiaries. The Task Force is charged 
with evaluating the Company's Year 2000 effort and regularly reporting results 
to the Program Office. The Senior Advisory Board is charged with evaluating the 
progress reported by the Program Office and addressing any issues as they arise.

    The Year 2000 issue creates risk for the Company from unforeseen problems in
its own computer systems and from third parties upon which the Company relies. 
Accordingly, the Company is requesting assurances from software vendors from 
which it has acquired, or from which it may acquire software, that the software 
will correctly process all data information at all times. In addition, the 
Company is querying its customers and suppliers as to their progress in 
identifying and addressing problems that their computer systems will face in 
correctly processing data information as the Year 2000 approaches and is 
reached. The Company is heavily reliant upon customers in the health care, 
banking and credit card industries. Failure to appropriately address the Year 
2000 issue by a major customer or supplier could have a material adverse effect 
on the financial condition and results of operations of the Company. 
Additionally, if certain Company research and development initiatives are 
delayed due to the Year 2000 compliance efforts, the result could be an adverse 
effect to the Company.

    The Company also relies upon external suppliers to provide certain operating
elements of its business. Some of these providers include telecommunication 
services, computer systems, banks and utility companies. The Company exerts no 
control over the efforts of these companies to become Year 2000 compliant. The 
services provided by these parties are critical to the operations of the Company
and the Company is heavily reliant upon these parties to successfully address 
the Year 2000 issue. Therefore, if any of these parties fail to provide the 
Company with services, the Company's ability to conduct business could be 
materially impacted. The result of such impact may be a material adverse effect 
on the financial condition and results of operations of the Company.