<ARTICLE> 5 <LEGEND> Note: This schedule contains summary financial information extracted from the Form 10-K for the Year Ended December 31, 1998 and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 0001027574 <NAME> Outsourcing Solutions Inc. and Subsidiaries <MULTIPLIER> 1,000 <PERIOD-TYPE> Year <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 31,186 <SECURITIES> 0 <RECEIVABLES> 42,033 <ALLOWANCES> 1,309 <INVENTORY> 35,057 <CURRENT-ASSETS> 115,744 <PP&E> 66,565 <DEPRECIATION> 26,248 <TOTAL-ASSETS> 618,491 <CURRENT-LIABILITIES> 114,949 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 12,167 <COMMON> 53 <OTHER-SE> 0 <TOTAL-LIABILITY-AND-EQUITY> 618,491 <SALES> 0 <TOTAL-REVENUES> 479,400 <CGS> 0 <TOTAL-COSTS> 451,712 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 50,627 <INCOME-PRETAX> (22,939) <INCOME-TAX> 830 <INCOME-CONTINUING> (23,769) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> (572) <NET-INCOME> (24,341) <EPS-PRIMARY> 0 <EPS-DILUTED> 0