<PAGE>
-------------------------------------------------------------------------------
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, DC 20549
                            --------------------

                                  Form 10-Q

           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
          THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED
                                MARCH 31, 1997

                        COMMISSION FILE NO.: 000-22035
                        ------------------------------

                       METRO INFORMATION SERVICES, INC.
            (Exact name of registrant as specified in its charter)


          VIRGINIA                               54-1112301
  (State of incorporation)         (I.R.S. Employer Identification Number)

POST OFFICE BOX 8888 VIRGINIA BEACH, VIRGINIA                         23450
(Address of principal executive office)                            (Zip Code)

                                  (757)486-1900
              (Registrant's telephone number, including area code)

    Indicate by check mark whether the registrant has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the preceding 12 months (or for such shorter period that the 
registrant was required to file such reports), and has been subject to the 
filing requirements for the past 90 days. Yes/x/ No/ /

    As of May 1, 1997, the registrant had issued and outstanding 14,800,000 
shares of Common Stock, $.01 par value.

-------------------------------------------------------------------------------

<PAGE>
                        METRO INFORMATION SERVICES, INC.
                                   FORM 10-Q

                               Table of Contents

                                                                         Page
                                                                        Number
                                                                       --------

PART I.     FINANCIAL INFORMATION:
ITEM 1.     Balance Sheets as of December 31, 1996 and March 31,
            1997 (unaudited)                                               3

            Statements of Income for the Three Months Ended March
            31, 1996 and 1997 (unaudited)                                  4

            Statements of Cash Flows for the Three Months Ended
            March 31, 1996 and 1997 (unaudited)                            5

            Statements of Changes in Redeemable Common Stock And
            Shareholders' Equity for the Three Months Ended March
            31, 1997 (unaudited)                                           6

            Notes to Financial Statements (unaudited)                      7

ITEM 2.     Management's Discussion and Analysis of Financial
            Condition and Results of Operations                            8

PART II.    OTHER INFORMATION                                             13

SIGNATURES                                                                14

                                       2
<PAGE>



PART I. FINANCIAL INFORMATION:

ITEM 1. Financial Statements

                        METRO INFORMATION SERVICES, INC.
                          Balance Sheets (unaudited)

                                             December 31,     March 31,
In thousands                                     1996            1997
Assets                                       -------------    ----------
Current assets:
  Cash and cash equivalents..........           $   157         $22,358
  Accounts receivable, net...........            16,666          19,923
  Prepaid expenses...................               112             258
  Deferred income taxes (Note 2).....                --             515
                                                -------         -------
    Total current assets.............            16,935          43,054
Property and equipment, net..........             4,070           4,351
Other assets.........................               567             102
                                                -------         -------
    Total assets.....................           $21,572         $47,507
                                                -------         -------
Liabilities and Shareholders' Equity
Current liabilities:
  Line of credit facilities..........            $2,547         $    --
  Accounts payable...................             1,146           2,706
  Accrued compensation and benefits..             6,874           7,489
                                                -------         -------
    Total current liabilities........            10,567          10,195
                                                -------         -------
Deferred income taxes (Note 2).......                --             312
                                                -------         -------
    Total liabilities................            10,567          10,507
                                                -------         -------
Redeemable common stock..............             2,651              --
Shareholders' equity
  Preferred stock, $0.01 par value; 
    authorized 1,000,000 shares; none 
    issued and outstanding...........                --              --

  Common stock, $0.01 par value, 
    authorized 50,000,000 shares;
    issued and outstanding 8,768,239 
    shares at December 31, 1996, 
    14,800,000 shares at 
    March 31, 1997...................                88             148
  Paid in capital....................                --          35,754
  Retained earnings..................             8,266           1,098
                                                -------         -------
    Total shareholders'equity........             8,354          37,000
                                                -------         -------
      Total liabilities and 
        shareholders' equity.........           $21,572         $47,507
                                                -------         -------
                                                -------         -------
See accompanying notes to financial statements

                                     3
<PAGE>
                        METRO INFORMATION SERVICES, INC.
                        Statements of Income (unaudited)

                                                               Three months
                                                             ended March 31,
                                                           --------------------
In thousands, except per share data                           1996       1997
                                                           ---------  ---------
Revenue........................................            $  26,328  $  33,045
Cost of revenue................................               18,602     23,318
                                                           ---------  ---------
  Gross profit.................................                7,726      9,727
Selling, general and administrative expenses...                5,619      6,986
                                                           ---------  ---------
  Operating income.............................                2,107      2,741
Interest income (expense)......................                  (86)       104
                                                           ---------  ---------
  Income before income taxes...................                2,021      2,845
Income taxes (Note 2)..........................                   --      1,013
                                                           ---------  ---------
  Net income (Note 2)..........................            $   2,021  $   l,832
                                                           ---------  ---------
                                                           ---------  ---------
Pro forma income data:
  Income before income taxes...................                2,021      2,845
  Provision for income taxes...................                  808      1,013
                                                           ---------  ---------
  Net income...................................                1,213      1,832
                                                           ---------  ---------
                                                           ---------  ---------
Net income per share (Note 2)..................            $    0.09  $    0.13
                                                           ---------  ---------
                                                           ---------  ---------
Weighted average number of shares of common 
  stock and common stock equivalents
  outstanding.................................                12,832     14,033
                                                           ---------  ---------
See accompanying notes to financial statements

                                       4
<PAGE>
                        METRO INFORMATION SERVICES, INC.
                       Statements of Cash Flows (unaudited)
<TABLE>
<CAPTION>
                                                                               Three months
                                                                              ended March 31,
                                                                     ---------------------------------
<S>                                                                  <C>                 <C>          
                                                                            1996             1997
                                                                     ------------------  -------------
Cash flows from operating activities:
  Net Income........................................................  $ 2,020,997           $ 1,831,872
  Adjustments to reconcile net income to net 
    cash provided by operating activities:
    Depreciation....................................................      162,564               238,744
    Net loss on sale of property and equipment......................          305                37,114
    Changes in assets and liabilities 
     increasing (decreasing) cash:
       Accounts receivable..........................................   (1,409,081)           (3,257,575)
       Notes receivable.............................................      413,697                   --
       Prepaid expenses.............................................     (221,996)            (145,620)
       Accounts payable.............................................      253,260              343,416
       Current taxes payable........................................           --            1,216,354
       Deferred taxes...............................................           --             (203,313)
       Accrued compensation and benefits............................    1,436,200              615,732
                                                                     -----------           -----------
       Net cash provided by operating activities....................    2,655,946              676,724
                                                                     -----------           -----------
Cash flows from investing activities:
  Acquisition of property and equipment.............................     (488,886)            (565,115)
  Proceeds from sale of property and equipment......................           --                8,420
  Increase in other assets..........................................     (102,727)              (7,136)
                                                                     -----------           -----------
       Net cash used in investing activities........................     (591,613)            (563,831)
                                                                     -----------           -----------
Cash flows from financing activities:
  Net borrowings (repayments) under line of credit..................  (1,761,132)           (2,547,388)
  Decrease in other assets related to issuance of 2,300,000 shares..          --               471,849
  Proceeds from issuance of 2,300,000 shares........................          --            33,162,735
  Distributions to shareholders.....................................          --            (9,000,000)
                                                                     -----------           -----------
       Net cash received (used) by financing activities.............  (1,761,132)           22,087,196
                                                                     -----------           -----------
Net increase in cash................................................     303,201            22,200,089

Cash at beginning of period.........................................     116,835               157,372
                                                                     -----------           -----------
Cash at end of period...............................................  $   420,036           $22,357,461
                                                                     -----------           -----------
                                                                     -----------           -----------
Supplemental disclosure of cash flow information - 
  Cash paid for interest............................................ $   104,692          $     31,757
                                                                     -----------           -----------
                                                                     -----------           -----------
</TABLE>
 
    See accompanying notes to financial statements.
 
                                       5
<PAGE>
                        METRO INFORMATION SERVICES, INC.
 
Statements of Changes in Redeemable Common Stock and Shareholders' Equity
(unaudited)
 
<TABLE>
<CAPTION>
                                  Redeemable                                 Shareholders' Equity
                           -------------------------  ---------------------------------------------------------------------
                                 Common Stock              Common Stock
                           -------------------------  -------------------------    Paid in        Retained
                             Shares        Amount        Shares       Amount       Capital         Earning         Total
                           -----------  ------------  ------------ ------------  -------------  ------------  -------------
<S>                        <C>          <C>           <C>           <C>         <C>            <C>           <C>
Balance as of December
  31, 1996...............    3,731,761  $  2,650,893     8,768,239  $   87,682  $          --  $  8,266,480  $   8,354,162
Release of redemption
  feature on redeemable
  common stock...........   (3,731,761)   (2,650,893)    3,731,761      37,318      2,613,575            --       2,650,893
Distributions paid.......           --            --            --          --             --    (9,000,000)    (9,000,000)
Net proceeds from
  issuance of 2,300,000
  shares of common
  stock..................           --            --     2,300,000      23,000     33,139,735            --     33,162,735
Net income...............           --            --            --          --             --     1,831,872      1,831,872
                           -----------  ------------  ------------  ----------  -------------  ------------  -------------
Balance as of March 31,
  1997...................           --  $         --    14,800,000  $  148,000  $  35,753,310  $  1,098,352  $  36,999,662
                           -----------  ------------  ------------  ----------  -------------  ------------  -------------
                           -----------  ------------  ------------  ----------  -------------  ------------  -------------
</TABLE>
See accompanying notes to financial statements.

                                       6

<PAGE>
                        METRO INFORMATION SERVICES, INC.
                         Notes to Financial Statements
                                  (unaudited)
 
1. Basis of Presentation
 
    The information presented for March 31, 1996 and 1997, and for the 
three-month periods then ended, is unaudited, but, in the opinion of the 
Company's management, the accompanying unaudited financial statements contain 
all adjustments (consisting only of normal recurring adjustments) which the 
Company considers necessary for the fair presentation of the Company's 
financial position as of March 31, 1997 and the results of its operations and 
its cash flows for the three-month periods ended March 31, 1996 and 1997. The 
financial statements included herein have been prepared in accordance with 
generally accepted accounting principles and the instructions to Form 10-Q 
and Rule 10-01 of Regulation S-X. Accordingly, certain information and 
footnote disclosures normally included in financial statements prepared in 
accordance with generally accepted accounting principles have been condensed 
or omitted. These financial statements should be read in conjunction with the 
Company's audited financial statements for the year ended December 31, 1996, 
which were included as part of the Company's Annual Report on Form 10-K (File 
No. 000-22035) and in conjunction with the Company's Registration Statement 
on Form S-1 (Registration No. 33-16585) declared effective by the Commission 
on January 29, 1997.
 
    Results for the interim period presented are not necessarily indicative 
of results that may be expected for the entire year.
 
2. Income Taxes and Pro Forma Income Taxes
 
    Before January 1, 1997, the Company, with the consent of its 
shareholders, was taxed under the provisions of Subchapter S of the Internal 
Revenue Code of 1986, which provides that in lieu of corporate income taxes, 
the shareholders of the S Corporation are taxed on their proportionate share 
of the Company's taxable income. Therefore, pro forma income taxes shown for 
periods ending in 1996 represent the estimated amount of income taxes the 
Company would have reported had the Company been a C Corporation for that 
period taxable at an assumed effective tax rate of 40%.
 
    Effective January 1, 1997, the Company terminated its S Corporation 
election and became a C Corporation subject to corporate income taxes. The 
cumulative effect of this change, through March 31, 1997, is to reduce income 
taxes appearing on the Statement of Income for the three months ended March 
31, 1997 by $125,000 and create a current deferred tax asset of $515,000 and 
a long-term deferred tax liability of $312,000. The balances of the deferred 
tax accounts relate primarily to differences in the timing of deductions of 
health care claims reserves, vacation liabilities and depreciation for 
financial statement and tax purposes.
 
3. Initial Public Offering
 
    On January 29, 1997, the Company consummated an initial public offering 
of 3,100,000 shares of its Common Stock at a price of $16.00 per share, of 
which 2,300,000 shares were issued and sold by the Company and 800,000 shares 
were sold by a shareholder of the Company. Shortly thereafter the 
representatives of the several underwriters exercised their over-allotment 
option resulting in the sale of 465,000 shares by other shareholders of the 
Company. The net proceeds to the Company from the offering were approximately 
$33,163,000. The Company did not receive any proceeds from the sale of shares 
by the selling shareholders.
 
4. Subsequent Event
 
    On April 30, 1997 the Company's lenders extended the expiration date for 
the Company's three credit facilities, with availability of $17,000,000, to 
May 31, 1997. The Company has received commitments to expand these lines of 
credit to $39,900,000.
 
                                       7
<PAGE>
PART I
ITEM 2:
 
                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
Cautionary statement under the "Safe-Harbor" provisions of the [Initial]
Private Securities Litigation Reform Act of 1995: Included in this report and 
other information presented by management from time to time, including, but 
not limited to, the Annual Report to Shareholders, quarterly shareholder 
letters, filings with the Securities and Exchange Commission, news releases 
and investor presentations, are forward-looking statements about business 
strategies, market potential, future financial performance and other matters 
which reflect management's expectations as of the date of this report. 
Without limiting the foregoing, the words "believes," "anticipates," "plans," 
"expects," and similar expressions are intended to identify forward-looking 
statements. There are a number of important factors that could cause the 
Company's actual results to differ materially from those indicated by such 
forward-looking statements. These factors include, without limitation: the 
Company's ability to attract, develop and retain qualified consultants, the 
Company's ability to open new offices, the Company's ability to effectively 
identify, manage and integrate acquisitions, changes in staff utilization and 
productivity rates, the Company's ability to acquire or develop additional 
service offerings, client decisions to reduce or increase IT services 
outsourcing, early termination of client contracts without penalty, changes 
in the Company's dependence on significant clients, changes in gross margins 
due to a variety of factors, the types of services performed by the Company 
during a particular period and competition. Please refer to a discussion of 
these and other factors in the Company's Prospectus dated January 29, 1997, 
the Company's Annual Report on Form 10-K and other Securities and Exchange 
Commission filings. The Company disclaims any intent or obligation to update 
publicly these forward-looking statements, whether as a result of new 
information, future events or otherwise.
 
                                  Overview
 
    Metro Information Services, Inc. ("Metro" or the "Company") provides a 
wide range of information technology ("IT") consulting and custom software 
development services through 25 offices in the United States and Puerto Rico. 
The Company's more than 1,350 consultants, 66% of whom are salaried, work 
with clients' internal IT departments on all aspects of computer systems and 
applications development. Services performed by Metro include application 
systems development and maintenance, IT architecture and engineering, systems 
consulting, project outsourcing and general support services. The Company 
supports all major computer technology platforms (mainframe, mid-range, 
client/server and network environments) and supports client projects using a 
broad range of software applications. For example, the Company implements 
SAP's client/server software, custom develops Oracle, Informix, DB2, 
VisualBasic and C++ applications, implements and supports Windows NT, Novell 
and UNIX based network environments and supports numerous other application 
environments.
 
    Metro's clients operate in a wide variety of industries including 
communications, distribution, financial services, health care, information 
technology, manufacturing and utilities. The Company emphasizes long-term 
relationships with its clients rather than one-time projects or assignments. 
During the 12 months ended March 31, 1997, the Company performed IT services 
for 341 clients (excluding clients that generated less than $25,000 in 
revenue during such period).
 
    Revenue growth is derived primarily from increases in the number of 
consultants placed with existing and new clients. Between March 31, 1996 and 
March 31, 1997, the number of full time consultants grew from 1,103 to 1,358. 
In addition, over the same period the Company has increased the average 
billing rates charged to clients for consultants in an attempt to keep pace 
with the increased costs of consultants.
 
    The Company's past financial performance should not be relied on as an 
indication of future performance. Period-to-period comparisons of the 
Company's financial results are not necessarily meaningful indicators of 
future performance.

                                       8
<PAGE>

                            Results of Operations
 
    For purposes of the following discussion, a mature office is an office 
that was open for at least 12 months at the beginning of the earlier period 
being compared and a new office is an office opened thereafter.

First Quarter 1997 Compared to First Quarter 1996

    Revenue.  Revenue increased $6.7 million, or 25.5%, to $33.0 million for 
the three months ended March 31, 1997 from $26.3 million for the three months 
ended March 31, 1996. This increase is primarily a result of increased 
billings to existing clients, the addition of new clients and increased 
billing rates charged for the Company's consultants. Revenue from the 15 
mature offices increased $4.2 million, or 16.7 %, from the earlier period and 
the nine new offices accounted for the remaining $2.5 million increase in 
revenue. As of March 31, 1997 compared to March 31, 1996, the total number of 
full-time consultants increased to 1,358 from 1,103, respectively, and 
clients (excluding clients that generated less than $25,000 in revenue during 
each preceding 12-month period) increased to 341 from 285, respectively.
 
    Cost of revenue.  Cost of revenue increased $4.7 million, or 25.4%, to 
$23.3 million for the three months ended March 31, 1997 from $18.6 million 
for the three months ended March 31, 1996. Cost of revenue increased 
primarily due to compensation and benefits associated with growth in the 
number of consultants. As a percentage of revenue, cost of revenue decreased 
to 70.6% for the three months ended March 31, 1997 from 70.7% for the three 
months ended March 31, 1996 primarily because billing rates to clients 
increased faster than consultant compensation and benefits increased.
 
    Gross profit.  Gross profit increased $2.0 million, or 25.9%, to $9.7 
million for the three months ended March 31, 1997 from $7.7 million for the 
three months ended March 31, 1996. As a percentage of revenue, gross profit 
increased to 29.4% for the three months ended March 31, 1997 from 29.3% for 
the three months ended March 31, 1996.

    Selling, general and administrative expenses. Selling, general and 
administrative expenses increased $1.4 million, or 24.3%, to $7.0 million for 
the three months ended March 31, 1997 from $5.6 million for the three months 
ended March 31, 1996. This increase is due primarily to costs associated with 
new offices, growth of administrative staff in mature offices, hiring 
additional corporate staff to support the increased number of offices and 
development of the Company's proprietary business systems. As a percentage of 
revenue, selling, general and administrative expenses decreased to 21.1% for 
the three months ended March 31, 1997 from 21.3% for the three months ended 
March 31, 1996.
 
    Operating income.  Operating income increased $600,000, or 30.1%, to $2.7 
million for the three months ended March 31, 1997 from $2.1 million for the 
three months ended March 31, 1996. As a percentage of revenue, operating 
income increased to 8.3% for the three months ended March 31, 1997 from 8.0% 
for the three months ended March 31, 1996.
 
    Net interest income (expense). Net interest income (expense) increased by 
$190,000 to $104,000 of interest income for the three months ended March 31, 
1997 from $86,000 of interest expense for the three months ended March 31, 
1996. This change reflects a decrease in the average level of borrowings 
during the period and investment of a portion of the proceeds of the 
Company's January 1997 initial public offering of common stock in interest 
bearing instruments.
 
    Income before income taxes. Income before income taxes increased 
$800,000, or 40.8%, to $2.8 million for the three months ended March 31, 1997 
from $2.0 million for the three months ended March 31, 1996. As a percentage 
of revenue, income before income taxes increased to 8.6% for the three months 
ended March 31, 1997 from 7.7% for the three months ended March 31, 1996.
 
                                       9

<PAGE>

    Income taxes.  In 1996, the Company was an S Corporation for federal and 
certain state income tax purposes. The income statement for the three months 
ended March 31, 1996 includes a pro forma provision for income taxes as if 
the Company was subject to federal and state income taxes at an assumed 
effective rate of 40%. Income taxes increased $200,000, or 25.4%, to $1.0 
million for the three months ended March 31, 1997 from pro forma income taxes 
of $800,000 for the three months ended March 31, 1996. As a percentage of 
revenue, income taxes remained constant at 3.1%. The Company's effective tax 
rate for the three months ended March 31, 1997 was 35.6%. Income taxes for 
the three months ended March 31, 1997 include a one-time reduction in income 
tax expense of $125,000 which represents the cumulative effect of the Company 
converting from an S Corporation to a C Corporation effective January 1, 
1997. Excluding the $125,000 one time reduction in income taxes, income taxes 
for the three months ended March 31, 1997 would have increased $300,000, or 
40.8%, to $1.1 million. As a percentage of revenue, income taxes would have 
increased to 3.4% for the three months ended March 31, 1997 from the pro 
forma amount of 3.1% for the three months ended March 31, 1996.
 
    Net Income.  Net income increased $600,000, or 51.0%, to $1.8 million for 
the three months ended March 31, 1997 from pro forma net income of $1.2 
million for the three months ended March 31, 1996. As a percentage of 
revenue, net income increased to 5.5% for the three months ended March 31, 
1997 from the pro forma amount of 4.6% for the three months ended March 31, 
1996.
 
    Earnings per share. Earnings per share increased $.04, or 44.4%, to $0.13 
for the three months ended March 31, 1997 from pro forma earnings per share 
of $0.09 for the three months ended March 31, 1996. Excluding the $125,000 
one time credit described under 'Income taxes' above, earnings per share for 
the three months ended March 31, 1997 would have increased $0.03, or 33.3%, 
to $0.12.
 
    The following table sets forth the percentage of revenue and the 
percentage change from the prior period of certain items reflected in the 
statements of income for the:

<TABLE>
<CAPTION>
                                                                                          Three Months Ended March 31,
                                                                                ----------------------------------------------
                                                                                   Percentage of           Percentage Change
                                                                                      Revenue    
                                                                                --------------------     ---------------------
                                                                                  1996       1997           1997 Over 1996
                                                                                ---------  ---------     ---------------------
<S>                                                                             <C>        <C>           <C>
Revenue.......................................................................      100.0%     100.0%            25.5%
Cost of revenue...............................................................       70.7       70.6             25.4%
                                                                                ---------  --------- 
Gross profit..................................................................       29.3       29.4             25.9%
Selling, general and administrative expenses..................................       21.3       21.1             24.3%
                                                                                ---------  --------- 
Operating income..............................................................        8.0        8.3             30.1%
Net interest income (expense).................................................       (0.3)       0.3                --
                                                                                ---------  --------- 
Income before income taxes....................................................        7.7        8.6             40.8%
Pro forma provision for income taxes(1).......................................        3.1        3.1             25.4%
                                                                                ---------  ---------  
Pro forma net income(1).......................................................        4.6%       5.5%            51.0%
                                                                                ---------  --------- 
                                                                                ---------  --------- 
</TABLE>
 
------------------------
 
(1) For 1996, the Company was an S corporation for federal and certain state
    income tax purposes. The pro forma provision for income taxes for 1996
    reflects a provision for income taxes as if the Company were a C corporation
    for all income tax purposes during such period, at an assumed effective tax
    rate of 40%.
 
                                       10
<PAGE>

Selected Quarterly Results and Seasonality
 
    The following table sets forth certain quarterly operating information 
for each of the 13 quarters ending with the quarter ended March 31, 1997, 
both in dollars and as a percentage of revenue. This information was derived 
from the unaudited financial statements of the Company which, in the opinion 
of management, were prepared on the same basis as the financial statements 
contained elsewhere in this report and include all adjustments, consisting of 
normal recurring adjustments, which management considers necessary for the 
fair presentation of the information for the periods presented. The financial 
data shown below should be read in conjunction with the financial statements 
and notes thereto included in this report. Results for any fiscal quarter are 
not necessarily indicative of results for the full year or for any future 
quarter.

<TABLE>
<CAPTION>
                                                                                     Gross Profit            Operating Income
                                                                               ------------------------  ------------------------
                                                                                               % of                      % of
Statements of Income Data                                           Revenue      Amount       Revenue      Amount       Revenue
----------------------------------------------------------------  -----------  -----------  -----------  -----------  -----------
                                                                                      (Dollars in thousands)
<S>                                                               <C>          <C>          <C>          <C>          <C>
1994:
   March........................................................     $15,978       $4,651         29.1%      $1,255          7.9%
   June.........................................................      16,803        4,928         29.3        1,367          8.1
   September....................................................      17,787        5,487         30.8        1,672          9.4
   December.....................................................      18,101        5,382         29.7        1,559          8.6
1995:
   March........................................................      19,760        5,732         29.0        1,422          7.2
   June.........................................................      20,695        6,195         29.9        1,683          8.1
   September....................................................      21,881        6,117         28.0        1,428          6.5
   December.....................................................      23,568        6,786         28.8        790(1)       3.4(1)
1996:
   March........................................................      26,328        7,726         29.3        2,107          8.0
   June.........................................................      27,812        8,452         30.4        2,248          8.1
   September....................................................      29,142        8,817         30.3        2,431          8.3
   December.....................................................      30,681        9,216         30.0        2,314          7.5
1997:
   March........................................................      33,045        9,727         29.4        2,741          8.3
</TABLE>
 
------------------------
 
Includes the $770,000 of non-recurring, non-cash compensation expense charged to
selling, general and administrative expenses accrued in the fourth quarter of
1995 for stock issued for services performed by employees in 1995. Excluding the
effect of such expense, income from operations and income from operations as a
percentage of revenue for the fourth quarter of 1995 would have been $1.6
million and 6.6%, respectively.
 
    Metro's operating results are adversely affected when client facilities
close due to holidays or inclement weather. The Company generally experiences a
certain amount of seasonality in the fourth quarter due to the number of
holidays and closings of client facilities during that quarter. Further, the
Company generally experiences lower operating results in the first quarter due
in part to the timing of unemployment and FICA tax accruals and delays in
clients' contract renewal related to clients' budget approval processes.
 
                       Liquidity and Capital Resources
 
    In January 1997, the Company completed an initial public offering of 
3,100,000 shares of its Common Stock at a price of $16.00 per share. Of the 
3,100,000 shares, 2,300,000 shares were issued and sold by the Company and 
800,000 shares were sold by a shareholder of the Company. Shortly thereafter 
the representatives of the several underwriters exercised their 
over-allotment option resulting in the sale of
 
                                       11
<PAGE>

465,000 shares by other shareholders of the Company. The net proceeds to the
Company were approximately $33,163,000. The Company did not receive any of the
proceeds from the sale of shares by the selling shareholders.
 
    Since its inception, the Company has funded its operations primarily from 
cash generated by operations and, to a lesser extent, borrowings under the 
Company's revolving credit facilities. Net cash provided by operations was 
$677,000 for the first quarter of 1997 and consisted primarily of net income 
for the quarter of $1,832,000 and an increase in accounts receivable of 
$3,258,000 and an increase in income taxes payable of $1,216,000. The 
increase in accounts receivable is primarily due to the revenue growth 
experienced in the first quarter of 1997. The increase in income taxes 
payable is the result of the Company converting from an S Corporation to a C 
Corporation for federal and certain state tax purposes effective January 1, 
1997. As a result of this change, the Company, rather than its shareholders, 
became responsible for paying income taxes on the Company's taxable income. 
The Company's working capital was $32,859,000 at March 31, 1997 compared to 
$6,369,000 at December 31, 1996.
 
Recent Accounting Pronouncements
 
    In February 1997, the Financial Accounting Standards Board issued 
Statement of Financial Accounting Standards ("SFAS") No. 128, Earnings Per 
Share, which revised the calculation of earnings per share for publicly held 
companies in certain situations. SFAS No. 128 is effective for fiscal years 
ending after December 15, 1997. In the opinion of management, SFAS No. 128 is 
not expected to have a material impact on the Company's calculation of 
earnings per share.

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<PAGE>
PART II OTHER INFORMATION
 
ITEM 1. LEGAL PROCEEDINGS
 
        None
 
ITEM 2. CHANGES IN SECURITIES
 
        None
 
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
 
        Not applicable
 
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
 
        None
 
ITEM 5. OTHER INFORMATION
 
        Effective April 29, 1997, the Board of Directors elected Ray E. 
Becker and A. Eugene Loving, Jr. to the Board as independent directors. Mr. 
Becker and Mr. Loving will be members of the Company's Audit Committee and 
Compensation Committee.
 
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
 
    (a) Exhibits required by Item 601 of Regulation S-K: 

         (i) 11 Computation of pro forma earnings per share 
        (ii) 27 Financial Data Schedule
 
   (b) Reports on Form 8-K:
 
         None.

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<PAGE>

                                   SIGNATURES
 
    Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this Form 10-Q to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Virginia Beach,
Commonwealth of Virginia on the 9th day of May, 1997.
 
                                    Metro Information Services, Inc.
 
                                 By /s/ John H. Fain
                                    -----------------------------------------
                                                    John H. Fain 
                                    President and Principal Executive Officer
 
                                 By /s/ Robert J. Eveleigh
                                    -----------------------------------------
                                                Robert J. Eveleigh 
                                            Principal Financial Officer
 
                                  By /s/ Steven A. Lurus
                                    -----------------------------------------
                                                   Steven A. Lurus 
                                           Principal Accounting Officer

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