ACTIVE VOICE CORP. ANNOUNCES RECORD SALES AND EARNINGS FOR THE YEAR ENDED MARCH 31, 1995.

SEATTLE--(BUSINESS WIRE)--May 9, 1995--Active Voice Corp. (NASDAQ: ACVC) today reported record revenue and earnings for its year ended March 31, 1995.

Earnings for the year ended March 31, 1995 were $5,110,000 ($1.11 per share on 4,603,000 shares outstanding) on sales of $36,950,000, compared with earnings of $3,579,000 ($0.88 per share on 4,062,000 shares outstanding) on sales of $28,121,000. This represents an increase in earnings and sales of 43% and 31% respectively.

For the quarter ended March 31, 1995, the company reported quarterly earnings of $1,383,000 ($0.30 per share on 4,602,000 shares outstanding) on sales of $10,024,000, compared with earnings of $1,098,000 ($0.24 per share on 4,612,000 shares outstanding) on sales of $7,840,000 for the comparable prior-year quarter. This represents an increase in earnings and sales of 26% and 28%, respectively.

"The fiscal year-over-year increase in sales reflects continued increased customer demand for PC-based voice processing systems, increased domestic sales coverage in support of our dealer network, and increasing penetration of international voice mail markets," said Jose S. David, Active Voice chief financial officer. Gross margins decreased from the prior year, in which software-only sales to a large international OEM customer resulted in unusually high margins. As usual we expect margins to continue to decline slightly in our core products. We continue to show consistent earnings growth while significantly investing in the emerging Computer Telephony Integration (CTI) technologies."

"The quarter ended March 31, 1995, was a record quarter which was led by increases in OEM and International sales channels. This change validates our diversified distribution strategy," he added.

Active Voice Corp. is a leading provider of PC-based voice processing systems with corporate offices in the United States, United Kingdom, Canada and Australia. Based in Seattle, its products are sold throughout the world by independent dealers in the telecommunications industry. -0-

                           ACTIVE VOICE CORP.
                  CONSOLIDATED STATEMENTS OF INCOME
                             (Unaudited)

                      Three Months Ended          Year Ended
                           March 31,               March 31,
                       1995        1994        1995        1994

Net sales         $10,023,732  $7,839,990  $36,949,635  $28,121,000
Cost of goods
 sold               3,549,044   2,706,998  12,939,000     9,227,410
Gross profit        6,474,688   5,132,992  24,010,635    18,893,590

Operating expenses:
  Research and
   development      1,248,814     955,065   4,363,202     3,107,372
  Sales and
   marketing        2,438,736   2,023,106   9,141,864     7,626,881
  General and
   administrative     929,573     727,084   3,661,004     3,175,134
    Total operating
     expenses       4,617,123   3,705,255  17,166,070    13,909,387
Operating income    1,857,565   1,427,737   6,844,565     4,984,203

Interest income       148,683     130,613     533,892       202,873
Income before income
 taxes              2,006,248   1,558,350   7,378,457     5,187,076

Income tax provision  623,300     460,394   2,268,732     1,607,929

Net income         $1,382,948  $1,097,956  $5,109,725    $3,579,147

Net income per common
 share                  $0.30       $0.24       $1.11         $0.88

Average number of
 common and common
 equivalent shares
 outstanding        4,602,116   4,612,093   4,603,461     4,061,598

                           ACTIVE VOICE CORP.
                     CONSOLIDATED BALANCE SHEETS
                              (Unaudited)

                                     March 31,       March 31,
                                       1995            1994
ASSETS
Current assets:
  Cash and cash equivalents        $   649,553    $ 1,078,110
  Marketable securities              3,300,596      5,132,865
  Accounts receivable,
   less allowances                   6,460,765      4,348,428
  Inventories                        3,430,224      3,197,461
  Federal income taxes receivable      334,453
  Deferred tax asset                   601,177        683,782
  Prepaid expenses and other assets    618,709        435,544
      Total current assets          15,395,477     14,876,190

Marketable securities               11,158,801      9,235,500
Furniture and equipment, net         1,907,540      1,236,535
Other assets                           235,754         62,719
      Total assets                 $28,697,572    $25,410,944

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                 $ 1,209,772    $ 1,582,535
  Accrued compensation and benefits  1,649,096      1,875,179
  Other accrued expenses               389,178        423,234
  Federal income taxes payable                        336,497
  License fee payable                                 250,000
      Total current liabilities      3,248,046      4,467,445

Commitments

Stockholders' equity:
  Preferred stock, no par value:
    Authorized shares - 2,000,000 -
     none outstanding
  Common stock, no par value:
    Authorized shares - 10,000,000
    Issued shares, including
     repurchased shares - 4,976,933 16,104,792     15,044,810
  Retained earnings                 12,378,168      8,898,940
                                    28,482,960     23,943,750

  Less 507,036 and 558,950 shares
   repurchased at
   December 31, and March 31,
   1994, respectively,
   at cost                          (3,033,434)    (3,000,251)
Total stockholders' equity          25,449,526     20,943,499
     Total liabilities and
      stockholders' equity         $28,697,572    $25,410,944

CONTACT: Active Voice Corp.

Jose S. David, 206/441-4700 ext.105