Andrea Electronics Corporation Introduces Three New Computer-Telephony Integration Products.

LONG ISLAND CITY, N.Y.--(BUSINESS WIRE)--Aug. 5, 1998--

Andrea ConnectSolutions(TM) PC/Telephone Headset Interface and Andrea

ProVoiceSolutions(TM) ANC-700 Series Headsets Target Call Center, Corporate and SOHO Markets with Audio Quality Enhancement and User Productivity Solutions

Andrea Electronics Corporation (AMEX:AND) introduced today three new products that offer unique audio and productivity solutions for the next generation of business communication that will take advantage of rapidly emerging computer-telephone integration applications. The Andrea ConnectSolutions(TM) Personal Computer/Telephone Headset Interface (PCTI), offered at an MSRP of $149.95, and the Andrea ProVoiceSolutions(TM) ANC-700 and ANC-750 headsets, offered at MSRPs of $99.95 and $124.95, respectively, are available for purchase immediately through Andrea Electronics' customer service department at 800-707-5779.

The PCTI is the first desktop device available that promotes the fullintegration of speech-centric computing and traditional telephony applications by connecting headset users to the telephone, to the computer, or to both simultaneously. With the PCTI, users can alternately or simultaneously conduct telephone conversations and use speech recognition to enter data or dictate into the PC, without having to pause or toggle between communications.

The new Andrea ProVoiceSolutions ANC-700 and ANC-750 headsets also enable and enhance all CTI applications by significantly improving the quality of voice communications with patented Andrea Active Noise Cancellation (ANC) microphone technology and an improved design, offering exceptional comfort and durability for daily headset users. Both the ANC-700 monaural and the ANC-750 stereo headsets incorporate a newly developed speaker housing design that optimizes the acoustic performance of the earphone's pre-equalized, CD-quality digital sound.

Used together, the ConnectSolutions PCTI and the ProVoiceSolutions ANC-700 series create the ultimate connectivity tool for the highest quality audio communications in Cyber Call Center, Small Office/Home Office (SOHO) and other environments where Computer Telephony Integration (CTI) is exploited.

"The PCTI, the ANC-700 and the ANC-750 headsets were designed with the opportunities offered by emerging CTI applications in mind," said Douglas J. Andrea, co-president and chief technology officer of Andrea Electronics Corporation. "The combination of computer processing capabilities with telephony functions can result in more effective common business practices, minimization of cost and the maximization of customer service and overall user efficiency. To enable and enhance the capabilities and productivity benefits offered by emerging CTI and Internet Protocol (IP) software, we developed the PCTI to serve as an advanced connectivity tool.

"As a convenient, desktop box, the PCTI enables users to conduct traditional and Internet phone calls, audio/video conferences and speech recognition, virtually hands-free, without having to pause, adjust or toggle to accomplish complete integration of telephone and computer functions. As a call center solution, the PCTI is unprecedented; essentially, with the right software and networks, a PCTI and headset user can take a phone call from a customer, pull up that customer's account information on the PC, take an order, record and route it, without ever having to put the customer on hold, toggle from phone to computer or pause the process in any way. We believe the PCTI will emerge as a key productivity solution within the broad business service markets and trading floors, where timing, efficiency and accuracy are key."

Andrea Electronics is pursuing additional distribution channels for these new products, including business-to-business and electronic commerce, to target personal, SOHO, large-scale corporate, call center and business services markets.

About the Andrea ConnectSolutions PCTI

-- Compact desktop unit connects headset user to computer, telephone or both simultaneously, as well as to multimedia speakers when preferred.

-- Digital sound enhancement of headset and/or multimedia speakers improves acoustic performance.

-- Centralization of audio control with a microphone mute switch, telephone volume adjustment and multimedia speaker connectivity with on/off switch means increased accessibility and functionality.

-- PCTI is compatible with standard PC sound cards and electret or carbon type telephone handsets.

-- Headset quick disconnect function ensures easy user mobility.

About the ProVoiceSolutions ANC-700 and ANC-750

Andrea ANC technology significantly improves voice clarity by creating a signal that is 180-degree out-of-phase to background noise, actively eliminating it at the source. For all voice applications, ensuring a clear voice signal at the input source is essential to the enjoyment and the performance of the application, and the Andrea ANC-700 series headsets ensure the transmission of the clearest voice signal.

Features of the ANC-700 and ANC-750 headsets include: -- New ergonomic design to enhance acoustic performance, headset durability and user comfort.

-- Easily positioned high-caliber ultraflex boom with Andrea ANC microphone.

-- 40-mm speaker(s) - monaural for the ANC-700 and binaural for the ANC-750 - that provide pre-equalized, CD-quality digital sound.

-- Convenient quick disconnect function and microphone ON/MUTE switch.

-- Adapters for connection to and compatibility with IBM, ThinkPad(R) and SoundBlaster(TM) soundcards.

About the ProVoiceSolutions ANC-700 and ANC-750 Business Editions

Andrea Electronics is also offering the ProVoiceSolutions ANC-700 and ANC-750 in a special Business Edition (BE) series, which will include an Andrea SoundSolutions(TM) MC-100 multimedia audio controller. The MC-100 is a convenient desktop unit that allows users to toggle from earphones to speakers with a simple flip of a switch. The Andrea ProVoiceSolutions ANC-700 BE and ANC-750 BE have MSRPs of $124.95 and $149.95, respectively. Features of the MC-100 include:

-- A 48" extension cord that brings the soundcard interface jacks to the desktop for easy accessibility.

-- A universal microphone power supply for auxiliary power, when needed, and a power indicator.

-- An in-line headset volume control. -- A headset-to-speakers toggle switch. All Andrea ProVoiceSolutions and Andrea ProVoiceSolutions BE products come with a CD of free software that includes:

-- Andrea AudioCOMMANDER(TM) 1.0 audio utility software. -- IBM ViaVoice(TM) Gold continuous speech recognition dictation software.

-- Microsoft NetMeeting(TM) 2.1 audio/video conferencing software.

-- Microsoft Internet Explorer(TM) 4.0 Internet browser software. -- DT Net2Phone(TM) Internet telephony software.

Andrea Electronics Corporation designs, develops and manufactures audio technologies and equipment for applications incorporating natural language interfaces. The Company's patented Active Noise Reduction (ANR) earphone, Active Noise Cancellation (ANC) near-field and Digital Super Directional Array (DSDA(TM)) far-field microphone technologies are incorporated into a wide range of audio products to eliminate background noise and ensure the optimum performance of voice applications. Applications for the Company's technologies include: speech recognition programs, Internet telephony, video/audio conferencing, automobile PCs, home automation systems, hand-held devices and multiplayer online games, among others. Key OEM and software publisher customers and strategic partners who have endorsed Andrea Electronics' technologies and products include: Microsoft Corporation, IBM Corporation, IBM Aptiva, Lernout & Hauspie Speech Products, Dragon Systems, Lotus Development Corporation, NEC, Mpath, Multitude, IDT, HyperGraphics, ILINC and ViA Inc., among others.

To receive Andrea Electronics' latest news release and other corporate documents via FAX - no cost - please dial 1-800-PRO-INFO. Use the Company's ticker: AND. Or visit Andrea Electronics' website at www.andreaelectronics.com.

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties or other factors that could cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed under the heading "Certain Factors that May Affect Future Results" included in the Management's Discussion and Analysis of Financial Condition and results of operations in the Company's Annual Report on Form 10-K and in the Company's Annual Report to stockholders, and in documents subsequently filed by the Company with the Securities and Exchange Commission.

    CONTACT: Andrea Electronics
              Molly M. Jahncke and Carolynne O'Grady
              800/442-7787
              [e-mail]
              [e-mail]
                         or
              TSI for Andrea Electronics
              Kelly Barry and Victor Mendoza
              212/696-2000
              [e-mail]
              [e-mail]