Bogen Communications International Inc. reports second quarter earnings up 817%; six month earnings increase 652%.

RAMSEY, N.J.--(BUSINESS WIRE)--Aug. 14, 1996--Bogen Communications International Inc. (AMEX:BGN) today reported net sales of $10.3 million and a net profit of $486,000 for the quarter ended June 30, 1996, compared to $11.3 million and a net profit of $53,000 for the same quarter last year.

Gross profit for the quarter increased to 46 percent compared to 43 percent in 1995.

For the six months ended June 30, 1996, net sales of $21,690,000 yielded a net profit of $600,000, or 10 cents per share, compared to net sales of $22,152,000 and a net loss of $92,000, or 5 cents per share.

Consolidated revenues from the company's telecommunication and sound processing business ("Core Business") increased by $206,000 in the second quarter and $1,303,000 for the first six months of 1996 over the same periods of 1995. These increases were offset by decreased sales attributable to the rapid phase-out of the OAS product line over this entire period. Research and development rose by 46 percent for the quarter and 27 percent for the six-month period compared to the year prior periods due to increased activity related to new product development.

"The second quarter results," commented Zvi Peled, president and CEO, "manifest the goals we set for ourselves this year: Our major goal of overall profitability was more than attained, while both our North American and European subsidiaries are now poised to contribute to the growth and profitability of the entire company. Discontinuation of an unprofitable product line obviously resulted in a flat top line, but caused a major improvement in net income. This is the second quarter of growing profits. More importantly, our gross margins have improved by four percent which is a good indication for the sustained ability of our new product lines. This enables us to increase our R&D expenses while increasing our profitability. We now have a good platform for additional growth."

Tom Cowherd, the company's recently appointed VP of Business Development/Marketing, added: "The company introduced four new products in the first half of the year. The market acceptance of Multicom DCS; the one port MiniMail voice mail system; and the computer controlled ProMatrix Amplifier; was encouraging and have already contributed to the second quarter revenues. Memo, the 2/4-port voice mail previously introduced in Europe, had a slower ramp-up cycle in the second quarter but we are already seeing an improvement in the market reaction and expect stronger results in the second half of 1996."

Bogen Communications International Inc., based in Ramsey, develops, manufactures and markets computerized telecommunications peripherals and sound processing equipment. The company sells its products to commercial, industrial, professional and institutional customers worldwide. The company's major shareholder is GEOTEK Communications Inc. (NASDAQ:GOTK) an international wireless telecommunications company. -0-

            Bogen Communications International Inc. and Subsidiaries
                    Condensed Consolidated Statements of Operations
                (In Thousands of Dollars, Except Share Amounts)
                                (Unaudited)

                       Three Months Ended    Six Months Ended
                              June 30,           June 30,
                         1996       1995     1996       1995

Net sales            $ 10,332     $ 11,306   $ 21,690  $ 22,152
Cost of goods sold      5,545        6,497     12,098    12,722
Gross profit            4,787        4,809      9,592     9,430
Operating expenses:
Research and development  688          471      1,342     1,059
Selling, general and
 administrative         3,233        3,373      6,484     6,749
Amortization of goodwill
 and intangible assets    109          107        220       224
Income from operations    757          858      1,546     1,398
Other expenses:
Other income               --          (97)        --       (97)
Interest expense, net     149          189        309       397
Interest expense to
 related parties           21          166         29       315
Minority interest          (4)         116        103       167
Net income (loss) before
 income taxes             591          484      1,105       616
Provision for income
 taxes                    105          431        505       708
Net income (loss)       $ 486         $ 53      $ 600      $(92)
Net income (loss) per
 common share           $ .08         $.03      $ .10     $(.05)
Weighted average number
 of common shares
 outstanding        5,758,921    1,925,000  5,758,303  1,925,000

         Bogen Communications International Inc. and Subsidiaries
                  Condensed Consolidated Balance Sheets
              (In thousands of dollars, Unaudited)

Assets                         June 30            Dec. 31
                                 1996               1995

Current Assets:
 Cash and cash equivalents       $650              $1,276
 Accounts receivable            5,687               4,992
 Inventories                    7,784               6,922
 Prepaid expenses and other
  current assets                  590               1,042
   Total Current Assets        14,711              14,232
 Property and equipment, net    2,131               2,191
 Goodwill and intangible
  assets, net                  14,442              14,706
 Other Assets                     149                 175
   Total Assets               $31,433             $31,304

         Bogen Communications International Inc. and Subsidiaries
                  Condensed Consolidated Balance Sheets
            (In thousands of dollars, except share amounts)
                            (Unaudited)

                                      June 30,      Dec. 31,
                                       1996          1995
Liabilities
Current liabilities
Amounts outstanding under revolving
 credit agreements                    $5,947        $4,944
Accounts payable                       3,085         2,861
Accrued expenses                       2,825         3,610
Income taxes payable                   1,016         1,353
Advances and notes payable to related
 parties                                 228           537
Notes payable to non-related parties      74           221
Total current liabilities             13,175        13,526
Advances and notes payable to
 related parties                         803         3,411
Other long term liabilities              604           674
Minority interest                        653           550
Total liabilities                     15,235        18,161
Commitments and contingencies
Stockholders' equity
Common stock - .001 par value; 50,000,000 shares
 authorized; 5,758,850 and 5,759,350 shares
 issued and outstanding at June 30, 1996
 and Dec. 31, 1995, respectively            6            6
Additional paid-capital                21,774       19,175
Accumulated deficit                    (5,585)      (6,185)
Cumulative currency translation
 adjustments                                3          147
Total stockholders' equity             16,198       13,143
Total liabilities and
 stockholders' equity                 $31,433      $31,304

CONTACT: Bogen Communications International Inc.

Zvi Peled, 201/934-8500

or

KCSA

Paul Holm/Adam Friedman, 212/682-6300, ext. 201/215