Bogen Communications International Reports Record 1998 Operating Profit; Net Income Increases 58% Before Non-cash One-time Charges.

RAMSEY, N.J.--(BUSINESS WIRE)--March 18, 1999--Bogen Communications International, Inc. (NASDAQ:BOGN) today announced results for its fourth quarter and year ended December 31, 1998.

Fourth quarter net sales rose slightly to $12,717,000 from $12,644,000 in the fourth quarter of 1997, while net income available to common shareholders (before a non-cash, one-time acquisition-related charge of $980,000) increased to $1,202,000, or $.17 per diluted share. Including the acquisition-related charge, net income available to common shareholders for the 1998 fourth quarter was $222,000, or $.03 per diluted share as compared to $613,000, or $.13 per diluted share in the fourth quarter of last year.

1998 net sales increased 5% to $52,103,000 from 1997 net sales of $49,779,000, while net income (before non-cash, one-time acquisition-related charges and preferred dividends aggregating $4,785,000) increased 58% to $4,227,000 from $2,665,000 in 1997. Including these charges, the 1998 net loss was $558,000, or $.12 per diluted share of common stock versus net income of $2,487,000, or $.46 per diluted share of common stock in 1997.

Michael P. Fleischer, Bogen's President, commented, "The groundwork laid throughout 1998 produced a far more profitable business than when new management arrived just over a year ago. Looking past the non-cash charges, we see major improvements in profitability. Moreover, the favorable performance trends of earlier quarters continued into our final quarter. Of special note, comparing the final quarter of 1998 to 1997 (excluding one-time charges):

-- Gross margin rose to 47.7% from 47.3%,

-- Our operating margin also grew to 11.8% of sales from 10.3%; and

-- Pretax margin was 10.6% of sales, up from 8.3%."

"In addition to important gains in operating profits," Jonathan Guss, Bogen's CEO said, "many other less visible accomplishments have positioned Bogen for further profitable growth in 1999 and beyond. These include:

-- Strengthening our balance sheet by reducing long-term debt and

converting preferred stock into common stock;

-- Putting in place $29 million of bank facilities to support our

acquisition strategy;

-- Acquiring the remaining 33% interest in Speech Design, our most

profitable and fastest growing business;

-- Acquiring Digitronic, giving Speech Design the tools to become a

major participant in the emerging Unified Messaging/Internet

Communications business in Europe; and,

-- Entering a dynamic phase in new product development, with six to

eight new products scheduled for launch in 1999."

Discussing the Company's first new product of the year, Mr. Fleischer stated, "In January, we successfully launched the Easy Install Speaker, first in a family of new products that significantly reduces design and installation time. With this and other members of the product family, telecom equipment installers, faced with rising labor costs and scarcity of trained installation personnel, will be able to enhance their productivity, efficiency and profitability. Our customers have given us early indications that the entire product family will be a measurable success for Bogen. For this and other reasons related to investments we have made in the core businesses, 1999 is already off to a strong start."

Messrs. Fleischer and Guss concluded by saying, "The accomplishments of 1998, while impressive and satisfying, provide a solid foundation for even better performance in 1999."

Bogen Communications International, Inc., based in Ramsey, New Jersey and Munich, Germany, develops, manufactures, and markets telecommunications peripherals and sound processing equipment. Bogen's products are sold to commercial, industrial, professional and institutional customers worldwide.

Except for historical information contained herein, the statements made in this release constitute forward-looking statements that involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward looking statements, including potential acquisitions and divestitures, and other risks detailed from time to time in Bogen's reports on file at the Securities and Exchange Commission, including Bogen's Form 10-K for the fiscal year ended December 31, 1997, Bogen's Form 10-Q's for the fiscal quarters ended March 31, 1998, June 30, 1998 and September 30, 1998 and Bogen's Current Report on Form 8-K, dated May 20, 1998, as amended on Form 8-K/A, dated August 3, 1998. -0-

               BOGEN COMMUNICATIONS INTERNATIONAL, INC.
                           Financial Summary
     (in thousands of dollars, except share and per share amounts)
                            Three Months Ended         Year Ended
                               December 31,            December 31,
                             1998        1997          1998     1997
                                  (unaudited)
Revenues                    $ 12,717   $  12,644  $  52,103  $  49,779
Cost of goods sold             6,647       6,661     26,658     26,685
Gross profit                   6,070       5,983     25,445     23,094

Operating expenses:
   Research and development      874         599      2,935      2,591
   Purchase in-process R&D       980                  3,885
   Selling, general and
administrative                 3,502       3,948     15,283     14,939
Amortization of goodwill
 and intangible assets           193         139        612        471
Income from operations           521       1,297      2,730      5,093

Other (income) expenses:
  Interest expense, net           74          78        275        414
  Interest expense to
   related parties                            (1)                   15
Minority interest of
  consolidated
  subsidiaries                               144        254        537
Other (income) expense            82          21        (50)      (32)

Income before provision
  for income taxes               365       1,055      2,251      4,159

Provision for income
 taxes                           143         264      1,909      1,494
Net income                       222         791        342      2,665

Preferred dividends                          178        900        178

Net income (loss)
 available to
 Common shareholders        $    222    $    613  $    (558)  $  2,487

Basic net income
 (loss) per common
 share                      $   0.03    $   0.14  $   (0.12)  $   0.46

Diluted net income
 (loss) per common
 share                      $   0.03    $   0.13  $   (0.12)  $   0.46

Weighted average
  number of
  common shares
  outstanding - basic      6,654,468   4,331,975  4,502,547  5,399,199

Weighted average
  number of
  common shares
  outstanding - diluted    7,121,179   5,896,715  4,502,547  5,399,199


               Bogen Communications International, Inc.
                           Financial Summary
     (In Thousands of Dollars, Except Share and Per Share Amounts)

                                         December 31,     December 31,
                                              1998            1997

ASSETS
CURRENT ASSETS:
Cash and cash equivalents                 $    1,048    $      964
Accounts receivable, net                       5,889         6,291
Inventories, net                               8,229         8,285
Prepaid expenses and other
 current assets                                  759           468
Deferred income taxes                            470             -
     TOTAL CURRENT ASSETS                     16,395        16,008

Property and equipment, net                    2,414         2,136
Goodwill and intangible assets, net           18,740        13,569
Other assets                                     198           257

     TOTAL ASSETS                         $   37,747    $   31,970

LIABILITIES AND STOCKHOLDERS' EQUITY
 CURRENT LIABILITIES:
Amounts outstanding under revolving
 credit agreement                         $    1,763    $    2,891
Accounts payable                               2,060         2,376
Accrued expenses                               3,633         3,090
Income taxes payable                           1,168           238
Preferred dividends payable                        -           178

     TOTAL CURRENT LIABILITIES                 8,624         8,773

Bank notes payable                               479           -
Advances and notes payable to
related parties                                  227           212
Deferred income taxes                          1,100           -
Other liabilities                                261           433
Minority interest                                  -         1,130

     TOTAL LIABILITIES                        10,691        10,548

STOCKHOLDERS' EQUITY
Preferred stock                                    -             -
Common stock                                       7             2
Additional paid-in-capital                    29,434        23,468
Accumulated deficit                           (2,248)       (1,690)
Accumulated translation adjustments             (137)         (358)

     TOTAL STOCKHOLDERS' EQUITY               27,056        21,422

     TOTAL LIABILITIES AND
      STOCKHOLDERS' EQUITY                $   37,747    $   31,970