Bogen Communications International reports record third quarter and nine month earnings.

RAMSEY, N.J.--(BUSINESS WIRE)--Nov. 14, 1996--

Third Quarter and Nine Month EPS $0.13 vs. ($0.60),

$0.23 vs. ($0.91), Respectively

Bogen Communications International Inc. (ASE:BGN) today reported net sales of $12.4 million and a net profit of $749,000, or $0.13 per share for the quarter ended Sept. 30, 1996, compared to net sales of $11.7 million and a net loss of $2,151,000, or ($0.60) for the same quarter last year. Gross profit for the quarter increased to 47.3% compared to 38.8% in 1995.

For the nine months ended Sept. 30, 1996, net sales of $34.08 million yielded a net profit of $1,350,000, or $0.23 per share, compared to net sales of $34.15 million and a net loss of $2,262,000, or ($0.91) per share for the nine months ended Sept. 30, 1995.

Consolidated net sales from the company's telecommunication and sound processing business ("Core Business") increased by $1,224,000 in the third quarter and $2,200,000 for the first nine 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 expenditures were increased by 44% for the quarter and 35% for the nine-month period compared to the corresponding periods in 1995, due to increased emphasis on new product development.

Zvi Peled, Bogen president and CEO commented: "The third quarter results reinforce our turnaround efforts at Bogen Communications International. This quarter both our North American and European subsidiaries contributed significantly to the overall profitability of the entire company. Our profitability and growth enables us to invest substantially more in new product development. We are now also focusing our efforts on identifying potential acquisitions of businesses and product lines."

Tom Cowherd, vice president of business development/marketing, added: "Acceptance of two of the company's new products, the MiniMail(TM) in North America and the Memo(TM) in Europe, has contributed to the success of the telecommunications business, with a continued trend of increasing sales.

"Name recognition within the industry, coupled with the introduction of new products, has assisted the company's commercial sound business in its impressive gains, with a 27% increase over the same period last year."

Bogen Communications International, based in Ramsey, N.J., 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.
                              Financial Summary
                     (in thousands, except share amounts)

                              Three Months Ended    Nine Months Ended
                                  Sept. 30,             Sept. 30,
                                 (Unaudited)           (Unaudited)
                                1996      1995        1996      1995

Net sales                    $12,388   $11,689     $34,078   $34,150
Cost of goods sold             6,530     7,150      18,628    19,899
Gross profit                   5,858     4,539      15,450    14,251

Operating expenses:
 Research and development        808       561       2,150     1,593
 Selling, general and
  administrative               3,794     3,808      10,278    10,748
 Amortization of goodwill
  and intangibles                110       126         330       331

 Income from operations        1,146        44       2,692     1,579

Other expenses:
 Interest expense, net           167       152         476       553
 Interest expense to
  related parties                 21        34          49       349
 Minority interest               125        82         228       268
 Transaction costs                --     1,493          --     1,493

Net income (loss) before
 income taxes                    833    (1,717)      1,939    (1,084)
Provision for income taxes        84       434         589     1,178
Net income (loss)              $ 749   ($2,151)     $1,350   ($2,262)

Net income (loss) per
 common share                  $0.13    ($0.60)      $0.23    ($0.91)

Weighted average number of
 common shares outstanding  5,758,850 3,592,000  5,759,151 2,487,000

CONTACT: Bogen Communications International Inc.

Zvi Peled, 201/934-8500

or

KCSA

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