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COGNITRONICS REPORTS LOWER FIRST QUARTER INCOME FROM CONTINUING OPERATIONS

 STAMFORD, Conn., May 7 /PRNewswire/ -- As expected, Cognitronics Corporation (AMEX: CGN) today reported lower first quarter income from continuing operations.
 "First quarter income from continuing operations was affected by the previously indicated increased R & D and marketing expenses and a loss from the newly acquired Dacon Electronics, as well as a higher effective income tax rate," said Matthew J. Flanigan, president and chief executive officer of this leading supplier of voice processing equipment. "Low sales volume of existing products and delayed new product introductions created the loss at Dacon Electronics; the new products are expected to be available late in the second quarter.
 "These factors were partially offset by improved gross margins in our McIAS voice processing product line," he added.
 First quarter 1993 income from continuing operations totaled $375,000, or $.11 per share, vs. $647,000, or $.21 per share, for the comparable quarter a year ago.
 First quarter 1993 sales rose 20 percent to $5,123,000 compared to the $4,278,000 a year ago, due to the acquisition of Dacon Electronics, in November 1992.
 In line with its earlier statement, the company said it also incurred a loss from discontinued operations of $283,000, or $.08 per share, in the 1993 first quarter, arising from the expected sale of its Stamford Tool & Die unit, which includes a provision for the disposition of the unit of $139,000, or $.04 a share. In the 1992 first quarter, the loss from discontinued operations was $45,000, or $.02 a share.
 As previously announced, Cognitronics also reported a one-time, net charge of $471,000, or $.14 per share, from the cumulative effect of two new accounting standards adopted Jan. 1, 1993, relating to income taxes and to medical benefits paid to retired employees.
 As a result of the loss from discontinued operations and the cumulative effect of the accounting changes. Cognitronics reported a net loss of $379,000, equal to a loss of $.11 per share, for the three months ended March 31, 1993. This compares to net income of $602,000, or $.19 per share, in the comparable 1992 period.
 "While we're continuing to increase our R & D and marketing efforts in order to continue the planned expansion of our voice processing business, which grew 27 percent last year, we remain confident that 1993 will see income from continuing operations reflect another strong year," Mr. Flanigan said.
 Cognitronics is a leading manufacturer and supplier of voice processing equipment, including telephone network and call management announcement products and interactive voice response (IVR) systems, to telephone operating companies, original equipment manufacturers and commercial end-users.
 COGNITRONICS CORPORATION
 Summary of Results
 Three Months Ended March 31,
 1993 1992
 Net Sales $5,123,000 $4,278,000
 Income from continuing
 operations $ 375,000 $ 647,000
 Loss from discontinued
 operations ( 283,000) ( 45,000)
 Cumulative effect of
 accounting changes ( 471,000)
 Net income (loss) ($ 379,000) $602,000
 Per share (A):
 Income from continuing
 operations $.11 $.21
 Loss from discontinued
 operations (.08) (.02)
 Cumulative effect of
 accounting changes (.14)
 Net income (loss) ( $.11) $.19
 Weighted average number of
 shares outstanding (A) 3,407,849 3,155,301
 (A) Per share amounts and shares outstanding for the 1992 three- month period have been restated to reflect the three-for-two stock split in June 1992.
 -0- 5/7/93
 /CONTACT: Harold F. Mayer of Cognitronics, 203-327-5307/
 (CGN)


CO: Cognitronics Corporation ST: Connecticut IN: TLS SU: ERN

PS -- NY033 -- 5898 05/07/93 11:13 EDT
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Date:May 7, 1993
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