COLONIAL DATA AND US ORDER INTRODUCE FIRST POPULARLY-PRICED ADSI SMART PHONE WITH ADVANCED FUNCTIONS; Telesmart 4000 is a "Breakthrough" Product that will Create Home and Business Mass Market First Demonstration of Telesmart 4000 is at CES Winter Show in Las Vegas (Booth 17772).

NEW MILFORD, Conn. and HERNDON, Va.--(BUSINESS WIRE)--December 20, 1995--Colonial Data Technologies Corp. (AMEX:CDT) and US Order (Nasdaq:USOR) today introduced a revolutionary ADSI smart phone, Telesmart 4000 (TS 4000), that for the first time, gives consumers popularly-priced access to major new advances in interactive applications via telephone.

The Telesmart 4000 will be priced under $200 wholesale, which is almost 50% less than other smart phones with similar, advanced functions. The companies said they believe that the Telesmart 4000 is a breakthrough product that has the potential to penetrate millions of homes and businesses over the next several years and help create a mass market for smart phones and the applications that operate on them.

Telesmart 4000 users, the companies noted, can send E-mail over the Internet, pay bills and bank electronically, type and send text messages directly to pagers, shop from catalogs electronically, use integrated organizer features and receive advanced new forms of Caller ID from their telephone companies. A particularly popular information application is electronic directory assistance, which searches national databases and visually displays telephone numbers and addresses on the phone's screen for autodialing or downloading into the phone's 150-name personal directory.

The sleek Telesmart 4000, the companies said, brings a combination of firsts to a popularly priced smart telephone, including digital signal processing capability, a backlit graphics screen, a high-quality two- way speaker, a typewriter-style keyboard, and a magnetic card reader for electronic banking and home shopping.

Colonial Data and US Order, which formed a strategic relationship to design, manufacture and market a line of ADSI-compatible smart telephones like the Telesmart 4000, said they will demonstrate the new smart phone and its applications for the first time at Colonial Data's booth at the Winter CES in Las Vegas at the Sands Expo (booth 17772). They said that manufacturing has begun based on advanced orders from several telephone companies and banks, and that they will begin shipping the phones in March.

"The Telesmart 4000 is the phone of the future," said Walter M. Fiederowicz, Chairman of Colonial Data. "We are hitting the market in 1996 just as the major telephone companies begin to roll out their ADSI-based services, and banks begin large rollouts of electronic banking."

"The ADSI software provides enormous call management flexibility," added Fiederowicz. "The Telesmart 4000 can receive Caller ID and integrate it with Call Waiting. This allows users to identify who is holding on Call Waiting from the name and phone number that appears on the graphics screen. They can choose to take the call, place it on hold, ask the caller to wait, deliver specific answering messages, and automatically redial the second caller later. Most telephone companies will be offering versions of this service in 1996."

"The advanced telephone and electronic banking services are important new sources of revenue for telephone companies and financial institutions," pointed out John C. Backus, President and Chief Operating Officer of US Order. "Both will require the Telesmart 4000 for maximum sales penetration because it is based on industry wide standards and is technically advanced yet reasonably priced for a mass market."

Backus of US Order explained, "We have great expectations for the Telesmart 4000 because at a price below $200 it delivers many of the capabilities of expensive computers in a simple and less threatening way. Because consumers at all technology levels are comfortable with telephones, we believe that both "low-tech" and computer-savvy users alike will find smart telephone-based services more accessible and easier to use than through their PCs."

"This is a breakthrough product," explained Fiederowicz. "A modem facilitates downloading of new software to the Telesmart 4000 once additional services are introduced by the Company and ordered by the consumer. The modem also allows for remote technical assistance and servicing."

"It is also important to note," said Fiederowicz, "that the Telesmart 4000 is the first richly functional smart phone that conforms fully to ADSI, the analog display services interface standard developed for advanced network services by Bellcore, the research and certification laboratory jointly owned by the regional Bell operating companies."

The companies said that in addition to supporting the ADSI standard, it also conforms to the TAP specifications used by the paging industry, which means the Telesmart 4000 paging message function works with all the major paging services.

The two companies also said the Telesmart 4000 is currently undergoing compliance certification by Bellcore, with complete results expected in January. The process is considered a prerequisite by most major telephone companies for choosing suppliers of smart telephones.

Colonial Data, which manufactures and distributes the phones to telecommunications companies, also said that it has begun production to meet initial launch orders from several major phone companies. "We are extremely pleased with the launch orders and the strong support from our telco customers for our first ADSI smart phone," said Fiederowicz. "We share US Order's expectations for the Telesmart 4000. Our collaboration with US Order has significantly shortened our time to market for this product."

US Order, which originally developed the Telesmart 4000 under the internal name "Falcon," is marketing its smart telephone and package of interactive applications through a growing list of financial institutions that are introducing home banking. US Order is also marketing the phone through paging companies and will begin selling through retailers later in 1996.

Colonial Data designs, develops and markets telecommunications products that support intelligent network services being introduced by leading domestic and international telephone operating companies. The Company has concentrated its product development and marketing efforts on products and services that support Caller ID and other intelligent network services. The Company also repairs and refurbishes telecommunications products for its customers.

US Order develops and markets products and services for the financial services and telecommunications industries. The Company's financial service products include bank-branded customer service, voice response systems and data translation systems. Its telecommunications products include the PhonePlus and Telesmart 4000 smart telephone and a complete package of interactive applications. Over 40 banks and telephone companies currently use US Order's products and services.

CONTACT: COLONIAL DATA TECHNOLOGIES CORP.

Company Contact:

Walter M. Fiederowicz

Chairman of the Board

[phone]

IR Contact:

Donna Stein/Evan Smith/Courtney Levi

Press: Lee Foley

Morgen-Walke Associates, Inc.

[phone]

OR

U.S. ORDER

Investor Contact:

Doug Poretz

[phone]

Press Contact:

Richard L. Stern

212/777-7722