COLONIAL DATA TECHNOLOGIES CORP. COMMENTS ON 1996 SECOND QUARTER FINANCIAL RESULTS.

NEW MILFORD, Conn.--(BUSINESS WIRE)--July 2, 1996--Colonial Data Technologies Corp. ("CDT") (Nasdaq:CDTX) today announced that it expects 1996 second quarter revenues and earnings to fall below analysts expectations. Management expects revenues for the 1996 second quarter to be approximately $18 million to $19 million, compared with $18.3 million reported in the second quarter of 1995. Earnings per share for the 1996 second quarter are anticipated to be in the range of $0.12 - $0.14 per share compared with $0.21 per share reported in the second quarter of 1995. CDT attributes the anticipated revenue and earnings shortfalls to a number of factors including the delay of the introduction of Caller ID service in California and lower than anticipated direct fulfillment sales in other regional bell operating company (RBOC) territories. In addition, the roll out of the Telesmart 4000 ADSI smart phone had been delayed pending finalization of testing of the product. The Company expects shipments of the product beginning in the third quarter.

Robert J. Schock, President and Chief Executive Officer stated, "Despite the disappointment of the second quarter, CDT s market position remains solid and demand for our products continues to be strong as the Company remains both excited and optimistic with the awaited roll out of the Telesmart 4000 and the potential for significant shipments in California where Caller ID service is expected to commence on July 8, 1996."

Mr. Schock concluded, "We are confident about our prospects and opportunities in the marketplace and feel that we are well positioned to take advantage of these opportunities as they unfold. In addition, the Company is actively reviewing stock repurchases under the program authorized by its Board of Directors in October, 1995."

These statements about future anticipated results are based on internal estimates, which are subject to change and are based on preliminary information and management assumptions. They are not actual results. A complete earnings announcement regarding the second quarter is anticipated to be released by August 1, 1996.

Colonial Data Technologies Corp. designs, develops and markets telecommunications products that support intelligent network services being developed and implemented by leading domestic and international telephone operating companies. The Company has concentrated its product development and marketing efforts on products that support Caller ID and other emerging intelligent network services. The Company markets an ADSI smart phone, Telesmart 4000, which provides consumers call management features and major new advances in interactive applications via telephone. Through its subsidiaries, the Company distributes small business systems with the Landmark trademark and high-end consumer equipment, including advanced cordless products. The Company also repairs and refurbishes telecommunications products for commercial customers and provides services that support the development and implementation of intelligent network services.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:

This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the telecommunications regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

CONTACT: John N. Giamalis

Chief Financial Officer

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Investor Relations Contact:

Donna Stein/Evan Smith/Courtney Levi

Press: Lee Foley/Gina Gardner

Morgen-Walke Associates, Inc.

212-850-5600