COLONIAL DATA TECHNOLOGIES CORP. REPORTS REVENUES AND EARNINGS FOR FIRST QUARTER 1996.

NEW MILFORD, Conn.--(BUSINESS WIRE)--May 1, 1996--Colonial Data Technologies Corp. ("CDT") (Nasdaq:CDTX) today reported financial results for the first quarter ended March 31, 1996.

For the three months ended March 31, 1996, revenues were $18,914,000, an increase of 24% as compared to $15,206,000 for the same period last year. Net income for the quarter increased 14% to $2,751,000 compared with $2,414,000 a year earlier. Net income per share for the quarter was $0.18, level with the same period for 1995, on increased outstanding shares. The weighted average common shares outstanding were 15,618,071 and 13,764,296 for the first quarter of fiscal 1996 and 1995, respectively. For the three months ended March 31, 1996, gross profit and operating margins were 38% and 20%, respectively, compared with 40% and 25% for the same period last year.

Robert J. Schock, President and Chief Executive Officer commented, "We are pleased with the Company's position as a leading national provider of Caller ID products and services. We believe that our diverse and expanding product line along with our distribution strength will give the Company an opportunity to expand our market presence and offer our customers the best service possible. In addition, we are continuing to take advantage of our strategic joint venture, Worldwide Telecom Partners, and its marketing capabilities, by joining forces with the RBOC's and other telcos to gain increased penetration of Caller ID service."

Mr. Schock concluded, "The Company expects a successful product roll out and continued revenue and profit growth in 1996 with the deployment of our new, award winning smart phone, the Telesmart 4000. Finally, with the anticipated implementation of Caller ID service in the state of California as of June 1, 1996, the Company hopes to play an important role in that market."

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(R) 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. -0-

                COLONIAL DATA TECHNOLOGIES CORP.
         CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
             (In thousands, except per share data)

                                            Three Months Ended
                                                 March 31,
                                            1996          1995

Revenues:
  Products                                 $14,522      $ 9,702
  Leases                                     3,945        4,793
  Services                                     447          711
Total revenues                              18,914       15,206

Cost of sales:
  Products                                   9,791        6,699
  Leases                                     1,646        1,921
  Services                                     260          481
Total cost of sales                         11,697        9,101

Gross profit                                 7,217        6,105

Operating expenses:
  General and administrative                 1,554        1,032
  Selling and marketing                      1,474          957
  Research and development                     370          278
Total operating expenses                     3,398        2,267

Income from operations                       3,819        3,838
Other income, net of other expenses            690          186
Income before income taxes                   4,509        4,024
Income taxes                                 1,758        1,610

Net income                                 $ 2,751      $ 2,414

Net income per share                       $  0.18      $  0.18

Weighted average shares                     15,618       13,764

-0-
                 COLONIAL DATA TECHNOLOGIES CORP.
             CONSOLIDATED CONDENSED BALANCE SHEETS
                         (In thousands)

                                         March 31, 1996  December 31, 1995
Assets:

Cash and short-term investments                $35,423          $31,632
Accounts receivable                             14,512           16,069
Inventories                                     27,226           26,512
Other current assets                               980              539
Total current assets                            78,141           74,752
Noncurrent assets                               10,143           11,653
Total assets                                   $88,284          $86,405

Liabilities and Stockholders' Equity:

Current liabilities                            $ 5,898          $ 5,837
Stockholders' equity                            82,386           80,568
Total liabilities and stockholders' equity     $88,284          $86,405

CONTACT: Company Contact:

John N. Giamalis

Chief Financial Officer

[phone]

or

Investor Relations Contact:

Donna Stein/Evan Smith/Courtney Levi

Morgen-Walke Associates, Inc.

212-850-5600

Press:Lee Foley/Gina Gardner

212-850-5600