Castelle Announces Global Partner Program to Help Resellers Maximize Business and Sales Opportunities.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 21, 1999--

Program Includes New Marketing Tools, Increased Sales Leads 

and Expanded Technical Support to Grow Castelle VAR Channel

Castelle (Nasdaq:CSTL) announced today a new value added reseller program, "Global Partner Program," designed to help Castelle resellers improve sales and business relationships.

Castelle's Global Partner Program brings together existing value added resellers (VAR) from recent Castelle acquisitions and combines them into one integrated organization. As a result, Castelle's VAR program offers increased product offerings and solutions compared to its competitors. Castelle is unique in that it offers fax solutions from small workgroups to the enterprise level.

The company's product lines consist of: FaxPress, an integrated hardware/software network faxing solution; Object-Fax, an enterprise-level Windows NT fax server and LANPress print servers. Global Partner Program is a worldwide partner opportunity for resellers and applications are available now from http://www.castelle.com/partners/VARapplication.htm.

Don Rich, chief executive officer of Castelle stated, "The combination of solutions into one comprehensive program should broaden our exposure in the marketplace. We understand and value the relationship of our reseller channel. We are making a commitment to support our resellers with the best possible marketing programs, training, sales tools, and technical support to help them get to the next level with their customers."

Castelle plans to increase VAR memberships with value-added program benefits and introduce Business and Alliance Partner Program levels, which will be determined by the net amount of Castelle product sold. VARs can purchase Castelle products through major distributors which include Ingram Micro, Tech Data and Merisel. The Global Partner Program offers its members new marketing and sales benefits, pre-sales support, technical training, as well as trade-in, add-on, and support agreement discounts.

VARs will benefit from additional revenue, sales leads, software development application tools and the opportunity to earn marketing support funds. Resellers will also have exclusive private user access to Castelle's new partner web site section available only to authorized resellers in the program.

"Combining Castelle's recent acquisitions and multiple product lines into a comprehensive reseller program is a smart move," remarked Maury Kauffman, managing partner of The Kauffman Group, a facsimile industry analyst firm. "The Program will attract both dedicated computer-fax resellers and general computer resellers."

To develop the Global Partner Program, Castelle interviewed its reseller and distribution channel to develop program benefits that would directly impact VARs and their business needs. "I am pleased that Castelle has put together a reseller program that is professional, organized and has excellent marketing and sales tools for all VARS. This is a good move for Castelle and for my company," said Mohammad Rahnanama, Project Manager for NSI (Net Service Inc.). NSI has been reselling Castelle's products for the past eight years.

"Castelle is committed to giving its resellers the competitive advantage they need. Our resellers will benefit greatly from our enhanced marketing and sales tools," said Sherry Prescott, Global Partner Program Manager. "Partners will receive priority top support when they join. This program is designed to provide the right resources to enable our partners to increase revenues with network and Internet fax technology."

New Global Partner Program applicants who join the program before March 1, 1999 will have access to a discounted "VAR Starter Kit" which includes VAR versions of fax server and print server product, and Castelle marketing and sales tools. Special discounts are also available for VARs interested in purchasing demo units. "VAR Starter Kits" and demo units can be purchased by calling 800/289-7555. To apply for the Global Partner Program, resellers can fill out an application via Castelle's Web site (http://www.castelle.com/partners/VARApplication.htm) or applications can be ordered by calling Castelle at 800/289-7555 or Sherry Prescott at 408/496-0474, ext. 422.

About Castelle

Founded in 1987, Castelle is an industry leader and pioneer of network fax and print servers that increase productivity in workgroups and the enterprise. Over the past two years the company has acquired Object-Fax, an NT-based enterprise fax server from Traffic Software and the InfoPress family of fax-on-demand and voice response solutions from Ibex Technologies. These acquisitions strategically complement Castelle's flagship fax server product, FaxPress, and will create a fax product suite that supports centralized or distributed enterprises of all sizes. Castelle products are available through a worldwide network of distributors. Castelle is headquartered in Santa Clara, Calif. and can be reached at 800/289-7555; 408/496-0474; or www.castelle.com.

Castelle and Object-Fax are trademarks or registered trademarks of Castelle. All other products and trademarks are the property of their respective owners.

This release as it relates to revenues and other company matters, contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Investors are directed to the Risk Factors section and other information contained in the company's filings with the Securities and Exchange Commission for a more complete description of the risks and uncertainties relating to the material in this release as well as to other aspects of the company's business.