Castelle Launches FaxPress Premier Network Fax Servers into Japan; Initial Orders Expected in Q1 2005.

MORGAN HILL, Calif. & YOKOHAMA, Japan -- New FaxPress Premier(TM) Fax Servers Offer Enterprise-Level Capabilities Such as Line Expansion and Support for High Traffic Fax Environments

Castelle (Nasdaq:CSTL), a market leader in fax solutions for small to medium-sized workgroups and enterprise applications, today announced it has launched FaxPress Premier, the Company's newest generation of network fax servers for the enterprise market, into Japan. Castelle expects the introduction of FaxPress Premier into the Japanese market to contribute new revenues for the Company, and help maintain Castelle's position as one of the key players in the Japanese fax server market.

"We are pleased by the initial response to FaxPress Premier in the U.S. and Europe, and look forward to a similar response in Japan," said Scott McDonald, President and CEO of Castelle. "We are working closely with Macnica Networks Corporations, Castelle's partner and main distributor in Japan since 1992, on the launch of FaxPress Premier into the Japanese market. Since the partnership began, Macnica Networks Corporation has sold over 5,000 FaxPress(TM) units and feels confident that the addition of FaxPress Premier will expand their customer base to include high capacity fax applications at the enterprise level."

Macnica Networks Corporation simultaneously released "FAPIObject Premier," a developing tool for FaxPress Premier that provides customization and integration with applications such as SCM and ERP. The release of FaxPress Premier and FAPIObject Premier allows Macnica Networks Corporation to aggressively sell a complete auto-fax system for a wider range of users in Japan.

FaxPress Premier is designed to be flexible enough to meet the needs of high volume fax environments, while maintaining the ease-of-use customers have come to expect from Castelle's family of network fax servers. FaxPress Premier satisfies the expanding needs of Castelle's current customers while addressing new opportunities. The release of FaxPress Premier in Japan, and the upcoming launch of FaxPress Premier in China next month, supports the Company's ongoing initiatives and commitment to these markets.

About FaxPress Premier

Built on Castelle's eighteen years of network fax experience, FaxPress Premier's patent-pending technology offers a number of new, enhanced features making it a complete enterprise-level fax solution. FaxPress Premier is available as a scalable analog or digital rack-mountable network fax server. FaxPress Premier Analog provides up to 16 analog fax channels; FaxPress Premier Digital provides integration with T1, E1 or ISDN lines. With integrated file storage for system and fax data files, a multitasking embedded Windows operating system and pre-installed FaxPress Premier server software, both the FaxPress Premier Analog and FaxPress Premier Digital can support users in Microsoft Windows and Novell NetWare network environments. Additional features include a secure web interface, embedded email gateways, fax reporting, and a flexible software development kit that allows users to develop custom applications and production fax applications.

FaxPress Premier Availability

Beginning March 15, 2005, FaxPress Premier will be available for shipment in Japan through Macnica Networks Corporation and a network of resellers. For additional information, please contact Castelle International Sales at 408-852-8000 or [e-mail].

About Castelle

Castelle, a market leader in fax solutions for small to medium-sized workgroups and enterprise applications, develops office automation systems that allow organizations to easily implement faxing and printing over local area networks and the Internet. Castelle's network fax servers, FaxPress and FaxPress Premier, provide a simple way to integrate fax with email, desktop and back-end applications. Castelle products are designed to be easy to use and maintain, and provide an economical way for companies to share resources over the network. Castelle was founded in 1987 and is headquartered in Morgan Hill, California. Its products are available through a worldwide network of distributors, resellers, and online retailers. Visit Castelle online at www.castelle.com.

FaxPress(TM) and FaxPress Premier(TM) are trademarks of Castelle. All other products and trademarks are the property of their respective owners.

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Forward-Looking Statements

This press release contains forward-looking statements including references to the availability of FaxPress Premier for shipment, the demand for Castelle products, continued profitability and sales growth. These statements are subject to risks and uncertainties. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements as contained in our reports to the Securities and Exchange Commission, including our Form 10-K. The Company assumes no obligation to update the forward-looking information.