Castelle and NetXchange Team to Deliver Internet Fax Routing; Fax server leader adopts Internet messaging protocols to dramatically cut transmission costs.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 26, 1997--Castelle (NASDAQ:CSTL), the leading supplier of network fax servers, has announced today a partnership with NetXchange Communications which will add Internet fax delivery technology to Castelle's computer fax products.

Internet fax routing can dramatically reduce a customer's overall transmission costs, particularly for international and intra-company faxing, and in many cases can reduce to zero the incremental cost of sending a fax.

Under the strategic partnership, Castelle will use NetXchange's fax routing technology to add Internet connectivity and automatic, dynamic Least Cost Routing capability to its widely-implemented fax server (FaxPress) and information server (InfoPress) product lines. Castelle's customers will be able to benefit from seamless and transparent routing of their faxes over the Internet via NetXchange's technology.

"Many organizations have multiple FaxPress fax servers installed in various locations, both within the same country and internationally," said Art Bruno, Castelle's president and CEO. "Because a significant amount of fax traffic is within the same company, the new FaxPress Internet routing products can result in substantial savings."

"It is particularly gratifying to be teaming with computer telephony leader Castelle to bring the power of the Net to FaxPress and InfoPress users," said Israel Drori, NetXchange's president and founder. "Our Internet routing technology will add an increased functionality to Castelle's fax server and information server product lines, dramatically cutting long distance charges."

NetXchange's Internet fax routing technology utilizes a unique Least Cost Routing algorithm to ensure that the fax message is routed over both the digital Internet and analog telephone network in a way that automatically and transparently incurs the lowest charge for the user. Further, NetXchange employs fail-safe methods to ensure timely and reliable message delivery.

Castelle, founded in 1987, designs, develops, markets and supports specialized network servers for increased productivity in workgroups and distributed enterprise applications. Products include: internetwork fax- and print-servers for workgroups, fax/email-on-demand, fax gateways, plus fax broadcast and Web fax systems.

Products are available through a worldwide network of distributors. The company also has relationships with selected original equipment manufacturers and system integrators and sells software enhancements and upgrades directly to end users.

The company, publicly traded on the over-the-counter market under the NASDAQ symbol CSTL, is headquartered in Santa Clara, California. For more information call 1-800/289-7555 or visit Castelle's web site at http://www.castelle.com .

NetXchange Communications, Inc. is a leading provider of advanced Internet/intranet messaging solutions and a technology pioneer in the rapidly expanding Internet communications market.

With U.S. headquarters in San Francisco and international headquarters in Israel, the company provides corporations and service providers with advanced Internet/intranet messaging technologies to improve communications and reduce associated expenses.

NetXchange is backed and funded by LanOptics (NASDAQ:LNOPF), a leading provider of networking solutions. NetXchange can be reached at 415/543-7272 (telephone) or 415/543-5775 (fax). For more information on NetXchange and its flagship Internet for Fax solution, visit its World Wide Web site at http://www.ntxc.com .

CONTACT: Castelle Corporate Headquarters

Rosella Fernandez, 408/496-0474

[e-mail]

or

Ulevich & Orrange, Inc.

William Orrange/Janis Ulevich, 415/329-1590

[e-mail]