Castelle to Present FaxPress and FaxPress Premier Network Fax Servers at Microsoft TechEd Europe 2004.

MORGAN HILL, Calif. & AMSTERDAM -- Castelle (Nasdaq:CSTL), a market leader in fax solutions for small to medium-sized workgroups and enterprise applications, today announced that it will participate as an exhibitor at the Microsoft TechEd Europe Conference and Exhibition from June 29 through July 2, 2004 in Amsterdam.

"We are excited to be showcasing our FaxPress(TM) and FaxPress Premier(TM) network fax servers at Microsoft TechEd Europe," said Scott McDonald, President and CEO of Castelle. "FaxPress Premier, with an embedded Windows operating system, reflects Castelle's ongoing commitment to developing fax solutions for Microsoft applications. At the same time, the newest release of FaxPress Premier Digital E1 represents Castelle's commitment to Europe and the increasing demand for digital integration. Exhibiting at shows like TechEd allows us to reach our target audience, and gives new and existing customers an opportunity to see firsthand the newest products and features available from Castelle. The response to FaxPress and FaxPress Premier at Microsoft TechEd last month in the U.S. was extremely positive, and we look forward to similar results in Europe."

TechEd Europe is Microsoft's "definitive European conference for building, deploying, securing and managing connected solutions." Among 100 Microsoft partners participating in the event, Castelle will be demonstrating its family of network fax servers for business and enterprise to an audience of IT professionals, developers, network and system administrators, and messaging and system specialists. For more information on Microsoft TechEd Europe 2004, visit www.microsoft.com/europe/teched.

Castelle will also be exhibiting at Enterprise Networks 2004 in London on July 5 - 6, holding a series of product presentations at the Renaissance Chancery Hotel in London on July 8 - 9, and exhibiting at the Microsoft Worldwide Partner Conference in Toronto, July 11 - 13. For information on these events, please contact Karin Smith at 408-852-8034 or email [e-mail].

Castelle's New FaxPress Premier Digital E1

FaxPress Premier is an enterprise-level fax server for high traffic computer-based fax environments. Built on existing FaxPress hardware and software features, its patent pending technology offers advanced network capabilities such as integrated file storage, embedded email gateways and a secure Web browser interface. FaxPress Premier fax servers provide a seamless integration with Microsoft Office, allowing users to send faxes from within any Microsoft Office program, send and receive faxes as easily as they send and receive email, and create and edit cover pages using Microsoft Word or WordPad. The new FaxPress Premier Digital E1 supports 30 fax channels across a single EuroISDN E1 line. Upgrade packages enable support for up to 90 fax channels across three EuroISDN E1 lines.

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, online retailers, and the Castelle Online Store. Visit Castelle online at www.castelle.com.

FaxPress(TM) and FaxPress Premier(TM) are trademarks of Castelle.

If you would like to be added to Castelle's investor email list, please contact Karin Smith at [e-mail].

Forward-Looking Statements

This press release may contain forward-looking statements that 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.