Centigram Communications Reports First Quarter '97 Results.

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 24, 1997--Centigram Communications Corporation (NASDAQ:CGRM), today reported net revenue of $27.9M and net income of $0.7M, or $0.10 per share for the first quarter ended February 1, 1997. This compares to net revenue of $24.0M and net income of $0.5M for the same period last year, or a revenue increase of 16% and an increase in earnings of 34%.

"We are pleased also to report that business continues to be robust for Centigram in the international marketplace, where international sales represented 46% of our revenues this past quarter, up from the prior year when international sales represented 31%," said George Sollman, Centigram's president and CEO. "However, the results this quarter were impacted by lower than expected revenues from one European customer."

"There continues to be an expanding interest in messaging solutions in both the service provider and customer premises sectors of our business. Once again we realized an almost equal proportion of sales from each of these sectors," said Sollman.

Centigram also announced today that it has terminated discussions regarding acquisition with Voice-Tel Enterprises, Inc. Discussions were subject to negotiation of a definitive agreement and certain regulatory approvals.

"Due to current market conditions, the companies have decided not to proceed with the proposed acquisition at this time and will remain independent," reported Sollman. "Moving forward, we plan to continue our strong, long-term business relationship with Voice-Tel."

Centigram is a leading global provider of wireless and wireline messaging and communications solutions. Centigram delivers communications solutions by integrating voice, data and facsimile on its Series 6 communications platform, and by providing access to this multimedia information through a telephone or PC. The Series 6 product line is based on industry-standard hardware and software. Centigram also licenses TruVoice(R), its patented text-to-speech software. Centigram is headquartered at 91 East Tasman Drive, San Jose, Calif., 95134. Phone [phone], fax [phone], World Wide Web http://www.centigram.com . Centigram has sales and support offices in North America, Asia, Europe, Latin America, and Australia.

This press release contains forward-looking statements regarding the industry and the Company. Actual results could differ materially from those projected in any forward-looking statements. These statements could affect the Company's "Sales and Distribution" risks as reflected in their 10-K document for fiscal year ended November 2, 1996, and filed with the Securities and Exchange Commission. These risks specifically relate to "the Company's future success will depend in part upon the ability of the Company to continue to introduce new features and products as the Company's markets evolve, new technologies become available, and customers demand additional functionality." -0-

NOTE TO EDITORS: Centigram and TruVoice are registered trademarks of Centigram Communications Corporation. -0-

              Centigram Communications Corporation
                  Consolidated Balance Sheets
         (in thousands, except share and per share data)

                                              February 1, November 2,
                                                 1997       1996
Assets
Current Assets:
Cash And Cash Equivalents                       $14,256    $12,668
Short-Term Investments                           27,040     29,408
     Total Cash And Short-term Investments      $41,296    $42,076
Trade Receivables, Net                           28,817     27,741
Inventories                                      11,484     11,467
Deferred Tax Assets                               1,424      1,424
Other Current Assets                              3,170      3,108
     Total Current Assets                        86,191     85,816
Property And Equipment, Net                      15,033     15,249
Intangible Assets, Net                            2,204      2,004
Deposits And Other Assets                           935        940
                                               $104,363   $104,009

Liabilities And Stockholders' Equity
Current Liabilities:
Accounts Payable                                 $8,338     $9,739
Accrued Compensation                              3,744      4,202
Accrued Expenses And Other Liabilities            7,033      6,424
Current Portion Of Capital Lease Obligations        157        154
     Total Current Liabilities                   19,272     20,519
Capital Lease Obligations                            38         78

Stockholders' Equity:
Common Stock                                          7          7
Additional Paid-In Capital                       89,745     88,767
Accumulated Deficit                              (4,312)    (4,992)
Unrealized Loss On Investments                      (42)       (36)
Cumulative Translation Adjustments                  (45)       (34)
Note Receivable From Officer                       (300)      (300)
     Total Stockholders' Equity                  85,053     83,412
                                               $104,363   $104,009

                Centigram Communications Corporation
               Consolidated Statements Of  Operations
                (In Thousands, Except Per Share Data)

                                                   First Quarter
                                                  1997       1996

Net Revenue                                     $27,913    $24,013
Cost Of Goods Sold                               11,343      9,511
     Gross Profit                                16,570     14,502
Operating Expenses:
   Research And Development                       5,693      4,574
   Sales, General And Administrative             10,618      9,886
     Total Operating Expenses                    16,311     14,460

Operating Income                                    259         42
Other Income And Expense, Net                       497        521
     Income Before Income Taxes Expense             756        563

Provision For Income Taxes                           76         56
     Net Income                                    $680       $507

Net Income Per Share                               $.10       $.07
Weighted Average Common Shares Outstanding        6,986      6,980

CONTACT: Centigram Communications

George Sollman, 408/428-3502 (President/CEO)

Dennis P. Wolf, 408/428-3550 (Sr. VP/CFO)

Beverly Rindfleisch, 408/428-3722 (Sr. Dir. Corp. Comm)