Centigram third quarter results.

SAN JOSE, Calif.--(BUSINESS WIRE)--July 24, 1995--Centigram Communications Corporation (NASDAQ-CGRM) today reported sales of $17,607,000 and a loss of $1,417,000 or $.22 per share for the third quarter of fiscal 1995, as compared to sales of $20,206,000 and net income of $1,998,000 or $.30 per share for the third quarter of fiscal 1994. Sales for the third quarter of 1995 were 9% above the $16,205,000 in net sales reported for the second quarter ended April 1, 1995, when the Company reported net income of $17,000.

Sales for the nine months ended July 1, 1995 were $48,817,000 as compared to $58,018,000 for the first nine months of fiscal 1994. The Company reported a net loss of $1,906,000 or $.29 per share for the first nine months of fiscal 1995 and net income of $5,797,000 or $.89 per share in the first nine months of fiscal 1994.

In June 1995, Gilbarco, Inc. filed a patent infringement suit against Centigram in the U.S. District Court for the Middle District of North Carolina, seeking an injunction and damages based on allegations that Centigram's products infringe certain patent rights owned by Gilbarco. Centigram believes it does not infringe valid Gilbarco patents and intends to defend such claims vigorously.

Centigram Communications Corporation (NASDAQ: CGRM), headquartered in San Jose, California, is a leading provider of communication solutions. Centigram solves communication problems by integrating voice, data, and facsimile on its Adaptive Information Processing (AIP) platform, and providing access to this multimedia information through a telephone or PC. The AIP platform is a communication server based on industry-standard hardware and software. Centigram also licenses TruVoicer, its patented text-to-speech software. Centigram is located at 91 East Tasman Drive, San Jose, CA 95134. Phone [phone], Fax [phone]. -0-

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

Centigram Communications Corporation
Consolidated Statements of Income
(in thousands, except per share amounts - unaudited)

                          Quarter Ended   Nine Months Ended
                        July 1    July 2   July 1    July 2
                         1995      1994     1995      1994

Net sales             $  17,607 $ 20,206 $ 48,817 $  58,018

Costs and expenses:

   Costs of goods sold    6,147    5,890   15,328    16,421

   Research and developm  3,796    3,253   10,741     8,785

   Selling, general and
       administrative     9,536    8,722   26,228    25,875
                         ------   ------   ------    ------
                         19,479   17,865   52,297    51,081

Operating income (loss)  (1,872)   2,341   (3,480)    6,937

Interest, net               535      433    1,574     1,114

Income (loss) before income
   taxes                 (1,337)   2,774   (1,906)    8,051

Provision for income tax     80      776        0     2,254

Net income (loss)     $  (1,417)$  1,998 $ (1,906)$   5,797

Net income (loss) per $   (0.22)$   0.30 $  (0.29)$    0.89

Common and common equivalent
   shares used in computing
   per share amounts      6,573    6,661    6,514     6,547

Consolidated Condensed Balance Sheets
(In thousands)
                        July 1,   October 1,
                         1995        1994
                      (unaudited)

Cash, equivalents and
   short-term investme$  58,595   $ 60,362
Accounts receivable      18,975     23,241
Inventories               4,526      4,210
Other assets             18,739     14,496
Current liabilities      17,138     18,696
Stockholders' equity     83,416     83,177

CONTACT: Centigram Communications Corporation

George Sollman, 408/428-3502

Anthony R. Muller, 408/428-3550