Cintech Announces 1st Quarter Fiscal 1997 Results.

CINCINNATI, OHIO--(BUSINESS WIRE)--Nov. 12, 1996--CINTECH TELE-MANAGE (TSE CTM.) Cintech Tele-Management Systems, Inc. reported results for the first quarter ending September 30, 1996. Revenues for the first quarter were US$1,521,000 compared to US$1,547,000 for the corresponding period of the prior year. Gross Profit was US$1,026,000, an increase of 18 percent over the comparable first period. As a percentage of sales, Gross Profit increased to 67 percent in first quarter fiscal 1997 from 56 percent in the first quarter of fiscal 1996. The increase in Gross Profit is attributable to the Company's focus on higher margin software-only products. The Company reported a net loss of $247,000 or a US$0.02 loss per share, equal to that realized for the first quarter of 1996. Selling, General and Administrative expenses increased less than 13 percent over the comparable quarter to US$1,281,000 due to the Company's continued implementation of its joint marketing strategy.

"A number of key elements of our business plan moved forward during the first quarter," commented Diane Kamionka, president and CEO of Cintech. "First, Nortel and our distributors continue to ramp their efforts in selling Cintech products. Nortel's management has made Cintech applications a priority as Nortel executes its plan to extend its market leadership to small and mid-size call centers. Cintech's PRELUDE and CINPHONY ACDs are the products that allow Nortel to attack this market segment.

"A key to the success of our joint marketing model is making our product partners, in this case Nortel, proficient in selling applications. We are completing the sales transition with Nortel, which included re-focusing the efforts of our salespeople to leverage the Nortel salespeople.

"We have increased units shipped across all product lines, with revenues lagging somewhat due to our new relationship with Nortel. Now, with our products in the Nortel catalog, Cintech receives revenue only on software instead of software and hardware as in the past. With 12 times the number of salespeople promoting Cintech applications (approximately 120 Nortel salespeople versus Cintech's 10) unit shipments are expected to continue to increase."

JAZZ2000 ACD, the Company's newest product for NEC's NEAX 2000 IVS will begin impacting revenues in the second quarter. Cintech has begun early product shipments and reports that demand for JAZZ2000 is strong due in part to the lack of a solid, feature-rich ACD solution for the NEAX 2000 IVS. Early feedback from its sales channels indicates that JAZZ2000 squarely addresses the requirements of the market. With this product, Cintech expands its distribution to NEC America and its Distributor Associates (e.g., GTE, WilTel, Digitel). "Looking forward, we expect our annual rate of growth to continue as our relationships with Nortel and NEC mature," concluded Ms. Kamionka. "With the infrastructure of our joint marketing relationships in place, we can take advantage of the demand for a new kind of call center that is emerging within the business community. Companies of all sizes are recognizing the value of the call center as a competitive tool in almost any business. The static definition of a call center is changing to be more encompassing, covering a full spectrum of environments - from the traditional call center to extremely informal centers. This opens a virtually untapped market. Cintech's focus on ACD solutions and our expansive distribution, position us to grow dynamically with this changing marketplace."

About Cintech

Cintech, based in Cincinnati, Ohio, is a pioneer in PC-based telephony products for the small office, the branch office, and departments of larger companies. Since 1990, Cintech has been the provider of Automatic Call Distribution (ACD) software for Northern Telecom's (Nortel) best selling, low-end telephone system, called Norstar. Cintech's ACD products for Norstar are distributed by Northern Telecom to all of the Regional Bell Operating Companies, Canadian provincial telephone companies, and the three largest U.S. independent telephone operating companies: GTE, Sprint and WilTel.

Cintech also is in partnership with NEC America. The Company's JAZZ2000 ACD is designed for NEC's mid-sized NEAX2000 IVS telephone system, which expands Cintech's market for ACD to businesses with up to 500 telephone lines. JAZZ2000 is distributed by NEC America through its direct sales force and network of distributors.

CONTACT: Cintech Tele-Management Systems, Inc.

James Keller, 513/731-6000