Cintech Announces Record Revenues.

CINCINNATI, Ohio--(BUSINESS WIRE)--Feb. 7, 1996--CINTECH(TSE: CTM ) Cintech Tele-Management Systems reported record sales for the 6th straight quarter and break-even earnings for the second quarter of fiscal 1996, ending December 31, 1995.

The Company reports sales of US$2.07 million, a 58 percent increase over results in the comparable period in the previous year. The Company reached break-even with a net profit for the quarter of US$48,000, or US$0.00 per share, compared to a net loss of US$(138,000) or US$(0.01) loss per share in the comparable quarter. The Company was able to increase revenues while also improving the Gross Profit Margin which was 63 percent compared with 60 percent for this same period last year. This resulted in a Gross Profit of US$1.31 million compared with US$0.79 million for the comparable period in the previous year. Selling, General and Administrative expenses increased to US$1.28 million, up from US$0.98 million for the quarter in the previous year. The Company had no outstanding debt obligations and had cash and marketable securities totaling $1.1 million as of December 31, 1995.

"We are obviously pleased with the solid revenue growth that Cintech continues to enjoy. We expect that trend to continue," commented Diane Kamionka, president and CEO of Cintech. "The contributions to revenue have been spread throughout our business lines and are geographically dispersed as well. This provides us with a strong foundation for our future opportunities.

"Much of our sustained growth can be attributed to our strong distributor relationships and their successful implementation of software application strategies. Our BCTA (Business Computer Telephony Application) products, particularly CINPHONY and PRELUDE Automatic Call Distribution (ACD) are core products in most of our distributor's product lines. As previously announced, our Nortel and NEC partnerships are expanding which broaden both our market and distribution capabilities for applications. Specifically, Nortel will be selling CINPHONY and PRELUDE directly from their catalog and JAZZ2000, our ACD for NEC's NEAX(R)2000 Integrated Voice System, is scheduled for release through NEC America. These factors, combined with the overall strength of the market for ACD in small and mid-size call centers, leads us to be optimistic in reaching our goals.

"PCTA (Personal Computer Telephony Applications) continues to gain momentum as a line of business, with its first contribution to revenue in this quarter. For PCTA, our distribution strategy focuses on traditional Personal Computer hardware and software distributors, where customers in the SOHO (Small Office, Home Office) market are likely to shop. With our initial product offering, OCTuS PTA, we are working with larger distributors like GrayBar, Gates Arrow and several others, as they expand their traditional hardware and software offerings to add computer telephony. As we have learned, introducing new computer telephony technology while also developing new distribution relationships, requires perseverance and patience. We are happy with the progress we are now seeing from a number of distributors, and the interest from the SOHO market, allowing us to remain confident in the potential of PCTA in the explosive SOHO market."

Cintech develops and markets software applications that merge the power of PCs and telephones. The Company provides solutions to small offices, home offices and departments or branch offices of larger organizations. Cintech has an extensive distribution network in US and Canada, through which the Company markets its own products as well as those of other select development companies.

CONTACT: Cintech Tele-Management Systems

Michael Freese, 513/731-6000

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