Cintech Tele-Management Systems announces 1995 year-end financial results.

CINCINNATI, Ohio--(BUSINESS WIRE)--MAY 5, 1995--CINTECH (TSE: CTM) Cintech Tele-Management Systems announced its unaudited financial results for the fiscal year ending February 28, 1995. All amounts are reported in US dollars.

The company reported annual sales of $4.4 million, up from $3.9 million in sales for fiscal 1994. The company had projected sales of $4.5 million for the fiscal year. The gross profit for fiscal 1995 was $2.5 million, $370,000 over the prior fiscal year. This increase of 17 percent was attributed to higher sales combined with a reduction in the costs of components used in the company's products. The gross margin percentage increased from 55 percent in fiscal 1994 to 58 percent in fiscal 1995.

The Company's selling, general, and administrative costs were $3.4 million, a 33 percent increase from fiscal 1994. This increase was due mainly to higher payroll costs to support a 20 percent growth in staff, as well as increases in sales and marketing expenses. Cintech reported continued investment in research and development with expenditures of $320,000 for the year, up 135 percent over the prior fiscal year. The resulting operating loss of $1.2 million, an increase of $660,000 over the previous year, is due primarily to the increased operating expenses. Other expenses were down 72 percent from fiscal 1994 to $165,000. The Company has $2.5 million in cash and marketable securities as of February 28, 1995.

The Company reported a net loss of $1.3 million or $0.11 per share for fiscal 1995 compared to $396,000 for the prior year. The Company had projected a net loss of $1.2 million or $.10 per share. For comparative purposes, it is worthwhile to note that fiscal 1994 results included a one-time extraordinary gain of $717,000, which represented a gain on the extinguishment of debt following the Company's initial public offering in January 1994.

"The Company is in a strong position to capitalize on the unprecedented growth that is underway in the Computer-to-Telephone Integration industry," commented Diane Kamionka, president and CEO of Cintech. "We are gaining momentum in our core business areas - Business Computer-Telephony Applications (BCTA) as well as in our new category of product - Personal Computer-Telephony Applications (PCTA).

"The major account, vertical market and telemarketing programs that we've initiated to sell and promote BCTA products are being embraced by many of our key distributors. In particular, a number of our most productive distributors have selected ACD as a core area of focus for 1995. The marketplace for these products continues to expand, fueled by the growth in 800-number incoming call centers and shows no signs of subsiding.

"In March 1995, we obtained exclusive distribution rights for OCTuS PTA throughout North America. OCTuS PTA is a highly acclaimed Personal Computer application targeted to the Small Office, Home Office professional. With OCTuS PTA, the user gets all of the benefits of a highly efficient personal secretary, 24 hours a day. OCTuS PTA announces your calls, puts them on hold, plays announcements, takes messages, organizes conference calls, maintains a "rolodex" including notes, sends and receives faxes and more.

"OCTuS PTA represents a new category of product for Cintech - the Personal Computer-Telephony Application. Current trends toward home offices and empowering professionals at the desktop are creating a strong demand for solutions like OCTuS PTA. It also gives Cintech new avenues for distribution. As telephones and computers converge, the traditional distribution channels of both markets are also converging to some degree. We are establishing relationships with a number of large computer and office retail outlets to carry OCTuS PTA. As our industry matures, our expansive distribution capabilities in both arenas will strengthen our overall position.

"Also key for growth is our expanded organization which increased significantly over the past year. This was a critical activity for the future - to solidify our ability to move quickly and effectively in our industry. As of May 1, John Kundrat has joined Cintech as Vice President of Marketing. John brings extensive experience in marketing computer hardware and software systems and relationship management from companies such as Structural Dynamics Research Corp. (SDRC), Goodyear Tire and Rubber Company and General Motors. John's background in computer software distribution adds a balance to our management team with both strong computer and telephony expertise. Vice President of Marketing was previously an unfilled position. With John in this key position, our core management team is now in place. In addition, as a result of our new organization, there is a greater focus on customer satisfaction and services including direct installations and customer training. We have already seen a significant increase in revenues from this area of the business and expect that trend to continue.

"In summary, fiscal 1995 saw record revenues, widening distribution and new, broader partnerships. We expanded our organizations, implemented a number of marketing and sales programs and put a greater focus on customer support and satisfaction. Our early progress in implementing the distribution strategy for Personal Computer Telephony Applications, the first being OCTuS PTA, is demonstrating the potential of this line of business for Cintech. These combined elements provide the foundation for Cintech's future growth."

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 the US and Canada, through which the Company markets its own products as well as those of other select development companies.

CONTACT: Joel Christman

Vice President Finance & Administration

513/731-6000

INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or