Cintech announces inventory adjustment.

CINCINNATI--(BUSINESS WIRE)--April 28, 1997--Cintech Tele-Management Systems Inc. (TSE:CTM) today announced that slower than expected sales of its OCTuS PTA product line has resulted in excess inventory -- in the form of computer telephony hardware -- and, in turn, will cause the company to record a one-time inventory adjustment to its balance sheet for the third quarter ending March 31, 1997.

Based on the advice of the company's audit firm, Deloitte Touche LLP, and in keeping with the company's conservative reporting history, a reserve will be applied to the company's third quarter balance sheet representing the cost of the remaining excess inventory, (U.S.) $851,000 or (U.S.) $0.07 per share.

This non-cash event is isolated to the OCTuS PTA product line, and in no way impacts the company's core Automatic Call Distribution (ACD) software operations. This move is consistent with the company's continued focus on software solutions for the high-growth small call center market.

Based upon preliminary sales data for the third quarter, the company anticipates reporting a 25-30 percent increase in ACD software revenues on a 40-45 percent increase in ACD software unit volumes compared to the third quarter last year.

Cintech acquired exclusive distribution rights for the OCTuS PTA product line in March 1995. Strategically, OCTuS PTA provided the company with technology and an opportunity to diversify into the Small Office/Home Office (SoHo) market segment and expand its distribution into channels that service that segment.

The company was successful in expanding distribution to several major computer resellers, however the SoHo market segment had not adequately been educated or developed for computer telephony solutions to generate the volume of sales required to sustain this type of distribution strategy.

In an effort to fully recover the value of the excess inventory, the company has introduced linkIT!, a new ACD Add-On that utilizes the computer telephony hardware associated with the inventory adjustment. linkIT! provides "creen pop" technology to small and mid-size call centers and closely complements the current ACD product lines.

Cintech reports it has received positive feedback regarding the viability of the linkIT! product from users, analysts, distributors, etc., and will continue efforts towards building a successful sales model using the company's existing telephony distribution channels and without committing further significant resources.

The linkIT! add-on allows the company to further broaden its ACD solutions with technology that addresses identified needs of the small and mid-sized call center.

About Cintech

Cintech, based in Cincinnati, pioneered PC-based Automatic Call Distribution (ACD) and call information software solutions for the small office, the branch office, and departments of larger companies.

Since 1990, Cintech has been the provider of 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 NEAX(R)2000 IVS telephone system, which expands Cintech's market for ACD to businesses with up to 500 telephone lines. JAZ2000 is distributed by NEC America through its direct sales force and network of distributors.

CONTACT: Cintech Tele-Management Systems Inc., Cincinnati

James Keller, 513/731-6000