Colonial Data Technologies Corp., through CDT Telecom Systems, announces exclusive worldwide distribution agreement with Southwestern Bell Telecommunications, Inc.

NEW MILFORD, Conn.--(BUSINESS WIRE)--Nov. 9, 1995--Colonial Data Technologies Corp. (AMEX:CDT) through one of its wholly-owned subsidiaries, CDT Telecom Systems, Inc., today announced an agreement with Southwestern Bell Telecommunications, Inc. a leading provider of innovative telephone products and services, for exclusive worldwide distribution rights to its Landmark small business telephone systems. Southwestern Bell Telecommunications, Inc. is a subsidiary of SBC Communications Inc. (NYSE:SBC).

The agreement enables the Colonial Data Technologies subsidiary to become the exclusive distributor of Southwestern Bell's Landmark line of business products, including the digital key service units (KSUs), key sets and ancillary devices sold with the Landmark trademark. In addition, CDT Telecom Systems also received worldwide distribution rights to certain other small business-oriented products to telephone companies and other non-retail outlets.

Walter M. Fiederowicz, Chairman of the Board of Colonial Data Technologies Corp. commented, "We are excited about our subsidiary's new relationship with Southwestern Bell Telecommunications, which marks a significant step in strengthening our product offerings to businesses. With the scheduled passage of Caller ID information nationally in December, we believe that there will be increased demand for Caller ID products and services in a business setting. We see the Landmark products as providing an attractive platform for serving that market. When combined with the ADSI-based "smart" telephone which Colonial Data Technologies will be unveiling early next year, we believe we are well positioned to serve the needs of business and residential customers, for products that support intelligent network services.

Furthermore, this agreement provides a framework for additional future business with Southwestern Bell Telecommunications and enhances the potential of Colonial Data Technologies' family of companies to distribute a wider variety of products on a worldwide basis."

Colonial Data Technologies Corp. markets telecommunications products that support intelligent network services being developed and implemented by telephone operating companies. The Company has concentrated its product development and marketing efforts on products that support Caller ID, an intelligent network service that allows subscribers to view the telephone number and the directory name of the calling party before the call is answered, and to store that information in memory. The Company also repairs and refurbishes telecommunications products for commercial customers and provides services that support the development and implementation of intelligent network services. CDT Telecom Systems' arrangement with Southwestern Bell Telecom complements the overall corporate goal of bringing the advantages of the new intelligent network to small businesses.

CONTACT: Colonial Data Technologies Corp.

Walter M. Fiederowicz

Chairman of the Board

[phone]

or

SBC Communications, Inc.

Victor Villaba

[phone]

or

Investor Relations Contact: Donna Stein

Press: Lee Foley

Morgen-Walke Associates, Inc.

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