Colonial Data Technologies Corp. announces acquisition and formation of new subsidiary, G-Tel Corp.

NEW MILFORD, Conn.--(BUSINESS WIRE)--December 7, 1995 -- Colonial Data Technologies Corp. (AMEX:CDT), announced today the formation of a new subsidiary, G-tel Corp., through the purchase of assets and assumption of liabilities from G-Communications, Inc., a California-based company engaged in the development and distribution of high-end telecommunications products primarily in the retail and international marketplaces. The Company appointed the former senior managers of G-Communications, Hans C. Smarius, President, and Romie K. Sidabras, Executive Vice President, to equivalent positions in G-tel. In addition, CLT Telecommunications Corp., a Taiwanese manufacturer with extensive experience in the design and production of wireless telecommunications equipment, acquired a minority equity interest in G-tel Corp.

Walter M. Fiederowicz, Chairman of the Board of Colonial Data Technologies Corp., stated "The formation of G-tel, the appointment of Messrs. Smarius and Sidabras as members of senior management, and the alliance with CLT complements many facets of CDT's business. First, G-tel's Senior Management has extensive experience in the telecommunications industry with particular emphasis in retail and international markets, extending CDT's efforts in these areas. G-tel's Senior Management has significant international experience, having marketed telecommunications products throughout Europe, South America, Africa and Asia. Next, our transaction with G-tel brings the wireless product manufacturing expertise of CLT, which has facilities in Taiwan, further diversifying and widening CDT's overall manufacturing capacity. Finally, the venture creates for CDT a presence in California which may be used to leverage future business opportunities in connection with the anticipated 1996 implementation of Caller ID in that state. This transaction is another example of our ongoing strategic effort to grow our core business by recognizing and capitalizing on complementary relationships", Fiederowicz concluded.

Romie K. Sidabras, Executive Vice President of G-tel, stated, "CDT's comprehensive infrastructure and financial resources will enable G-tel to accelerate the development and delivery of highly innovative telecommunications products and enhanced services to a broader range of customers. Additionally, the design and wireless manufacturing capacity and experience of CLT as part of the venture will enable us to aggressively market cutting edge 900 MHz and follow-on PCS products to stay a step ahead of the competitive curve."

Colonial Data Technologies Corp. designs, develops and markets telecommunications products that support intelligent network services being developed and implemented by regional Bell operating companies and other 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.

CONTACT: COLONIAL DATA TECHNOLOGIES CORP.

Walter M. Fiederowicz, 203/355-3178

or

Morgen-Walke Associates, Inc.

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Press: Lee Foley, 212/850-5600