Computone Announces Positive Second Quarter Results.

ROSWELL, Ga.--(BUSINESS WIRE)--Nov. 7, 1996--Computone Corporation (NASDAQ:CMPT), a leading designer and manufacturer of remote access hardware and software solutions, and asynchronous multiport subsystems, announced results for its second fiscal quarter ended October 4, 1996.

When compared to the same quarter last year, sales revenues were $3.5 million versus $2.7 million, an increase of 30%. Income from continuing operations for the quarter ended October 4, 1996 was $215,000 or $.03 per share with 6.8 million shares outstanding. This compares to a loss from continuing operations of $184,000 or $.03 per share on 6.4 million shares outstanding at the end of the second quarter of the prior fiscal year.

Thomas J. Anderson, Computone's President and Chief Executive Officer, said "we continue to gain a stronghold in the remote access marketplace. Once again, our quarter's success can be attributed to increased sales of Computone's new IntelliServer PowerRack. We have aggressively positioned the PowerRack to Internet Service Providers (ISP's), resellers that specialize in networking products, and large corporate and government accounts around the world. Even though there are other remote access servers on the market, Computone's PowerRack greatly surpasses competitor's products by providing the lowest cost per port, greater reliability, and the fastest speed... it's the world's fastest remote access server on the market today," Anderson said.

The PowerRack, which has been shipping since April, supports concurrent serial port speeds of 921.6Kbps, on all ports, where most competitive products only support 115.2 Kbps. The PowerRack is expandable up to 64 serial ports and can support 64 simultaneous PPP sessions, which is optimum for Internet Service Providers and high-end intranet applications. IntelliServer PowerRack can be connected to a TCP/IP Ethernet LAN, or can be booted independently and operated as a standalone remote unit. When installed on a LAN, the IntelliServer is menu-driven and requires no special operating system device drivers, simplifying upgrades and TCP/IP host cross-platform connectivity. To maintain high throughput for up to 64 physical devices, the IntelliServer integrates surface mount technology with ASIC circuitry, a high-performance RISC CPU, 4MB RAM, and 512KB Flash PROM for non-volatile storage of firmware and configuration parameters.

Built-in connectors for Ethernet are BNC (thin-net) and AUI (thick-net, twisted pair, or fiber optic). IntelliServer's standard feature list includes full PPP, SLIP, CSLIP, RADIUS, RIP and proxyarp, which offers an ideal solution for sites that wish to implement cost-effective standalone remote access, Internet access, and LAN-to-LAN interconnectivity.

In addition to providing the fastest remote access server on the market today, Computone will soon be providing the world's fastest ISDN modem. Computone and NewCom Inc., a subsidiary of Aura Systems Inc., jointly announced on October 18th the development of a high-speed 921.6 Kbps ISDN modem. The new ISDN Modem will be formally introduced at the Fall Comdex show, November 18-22, 1996, in Las Vegas, NV.

Established in 1984, Computone offers an extensive line of Ethernet, remote access/Internet communications servers, multi-port solutions for PCI, ISA, EISA, and Micro Channel computer systems; and UNIX-to- SNA/X.25 connectivity solutions. Computone was awarded Arthur Andersen's prestigious "Fast Tech 50" award for the fourth consecutive year. Computone is located at 1100 Northmeadow Pkwy, Roswell, Ga. 30076. To reach Computone Sales: call [phone] or [phone], Facsimile: 770.664.1510, email: sales @ computone.com or visit our Web site - http://www.computone.com. -0-

                        Computone Corporation
                (in Thousands except per share amounts)


                              Three Months ended  Three Months ended
                                October 4, 1996     October 6, 1996
                              ------------------  ------------------
Revenues:
    Product sales                  $    3,504         $    2,694

Expenses:
    Cost of products sold               2,058              1,758

    Selling, general
     and administrative                   930                863
    Product development                   265                231
                                       ------             ------
                                        3,253              2,852

Operating income from continuing
 operations                               251               (158)

Non-operating income (expense):
    Other income (expense)                  3                 (1)
    Interest expense                      (36)               (25)
                                       ------             ------
Income from continuing operations
 before taxes                             215               (184)

Income tax expense (benefit):
    Current                                --                 --
    Deferred                               --                 --
                                       ------             ------

                                           --                 --
                                       ------             ------
Income from continuing operations         215               (184)

Discontinued Operations:
    Income on disposal                     --                 --
                                       ------             ------

Income before extraordinary item          215               (184)

Extraordinary item:
    Debt foregiveness
                                           --                 --
                                       ------             ------
Net income                         $      215         $     (184)
                                       ======             ======
Net income per common share &
 common share equivalents:
    Income from continuing
     operations                          0.03              (0.03)
    Income from discontinued
     operations                            --                 --
    Income from extraordinary item         --                 --
                                       ------             ------
Net income per common share         $    0.03         $    (0.03)
                                       ======             ======
Weighted average common shares
 and common share equivalents
 outstanding                            6,843              6,412
                                       ======             ======

CONTACT: Computone Corporation

Daphne Shi, (Media Relations), 770/475-2725 x280

FAX: [phone]