Computone Reports 31% Jump in Sales for First Half of Fiscal 2000.

ALPHARETTA, Ga.--(BUSINESS WIRE)--Nov. 12, 1999--

Computone Corporation (OTC BB: CMPT), a worldwide leader in remote access communications servers and high-speed multiport I/O boards since 1984, today announced financial results for its second quarter ended September 30, 1999, citing what its president and CEO called "another step in the right direction."

Computone reported net sales for the quarter of $2,646,000, a 6 percent decrease from $2,808,000 for the same quarter of fiscal 1999. The company also reported a net loss of $351,000, or $(.04) per share, based on 8.5 million shares outstanding, an improvement over a net loss of $819,000, or $(.11) per share, for the second quarter of 1999, based on 7.5 million shares outstanding. Computone also reported that gross margins improved to 40 percent from 33 percent in the same period a year ago.

For the six months ended September 30, 1999, Computone reported net sales of $7,379,000, an increase of 31 percent over the $5,652,000 for the same period a year ago. Net income for the six months was $78,000, or $.01 per share based on 8.5 million shares outstanding, a major improvement over a net loss of $1,769,000, or $(.23) per share for the first six months of fiscal 1999, based on 7.5 million shares outstanding.

Perry Pickerign, Computone's president and CEO, said he was "pleased with our progress in turning the ship. We have engineered a profitability turnaround in the first half despite some obstacles and a decrease and delay in some project-related business. He said pricing improvements, a better sales mix, reduced component costs, reductions in overhead costs, and a focus on distribution sales helped improve the company's efficiency and made the second quarter loss "substantially less" than in fiscal 1999.

According to Pickerign, project-related business to major customers was down from the first quarter. However, he said Computone's North American distribution sales were up 42 percent for the quarter and 47 percent for the first half, and European and Asian sales increased 30 percent in the quarter, as compared with the same periods in the previous year.

Pickerign said Computone will introduce three products -- IntelliServer RAS 2000(R), the flagship of its new family of intelligent remote access servers; Gold Card, a powerful PCI controller, and IntelliPort II, a multi-port serial controller with software device drivers in the Linux kernel source code -- next week at COMDEX in Las Vegas, the computer industry's premier marketing event.

A pioneer and leader in the worldwide IT industry since 1984, Computone Corporation (OTC BB: CMPT, www.computone.com) designs, manufactures and markets a comprehensive line of remote access communications servers for Internet, LAN/WAN and Windows NT/SCO UNIX/Linux and other Open Systems. Computone is also a leading producer of high-speed multiport I/O boards, serving vertical markets including healthcare, retail/point-of-sale, banking and financial, telecommunications, Internet service providers (ISPs), transportation, hospitality and education. The company is based in the Atlanta suburb of Alpharetta, and sells through a worldwide network of authorized and certified distributors.

This press release contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.

RAS 2000 is a registered trademark of Computone Corporation. -0-

                         Computone Corporation
                            Financial Data
               (in thousands, except for per share data)
                              (unaudited)

                             Three Months Ended      Six Months Ended

                            Sept. 30,   Oct. 2,    Sept. 30,   Oct. 2,
                               1999      1998         1999      1998
                            ---------  --------    ---------  --------

INCOME STATEMENT DATA
Net sales                    $ 2,646   $ 2,808      $ 7,379   $  5,652
Gross profit                   1,069       925        2,952      1,771
Operating expenses:
   Product development           430       521          889        957
   Selling, general and
     administrative              946     1,196        1,887      2,525
Operating income (loss)        (307)     (792)          176    (1,711)
Other income (expense)          (44)      (27)         (98)       (58)
Net income (loss) before
  income taxes                 (351)     (819)           78    (1,769)
Net Income (loss)              (351)     (819)           78    (1,769)

Weighted average shares:
   Basic                       8,472     7,498        8,468      7,498
   Diluted                     8,472     7,498        8,487      7,498

Earnings (loss) per
common share
   Basic                     $(0.04)   $(0.13)      $  0.01   $ (0.23)
   Diluted                    (0.04)    (0.13)         0.01     (0.23)


BALANCE SHEET DATA          Sept. 30,  April 2,
                              1999      1999
                            ---------  --------

Cash and cash equivalents    $    38   $    18
Receivables, net               1,655     1,963
Inventories, net               2,326     2,197
Total assets                   5,164     5,308

Long-term debt                   273       347
Stockholders' equity             353       106

Working capital deficit        (438)     (614)