Conolog Corporation Announces Second Quarter Results.

Business/Technology Editors

SOMERVILLE, N.J.--(BUSINESS WIRE)--Feb. 10, 2000

-- Shows 300% Increase over Same Period in FY99 --

Conolog Corporation (NASDAQ: CNLG, CNLGW), an engineering and design company that provides digital signal processing solutions (DSP), reported total revenues of $1,767,824 for the second quarter ended January 31, 2000, compared to $589,328 for the same period last year, an increase of $1,178,496 or approximately 300%.

The Company reported a total net income for the period of $328,743 or $0.06 per share versus a net loss of $510,338 ($0.12 per share) for the second quarter of fiscal 1999.

For the first six months of fiscal 2000, net sales increased 255% to $2,319,951, compared to $908,677 for the same period last year. Net loss for the first six months of fiscal 2000 totaled $71,350 ($0.2 per share) compared to a net loss of $229,831 ($0.05 per share) last year.

Conolog's President, Robert Benou, stated, &uot;The second quarter results are ahead of projections and reflect the Company's year 2000 turn-around. This improvement was largely due to the rapid growth in all areas of our business as well as the receipt of $210,887 from the sale of New Jersey State losses. Our goal is to accelerate this year's growth and increase the revenues projected in our press release of January 31, 2000.&uot;

Conolog Corporation is an engineering and design company primarily engaged in providing engineering and technical personnel, and manufacturing a line of digital signal processing systems (DSP), including transmitters, receivers and multiplexers, under the INIVEN trade name.

Forward-looking statements in this release are made pursuant to the &uot;safe harbor&uot; provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition, new products introduced by competitors, changes in the rates of subscriber acquisition and retention, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

                      For the three months       For the six months
                        Ended January 31          ended January 31

                       2000          1999         2000        1999

Sales Revenues     $ 1,556,937  $   589,328  $ 2,319,951  $   908,677
Costs and Expenses  (1,439,081)  (1,099,666)  (2,602,188)  (1,552,297)
Other Income           210,887            0      210,887      413,789

Net Income/(Loss)
 after taxes,
 including other
  income           $   328,743  $  (510,338) $   (71,350) $  (229,831)