Corsair Reports Third Quarter Results.

PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 14, 1997--Corsair Communications, Inc. (NASDAQ:CAIR) announced today that its revenues for the third quarter, ended September 30, 1997, were $13 million, up 120 percent from $5.9 million for the same period last year.

Revenues for the year to date were $33.3 million, an increase of 208 percent compared to $10.8 million for the first nine months of 1996. The company reported earnings of $1.1 million ($.08 per share) for the quarter, compared to a net loss of $3.2 million ($.37 per share) in the third quarter of 1996. Net loss for the year to date was $3.4 million ($.29 per share), compared to a $9 million loss ($1.06 per share) for the same period in 1996.

"These results reflect progress on several fronts," said Corsair president and CEO Mary Ann Byrnes. "We're pleased with the level of follow-on sales to our existing customer base. Our system has been doing its job, and our customers have expanded their deployments where they have needed to do so."

"Over the past quarter, we've also pursued sales to service providers outside the large, high-fraud metropolitan centers," said Byrnes. "Finally, our focus on international markets has continued to bring in new customers."

Founded in 1994, Corsair Communications, Inc. is a leading provider of distributed system solutions to the wireless industry. Its PhonePrint fraud prevention system covers a population base of over 100 million and has disconnected 115 million fraudulent call attempts in over 50 markets since 1995.

This press release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially because of various risks, including risks associated with sales and product development, demand for Corsair's products and services, continued growth of the wireless telecommunications industry and other risks associated with Corsair's business. For an expanded discussion on these risks, please see the documents filed by Corsair Communications with the U.S. Securities and Exchange Commission. -0-

                     Corsair Communications
          Unaudited Statement of Operations Information
          (In thousands, except for per share amounts)

                                   Three months       Nine months
                                      ended              ended
                                     Sept. 30,         Sept. 30,
                                  1997     1996      1997     1996
                                 -------  -------   -------  -------
Revenues:
  System revenue                 $11,351  $ 5,552   $29,653  $ 9,989
  Service revenue                  1,676      372     3,694      827
    Total revenues                13,027    5,924    33,347   10,816

Cost of revenues:
  Cost of system revenue           6,431    5,165    21,398    9,837
  Cost of service revenue            938      548     2,474    1,319
    Total cost of revenues         7,369    5,713    23,872   11,156

Gross profit (deficit)             5,658      211     9,475     (340)

Operating costs and expenses:
  Research and development         1,892    1,259     4,886    3,401
  Sales and marketing              1,934    1,374     5,265    3,405
  General and administrative         859      581     2,827    1,787

Total operating costs and expenses 4,685    3,214    12,978    8,593

Operating income (loss)              973   (3,003)   (3,503)  (8,933)

Interest income (expense), net       516     (150)      559      (95)

  Income (loss) before income
   taxes and extraordinary item    1,489   (3,153)   (2,944)  (9,028)

Provision for income taxes             5        1         8        1

Income (loss) before
 extraordinary item                1,484   (3,154)   (2,952)  (9,029)

Loss on debt extinguishment         (428)      --      (428)      --

Net income (loss)                $ 1,056  $(3,154)  $(3,380) $(9,029)

Earnings (loss) per share        $  0.08  $ (0.37)  $ (0.29) $ (1.06)

Shares used in calculation        13,392    8,509    11,677    8,502


                     Corsair Communications
                    Balance Sheet Information
                         (In thousands)

                                               Sept. 30,     Dec. 31,
                                                 1997         1996
Assets                                        (unaudited)   (audited)

Cash and cash equivalents                       $11,819      $17,052
Short-term investments                           44,424        2,452
Trade accounts receivable, net                    4,722        3,260
Inventories, net                                  6,036        3,970
Evaluation inventory                              5,633        5,328
Prepaids and other                                  731          126
  Total current assets                           73,365       32,188

Property and equipment, net                       3,260        2,424
Other assets                                        404          299
  Total assets                                  $77,029      $34,911

Liabilities and Stockholders' Equity

Accounts payable                                $ 1,513      $ 3,428
Accrued expenses                                  4,911        2,502
Short-term obligations                              429        2,089
Deferred revenue                                 12,147        4,487
  Total current liabilities                      19,000       12,506

Long-term obligations                               551        4,394
  Total liabilities                              19,551       16,900
Stockholders' equity                             57,478       18,011
Total liabilities and stockholders' equity      $77,029      $34,911

CONTACT: Corsair Communications

Bill Taliaferro, 650/842-3263 (Director, Product Mktg.)

Martin Silver, 650/842-3281 (CFO)