CrossComm reports revenue, operating results for first quarter; Revenue growth from prior quarter meets expectations; Further penetration into LAN and ATM switching market; Improved operating results and asset management.

MARLBOROUGH, Mass.--(BUSINESS WIRE)--April 23, 1996 -- CrossComm Corporation (NASDAQ/XCOM) today announced revenue and operating results for its first quarter ended March 31, 1996.

Revenue for the quarter ended March 31, 1996 was $10,658,000, a 12% increase from revenue of $9,475,000 for the fourth quarter ended December 31, 1995, and a 19% decline from revenue in the comparable quarter one year ago. The company's pre-tax and net loss for the quarter was ($1,594,000).

"We are pleased with the sequential revenue growth experienced in the first quarter," said William ("BJ") Johnson, CrossComm's President and CEO. "Although we still have significant work ahead of us in order to return to profitability, we believe that we made strides during Q1 toward that end. We continued our expansion into the LAN and ATM switching market with volume shipments of our existing switch products, including our XLX ATM Switch, and the addition of Fast Ethernet technologies to our ethernet switching platform. As our switching product line becomes more comprehensive and we continue our efforts of indirect channel expansion, we are hopeful that we can achieve our goal of becoming a major vendor in the rapidly growing LAN and ATM switching market," concluded Johnson.

"We are also pleased with the improvement in our operating results, expense control, and our asset management in Q1," said Allan Kline, CrossComm's Chief Financial Officer. "Inventory balances have been reduced to more appropriate levels, and we expect this trend to continue, based on the strong book to bill ratio experienced in Q1," added Kline.

About CrossComm

CrossComm Corporation (NASDAQ/XCOM), founded in 1987, designs, develops, manufactures and sells high-performance networking solutions. ClearPath is the industry's first fully-integrated communications and networking strategy that provides IT professionals with a smooth transition from hub and router-based networks to the next generation LAN switching and ATM-based network environments. ClearPath products--integrating LAN switching, ATM routing, and LAN hubs within a single, fault-tolerant platform--offer complete, high performance, modular solutions that can grow as bandwidth demands increase. Worldwide headquarters are located at 450 Donald Lynch Boulevard, Marlborough, MA 01752.

Statement Regarding Forward Looking Statements

Statements included herein that are not historical facts may include forward-looking statements that involve risks and uncertainties, including those discussed further in the Management's Discussion and Analysis section of CrossComm Corporation's 1995 Annual Report to Shareholders and Form 10-K filed with the Securities and Exchange Commission. Copies of this document may be received at no charge by contacting Investor Relations at CrossComm.

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All CrossComm products herein are trademarked by CrossComm Corporation. All other non-CrossComm product names are trademarked by their respective companies.

          Condensed Consolidated Statements of Operations
               (in thousands, except per share data)

                                          Three Months Ended
                                      March 31,       March 31,
                                        1996            1995

Revenues                             $10,658         $13,202
Cost of revenues                       5,685           5,989
Gross profit                           4,973           7,213

Operating expenses:
 Selling, general & administrative     4,614           4,613
  Research and development             2,448           3,011
Total operating expenses               7,062           7,624
Income (loss) from operations         (2,089)           (411)

Interest income, net                     538             525
Other income (expense)                   (43)             (7)
Income (loss) before provision
 for income taxes                     (1,594)            107
Provision for income taxes                --              --
Net income (loss)                    $(1,594)           $107

Earnings (loss) per share             $(0.17)          $0.01
Shares used in computing earnings
 (loss) per share                      9,151           9,180

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               Condensed Consolidated Balance Sheets
                         (in thousands)

                                    March 31,      December 31,
                                      1996            1995

ASSETS
Current assets:
 Cash and cash equivalents          $2,907         $2,244
 Available-for-sale securities      40,091         44,529
 Accounts receivable, net            9,430          7,141
 Inventories, net                    4,946          6,635
 Prepaid and other current assets    1,376          1,254

  Total current assets              58,750         61,803

Fixed assets, net                    6,651          6,839
Other assets, net                    2,944          2,704

 Total assets                      $68,345        $71,346

 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
  Accounts payable                  $3,048         $4,728
  Accrued expenses                   5,426          5,863
  Deferred revenue                   3,913          3,348

   Total current liabilities        12,387         13,939

 Minority interest in consolidated
 subsidiary                             48             44

 Stockholders' equity               55,910         57,363

   Total liabilities and
    stockholders' equity           $68,345        $71,346

CONTACT: CrossComm Corp.

Allan M. Kline Donald Sullivan

[phone] [phone]