CrossComm reports revenue, operating results for third quarter.

MARLBOROUGH, Mass.--(BUSINESS WIRE)--Oct. 24, 1996--CrossComm Corp. (NASDAQ: XCOM) today announced revenue and operating results for its third quarter ended Sept. 30, 1996.

Revenue for the quarter ended Sept. 30, 1996 was $10,865,000, an 8 percent decrease from revenue of $11,802,000 for the second quarter ended June 30, 1996, and an 8 percent increase from revenue in the comparable quarter one year ago. The company incurred a pre-tax and net loss for the quarter of ($464,000) or ($.05) per share, compared to a net loss of ($3,033,000) or ($.33) per share for the comparable three month period in 1995. Included in the results for the third quarter of 1996 is a gain of $2,062,000 from the sale of certain shares of Fore Systems Inc. stock held by the company.

For the first nine months of 1996, CrossComm reported revenue of $33,325,000, a 4 percent decrease over the comparable nine month period in 1995. The company's net loss for the nine months ended Sept. 30, 1996 was ($3,779,000) or ($.41) per share, versus a net loss of ($2,804,000), or ($.31) per share for the comparable nine month period in 1995.

On Oct. 8, 1996, the company had pre-announced the quarter's revenue and earnings shortfall and also announced the formation of the Enterprise Product Division charged with providing Token Ring/ SNA users with a path to building high speed backbones using ATM while preserving their legacy LANs.

About CrossComm

CrossComm Corp., founded in 1987, designs, develops, manufactures and sells high-performance networking solutions, providing ATM edge routing and switching products for integrating ATM technology into corporate networks, while preserving legacy LAN environments. The company also offers complete, high performance, scalable LAN switching solutions that can grow as bandwidth demands increase. World wide headquarters is located at 450 Donald Lynch Boulevard, Marlborough, MA 01752.

-0-

All CrossComm product names herein are trademarked by CrossComm Corp. All other product or company names are trademarked by their respective companies.

            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (in thousands, except per share data)

                        Three Months Ended       Nine Months Ended
                      Sept. 30,    Sept. 30,    Sept. 30,   Sept. 30,
                       1996          1995         1996        1995

Revenue              $ 10,865     $ 10,048     $ 33,325    $ 34,783

Cost of revenues        6,185        5,396       18,013      17,048

Gross profit            4,680        4,652       15,312      17,735

Operating expenses:
  Selling, general &
   administrative       5,127        5,858       15,053      15,803
  Research and
   development          2,590        3,091        7,554       9,204
Total operating
  expenses              7,717        8,949       22,607      25,007

Income (loss) from
 operations            (3,037)      (4,297)      (7,295)     (7,272)

Interest income, net      536          639        1,561       1,784

Gain on sale of
 investment             2,062          725        2,055       2,792

Other income (expense)    (25)          (2)        (100)        (10)

Income (loss) before
 provision for income
 taxes                   (464)      (2,935)      (3,779)     (2,706)

Provision for income
 taxes                     --           98           --          98
Net income (loss)    $   (464)    $ (3,033)    $ (3,779)   $ (2,804)

Earnings (loss) per
 share               $  (0.05)    $  (0.33)    $  (0.41)   $  (0.31)

Shares used in
 computing earnings
 (loss) per share       9,195        9,075        9,170       9,050

    -0-

                  CONDENSED CONSOLIDATED BALANCE SHEETS
                             (in thousands)

                                       Sept. 30,          Dec. 31,
                                         1996              1995

ASSETS

Current assets:
 Cash and cash equivalents            $  6,075          $  2,244
 Available-for-sale securities          41,310            44,529
 Accounts receivable, net                7,044             7,141
 Inventories, net                        5,245             6,395
 Prepaid and other current assets        1,650             1,254
       Total current assets             61,324            61,563

Fixed assets, net                        7,169             7,079
Other assets, net                        2,607             2,704

       Total assets                   $ 71,100          $ 71,346

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable                     $  5,813          $  4,728
 Accrued expenses                        5,888             5,863
 Deferred revenue                        2,716             3,348
       Total current liabilities        14,417            13,939

Minority interest in consolidated
 subsidiary                                 --                44

Stockholders' equity                    56,683            57,363

       Total liabilities and
        stockholders' equity          $ 71,100          $ 71,346

CONTACT: CrossComm Corp.

Doug Bryant, 508/229-5303

or

Nancy Baptiste, 508/229-5341

[e-mail]