Data Storage Business Fuels Rise in Interpoint Earnings.

REDMOND, Wash.--(BUSINESS WIRE)--Feb. 21, 1996--Interpoint Corporation (NASDAQ/NMS: INTP) today reported record earnings for a first quarter of $482,000, or 12 cents per share, for the three months ended January 31, 1996, on revenue growth of 41 percent to $19.1 million.

First quarter 1995 earnings were $109,000, or three cents per share, on revenue of $13.5 million.

Sales of data storage products through the company's Advanced Digital Information Corporation (ADIC) subsidiary were $10.6 million, or 55 percent of total sales, and accounted for the majority of Interpoint profits during the period. Seasonally slower microelectronics component sales totaled $8.5 million.

"ADIC sales and profits were ahead of plan for the period in both the U.S. and Europe," according to Interpoint President Peter van Oppen. "We continue to see strong acceptance of our recently introduced DLT tape library products, including the 2-Terabyte capacity SCALAR library series, as well as our existing family of 4mm (DAT) and 8mm backup products," he said.

The company said overall component sales experienced a traditionally slow first quarter although proprietary power supplies continued a consistent pattern of year-to-year growth. Shipments of custom components were lower than anticipated for the quarter due to technical and supply problems.

"Strong ADIC order trends and a continued healthy backlog in the component business lead us to believe that increases in comparative quarterly sales and earnings should continue," according to van Oppen.

Headquartered in Redmond, Wash., Interpoint Corporation is a growing manufacturer of specialized technology products. It is a leader in the production of automated data library products for network and workstation markets, high-density DC-to-DC power supplies as well as medical and aerospace microelectronics. Production facilities are located in Redmond and Kaohsiung, Taiwan with sales offices at various sites in the United States, the United Kingdom, France and Germany. -0-

                       Interpoint Corporation
                    Selected Financial Highlights
              (In thousands, except per share amounts)
                            (unaudited)

                               Three months ended January 31,
                                   1996             1995
Net sales                       $ 19,130         $ 13,542
Gross profit                       5,190            4,222
Income before provision for
 income taxes                        717              162
Net income                      $    482         $    109
Average number of common
 and common equivalent shares
 outstanding                       4,040            3,989
Net income per share            $    .12         $    .03-0-

Note to Editors: All forward-looking statements contained herein involve risks and uncertainties, including technical and competitive factors, which could cause results to differ materially. Such risks will be detailed in Interpoint's report on Form 10Q and subsequent reports to be filed with the SEC.

CONTACT: Interpoint Corp., Redmond

Peter van Oppen, 206/882-3100 ext. 110

Chuck Stonecipher, 206/881-8004 ext. 430

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