Dictaphone Reports Strong Third Quarter Sales for CRS Division.

STRATFORD, Conn.--(BUSINESS WIRE)--Nov. 19, 1998--

Strong Financial Sector Demand Cited In Fifth Consecutive Quarterly

Gain Over Prior Year

Dictaphone Corporation today said revenues from its Communications Recording Systems (CRS) products increased significantly in the third quarter, marking the fifth straight quarter in which the division has shown year-over-year quarterly revenue growth.

Bolstered by strong demand from the financial services sector, including trading floors and financial call centers, third-quarter revenues from the company's recording systems totaled more than $19 million in the U.S., up 8% from the same period in 1997, and up 19% from the second quarter of this year.

"In fact, demand across all of our business sectors -- from financial to public safety -- remains very strong," said Ron Elwell, senior vice president and general manager, CRS and international operations. "We're finding that our ability to provide customers with the sophisticated recording solutions they're demanding is a key factor in our continued growth."

The company recently created a Professional Services Group within the CRS division to design and customize recording solutions for large call center customers, including financial institutions. The group offers a full range of services, including: operational and technology consulting; project management; computer telephony integration (CTI) services; and custom software design, development, implementation and testing. "Every company and call center is unique," Elwell said. "Our job is to understand the company's needs and develop an ideal-fit solution for that environment."

Dictaphone's CRS business unit provides four broad solution platforms to call centers serving a wide range of fields including financial, insurance, travel, utility and public safety. Several of its products, including the da Vinci(TM) quality monitoring system, the Symphony CTI(TM) advanced communications management system, and the Encore(TM) instant message repeater, were launched within the past two years. Dictaphone's CRS unit invests in research and development at a rate of 14% of product revenues. In addition, Dictaphone has strategic alliances and relationships with a number of companies, including GTE, DST Systems, Nortel, Communico Ltd and Genesys Telecommunications Laboratories, Inc.

Dictaphone Corporation of Stratford, Conn., is a leader in the development, manufacture, marketing, service and support of Integrated Voice and Data Management systems and software, which include dictation, voice processing, voice response, unified messaging, record management and communications recording. Dictaphone has a marketing, sales, service and support organization of more than 1,600 representatives in more than 160 cities in the U.S., the United Kingdom, Canada, Switzerland and Germany. The Company also markets worldwide through a growing number of distributors in Europe, Latin America, Asia Pacific, South Central Asia, the Middle East and Africa. Company sales in 1997 were approximately $340 million.

Visit Dictaphone at http://www.dictaphone.com.