MOSCOM Reports Profitable Third Quarter Anticipates Growth in Revenues and Employment.

PITTSFORD, N.Y.--(BUSINESS WIRE)--Oct. 27, 1997--MOSCOM Corporation (NASDAQ National Market:MSCM) today reported results for the third quarter which ended September 30, 1997. Sales were $3,204,875 and net income was $27,246, compared to sales of $4,055,118, and a net loss of $3,117,061 for the same quarter of 1996.

David G. Mazzella, MOSCOM President and CEO, commented that, "This was a significant turnaround quarter for MOSCOM. We met our objective of being cash flow positive by the end of the third quarter and achieved profitability one quarter earlier than anticipated.

"As previously reported, MOSCOM has sharply reduced expenses by discontinuing unprofitable operations and products outside our areas of core business strength. Although revenues declined as expected, the remaining business was profitable as operating expenses were 38% lower than in the third quarter of 1996."

Mazzella continued, "While reducing expenses, we have also focused intensive efforts on our best high margin revenue prospects. The Emerald CAS for Windows call accounting software continues to sell well through Lucent Technologies in the United States and through newly tapped Lucent sales offices and dealers in South America, the Middle East and Asia. Sales were also strong through Siemens Argentina and NCR in Chile. Overall, MOSCOM's sales of call accounting products in markets other than the U.S. and Europe are up 167% this year and represented 14% of MOSCOM's total sales for the third quarter.

"MOSCOM's Verabill customer care and billing system was installed and accepted in August by Nokia Telecommunications' first customer, a competitive local exchange carrier in Germany. On the basis of that success, Nokia has begun including Verabill on other proposals to telephone companies in the deregulating German market. Alcatel has four Verabill implementations in progress and is expanding its marketing of Verabill. In both cases, we are planning on a lengthy sales cycle, which is in keeping with the more substantial size and value of a typical Verabill sale.

"As previously reported, MOSCOM's new TMS system has been certified for private label distribution by a major domestic switch vendor. There is strong initial demand for the product and installations are expected to begin this quarter."

Mazzella concluded, "I'm really excited about the speed and results of MOSCOM's reorganization. We now have the products and financial resources to support sustained growth. We continue to increase staffing in the Verabill and TMS areas to meet anticipated product demand."

MOSCOM Corporation is engaged in the design, production and servicing of telecommunications management and billing systems for users and providers of telecommunications services in the global market.

The forward looking statements contained in this release are estimates by the Company's management of future performance and are subject to variety of risks and uncertainties that could cause actual results to differ materially from management's current expectations. -0-

                          MOSCOM CORPORATION
                 CONSOLIDATED STATEMENT OF OPERATIONS
                              (Unaudited)

                                        Third Quarter Ended
                                          September 30,
                                       1997        1996

Net Sales                          $ 3,204,875    $ 4,055,118
Operating Income (Loss)            $    27,246    $(1,556,654)
Other Expenses                     $      -0-     $ 1,560,407
Income (Loss) Before Taxes         $    27,246    $(3,117,061)
Income Taxes                       $      -0-     $       -0-
Net Income (Loss)                  $    27,246    $(3,117,061)
Net Income (Loss) Per Share        $       .00    $      (.45)

Weighted Average Number of
 Shares Outstanding                  7,423,011      6,873,584


                                        Nine Months Ended
                                          September 30,
                                       1997        1996

Net Sales                          $  9,104,797   $ 10,207,257
Operating Income (Loss)            $ (2,740,410)  $ (3,478,460)
Other Expenses                     $  2,377,869   $  1,560,407
Income (Loss) Before Taxes         $ (5,118,279)  $ (5,038,867)
Income Taxes                       $       -0-    $    (84,000)
Net Income (Loss)                  $ (5,118,279)  $ (4,954,867)
Net Income (Loss) Per Share        $       (.71)  $       (.72)
Weighted Average Number of
 Shares Outstanding                   7,264,348      6,855,383

CONTACT: MOSCOM Corporation

Robert L. Boxer

[phone]

MOSCOM Web Site:www.moscom.com

-or-

MOSCOM's INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Linda Latman

[phone]