MOSCOM Reports Second Quarter Results.

PITTSFORD, N.Y.--(BUSINESS WIRE)--Aug. 11, 1997--MOSCOM Corporation (Nasdaq National Market: MSCM) today reported sales of $3,128,863 for the quarter ended June 30, 1997, which compares to sales of $3,347,859 for the same quarter in the previous year. The net loss for the quarter of $3,804,836 or $.52 per share included one time restructuring charges and other non-recurring charges of $2,377,869.

David G. Mazzella, MOSCOM President and CEO, commented, "MOSCOM undertook several major structural changes during the second quarter including the closing of money-losing subsidiaries in Germany, England and California; a substantial reduction in employment; and the discontinuance of unprofitable product lines. With these changes, MOSCOM has achieved its goal of reducing its operating expenses by approximately $5 million per year. This dramatically reduced cost structure will be reflected in third quarter results."

Mazzella continued, "The prospects for the Company's newest product offerings, Verabill IS and TMS, continue to improve, although they are not yet contributing significantly to revenues. Since July 1, MOSCOM has delivered Verabill IS billing systems for installation at telephone companies in Togo, Guinea, the Philippines and Germany. It is our understanding that MOSCOM's distributors have proposals outstanding that could lead to additional Verabill IS sales.

"The TMS product, MOSCOM's newest telemanagement software product, was introduced at a Lucent Technologies users group meeting in June, and is currently in the certification process at Lucent and in beta testing with a Lucent customer. We anticipate shipments of TMS will commence in the fourth quarter."

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 Financial Results
                              (unaudited)

                                        Second Quarter Ended
                                              June 30,
                                        1997           1996

Net Sales                           $ 3,128,863    $ 3,347,859
Income (Loss) Before Taxes           (3,804,836)      (650,403)
Income Taxes                                  -              -
Net Income (Loss)                   $(3,804,836)   $  (650,403)
Income (Loss) Per Share             $      (.52)   $      (.10)
Weighted Average Number Of
 Shares Outstanding                   7,280,931      6,861,335


                                           Six Months Ended
                                               June 30,
                                        1997            1996

Net Sales                           $ 5,899,922    $ 6,152,139
Income (Loss) Before Taxes           (5,145,525)    (1,921,806)
Income Taxes                                  -        (84,000)
Net Income (Loss)                   $(5,145,525)   $(1,837,806)
Income (Loss) Per Share             $      (.71)      $   (.27)
Weighted Average Number Of
 Shares Outstanding                   7,185,016      6,846,293

CONTACT: MOSCOM Corporation

Robert L. Boxer, 716/383-6803

MOSCOM Web Site: www.moscom.com

or

MOSCOM's INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Linda Latman, 212/836-9609