MOSCOM reports first quarter results; MOSCOM contracts with ORGA for worldwide distribution of Verabill(TM) IS.

PITTSFORD, N.Y.--(BUSINESS WIRE)--May 2, 1996--MOSCOM Corporation (Nasdaq National Market: MSCM) today reported its results for the first quarter ended March 31, 1996.

Sales were $2,804,280, compared to $4,410,529 the previous year. Due to the decline in sales, MOSCOM incurred a loss of $1,187,403, or $.17 per share compared to a profit of $303,048, or $.04 per share for the first quarter of 1995.

Albert J. Montevecchio, President, commenting on the report said, "As indicated in a past letter to stockholders, MOSCOM's results this year are subject to several factors which may cause quarter-to-quarter volatility, including inventory adjustments and the uncertain timing of stocking orders and new product introductions, all of which adversely affected first quarter results. In addition, several of our largest distributors have indicated that sales of telephone systems (or PBXs) fell sharply in the first quarter, and historically sales of MOSCOM's call accounting systems closely parallel PBX sales. The last but most significant factor in the sales decline was the carve-out from AT&T of Lucent Technologies, which is now MOSCOM's largest customer. Sales to Lucent were temporarily adversely affected by their focus on the reorganization and an effort to reduce inventories."

Montevecchio continued, "Financial results for the first quarter were clearly disappointing. There have been, however, several very positive developments since the beginning of 1996 that bolster my confidence that 1996 will still be a good year for MOSCOM, and that future reports, particularly in the second half of the year, will be quite favorable. Among them are:

--The purchase of MOSCOM's voice verification product by Chemical Bank (now Chase Bank) for use in a second phase trial. Those systems have been installed and are operational at two Chase branches in New York City. Success in this trial could lead to substantial additional orders from Chase this year.

--MOSCOM's MVM for Windows voice activated voice mail system was introduced in Spanish and Portuguese. The reception was extremely favorable and the reaction of target distribution channels in South America quicker than we had expected. Siemens has agreed to market MVM for Windows in Argentina, and Lucent Technologies is now marketing it in Brazil. Opportunities with both companies in several other South American countries are being pursued. These marketing activities have also led to initial orders for Emerald CAS for Windows and Abacus call accounting systems from Lucent Technologies and Siemens in Argentina and Chile.

--MOSCOM has received our first orders through Alcatel for the Verabill IS system in anticipation of its release to customers in July.

-- MOSCOM signed a distribution agreement with ORGA Kartensysteme of Germany for worldwide distribution of Verabill IS. Shipments under that contract are expected to begin in the third quarter.

-- Initial orders were received from Italtel, the Italian telephone company, for Emerald CAS for Windows."

Montevecchio concluded, "Provided telephone system sales return to past levels, these additional business opportunities should give MOSCOM the boost we need for a successful year."

The forward looking statements contained in this release are estimates by the Company's management of future performance and are subject to a variety of risks and uncertainties which could cause actual results to differ materially from management's current expectations. Due to MOSCOM's heavy reliance on new products for a significant share of projected growth, how quickly sales of new products will commence and grow are significant variables for MOSCOM this year.

MOSCOM Corporation is engaged in the design, production and servicing of telecommunications management, voice processing and voice recognition products for users and providers of telecommunications services in the global market. -0-

MOSCOM CORPORATION
Consolidated Financial Results
(Unaudited)
                                First Quarter Ended
                                      March 31,
                                 1996          1995

Net Sales                    $2,804,280     $4,410,529

Income (Loss) Before Taxes   (1,271,403)       353,048

Income Taxes                    (84,000)        50,000

Net Income (Loss)            (1,187,403)   $   303,048

Income (Loss) Per Share  $         (.17)   $       .04

Weighted Average Number
 Of Shares Outstanding        6,831,250      6,953,311

CONTACT: MOSCOM Corporation

Robert L. Boxer

[phone]

OR

The Equity Group Inc.

Linda Latman

[phone] -0-

MOSCOM contracts with ORGA for worldwide distribution of Verabill(TM) IS

PITTSFORD, N.Y.--May 2, 1996--MOSCOM Corporation (Nasdaq National Market:MSCM) today announced the signing of a distribution agreement for Verabill IS with ORGA Kartensysteme GmbH.

ORGA, headquartered in Paderborn, Germany, is a world leader in the development of smart card technology including subscriber identity module (SIM) cards used with the global system for mobile communication (GSM). In 1994, ORGA introduced "OPSC," the world's first true prepaid application for GSM and PCS networks. It gives the operator the opportunity of providing immediate prepaid service while allowing control of bad debt and credit checking. Verabill IS is MOSCOM's billing and operations support software for telephone and cellular companies, including mobile systems following the GSM format. The Verabill IS system rates calls, generates customer bills, and provides reports for management of receivables, equipment, service records, and credit limits.

Commenting on the agreement, Wolfgang Marz, Managing Director of MOSCOM GmbH, stated, "This agreement between MOSCOM and ORGA brings together technologically advanced products designed to enhance GSM operations and efficiency. ORGA's SIM cards store subscriber information and act as electronic keys to permit access to a GSM. MOSCOM's Verabill IS system collects, processes and stores information for the GSM operator. SIM card information can be automatically downloaded to Verabill IS enabling service providers to generate and process personal identification number notification letters and to monitor the purchase and receipt of SIM cards. While Verabill IS is responsible for the rating of the normal calls, the "OPSC" performs this task in realtime for the prepaid subscriber. Integration of the ORGA technology with MOSCOM's Verabill IS software will give cellular companies a highly efficient system at a very competitive price because the hardware platform can be shared."

Ralf Vogt, Product Manager of ORGA, added, "ORGA is pleased to offer MOSCOM's Verabill IS to its GSM customers. As one of the original founders of the GSM standards which are now recognized worldwide, ORGA places a high priority on partnering with a company that can provide GSM rating with SIM card processing. Verabill IS meets our requirements precisely. Today ORGA is active in over 40 countries, including many that are starting or expanding GSM systems. We see a strong, immediate demand for Verabill IS, particularly in India where ORGA has been awarded several contracts from new cellular companies."

Installations of Verabill IS for ORGA are expected to begin in the third quarter of 1996.

MOSCOM Corporation is engaged in the design, production and servicing of telecommunications management, voice processing and voice recognition products for users and providers of telecommunications services in the global market. International marketing and sales support will be provided to ORGA by MOSCOM GmbH, a wholly-owned subsidiary in Germany.

CONTACT: MOSCOM Corporation

Robert L. Boxer

[phone]

OR

The Equity Group Inc.

Linda Latman

[phone]