MOSCOM reports first quarter results.

PITTSFORD, N.Y.--(BUSINESS WIRE)--May 14, 1997--MOSCOM Corporation (Nasdaq National Market: MSCM) today reported its sales for the first quarter of 1997 were $2,771,059, resulting in a loss of $1,340,689, or $.19 per share.

Sales gains to Lucent Technologies and of MOSCOM's new Verabill IS product line were more than offset by a 27% decline in sales through MOSCOM's German subsidiary. Gross margins company-wide increased to 71%. Operating expenses were flat compared to the prior year despite a substantial increase in expenses associated with the Votan subsidiary.

Commenting on the results, David G. Mazzella, MOSCOM President, stated, "The challenge faced by MOSCOM is not as formidable as may initially appear. Unlike many turnaround situations, MOSCOM does not need to search out a new business from which to rebuild. MOSCOM already has a strong profitable core business. We need to eliminate unprofitable business segments that have masked our profitable core and severely strained MOSCOM's management and financial resources. The sooner unprofitable businesses are eliminated, the sooner MOSCOM can report company-wide profits."

Mazzella continued, "Toward our goal of streamlining to profitable operations, we have taken measures to reduce expenses substantially. First, we have shut down operations of Votan in California. As a result, research and new product development of voice verification products have ceased. Sales efforts of voice recognition and verification product will continue through distribution channels. In addition, substantial cutbacks are being made throughout MOSCOM's European operations. Each of MOSCOM's three European subsidiaries was unprofitable in 1996 and the first quarter of 1997. On-going annual operating expenses in these three units will be cut by approximately $2.2 million by the end of June. There will be a substantial write-off in the second quarter for restructuring charges."

Mazzella concluded, "Going forward, MOSCOM will focus on four areas we believe can be done competently and profitably by MOSCOM: Call accounting, INFO/MDR, Verabill IS and a new telemanagement software product, referred to as TMS, which will be released later this year. These and other planned expense reductions will reduce MOSCOM's breakeven level by approximately $5 million per year. With that, we believe MOSCOM will return to positive cash flow by year end. From that profitable core, MOSCOM will then be in a strong position to grow in a deliberate, focused manner."

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 a 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)

                                        First Quarter Ended
                                              March 31,
                                       1997             1996

Net Sales                          $ 2,771,059      $2,804,280
Loss Before Taxes                   (1,340,689)     (1,271,403)
Income Taxes                          --------         (84,000)
Net Loss                           $(1,340,689)    $(1,187,403)
Loss Per Share                     $      (.19)    $      (.17)
Weighted Average Number
  of Shares Outstanding               7,089,101      6,831,250

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]