Microlytics third quarter results consistent with revised projections.

PITTSFORD, N.Y.--(BUSINESS WIRE)--February 16, 1996--Microlytics Inc. (OTC:MYCX) reported a net loss of $549,000, or $.005 per share, on total revenues of $539,000 for the three months ended December 31, 1995 as compared to net loss of $435,000 or $.01 per share, on total revenues of $602,000 for the same period last year.

Although the decrease in revenue is attributed to certain delays in earnings generated in the company's Directory Assistance product, management believes that the revenues will be generated in future months. In the view of management, the company has shown significant progress in its MicroPages(R) business, as shown by revenues of $293,000 recorded for the nine months ended December 31, 1995 as compared to $45,000 for the same period last year.

The company's loss from operations was $415,000, or $.005 per share, for the three months ended December 31, 1995, as compared to a net loss from operations of $362,000 or $.01 per share, for the same period last year. The loss from operations during the three months ended December 31, 1995 was primarily due to the increased cost of sales, as the company continues its focus on the future revenue opportunities of its MicroPages business. Roy W. Haythorn, chairman and chief executive officer, said, "Our MicroPages technology has been embraced by several major directory publishers and we expect a more rapid roll out of product offerings by directory publishers and others as a result of our significant commitment of resources to this business. We believe that having BellSouth, Frontier, NYNEX, GTE, and others as satisfied customers speaks for our future."

Net income for the nine months ended December 31, 1994, was positively impacted due to the company recording a extraordinary item of approximately $5 million dollars due to the extinguishment of debt by the former bank of Microlytics Technology Company Inc., the company's wholly owned subsidiary. -0-

                     Microlytics, Inc.
           Comparative Statement of Earnings (Unaudited)
      (Dollar rounded to nearest thousand, except per share data)
      For the three and nine months ended Dec. 31, 1995 and 1994

                        Three Months                 Nine Months
                    1995           1994          1995            1994

Gross Revenues     $  539,000    $  602,000   $  1,717,000  $2,254,000
Gross Profits      $  128,000    $  206,000   $    695,000  $1,470,000
Operating Expenses $  543,000    $  568,000   $  1,624,000  $1,818,000
Income (Loss) From
 Operations        $ (415,000)   $ (362,000)  $   (929,000) $ (348,000)
Gain (Loss) Before
 Extraordinary
 Item              $ (549,000)   $ (444,000)  $ (1,095,000) $1,236,000
Extraordinary Item $       --    $    9,000   $     33,000  $5,063,000
Net Income (Loss)  $ (549,000)   $ (435,000)  $ (1,062,000) $6,299,000

Net Income (Loss) Per Common Share:
 Primary
  Income (Loss)
   Before Extra-
   ordinary Item   $    (.005)   $     (.01)  $      (.011) $      .02
  Extraordinary
   Item                   nil           nil            nil         .10
  Net Income
  (Loss)           $    (.005)   $     (.01)  $      (.011) $      .12
Fully diluted:
  Income (Loss)
   Before Extra-
   ordinary Item        n/a              n/a           n/a         .01
  Extraordinary
   Item                 n/a              n/a           n/a         .06
  Net Income (Loss)     n/a              n/a           n/a         .07

CONTACT: Microlytics Inc.

Roy W. Haythorn, President, Chief Executive Officer

716/248-9150 (phone), 716/248-5871 (fax)

WWW URL http://www.microlytics.com

Email: [e-mail]