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MEGAHERTZ REDUCES PRICES: SEEKS STRONGER HOLD ON PCMCIA MODEM MARKET SHARE

 SALT LAKE CITY, Oct. 4 /PRNewswire/ -- To strengthen its position as a leading supplier in the mobile data/fax modem marketplace, Megahertz Corp. (NASDAQ: MEGZ) today announced reductions by as much as 38 percent in the suggested list prices of its Personal Computer Memory Card International Association (PCMCIA) modems. Included in the reductions are Megahertz's award-winning PCMCIA modems with the company's patented XJACK(TM) connector system.
 "The market has moved quickly to accept PCMCIA as the primary form factor in notebooks, subnotebooks, and personal digital assistants (PDA), and price competition for PCMCIA products has increased as we anticipated," said Ryan Ashton, senior vice president of marketing and sales. "However, as a result of stronger than expected demand for our PCMCIA products, we believe our economies of scale enable us to stay within our business model with these new prices."
 According to International Data Corp. (IDC), a Massachusetts-based PC industry research firm, the worldwide market for data/fax modems for portable computers will increase by a compounded annual growth rate of approximately 83 percent through 1995. IDC estimates that PCMCIA modems will comprise up to 73 percent of that market.
 "We have become a leader in the PCMCIA market due to our ability to provide advanced technologies, innovative designs, and competitive prices. This price reduction underscores our commitment to maintain that leadership position," said Ashton.
 Megahertz currently manufacturers two varieties of PCMCIA modems, one with its XJACK(TM) connector system and the other with a cable connector. XJACK, short for "extendable jack," provides a fully internal but extendible RJ11 jack on the card. A widely lauded design, XJACK eliminates the need for cumbersome external connectors used with all other PCMCIA modems. The XJACK connector is UL listed and has proven more durable than other PCMCIA solutions on the market.
 Megahertz's new suggested list prices are as follows:
 Product New List Price Old List Price
 XJ1144, 14,400/14,400bps $399 $599
 data/fax w/XJACK
 XJ196FM, 9600/9600bps $319 $499
 data/fax w/XJACK
 XJ124FM, 2400/9600bps $249 $379
 data/fax w/XJACK
 CC3144, 14,400/14,400bps $369 $579
 data/fax
 CC396FM, 9600/9600bps $299 $479
 data/fax
 CC324FM, 2400/9600bps $239 $379
 data/fax
 All Megahertz data/fax modems include: data communications and fax software for Windows and DOS; automatic power-saving capability; a 5-year warranty; toll-free technical support (1-800-LAPTOPS, United States and Canada); V.42 advanced error correction and V.42bis data compression. They also use Hayes AT command set and CCITT and Bell standards and protocols.
 Megahertz modems are available through national distributors Gates/FA, Ingram Micro, Merisel, and Tech Data, national resellers such as CompuCom, Computerland, EDS, Entex, InaCom, and MicroAge, major retail chains such as CompUSA, Computer City, and Staples, and direct- mail vendors such as CDW, Comark, DellWare, PC Connection, and PCs Compleat.
 Megahertz Corp., a publicly held company, is a leading manufacturer of data/fax modems for mobile computers. The company's products include PCMCIA modems, internal form factor-specific modems for use with Apple, Compaq, Toshiba, and Zenith notebook computers and external "pocket" modems.
 -0- 10/4/93
 /CONTACT: Andrew Capener, 800-527-8677, ext. 6914/
 (MEGZ)


CO: Megahertz ST: Utah IN: CPR SU:

MF-LS -- LA007 -- 8111 10/04/93 07:00 EDT
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Date:Oct 4, 1993
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