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NORRIS ANNOUNCES NASDAQ LISTING

 POWAY, Calif., April 6 /PRNewswire/ -- Norris Communications Corp. (NASDAQ: NORRF) announced that its common shares commenced trading on the NASDAQ system today under the symbol "NORRF."
 The company had previously announced its intention to obtain a NASDAQ listing in 1992. The company's Form 10 filing with the U.S. Securities and Exchange Commission was recently approved by the SEC, which was a prerequisite to the NASDAQ listing.
 The delay in the SEC acceptance and subsequent NASDAQ listing resulted from differences in accounting for the release of escrow shares under generally accepted accounting principles in Canada and the United States. Because the company is incorporated in British Columbia, it had previously followed Canadian accounting principles. Although the company believed such treatment was also in accordance with United States generally accepted accounting principles, it ultimately agreed to restate its financial statements at the SEC's direction.
 In Canada the release from escrow of previously issued and outstanding, but restricted, founders' shares is not recorded as an expense at the time of release. On the other hand, in the United State such release from escrow requires the recording of non-cash compensation expense based upon the shares' fair market value when released. Accordingly, to conform company financial statements to United States generally accepted accounting principles the company has recorded additional non-cash expenses of $148,500 in fiscal 1989 (related to the release of 225,000 shares from escrow), $198,750 in fiscal 1990 (related to the release of 375,000 shares from escrow) and $3,445,750 in the third fiscal quarter ended Dec. 31, 1992 (related to the final release of 1,350,000 shares from escrow).
 It is noteworthy that though these adjustments increase the company's expenses (and accumulated deficit) for each period, they correspondingly increase capital items on the balance sheet, thereby having no impact on the company's total assets, stockholder's equity, or working capital for any period.
 As a result of this change in accounting the company's loss for fiscal 1989 increased from ($225,000) to ($404,500), the loss for fiscal 1990 increased from ($404,200) to ($602,952), and the loss for the nine months ended Dec. 31, 1992, increased from ($935,320) to ($4,381,040) or ($0.69) per share. There was no change to the net loss of ($426,092) for fiscal 1991 nor the net income of $424,767 reported for fiscal 1992.
 Since all of the previously escrowed shares have now been released there will be no future expenses resulting from this difference in accounting practice between the United States and Canada. However, the results for the fiscal year ended March 31, 1993, will be impacted by the one-time $3,445,750 non-cash charge recorded in the third quarter.
 Norris Communications is a San Diego-based holding company that, through its subsidiaries, manufactures, develops and markets sophisticated electronic and audio products for the computer, integrated telephony, defense, telecommunications and medical industries.
 -0- 4/6/93
 /CONTACT: Elwood G. Norris or Robert Putnam of Norris Communications Corp., 619-679-1504/
 (NORRF)


CO: Norris Communications Corp. ST: California IN: CPR SU:

JB-LS -- SD006 -- 3492 04/06/93 14:12 EDT
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Publication:PR Newswire
Date:Apr 6, 1993
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