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SPECTRUM INFORMATION TECHNOLOGIES, INC., RESPONDS TO MARKET ACTION

 MANHASSET, N.Y., May 21 /PRNewswire/ -- Spectrum Information Technologies, Inc. (Spectrum) (NASDAQ-NMS: SPCL), today responded to questions relating to potential licensing revenues from Spectrum's patented cellular data transmission technology. Spectrum's stock has been on top of the NASDAQ National Market System's most active list all week, experiencing a high degree of volatility following its announcement of a licensing agreement with AT&T (NYSE: T) on May 11.
 "We expected activity in the stock price following the AT&T license announcement," said Peter Caserta, president of Spectrum, "but were astounded that the market responded so quickly and with such incredible volume."
 Spectrum insists that the potential market for its cellular data transmission technology is tremendous. According to "BIS Strategic Decisions," sales of portable computer fax modems alone will grow to 2.2 million units by 1995. Projections for increases in sales of laptop computers and the growth of mobile communications systems through the end of the decade indicate that this is the fastest growing segment of the computer market. Dataquest, Inc., has projected that the laptop, notebook and computer market will equal the desktop computer market by 1994. Lou Tasato of NCR has predicted that the portable and wireless communications industry will be a $29 billion market in the United States alone by 1995. According to EO, sales of personal communicators by EO alone are projected to reach over a hundred million users by the turn of the century. In addition, in an interview by Craig McCaw, CEO of McCaw Cellular, in the March issue of Telephony Magazine, McCaw states that "wireless data transmission via cellular is the greatest opportunity that our business has before it today." And, AT&T, as quoted in the April 28 issue of Computer Age-EDP Weekly, has projected that 1 billion people will be using wireless modems for electronic data communications by the year 2000.
 If the market attains the levels indicated by these estimates, Spectrum's revenues from licensing, sales of interconnect cables and software for direct connect modems could run into the hundreds of millions of dollars over the life of its patents. Spectrum has been proceeding with a program to license all major manufacturers using its technology.
 Spectrum believes that the extraordinary activity in its stock over the past week has been the result of the excitement generated in the marketplace by the growth potential of cellular data technology and by Spectrum's recent achievements.
 Spectrum Information Technologies, Inc., is headquartered in Manhasset, with facilities nationwide. Spectrum develops and licenses wireless data transmission technologies through its subsidiary Spectrum Cellular Corp.; designs, markets and services portable communications and computing systems as a systems integrator through its subsidiary, Data One; and is a distributor of portable computers through its subsidiary, Computer Bay, which has the resources of 280 franchisee locations.
 -0- 5/21/93
 /CONTACT: Jean Young, 301-309-9404, Peter Caserta II, 800-929-2533, or Kathy Bachand, 800-FOR-SPCL, all for Spectrum Information Technologies/
 (SPCL T)


CO: Spectrum Information Technologies, Inc.; AT&T ST: New York IN: CPR SU:

KD-DC -- DC015 -- 1249 05/21/93 14:11 EDT
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Publication:PR Newswire
Date:May 21, 1993
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