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TELEMATICS INTERNATIONAL TO REPORT IMPROVED OPERATING INCOME FOR 1991 AND UNUSUAL FOURTH QUARTER CHARGES

 TELEMATICS INTERNATIONAL TO REPORT IMPROVED OPERATING INCOME
 FOR 1991 AND UNUSUAL FOURTH QUARTER CHARGES
 FORT LAUDERDALE, Fla., Feb. 4 /PRNewswire/ -- Telematics International, Inc. (NASDAQ: TMAX) announced today that income from operations is expected to approximate $0.5 to $1.0 million for the fourth quarter and approximate $3.5 to $4.0 million for the year ended Dec. 31, 1991. For the fourth quarter and year ended Dec. 31, 1990, the company had losses from operations of ($4,579,000) and ($5,534,000), respectively. In addition, it expects to report estimated unusual charges in the fourth quarter and year ended Dec. 31, 1991 comprised of: $3.8 million of restructuring charges expected to occur in the early part of 1992; in addition, $2.6 million for the write-off of its loans and investment in Network Automation Holdings Pty. Ltd.; and approximately $1.2 million relating to professional expenses incurred in connection with the previously announced merger negotiations, which were terminated on Jan. 11, 1992.
 The company stated that, consequently, it expects to report a net loss in the range of ($5.5) to ($6.0) million of the fourth quarter and approximately ($3.5) to ($4.0) million for the year ended Dec. 31, 1991. For the fourth quarter and year ended Dec. 31, 1990, the company incurred net losses of ($6,369,000) and ($7,389,000), respectively.
 On Jan. 22, 1992, the Commonwealth Bank of Australia was appointed mortgagee in possession of certain of Network Automation's assets. The uncertainty of this event, which is in a state of flux, coupled with recent adverse developments with respect to an anticipated Australian government grant and a potential third-party investment, made it appropriate to write-off the company's loans and investment in Network Automation at this time. Although there is a possibility that some recovery of these loans and investment may be realized, there are no assurances this will occur.
 William A. Hightower, president and chief executive officer of Telematics, commented, "Fourth quarter revenues are expected to have improved over prior periods in 1991. The company expects to report positive operating income for the fourth quarter and year 1991 compared to operating losses for the same periods in 1990. It also expects to report an estimated $14.0 million of cash at year end 1991, a 22 percent increase over the prior year. The restructuring and merger related costs are expected to negatively impact cash by approximately $2.0 million in 1992. Given the state of the economy, we believe the company is continuing to perform well on an operational basis. The decision with respect to Network Automation reflects our philosophy of discontinuing investment in projects whose expectations have not been met and sharpening our focus on our basic strengths. The decision to terminate merger negotiations was not an easy one, but was one we believe to be judicious, as is our plan to restructure operations. In doing so, we believe that we will be better able to invest in those core products and services which appear to have the potential for providing a better return now and in the future."
 The company expects to report its audited results for 1991 during the week of Feb. 17, 1992.
 Founded in 1982, Telematics designs, manufactures, sells and supports a complete line of wide area networking products designed specifically for voice and data communications applications and networks. The company's products include a full range of programmable packet switching systems, access communications processors, T1/E1 networking multiplexers and frame relay switches. Telematics has approximately 380 employees worldwide. Headquartered in Fort Lauderdale, Fla., Telematics also has facilities in seven domestic locations and Basingstoke, England; Paris, France; and Frankfurt, Germany.
 -0- 2/4/92
 /CONTACT: Miriam K. Frazer, chief financial officer and corporate secretary of Telematics International, 305-772-3070/
 (TMAX) CO: Telematics International, Inc. ST: Florida IN: CPR SU: ERN


SS-JJ-AW -- FL006 -- 6860 02/04/92 16:15 EST
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Date:Feb 4, 1992
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