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ZOOM TELEPHONICS ANNOUNCES SECOND QUARTER RESULTS

 ZOOM TELEPHONICS ANNOUNCES SECOND QUARTER RESULTS
 BOSTON, July 31 /PRNewswire/ -- Zoom Telephonics, Inc.


(NASDAQ: ZOOMF) today announced results for its second quarter, with record

sales and earnings. Sales of $10,080,362 were 68 percent higher than the prior year's quarter and 19 percent above Zoom's previous high in the first quarter of 1992. Net income of $908,719 was 65 percent higher than the prior year's quarter and 41 percent above the first quarter of 1992. The strong results were due primarily to the company's introduction in April 1992 of a new line of high-speed modems and faxmodems for personal computers, and to continuing demand for the rest of its modem and faxmodem product line.
 Zoom expects strong demand to continue for its new line of high-speed modems and faxmodems. All eight models include V.42 and MNP4 hardware error-correction and V.42bis and MNP5 data compression for speeds up to 57.6 Kbps. There are four external models that work with any computer and four internal PC-compatibles, some with send/receive fascimile capability and some without, with top-end uncompressed data speeds of either 9600 bps (V.32) or 14.4 Kbps (V.32bis). For the V.32bis models, top facsimile speed is 14.4 Kbps (V.17). The internal models include a 16550 buffered UART to maximize thoughput. Street prices for Zoom's new high-speed modem line range from $200 to $400.
 Zoom's sales of 2400 bps modems and faxmodems remained strong to personal computer distributors, retailers and OEMs. Zoom believes that it is the No. 1 brand of faxmodem, as measured by unit volume and breadth of product line.
 During the quarter, Zoom's backlog rose from $5,998,241 to $7,705,147, with $3,038,087 of the backlog immediately shippable at the end of the quarter.
 Zoom has taken steps to substantially increase capacity to reduce shipment leadtimes. In May, Zoom more than doubled its production space. Zoom also increased its inventory from $4,561,391 to $8,503,453 during the quarter, and due to this increase Zoom used $500,000 of its $1.5 million bank line of credit.
 In the third quarter Zoom will begin shipment of its Zoom/FaxModem PKT. This pocket faxmodem's small size, long battery life, 2400 bps data capability with V.42bis, and send/receive facsimile capability are tailored to owners of notebook computers.
 Zoom noted that its gross margin increased from 26.8 percent during the first quarter of 1992 to 28.6 percent during the second quarter, primarily due to the new high-speed modem line. Operating expenses declined from 14.4 percent of sales to 13.7 percent, primarily due to a drop in selling expenses from 8.3 percent to 7.3 percent. Net income increased from 7.6 percent of sales to 9.0 percent due to the higher gross margin and lower operating expenses.
 Zoom continues to buy the vast majority of its modem chipsets from Rockwell, which recently licensed the Hayes escape sequence. Now that this has occurred, Zoom anticipates a prompt resolution of Hayes' 1991 suit against Zoom, with no negative impact on future earnings.
 For additional information please contact Zoom Telephonics, 207 South St., Boston MA 02111.
 ZOOM TELEPHONICS, INC.
 Financial Summary
 Second Quarter to June 30: 1992 1991
 Sales $10,080,362 $5,989,848
 Net income 908,719 549,710
 Share earnings 16 cents 10 cents
 Six Months to June 30: 1992 1991
 Sales $18,542,306 $9,972,187
 Net income 1,554,915 977,325
 Share earnings 27 cents 17 cents
 -0- 7/31/92
 /CONTACT: Zoom Telephonics, 617-423-1072/
 (ZOOMF) CO: Zoom Telephonics, Inc. ST: Massachusetts IN: CPR TLS SU: ERN


CH -- NE002 -- 5593 07/31/92 12:09 EDT
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Date:Jul 31, 1992
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