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ZOOM TELEPHONICS DECLARES FINANCIAL RESULTS

 ZOOM TELEPHONICS DECLARES FINANCIAL RESULTS
 BOSTON, Feb. 19 /PRNewswire/ -- Zoom Telephonics, Inc.


(NASDAQ: ZOOMF) today announced record sales for its fourth quarter and fiscal year ending Dec. 31, 1991, with net income sharply higher than in 1990.
 Zoom Telephonics, Inc.,
 Quarter 4 to Dec. 31
 (U.S. $)
 1991 1990
 Sales $8,059,066 $4,074,452
 Net Income 622,176 440,166
 Share Earnings 11 cents 8 cents
 Fiscal Year to Dec. 31
 1991 1990
 Sales $25,618,878 $13,040,231
 Net Income 2,261,634 1,456,995
 Share Earnings
 Primary 41 cents 27 cents
 Share Earnings
 Fully Diluted 40 cents 27 cents
 The sales growth was due primarily to the company's success with fax/modems and high speed v.32 modems sold under the Zoom brand name to the leading personal computer products retailers and distributors. Zoom believes that it has the largest market-share of branded fax/modems which allow personal computers to communicate directly to fax machines. BIS Strategic Decisions, a market research division of NYNEX, predicts the the U.S. market for fax/modems will grow from 575,000 units in 1991 to 1.2 million units in 1992, and to 2.1 million units in 1994. Zoom is also a leader in high-speed v.32 modems, as evidenced by a recommendation in Byte Magazine's October 1991 issue, and a leader in the v.42 bis speed-enhancing compression standard, as evidenced by an Editors' Choice rating in the March 26, 1991 PC Magazine. Rockwell Semiconductor estimates that the v.32 market will grow from 1 million units in 1991 to 2 million units in 1992, and 4 million units in 1994.
 Frank Manning, Zoom's president, stated that the company's major accomplishment in 1991 was establishment of strong end-user demand for Zoom/Modem and Zoom/FaxModem brands, which helped broaden Zoom's distribution channels. The major problem was under-projection of demand, which reduced sales and stretched out lead times. Zoom has taken steps to correct this problem.
 Zoom is in the midst of a flurry of new product introductions aimed at continuing Zoom's leadership in fax/modems and high-speed modems. In the three months ending late March Zoom will introduce nine new modems with fax capability and V.42bis data compression with varying fax and data speeds as well as special features. The fastest fax/modems, shipping in late March, will incorporate V.32bis for uncompressed data transmission at 14,400 bits per second and will also be able to fax at up to 14,400 bps when communicating with other V.17 compliant fax products. Internal versions of some of the products will include a scanner port and optional scanner to facilitate faxing of images from the PC.
 Many of the new models will include compatibility with new custom calling services available from regional telephone companies such as Caller ID and distinctive ringing. Distinctive ringing is available to many U.S. phone users for about $5 per month and assigns additional phone numbers to one phone line with each phone number having its own unique ring. Zoom will be offering new fax/modems that look at these rings and automatically answer as a fax machine or modem, or ring your telephone, depending on which of the three phone numbers is called. This allows someone to hand out a business card showing three different phone numbers, one for fax, one for modem data, and one for voice. This is the most elegant way to use one phone line for voice, fax, and data. Zoom believes that many PC users with access to custom calling services should and will insist on buying fax/modems with distinctive ringing capability. Zoom recently filed for a patent relating to its distinctive ringing technology.
 Zoom's management noted that sales for the fourth quarter of 1991 set a new record, 6 percent higher than the third quarter of 1991, but that net income was down 6 percent from the third quarter. Gross margin dropped from 32.8 percent of sales in the third quarter to 31.6 percent, due primarily to higher freight and labor costs resulting from component shortfalls due to unanticipated demand, and to margin pressure on V.32 modems as Zoom prepared to begin shipping V.32 modems with substantially lower manufacturing costs. Selling costs rose from 12.1 percent of sales to 12.9 percent due to increased promotion of Zoom fax/modems, including an extremely successful Egghead promotion that featured an external fax/modem with Mac and PC software for $99 after a $20 rebate from Zoom. Zoom's net income for the fourth quarter was 7.7 percent of sales, vs. 8.7 percent for the prior quarter. Margins for V.32 modems should increase starting in the second quarter, and the proprietary features in some of Zoom's new modems should also help margins.
 Zoom entered 1992 with a record backlog of $3,406,142.
 Zoom withdrew from the Vancouver Stock Exchange at the end of 1991 in recognition of NASDAQ's vastly higher trading volume for Zoom stock.
 For additional information please contact Zoom Telephonics, 207 South St., Boston, Mass., 02111, telephone 617-423-1072.
 -0- 2/19/92
 /CONTACT: Frank Manning of Zoom Telephonics, 617-423-1072/
 (ZOOMF) CO: Zoom Telephonics Inc. ST: Massachusetts IN: TLS CPR SU: ERN


TM-PB -- NE005 -- 0435 02/19/92 12:04 EST
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