Computone: 3rd Qtr. Earnings News Release Computone Investor Relations: Dianne Will (214) 954-9300, FAX: (214) 954-9333 Computone Media Contact: Daphne Smith (770) 475-2725 x280, FAX: (770) 664-1410 FOR IMMEDIATE RELEASE FEBRUARY 13, 1997 Computone Announces Positive Third Quarter Results ROSWELL, GA.--Computone Corporation (NASDAQ=CMPT), a leading designer and manufacturer of remote access hardware and software solutions, and asynchronous multi-port subsystems, announced results for its third fiscal quarter ended January 3, 1997. When compared to the same quarter last year, sales revenues were $3,477,000 million versus $3,232,000 million, an increase of 8 %. Income from continuing operations for the quarter ended January 3, 1997 was $126,000 or $.02 per share with 6.8 million shares outstanding. This compares with income from continuing operations of $47,000 or $.01 per share on 6.5 million shares outstanding at the end of the third quarter of the prior fiscal year. Thomas J. Anderson, Computone's President and Chief Executive Officer, said "We are extremely pleased to see the upward climb in our sales revenue. We attribute this trend to the continued success of the IntelliServer PowerRack. We have been successful in growing the number of corporate accounts and Internet Service Providers (ISPs) that use and/or distribute the PowerRack, nationally and internationally. With the lowest cost per port, greater reliability, and the fastest speed (921.6Kbps per port!), the IntelliServer PowerRack sells itself.” “And, now that we are nearing the final production stage of our new high-speed ISDN modem, the PowerSurfer, Computone will soon be able to provide the world’s fastest ISDN modem (or terminal adapter) on the market today! The modem is built with the new high-speed serial technology (16C654 quad UARTs), enabling baud rates up to 921.6Kbps! And, since the PowerRack is also equipped with the same high-speed technology, the PowerSurfer will be a perfect complement for the PowerRack. Users will now have the optimum high-speed remote access ISDN solution,” Anderson said. Computone and NewCom Inc., a subsidiary of Aura Systems Inc., jointly announced on October 18th the development of this new high-speed 921.6 Kbps ISDN modem. Computone’s PowerSurfer was formally introduced at the Fall Comdex show, November 18-22, 1996, in Las Vegas, NV. In addition to the PowerSurfer, Computone is nearing the final production stage for another new product . . . the Power RackPort. This new product is an expandable (up to 64 ports) I/O-mapped multi-port solution for PCI, ISA, or EISA-bus computer systems, with the convenience of a rack mount or tabletop enclosure. The Power RackPort combines the high-speed burst transfer rates of the PCI/EISA/ISA bus with a powerful CPU, 512K RAM, and the 16C654 quad UARTs for maximum throughput . . . up to 921.6Kbps per port! The IntelliServer PowerRack also supports concurrent serial port speeds of 921.6Kbps, on all ports, where most competitive products only support 115.2 Kbps. The PowerRack is expandable up to 64 serial ports and can support 64 simultaneous PPP sessions, which is optimum for Internet Service Providers and high-end intranet applications. IntelliServer PowerRack can be connected to a TCP/IP Ethernet LAN, or can be booted independently and operated as a standalone remote unit. When installed on a LAN, the IntelliServer is menu-driven and requires no special operating system device drivers, simplifying upgrades and TCP/IP host cross-platform connectivity. To maintain high throughput for up to 64 physical devices, the IntelliServer integrates surface mount technology with ASIC circuitry, a high-performance RISC CPU, 4MB RAM, and 512KB Flash PROM for non-volatile storage of firmware and configuration parameters. Built-in connectors for Ethernet are BNC (thin-net) and AUI (thick-net, twisted pair, or fiber optic). IntelliServer’s standard feature list includes full PPP, SLIP, CSLIP, RADIUS, RIP and proxyarp, which offers an ideal solution for sites that wish to implement cost-effective standalone remote access, Internet access, and LAN-to-LAN interconnectivity. Established in 1984, Computone offers an extensive line of Ethernet, remote access/Internet communications servers, multi-port solutions for PCI, ISA, and EISA computer systems; and UNIX-to-SNA/X.25 connectivity solutions. Computone was awarded Arthur Andersen's prestigious "Fast Tech 50" award for the fourth consecutive year. Computone is located at 1100 Northmeadow Pkwy, Roswell, GA 30076. To reach Computone Sales: call (800) 241-3946 or (770) 475-2725, Facsimile: 770.664.1510, email: sales @ computone.com or visit our Web site - http://www.computone.com. (in thousands except per share amounts) Interim Consolidated Statements of Operations Three Months Ended January 3, 1997 January 5, 1996 Revenues: Product sales $ 3,477 $ 3,232 Expenses: Cost of products sold 1,945 2,157 Selling, general and 1,090 760 administrative Product development 312 241 3,347 3,158 Operating income from continuing 130 74 operations Non-Operating income (expense): Other income (expense) 23 10 Interest expense (27) (37) Income from continuing operations 126 47 before taxes Income tax expense (benefit): Current - - - - Deferred - - - - - - - - Net Income 126 47 Preferred stock dividends (32) - - Net income applicable to common $ 126 $ 15 stock Net income per common share and common share equivalents $ 0.02 $ 0.01 Weighted average common shares and common share equivalents 6,848 6,502 outstanding (in thousands except per share amounts) Interim Consolidated Statements of Operations Nine Months Ended January 3, 1997 January 5, 1996 Revenues: Product sales $ 10,006 $ 7,782 Expenses: Cost of products sold 5,856 5,190 Selling, general and 2,824 2,896 administrative Product development 851 1,028 9,531 9,114 Operating income from continuing 475 (1,332) operations Non-Operating income (expense): Other income (expense) 28 19 Interest expense (94) (77) Income from continuing operations 409 (1,390) before taxes Income tax expense (benefit): Current - - - - Deferred - - - - - - - - Net Income 409 (1,390) Preferred stock dividends (32) - - Net income applicable to common $ 409 $ (1,422) stock Net income per common share and common share equivalents $ 0.06 $ (0.21) Weighted average common shares and common share equivalents 6,848 6,485 outstanding Ends.