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Zoom Telephonics Reports 20% Sales Increase
In First Quarter Ending 3/31/00

Boston, April 27, 2000 - Zoom Telephonics, Inc. (NASDAQ: ZOOM), a leading manufacturer of modems and other data communications products, today reported sales of $13.6 million for its first quarter ending March 31, 2000, up 20% from $11.4 million in the first quarter of 1999. The increase was primarily due to higher unit sales of dial-up modems with relatively stable average selling prices.

Zoom reported a net loss of $941 thousand or $.12 per share for the first quarter of 2000, versus a net loss of $690 thousand or $.09 per share for the first quarter of 1999.

Zoom ended the quarter with a strong balance sheet, with a current ratio of 8.6, cash and investment securities of $11.4 million or $1.48 per share, and stockholders' equity of $4.91 per share.

"The dial-up modem business remains challenging, as shown by 3Com's recent decision to exit the business," said Frank Manning, Zoom's President and CEO. "Zoom continues to gain market share at retail and among value-added resellers, and our channels will be very important as we introduce new broadband solutions including cable and DSL modems. With reduced competition, the upcoming V.92 standard, and international expansion of our Zoom and Hayes brands, dial-up modems will continue to be an important part of our business. More important, however, is the major progress we've made in broadband and advanced networking. We are close to shipping three different cable modems, including USB, PCI, and Ethernet models, as well as USB and PCI DSL modems. Soon we will also be shipping our 11 Mbps 802.11b wireless LAN product line and our 10 Mbps home phoneline networking products. To tie it all together, we will introduce innovative "gateway" solutions that make it easy to use wireless and home phoneline networking to share broadband access to the Internet. We believe that Zoom is uniquely positioned to offer a full complement of broadband Internet access solutions."

Click here for a Re-Broadcast of the First Quarter 2000 Earnings Conference Call! (requires RealAudio)

For additional information, please contact:

Investor Relations,
Zoom Telephonics
207 South Street
Boston, Massachusetts 02111
Telephone: (617) 423-1072
e-mail address: Investor@zoomtel.com.
Zoom's World Wide Web site is www.zoomtel.com

This press release contains certain forward-looking information relating to Zoom's plans, expectations and intentions, including statements relating to Zoom's anticipated introduction of its advanced cable and DSL modems and other broadband Internet access solutions, its potential as a significant player in the cable and DSL markets, and its ability to expand its analog modem market share. Actual results may be materially different than those expectations as a result of known and unknown risks, including: uncertainty of new product development and introduction, including budget overruns, project delays and the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; uncertainties inherent in financial projections that, by their nature, are based upon assumptions, many of which are not in the control of the Company; Zoom's dependence on one or a limited number of suppliers for certain key components; early stage of development of the cable and DSL data communications markets, uncertainty of market growth of those markets; rapid technological change; competition; and other risks set forth in Zoom's filings with the Securities and Exchange Commission. Zoom cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Zoom's expectations or any change in events, conditions or circumstance on which any such statement is based.

 

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