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Zoom Telephonics Reports Results
for the First Quarter Ending 3/31/01

Boston, April 27, 2001 —Zoom Telephonics, Inc. (NASDAQ: ZOOM), a leading manufacturer of modems and networking products, today reported sales of $10.3 million for its first quarter ending March 31, 2001, down 27% from $14.0 million in the first quarter of 2000.

Zoom reported a net loss of $5.2 million or $.66 per share for the first quarter of 2001, versus a net loss of $941 thousand or $.12 per share for the first quarter of 2000.

``The quarter was hurt by weakness in the dial-up modem market and a severe industry-wide electronics inventory correction that affected overall demand for broadband modems,'' said Frank Manning, Zoom's President and CEO. ``We remain hopeful that the new V.92 standard for dial-up modems will drive sales at retail later this year as Internet Service Providers begin to offer the enhanced features of V.92 to their customers. Zoom was the first company to ship V.92 products, is a leader in the category, and is very well positioned to capitalize on the change from V.90 to V92. We also expect cable modems, ADSL modems, and advanced networking products to begin to provide more significant revenue contribution later this year. Zoom currently has one of the broadest lines of CableLabs® approved cable modems, including Ethernet, USB, and PCI models. We are managing our resources very carefully in this difficult environment; and have reduced our worldwide staff from 330 employees to 250 since the start of the year, implemented a temporary wage freeze, and tightened discretionary spending.''

Zoom's reported net loss of $5.2 million included a $2.6 million inventory write-down, predominantly against its inventory relating to broadband modems and wireless networking products, reflecting the Company's low sales of these products and a decline in component and finished goods prices for these categories. The Company's net loss also increased this quarter due to a 100% valuation allowance for the $1.7 million tax benefit associated with the quarter's pre-tax loss.

Zoom ended the quarter with a strong balance sheet, with a current ratio of 7.0, cash and investment securities of $5.1 million or $.65 per share, and stockholders' equity of $31.4 million or $4.00 per share. In January 2001 Zoom obtained a $6.0 million mortgage, secured by Zoom's headquarters real estate in Boston, Massachusetts and reflected on its balance sheet as long-term debt. The appraised value of the real estate for the mortgage transaction was $10.9 million, while the net book value reflected on Zoom's balance sheet is only $2.2 million.

Zoom has scheduled a Q1 2001 earnings conference call for Friday, April 27th at 8:45AM Eastern Time. The call will be simulcast to stock analysts and other interested parties on Zoom's website (www.zoomtel.com/Q1) and numerous leading financial and investor-oriented websites via the CCBN / Business Wire StreetEvents network. Shortly after the conference call, a recorded broadcast will be available on Zoom's website and on the StreetEvents network. For additional information, please contact Investor Relations, Zoom Telephonics, 207 South Street, Boston, MA 02111, telephone (617) 423-1072, email investor@zoomtel.com, or visit Zoom's website at www.zoomtel.com.

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 release contains forward-looking information relating to Zoom's plans, expectations and intentions, including statements relating to the V.92 modem market, Zoom's share of the dial-up modem market, Zoom's ability to make required investments, the importance of the high-volume retailer market channel, and Zoom's ability to sell cable modems, ADSL modems, wireless networking, and other advanced networking products. 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 and other delays in shipments of products; 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, and 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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