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Zoom Telephonics Reports Record Sales and Earnings for Year and Quarter Ending December 31, 1995

Boston, February 13, 1996 - Zoom Telephonics, Inc. (NASDAQ: ZOOM) today reported record sales and earnings for the fiscal year and fourth quarter ending December 31, 1995. Sales for 1995 were $97.0 million, up 42% from 1994; and 1995 net income was $6.1 million or $.98 per share fully diluted, up from $2.8 million or $.47 per share in 1994. Sales for the fourth quarter of 1995 were $36.0 million, up 88% from the fourth quarter of 1994; and fourth quarter 1995 net income was $2.3 million or $.36 per share fully diluted, up from $754 thousand or $.13 per share in the fourth quarter of 1994.

Zoom experienced substantial growth in every major sales channel. In 1995 compared to 1994, sales to retailers and distributors in the United States increased by 18% to $66.8 million, worldwide OEM sales increased by 118% to $12.1 million, and international sales to retailers and distributors increased by 217% to $17.3 million. During the fourth quarter of 1995, worldwide sales to OEM customers increased to 19% of sales and international sales to retailers and distributors increased to 23% of sales.

Frank Manning, Zoom's President and Chief Executive Officer, commented: "We are proud of the entire Zoom team. We introduced a number of important products in 1995, including faxmodems with voice mail and full-duplex speakerphone capabilities, a new cellular-ready V.34 PCMCIA faxmodem, and new product lines for Germany, Japan, the Netherlands, the United Kingdom, and other countries. Our V.34 external faxmodem for Germany just won PC Professionell's "Best Buy" rating when compared to 13 other faxmodems; and our V.34 PCMCIA faxmodem for North America was rated above the market share leaders Megahertz and U.S. Robotics in Infoworld's recent tests. In 1995 we also strengthened our already strong shelfspace position in high-volume U.S. retailers, and strengthened our international distribution channels and OEM sales team. We enter 1996 with considerable momentum and exciting new products coming in the areas of ISDN and simultaneous voice and data."

Founded in 1977, Zoom Telephonics designs, produces, and markets a broad range of faxmodems, voice/faxmodems, and cellular-ready faxmodems to link people and their personal computers to each other through the telephone network.

For additional information, please contact Investor Relations, Zoom Telephonics, 207 South Street, Boston, Massachusetts, telephone (617)423-1072, fax (617)338-5015, E-mail address: Investor@Zoomtel.Com

Zoom Telephonics Financial Statements for 1995


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