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Zoom Telephonics Reports Profit
for the Fourth Quarter Ending 12/31/98

Boston, February 11, 1999 - Zoom Telephonics, Inc. (NASDAQ: ZOOM), a leading manufacturer of faxmodems and other data communications products, today reported fourth quarter 1998 net income of $372 thousand or $.05 per share, versus fourth quarter 1997 net income of $287 thousand or $.04 per share. For the full year 1998, Zoom reported a net loss of $2.2 million or $.29 per share, versus a net loss of $7.1 million or $.95 per share for 1997.

Zoom reported sales of $16.0 million for its fourth quarter ending December 31,1998, up 11% sequentially from $14.5 million for the third quarter ending September 30, 1998 but down 25% from $21.5 million for the fourth quarter of 1997. The sales drop from the fourth quarter of 1997 to the fourth quarter of 1998 was due to reduced domestic non-OEM sales as unit volumes and average selling prices declined. Sales for the full year 1998 decreased 5% to $61.4 million from $64.5 million in 1997.

Frank Manning, Zoom's President and CEO, said: "In spite of a challenging modem market that has weakened many of Zoom's competitors and forced some of them to leave the modem market, Zoom remains financially strong, with superb engineering, efficient operations, and great market channels. This should create an opportunity for market share gains in 1999. We have also made a significant commitment toward our vision of high-bandwidth cable modem and DSL links to the Internet, and sharing of that bandwidth through new technologies including wireless LAN and home phoneline networking. We believe these new technologies will represent major new markets for the year 2000 and beyond."

Gross profit increased to $6.1 million or 38.2% of revenue in Q498 from $5.9 million or 27.6% of revenue in Q497. The improvement in gross margins was primarily the result of advantageously negotiated purchases of modem materials and a reduction in obsolescence expenses. Because gross profit and operating expense dollars changed only slightly from the fourth quarter of 1997 to the fourth quarter of 1998, operating profit was nearly constant.

Gross profits were $16.7 million or 27.2% of revenue in 1998 compared to $8.2 million or 12.7% of revenue in 1997. The improvement resulted from significant reductions in materials cost, lower costs of obsolescence and product scrap, and reduced warranty expenses. Gross profit improvement was the primary reason for the significant improvement in operating results from 1997 to 1998.

Zoom ended the quarter with a strong balance sheet, with a current ratio of 7.5, cash of $18.9 million or $2.52 per share, and stockholders' equity of $5.14 per share.

For additional information please contact Investor Relations, Zoom Telephonics, 207 South Street, Boston, MA 02111, telephone (617) 423-1072, fax (617) 338-5015, e-mail address Investor@Zoomtel.com. Zoom's World Wide Web site is www.zoomtel.com.

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This press release contains certain forward-looking statements including, without limitation, statements relating to the Company's planned deployment of V.90 products, its relationships with its marketing partners, the prospects of a new industry upgrade cycle, the Company's future results, and other risks set forth in Zoom's filings with the Securities and Exchange Commission. The statements contained herein speak only as of the date of this press release. Zoom expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any statement to reflect any change in Zoom's expectations or any change in events, conditions or circumstance on which any such statement is based. These forward-looking statements involve risks and uncertainties, including that there can be no assurance of improved results, and other risks and uncertainties indicated from time to time in Zoom's filings with the Securities and Exchange Commission.

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