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Zoom Telephonics Reports Sales Increase and Profit
for Third Quarter Ending 9/30/99

Boston, October 28, 1999 - Zoom Telephonics, Inc. (NASDAQ: ZOOM), a leading manufacturer of faxmodems and other data communications products, today reported net income for the third quarter of 1999 of $95 thousand or $.01 per share, versus a net loss of $1.151 million or $.15 per share for the third quarter of 1998. Zoom reported sales of $18.2 million for its third quarter ending September 30, 1999, up 26% from $14.5 million for the third quarter of 1998. This increase was primarily due to a 45% increase in modem unit volume partially offset by a 20% decline in average selling prices.

Zoom's $18.2 million sales for the third quarter of 1999 included approximately $3.5 million in Hayes product sales, more than doubling the Hayes contribution in the second quarter of 1999. Zoom purchased the majority of Hayes assets between March 1999 and July 1999. The production of Hayes products had been halted prior to Zoom's acquisition, and was restarted by Zoom in the second quarter of 1999 for European delivery, late in the second quarter for sales in the USA, and late in the third quarter for sales in China.

Zoom's net income of $95 thousand for the third quarter of 1999 benefited from a strong gross margin improvement resulting from higher sales volume, the continuation of advantageous component purchases, and reduced channel price protection and customer rebates. Expenses increased significantly for the same time period as a result of the newly acquired Hayes U.K. organization, increased R&D investment for future broadband and advanced networking products, and increased market development spending for both the Zoom and Hayes brands.

"We were particularly pleased with the performance of our analog modem business," said Frank Manning, Zoom's President and CEO. "The Zoom and Hayes brands are strong, and our broad product line and commitment to the business have helped us gain market share in a tough competitive environment. Profits in our analog modem business offset significant R&D and market development expenses for broadband and advanced networking products. As investments in these areas turn into attractive products, they will benefit from the superb sales channels, customer support, infrastructure, and production capabilities we have built."

Zoom ended the quarter with a strong balance sheet, with cash and marketable securities of $9.8 million or $1.32 per share, and stockholders' equity of $4.95 per share.

For additional information, please contact:

Investor Relations,
Zoom Telephonics
207 South Street
Boston, Massachusetts 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

This press release contains forward-looking information relating to Zoom's plans, expectations and intentions, including statements relating to the anticipated future contribution of Hayes to Zoom's sales, Zoom's potential in the analog modem market, possible expansion and success in the broadband access market, and the company's future performance. 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, Zoom's dependence on one or a limited number of suppliers for certain key components, early stage of development of certain data communications markets, uncertainty of market growth, rapid technological change, and competition, as well as 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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