Zoom Telephonics: Zoom Telephonics Comments on Stock Price Surge

Zoom Telephonics Comments on Stock Price Surge

Boston, MA, December 14, 1999 -- Zoom Telephonics, Inc. (NASDAQ: ZOOM) stock increased more than 40% on Monday, December 13, 1999, reaching a high of over $13 per share and closing at $11 3/16. The rapid rise followed Zoom's announcement that it intended to demonstrate its advanced cable modem with USB and built-in home networking at the cable industry's CCTA show beginning December 15th.

"We assume that the stock surge was in reaction to this and other recent announcements detailing our broadband product plans and strategy," said Frank Manning, Zoom's President and CEO. "We are pleased to see the market finally recognizing Zoom's potential as a significant player in the cable and DSL markets."

"The traditional analog modem market, which has been the mainstay of Zoom's business for the past 15 years, remains challenging. In particular, we are seeing the effect of a slowdown in analog modem sales at retail due to what is perceived as a general weakness in personal computer and computer peripheral sales.

"Zoom does not expect a profit in the fourth quarter of this year due to lower sequential sales and gross margin. However, a pullback by some of the best-known players in the analog modem business is creating opportunities for Zoom to expand its analog modem market share and to secure additional shelf space. This expanded presence promises to be a major asset as cable modems and DSL move into the retail channel next year."

Press Contact:
Dan Brunelle
brunelle@zoomtel.com
617-753-0060

Disclaimer: This press release contains 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, its potential as a significant player in the cable and DSL markets, its anticipated financial results in the fourth quarter of this year, and its ability to expand its analog modem market share and secure additional shelf space. 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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