General Patent Corporation Licenses "Smart Connector" Patents to Zoom Telephonics

MONSEY, NY, March 17, 1998 - General Patent Corporation (GPC) has entered into a license agreement with Zoom Telephonics, Inc. (ZOOM - NASDAQ) with respect to four of GPC's patents. The patents cover specific aspects of PC card modems and other computer communications devices.

Under the terms of the agreement, Zoom Telephonics agreed to license GPC's patents in exchange for royalty payments. Zoom also agreed to compensate GPC for the past sales of PC Card modems that used GPC's technology.

"We are particularly pleased to enter into an agreement with Zoom, which cooperated in reaching an equitable arrangement. Consequently, we are extending favorable licensing terms to reward Zoom for respecting our patent rights," said Alexander Poltorak, GPC's chairman and CEO. "We intend to offer similar terms to companies that follow Zoom's example," he added.

Frank Manning, president of Zoom Telephonics noted, "This license will allow Zoom's customers to be confident that they are licensed to use GPC's technology, and are free from possible claims of infringement. Zoom anticipated this license agreement, and license fees for past shipments were reflected in our financial statements for the quarter ending December 31, 1997. Ongoing royalty payments under this agreement should not have material effect on the results of our operations."

The patents include U.S. Patent Nos. 4,543,450 ("Integrated Connector and Modem"), 4,603,320 ("Connector Interface"), 4,686,506 ("Multiple Connector Interface") and 4,972,470 ("Programmable Connector").

According to Dr. Poltorak, patent infringement litigation is pending in New York against 3Com, and in California against Hayes, Xircom and New Media.