C-Phone Announces Restructuring, Exploration of Strategic Initiatives and Possible De-Listing of Its Common Stock - Company Operations

Cambridge Telcom Report, Jan 10, 2000

C-Phone Corporation Monday announced that it is restructuring its operations to reduce its ongoing operating expenses by more than 33% and is actively exploring certain strategic initiatives. The Company also is increasing its focus on attempting to develop major OEM, distribution and licensing relationships.

Due to concerns about the Company's ability to sustain compliance with Nasdaq's $4 million net tangible asset requirement, the Company has been advised by Nasdaq of its intention to delist the Company's common stock from the Nasdaq National Market effective with the close of business on January 7, 2000. The Company will be appealing such action, since the potential outcome of certain of the Company's initiatives could resolve Nasdaq's concern. During the appeal process, the Company's common stock will continue to be listed on the Nasdaq National Market. The Company remains debt free, and continues to have sufficient cash reserves for its anticipated activities during the next twelve months. The Company is considering an application to list its common stock on the SmallCap Market as an alternative to National Market listing.

C-Phone Corporation provides state-of-the-art video communications products for general business and niche markets, including security, education and healthcare. Affordable and easy to use, C-Phone products deliver high quality, real time video, voice and data for conferencing and remote monitoring applications. C-Phone technology is compatible with all industry standards and connects through a wide variety of telephone companies and private communications networks, including the Internet.

C-Phone products are marketed throughout the world and are in use by a diverse group of corporate, institutional and governmental customers. Information on the Company and its products can be found at www.cphone.com.