Aastra Posts Record Sales And a Return to Profitability

Business Wire, Nov 6, 1997

TORONTO--(BUSINESS WIRE)--Nov. 6, 1997--Aastra Technologies (Alberta Stock Exchange:AAH.) Aastra Technologies Limited - (ASE-AAH) is pleased to announce record sales and a return to profitability for the three months ended September 30, 1997. Sales for the third quarter were $3,636,800, a 137 percent increase from sales of $1,532,300 for the same period in 1996. Sales for the nine months ended September 30, 1997 were $8,227,800 compared to sales of $3,636,800 for the same period in 1996, a 126 percent increase. The Company's sales growth continues to be driven by strong sales of BELL (R) Equipment branded products in the U.S. retail market.

Aastra reported a net profit of $11,490 or $Nil per share for the third quarter ended September 30, 1997 compared to a loss of $120,200 or $0.02 per share for the third quarter of 1996. The net loss for the nine months ended September 30, 1997 was $493,400 or $0.06 per share compared to a loss of $230,300 or $0.03 per share for the same period in 1996. The Company's return to profitability in the third quarter is a result of Aastra's sales increase experienced during the quarter.

The sales increase is due primarily to sales of BELL (R) Equipment branded products in the U.S. which increased by more than 100 percent from $800,000 in the second quarter to over $1.6 million in the third quarter. Not to be overshadowed, Aastra's Canadian sales increased by 47 percent from $720,000 in the second quarter to over $1.1 million in the third quarter. With the further development of the BELL (R) Equipment trademark and strong sales in the Canadian market, the fourth quarter is expected to be another record sales quarter leading to continued earnings growth.

During the third quarter, Aastra continued to invest significantly in research and development of future products. Research and development expenses were $176,900 in the third quarter compared to $146,600 in the same period in 1996, an increase of 21 percent. Aastra's current investment in technology is primarily focused on products that will contribute to significant growth late in 1998.

Aastra Technologies Limited designs, develops, and distributes telecommunications equipment for the consumer market. These products support a wide range of services including Caller ID, Call Waiting, Voice Mail and Distinctive Ringing. Under an agreement with The Southern New England Telephone Company, Aastra is the exclusive licensee of the Bell (R) Equipment - SONECOR trademark for telephone sets in the United States. The Alberta Stock Exchange has neither approved nor disapproved of the information included in this press release. -0-

AASTRA TECHNOLOGIES LIMITED
1997 THIRD QUARTER HIGHLIGHTS
(Canadian dollars)

Year-to-date nine months
  ended September 30,                  1997              1996
                                   ----------      ------------


Net sales                        $  8,227,831     $   3,522,200
                                   -----------     ------------
Net loss for the period          $   (493,417)    $    (230,320)
                                   -----------     ------------
Net loss per share
 for the period                  $      (0.06)    $       (0.03)
                                   -----------     ------------
Common Shares outstanding
  as at September 30, 1997          7,797,611
                                  ------------
Third Quarter three months
  ended September 30,                 1997              1996
                                   ----------         ----------

Net sales                        $  3,636,798     $   1,532,293
                                   -----------     ------------
Net income (loss) for the period $     11,490     $    (120,244)
                                   -----------     ------------
Net income (loss) per
  share for the period           $       0.00     $       (0.02)
                                   -----------     ------------
Second Quarter three months
  ended June 30,                         1997             1996
                                   -----------     ------------
Net sales                        $  2,833,834     $   1,035,950
                                   -----------     ------------
Net loss for the period          $  (139,884)     $     (96,520)
                                   -----------     ------------
Net loss per share
  for the period                 $     (0.01)     $      (0.01)
                                   -----------     ------------
First Quarter three months
  ended March 31,                       1997              1996
                                   -----------     ------------
Net sales                         $ 1,757,199     $     953,957
                                   -----------     ------------
Net loss for the period           $  (365,023)    $     (13,556)

Net loss per share for the period $     (0.05)    $        0.00
                                   -----------     ------------