Information Storage Devices Reports Record Revenues in First Quarter as Public Company

SAN JOSE, Calif., April 19, 1995 Information Storage Devices (NASDAQ: ISDI), a supplier of voice solutions, today announced record revenues for its first quarter, ended April 1, 1995.

In the quarter, ISD generated net revenues of $13.0 million and net income of $1.1 million, or $0.14 per share, compared with net revenues of $8.2 million and net income of $0.3 million, or $0.05 per share, in the first quarter of 1994. This represents an increase in net revenue of 59 percent and an increase in net income of 218 percent over the first quarter of 1994.

David Angel, president and CEO, stated, "This first quarter was surprisingly strong, much stronger than we anticipated. Our positive momentum stems, in large part, from the fact that our voice solutions are increasingly being used in applications that have broad appeal and relative longevity in the marketplace. For example, many consumer products that require voice recording technology, such as pocket recording devices, are becoming mainstream products."

Angel continued, "Beyond the continuing success in the consumer electronics market, we are equally encouraged by the company's penetration in the communications markets. ISD has gained new design wins in cellular phones, personal handy-phone systems and pagers. Our customers continue to tell us that the ISD ChipCorder| solution is the most effective way to record, store and playback voice in various applications. Our biggest challenge stepping forward," he continued, "is manufacturing enough product to satisfy customer demand; the company has several programs in place to improve our current supply situation."

ISD's ChipCorder technology is a revolutionary multi-level storage technique to record and playback sound, much like a tape recorder, on a single microchip. The ChipCorder devices are the industry's first single-chip, solid-state record and playback solution. These products can be recorded and re-recorded reliably up to 100,000 times and are the only complete single-chip solution to retain messages without power.

Information Storage Devices, Inc. (ISD) designs, develops and markets integrated circuit solutions for voice applications in the consumer, communications and industrial markets. The company is located at 2045 Hamilton Avenue, San Jose, Calif. 95125. Telephone: (408) 369-2400.

ChipCorder is a trademark of Information Storage Devices.