SAN JOSE, Calif., April 11, 1996 -- D (Information Storage Devices, Inc.) (NASDAQ:ISDI) announced today that revenue for the first quarter ended March 31, 1996 was $ 12.3 million. This compares to revenue of $13.0 million for the first quarter of 1995. The net loss for the period was $ 2.0 million, or $ .19 per share, compared to net income of $1.1 million, or $.14 per share, for last year's first quarter.

"As anticipated in our February 27, 1996 announcement, rst quarter results were affected by the delay in the conversion to 0.8 micron production, which resulted in a write-off of in-line product, and a write-down of certain finished goods inventory," said president and chief executive officer David L. Angel.

"However," Angel continued. "this past quarter was the trough quarter in which we took a number of charges to income. We expect to report improving financial results for the balance of the year. In addition, the problems that delayed the 0.8 micron conversion have been identified and solutions are now being implemented. It currently appears that production of our 0.8 micron products could begin as early as the end of this month and will be in full production by the end of the second quarter."

Angel added that ISD sustained a small loss from operations for the first quarter before the inventory charges, which contributed to gross margin of 24% for the period, down from 36% one year ago.

"The capacity constraints that once characterized our business are no longer a problem. In parallel with the development of the next generation of lower voltage and longer recording time products, we also are pursuing a pro-active sales and marketing program to take maximum advantage of the market for the Company's products. This intensified sales and marketing effort is a crucial step in ISD's long-term development plan," Angel concluded.

At March 31, 1996, ISD reported cash and marketable securities of more than $ 67.3 million, inventory of $ 10.8 million, no debt, and shareholders' equity of $ 77.9 million, or $ 7.60 per share.

This press release contains forward-looking statements regarding a variety of matters. In addition to the factors discussed above, other factors that could cause actual results to differ materially include the following: availability of foundry capacity and raw materials; fluctuations in manufacturing yields; competitive pricing pressures; the timing of significant orders; changes in the mix of products sold; changes in the mix of customers; availability and cost of products from the Company's suppliers; the timing of new product announcements; the cyclical nature of the semiconductor industry; the gain or loss of significant customers; increased research and development expenses; economic conditions generally or in various geographic areas; and the risk factors listed from time to time in the Company's SEC reports, including but not limited to its report on Form 10-K for the year ended December 31, 1995 and the Company's 1995 Annual Report.

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, CA 95125. Telephone: (408) 369-2520. Fax: (408) 369-2422. World Wide Web home page: http://www.isd.com.

About ISD

ISD, a leading supplier of semiconductor voice record and playback solutions, provides essential products to the communications marketplace using its proprietary multilevel storage and related technologies. ISD is headquartered at 2045 Hamilton Avenue, San Jose, California 95125, USA. Telephone: (408) 369-2400. Fax: (408) 369-2422. World Wide Web home page: http://www.isd.com.

This press release contains forward-looking statements regarding features and performance of future products and the benefits and future applications for high density multi-level digital memory technology. Actual results could differ materially as a result of a number of factors including the following: cyclical nature of the markets and demand for the Company’s products; the timing of new product announcements; the ability of the Company’s customers to develop and market products incorporating the new high density multi-level digital memory circuits; availability of foundry capacity and raw materials; fluctuations in manufacturing yields; competitive pricing pressures; the ability of the Company to develop or acquire needed technology, assimilate personnel and pursue new markets; increased research and development expenses; economic conditions generally or in various geographic areas; and the risk factors listed from time to time in the Company’s SEC reports, including but not limited to its report on Form 10-K for the year ended December 31, 1996.