Radcom Lowers Guidance

TEL-AVIV -- RADCOM Ltd. (RADCOM) (NASDAQ: RDCM) announced today that it expects revenues for the second quarter ended June 30, 2002 to be between $3.0 and $3.1 million, lower than the guidance of $4.0 - $4.5 million that it provided when it reported its first quarter 2002 financial results. The Company expects a loss per share to be $(0.14) to $(0.15), which falls within the previously announced guidance range of $(0.12) to $(0.15) loss per share. Commenting on the anticipated results, Arnon Toussia-Cohen, President and CEO of RADCOM said, "It is our belief that our solutions are necessary for the successful implementation and maintenance of cellular networks and VoIP implementations. Comments we receive from customers further support this belief, as they indicate not only demand, but need for our products. "However, ongoing capital expenditures restrictions continue to affect customers' abilities to place orders. The fact that our loss per share will be within the guidance we gave months ago despite lower sales confirms the importance of the cost control measures we implemented during the past quarters. Our success in streamlining and focusing the organization, and our continued industry-leading product development, including the recent release of our new MegaSIP Simulator and Prism UltraLite products, are important accomplishments. We are confident in our ability to balance between our short-term targets in view of market conditions and our long-term positioning once the market stabilizes," concluded Mr. Toussia-Cohen. Radcom Inc.