| NCTI Rolls Out First Release of ClearSpeech I-Phone software for Corporate Intranets At Computer
 Telephony Expo
 
 Business Wire - March 02, 1998 12:56
 
 %NOISE-CANCELLATION NCTI %CONNECTICUT %CALIFORNIA %COMPUTERS
 %ELECTRONICS %COMED %TELECOMMUNICATIONS %INTERACTIVE %MULTIMEDIA
 %INTERNET %PRODUCT %TRADESHOW V%BW P%BW
 
 STAMFORD, Conn.--(BUSINESS WIRE)--March 2, 1998--
 
 Noise-Free and Echo-Free Demonstrations Taking Place at Booth No. 3612
 
 Noise Cancellation Technologies, Inc. (NASDAQ: NCTI) today announced the roll-out of its
 initial release of ClearSpeech(TM) I-Phone software for Corporate Intranets. This is the first
 of three planned software releases that incorporates NCT's proprietary technologies to solve
 the voice quality issues of current I-Phones. This release allows any PC on an Intranet to talk
 to any other PC on that Intranet. ClearSpeech Corporate I-Phone software is the first product
 to feature advanced two-way noise cancellation and echo cancellation which allows for clear
 voice transmissions and hands-free full-duplex operation. Specialized features include
 advanced compression, encryption, LAN optimization and other operations, voice messaging,
 Rolodex, audio set-up, "do not disturb", auto answer, etc. The software is available for
 licensing to corporations and value added resellers including I-Phone suppliers, network
 service suppliers, PC suppliers, gateway manufacturers, software companies, LAN
 manufacturers, long line companies, telephone manufacturers, telephone companies, Internet
 service providers, cable TV companies, personal digital assistant manufacturers and call
 centers. "This implementation is the I-Phone breakthrough that everyone has been waiting for
 because it raises voice quality to exceptional levels," said Michael J. Parrella, President,
 NCTI. "Currently I-Phones cannot be used as speaker phones because a pronounced and
 disruptive echo is present. ClearSpeech I-Phone software delivers voice quality which is
 superior to traditional hands-free telephony levels and significantly reduces LAN utilization
 which opens it for mainstream use." Mr. Parrella continued, "Analysts believe that IP
 telephony will provide significant cost savings to corporations and segments of the consumer
 population. NCTI's early entry into this emerging market represents an important opportunity
 for the company, and will therefore be a focus of our marketing and sales efforts this year."
 Evaluation copies of ClearSpeech Corporate I-Phone software will be available to potential
 licensees in March with product to follow shortly thereafter. The software will be
 demonstrated in booth No. 3612 at the Computer Telephony Expo, March 3-5 in Los
 Angeles. NCTI is a leading technology developer with an extensive portfolio of proprietary
 algorithms and a wide variety of product offerings for consumer, commercial and industrial
 applications. The Company specializes in the utilization of sound and signal waves to reduce
 noise, improve signal-to-noise ratio and enhance sound quality. For more information, refer to
 the company's World Wide Web site at nct-active.com.
 
 CONTACT: Joanna Lipper
 Noise Cancellation Technologies, Inc.
 203/961-0500 ext. 386
 203/348-4106 (fax)
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