STOCKREPORTS

Centigram Communications Corporation

NASDAQ Symbol CGRM In S&P SmallCap 600

Recent Price 12.50 52 Wk Range 16.50 - 9.50

Yield Nil 12-Mo. P/E NM

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) 4- Fair Value 15.10 Risk MEDIUM Earn/Div Rank B-
Technical Evaluation: BULLISH since 05/97 Rel. Strength Rank (1 Lowest - 99 Highest) 52 Insider Activity Neutral

Business Profile 22-APR-97

This leading global provider of communication solutions solves communications problems by integrating voice, data and fax on its Series 6 communication server and providing access to this multimedia information through a telephone or personal computer. It also licenses patented text-to-speech software. The introduction of the Series 6 platform in 1995 led to a sharp increase in revenues in subsequent periods, helping the company return to profitability following a loss in FY 95 (Oct.). CGRM has said that it will record expenses of about $600,000 In FY 97's second quarter related to its recently terminated plan to acquire a provider of voice messaging and voice processing services.

Operation Review 22-APR-97

Net revenues for the three months ended February 1, 1997, advanced 16%, year to year, with all major product segments showing gains, including higher sales of both large systems and small system products; international sales represented 46% of revenue for the FY 97 quarter, up from 31% a year earlier. Profitability benefited from the higher volume, and pretax income rose 34%. After taxes at 10.1%, versus 9.9%, net income was also up 34%, to $680,000 ($0.10 a share) from $507,000 ($0.07) in the year-earlier period.

Stock Performance 18-JUL-97n

In the past 30 trading days, CGRM's shares have increased 8%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 79,660 shares, compared with the 40-day moving average of 83,739 shares.

Key Stock Statistics

Fiscal Year Ending Oct. 31

Dividend Data: No cash dividends have been paid. Terms of a credit facility restrict payments.

Business Summary 11-JUN-97

Ever wonder how a computerized voice at a company's answering machine can tell you "say one now" and connect you to the right department? Centigram Communications Corporation is one of the companies that designs computer software to do this. CGRM describes itself as a leading global provider of wireline (using wires) and wireless (think cellular phone) messaging and communications solutions. Headquartered in San Jose, CA, CGRM has sales and support offices in North America, Asia, Europe, Latin America, andAustralia; for over ten years it has served customers in more than 45 countries on six continents.

CGRM's Series 6 product line includes a complex message storage system with voice boards for speech recognition and text-to-speech (converts text stored in computer databases into synthesized speech) applications. Signaling System 7 has voice-activated dialing, and in 1996, CGRM announced upgrading its MobileManager prepaid cellular and debit card applications. The CGRM OneView products allow users to receive and respond to voice, fax, = and e-mail messages from virtually anywhere; ViewWeb enables access of vo= ice and fax messages through the Internet. In April 1997, CGRM and Lucent developed technology that allows different corporate systems to exchange digital voice and fax messages.

Centigram's TruVoice text-to-speech software received industry-wide recognition. TruVoice provides five languages (English, Spanish, French, Italian, German), and was licensed by Microsoft. Group Sense Ltd. also licensed TruVoice for its English-to-Chinese hand-held translation dictionaries. In May of 1997, CGRM announced an agreement with Sprint to provide a Customer Care Program for Sprint's voice mail subscribers.

In May 1997, the company said that for the second quarter of fiscal 1997 it expected a loss between $0.80 to $0.90 per share, due to one-time restructuring charges related primarily to severance pay (including the recently resigned president), and cancellation of the proposed acquisition of Voice-Tel. CGRM also anticipated lower second quarter revenues of about $25 million due to delays in orders from several North American customers.

In 1996, CGRM stated its goals to provide an ongoing stream of innovative products that anticipate customers' changing communications requirements, along with market-focused restructuring which will concurrently improve customer satisfaction. The company remains committed to meeting the needs of existing customers while continuing to expand its customer base.

Capitalization

Long Term Obligations: $38,000 (2/97).

Curr. Ratio	4.2	4.4	4.9	NA	NA	NA	NA	NA	NA	NA
% LT Debt of Cap.	0.1	0.3	0.5	2.5	4.4	12.4	NA	NA	NA	NA
% Net Inc.of Revs.	1.0	NM	9.8	8.7	NA	NA	NA	NA	NA	NA
% Ret. on Assets	1.0	NM	10.3	12.8	8.4	NA	NA	NA	NA	NA
% Ret. on Equity	1.2	NM	13.4	18.5	13.1	NA	NA	NA	NA	NA

Data as orig. reptd.; year ended Sep. prior to 1995; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--91 East Tasman Drive, San Jose, CA 95134. Tel--(408) 944-0250. Fax--(408) 428-3732. Website--http://www.centigram.com Email--dan.spalding@centigram.com SVP & CFO--D. P. Wolf. VP & Controller--T. E. Brunton. Secy--L. W. Sonsini. Investor Contact--Dan Spalding (408-428-3559). Dirs--J. H. Boyle, J. F. Gibbons, J. M. Jarvis, D. O. Morton, G. H. Sollman. Transfer Agent & Registrar--First National Bank of Boston. Incorporated--in California in 1980; reincorporated in Delaware in 1991. Empl-- 0. S&P Analyst: J.J.S.,M.M.

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997