ARTISOFT(R), INC. ANNOUNCES EARNINGS FOR THE FIRST QUARTER OF FISCAL 1996
     
          TUCSON, Ariz., Oct. 18 /PRNewswire/ -- Artisoft, Inc. 
          (Nasdaq: ASFT) today announced net sales of $15.0 million 
          and net income of $464,000, or $.03 per share, for the first 
          quarter of fiscal 1996 ended September 30, 1995.  This 
          compares to net sales of $29.7 million and net income of 
          $1.6 million, or $.11 per share, for the first quarter of 
          fiscal 1995.  Net sales comparisons are affected by the 
          January 1995 sale of the company's Eagle Technology business 
          unit.  Artisoft has not recognized revenue from Eagle 
          Technology product sales since the third quarter of fiscal 
          1995.
     
          William C. Keiper, President and CEO, said, "Results for the 
          quarter reflect Artisoft's strategic focus on software 
          development and providing total networking solutions to the 
          small and mid-sized business market.  The improvement in 
          earnings, to a net profit of $.03 per share in the September 
          quarter from a net loss of $.25 per share in the June 
          quarter, is attributable to higher gross margins and reduced 
          operating expenses achieved through improved cost control.
     
          "We are now working to accelerate growth in our core 
          networking software business.  Our growth plans also include 
          developing and acquiring additional products and 
          technologies to support our strategic focus."
     
          Artisoft is the world's leading supplier of easy-to-use, 
          powerful and affordable networking solutions designed to 
          increase connectivity and communications within and between 
          small and mid-sized businesses.  The company offers the 
          award-winning LANtastic(R) network operating system as well 
          as network management, backup and multiplatform connectivity 
          systems.  Artisoft maintains nine offices outside the United 
          States, and distributes its connectivity products in more 
          than 100 countries.
     
          For more information about Artisoft or its product line, 
          contact Artisoft, Inc. at 2202 North Forbes Boulevard, 
          Tucson, AZ 85745.  Sales Consultation Center 800-233-5564. 
          Corporate 520-670-7100.  Fax 520-670-7101.  World Wide Web 
          home page http://www.artisoft.com.  Recent Artisoft press 
          releases are available at no charge through PR Newswire's 
          Company News On-Call fax-on-demand system; call 800-758-5804 
          and enter company number 107158.
     
     
     
                        ARTISOFT, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                     (in thousands, except share amounts)
     
     
                                            September 30,    June 30,
    ASSETS                                       1995          1995 
    Current assets:
         Cash and cash equivalents            $21,287       $16,551 
         Short-term investments                16,965        19,312 
         Receivables:
              Trade accounts, net              16,010        15,508 
              Income taxes                      3,500         3,500 
              Other                             3,474         3,424
         Inventories                            2,717         2,665 
         Prepaid expenses                       2,248         2,046 
         Deferred income taxes                  2,595         2,880 
         Total current assets                  68,796        65,886
    Long-term investments                           -         1,930
     
    Property and equipment                     16,064        15,302
         Less accumulated depreciation         (6,157)       (5,738)
              Net property and equipment        9,907         9,564
    Other assets                                  342           427
                                              $79,045       $77,807
     
    LIABILITIES AND SHAREHOLDERS' EQUITY 
    Current liabilities:
         Accounts payable                     $ 4,771       $ 5,248 
         Accrued liabilities                    4,843         4,218 
         Income taxes payable                      55            96 
         Total current liabilities              9,669         9,562
    Shareholders' equity:
         Common stock, $.01 par value.
            Authorized 50,000,000 shares;
            issued 27,751,760 shares as of
            September 30, 1995 and 27,671,680
            as of June 30, 1995                   278           277
         Additional paid-in capital            95,678        95,012 
         Retained earnings                     43,100        42,636 
         Less treasury stock, at
            cost, 13,287,500 shares           (69,680)      (69,680)
         Total shareholders' equity            69,376        68,245
                                              $79,045       $77,807
     
                        ARTISOFT, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                Three Months Ended September 30, 1995 and 1994
                   (in thousands, except per share amounts)
     
                                                    Three Months
                                                 Ended September 30,
                                                 1995          1994
     
    Net sales                                 $14,980       $29,687 
    Cost of sales                               5,548        15,924
         Gross margin                           9,432        13,763
    Operating expenses:
         Marketing and sales                    6,412         7,880 
         Product development                    1,253         1,910 
         General and administrative             1,357         1,578 
         Total operating expenses               9,022        11,368 
         Income from operations                   410         2,395
    Other income, net                             339           188
         Income before income taxes               749         2,583
    Income taxes                                  285           982
         Net income                           $   464      $  1,601
    Net income per common and
         equivalent share                     $   .03      $    .11
    Shares used in per share calculation       14,853        14,580
     
     
CONTACT: Robert Knox, Investor Relations 
Artisoft, 520-670-7163 or fax: 520-670-3114
