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Zoom Schedules 1-for-5 Reverse Stock Split for August 7, 2008

SOURCE:

Zoom Technologies, Inc.

2008-08-06 17:30:00

Zoom Schedules 1-for-5 Reverse Stock Split for August 7, 2008

BOSTON, MA–(EMWNews – August 6, 2008) – Zoom Technologies, Inc. (NASDAQ: ZOOM) today

announced that a 1-for-5 reverse split of its common stock will take effect

immediately prior to the opening of the stock market tomorrow, August 7,

2008. The split is consistent with the Company’s efforts to maintain the

listing of its securities on the Nasdaq Capital Market. This split follows

a vote at Zoom’s recent Annual Meeting in which shareholders authorized the

Zoom Board of Directors to effect a reverse split. Nasdaq has approved

Zoom’s plan to effect the reverse split as the means to regain compliance

with the requirements of the Nasdaq Capital Market.

As a result of the reverse stock split, every 5 shares of Zoom’s common

stock will be combined into 1 share of common stock. The reverse stock

split affects all outstanding shares of common stock and stock options of

Zoom. The reverse stock split will reduce the number of outstanding shares

of Zoom’s common stock from approximately 9.347 million to approximately

1.869 million shares. The number of authorized shares of common stock will

remain at 25 million. The exercise price and number of common shares

related to outstanding stock options will proportionately adjust to reflect

the reverse split.

The common stock of Zoom will trade on the Nasdaq Capital Market under the

temporary symbol ZOOMD for 20 trading days after the reverse split goes

into effect. The “D” at the end of Zoom’s symbol will simply denote the

recent reverse split of Zoom’s stock. On Friday, September 5, 2008 trading

will resume under the current symbol ZOOM.

Zoom shareholders do not need to take any action in connection with this

reverse stock split. They can hold their shares as they do now, and

convert them if and when they are sold. A helpful Question and Answer

dialogue is provided on the following link: www.zoom.com/rsqa.

“Retaining Zoom’s listing on the Nasdaq Capital Market is important to Zoom

and to some potential merger partners,” said Frank Manning, Zoom’s

President and CEO. “We need Zoom’s stock to close over $1 for 10 straight

trading days to get back into compliance with Nasdaq’s rules, and we

believe the reverse stock split is the best way to meet this requirement.”

About Zoom Technologies

Zoom Technologies, Inc. designs, produces, markets, and supports

communication products under the Zoom, Hayes®, and Global Village®

brands. Zoom is headquartered in Boston, and its European sales office is

in the UK. Zoom markets its products in over forty countries, and provides

multi-lingual support from its offices in Boston. For more information

about Zoom and its products, please see www.zoom.com.

Safe Harbor Statement

“Safe Harbor” Statement under the Private Securities Litigation Reform Act

of 1995: This release includes forward-looking statements intended to

qualify for the safe harbor from liability established by the Private

Securities Litigation Reform Act of 1995. These forward-looking statements

generally can be identified by phrases such as Zoom or its management

“believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates”

or other words or phrases of similar import. Similarly, statements in this

release that describe our business strategy, outlook, objectives, plans,

intentions or goals also are forward-looking statements. All such

forward-looking statements are subject to certain risks and uncertainties

that could cause actual results to differ materially from those in the

forward-looking statements. The forward-looking statements are made only

as of the date hereof. We undertake no obligation to update or revise the

forward-looking statements, whether as a result of new information, future

events or otherwise.

Contact:
Robert Crist
617-753-0698
Email: [email protected]

Zoom Technologies, Inc.
207 South Street
Boston, MA 02111
617-423-1072
www.zoom.com

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Freelance Writer, Journalist and Father of 5

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