Melville, New York, August 31, 2000 – Andrea Electronics Corporation (AMEX: AND) announced today that IBM Corporation (NYSE: IBM) will include Andrea Electronics’ new Universal Serial Bus (USB) Adapter with its ViaVoice® for Windows, Release 8.0 speech recognition software product, a new family of voice recognition software that can make talking to your computer easier, faster and more accurate. Features include faster set-up time, improved correction capabilities and expanded command and control capabilities, as well as the new Andrea USB Adapter which utilizes USB integrated electronics to provide plug-and-play connectivity and enhanced digital microphone audio quality. Beginning on September 5, 2000, ViaVoice for Windows, Release 8.0 will be available through major retail and office supply stores throughout the U.S., at ShopIBM (ww.ibm.com/shop) and other select online vendors, and through additional distribution channels.

“In extending our family of ViaVoice speech recognition products, we have sought to offer solutions that are extremely user friendly, making it easy for people to interact with their PCs,” said Krishna Nathan, Director of IBM Consumer Voice Systems. “By including Andrea’s USB Adapter with our new ViaVoice for Windows software product, we can ensure that our customers can connect legacy microphones through a USB connection and experience high quality audio when using our advanced speech software products.”

“Accuracy and high quality audio go hand-in-hand in creating a high quality speech solution that can be used in low noise environments, such as with desktop PCs, as well as with wireless mobile devices where noise is an even greater obstacle,” said Douglas J. Andrea, Co-Chairman & Co-Chief Executive Officer of Andrea Electronics Corporation. “Clearly, IBM has identified a growing need for audio input devices which address the emerging USB protocol, and we are pleased that our USB Adapter has been selected to be bundled with IBM’s enhanced speech product for the Windows platform.”

The Andrea USB Adapter makes any legacy microphone headset compatible with USB-enabled PCs. Together, this cost-effective solution allows users to achieve improved accuracy and performance by enabling clear, digital audio input for all speech-enabled applications, including speech recognition, chat, voice-enabled web browsing and online gaming. In addition, through a USB connection, the USB Adapter enables high fidelity, digital quality sound input without the need for a sound card.

About Andrea Electronics

Andrea Electronics Corporation designs, develops and manufactures audio technologies and equipment for enhancing applications that require high performance and high quality voice input. The Company’s patented Active Noise Reduction (ANR READY®) earphone, Active Noise Cancellation (ANC) near-field microphone, patented Digital Super Directional Array (DSDA®) and patent-pending Directional Finding and Tracking Array (DFTA™) far-field microphone technologies enhance a wide range of audio products to eliminate background noise and ensure the optimum performance of voice applications. Applications for the Company's technologies include: speech recognition programs, Internet telephony, video/audio conferencing, automobile PCs, home automation systems, hand-held devices and multiplayer online games, among others. OEM and software publisher customers and strategic partners of Andrea Electronics' include: IBM Corporation, Intel Corporation, Donnelly Corporation, Symbol Technologies, Inc., Clarion Corporation of America, Microsoft Corporation, Lernout & Hauspie, ScreenFriends Corporation, Audio-Technica, U.S., Inc., J. D’Addario & Co., DeltaThree.com, Lotus Development Corporation, Fonix Corporation, HearMe, Centra Software, Inc., Logitech, Inc., Net2Phone, Inc., Voyetra Turtle Beach, Inc. and ZeroPlus.com, among others. Visit Andrea Electronics' websites at www.AndreaElectronics.com and www.AudioCommander.com or call 1-800-707-5779.

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipates," "believes," "estimates," "expects," "intends," "plans," "seeks," variations of such words, and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve matters that are subject to certain risks, uncertainties and assumptions that are difficult to predict, including economic, competitive, governmental, technological and other factors, that may affect the business and prospects of Andrea Electronics Corporation (the "Company"). The Company cautions investors about the following significant factors, which, among others, have in some cases affected the Company's actual results and are in the future likely to affect the Company's actual results and could cause them to differ materially from those expressed in any forward- looking statements: the rate at which Andrea Anti-Noise, DSDA, DFTA and other Andrea technologies are accepted in the marketplace; the competitiveness of Andrea Anti-Noise, DSDA, DFTA and other Andrea products in terms of technical specifications, quality, price, reliability and service; the sufficiency of the Company's funds for research and development, marketing and general and administrative expenses; infringement and other disputes relating to patents and other intellectual property rights held or licensed by the Company or third parties; and the Company's continuing ability to enter and maintain collaborative relationships with other manufacturers, software authoring and publishing companies, and distributors. No assurance can be given that the Company will achieve any material sales or profits from the products introduced in this release. These and other similar factors are discussed under the heading "Cautionary Statement Regarding Forward-looking statements" included in the Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Annual Report on Form 10-K and in the Company's Annual Report to shareholders, and in documents subsequently filed by the Company with the Securities and Exchange Commission.

“Andrea Anti-Noise,” “ANR Ready,” “DSDA,” DSDA-PRO,” “DFTA,” “SuperBeam,” “EchoStop,” “PureAudio” and “Desktop Array” are trademarks of Andrea Electronics Corporation or an Andrea Electronics Corporation subsidiary.

SOURCE: Andrea Electronics Corporation