Melville, New York, August 8, 2002 - Andrea Electronics Corporation (AMEX: AND), a leading developer of hardware and software audio input technologies, announced today that the Company has executed a non-cash settlement of the lawsuit in which it was involved with NCT Group, Inc. The settlement, the terms of which are confidential, and which have no material impact on the financial statements of Andrea Electronics, dismisses both NCT's claims and Andrea Electronics' counterclaims. No additional details will be provided.

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 Digital Super Directional Array (DSDA®), patented PureAudio®, patented EchoStop™ 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. Visit Andrea Electronics' website at http://www.AndreaElectronics.com, or call 1-800-442-7787.