PERIPHONICS CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                      (In thousands, except per share data)
                                   (Unaudited)

                                                                                 November 30, 1998      May 31, 1998

ASSETS
Current Assets:
Cash and cash equivalents .................................................           $10,124              $14,810
Short-term investments ....................................................            11,214               11,033
Accounts receivables, less allowance for doubtful
    accounts of $1,466 and $1,266, respectively ...........................            42,035               37,721
Inventories ...............................................................            15,987               14,066
Deferred income taxes .....................................................             1,855                1,687
Prepaid expenses and other current assets .................................             1,523                1,367
                                                                                      -------              -------
   Total current assets ...................................................            82,738               80,684

Property, plant and equipment, net ........................................            19,880               19,498
Other assets ..............................................................               472                  425
                                                                                      -------              ------- 
TOTAL ASSETS ..............................................................          $103,090             $100,607
                                                                                      =======              =======

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable...........................................................           $ 8,687               $8,273
Accrued expenses and other current liabilities ............................            16,930               14,328
                                                                                      -------              -------
    Total current liabilities .............................................            25,617               22,601
Deferred income taxes .....................................................               ---                  146
                                                                                      -------              -------
TOTAL LIABILITIES .......................................................              25,617               22,747
                                                                                      -------              -------

Stockholders' Equity:
Preferred stock, par value $.01 per share,                                              ----                 ----
    1,000,000 shares authorized, none issued
Common stock, par value $.01 per share,                                                   139                 138
    30,000,000 shares authorized, 13,903,546 issued and
    13,400,946 shares outstanding as of November 30, 1998;
    13,843,305 shares issued and outstanding as of May 31, 1998
Additional paid-in capital ................................................            44,202              43,780
Retained earnings .........................................................            36,666              33,942
                                                                                      -------             -------
                                                                                       81,007              77,860
Treasury stock, 502,600 shares ............................................            (3,534)               ----   
                                                                                      --------            -------
    Total stockholders' equity ............................................            77,473              77,860
                                                                                      -------             -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ................................          $103,090            $100,607
                                                                                      =======             =======