MORGAN HILL, CA -- -- 01/05/2006 -- Castelle® (NASDAQ: CSTL), a leader in 'all-in-one' network fax solutions for the business and enterprise markets, today announced the release of FaxPress™ 2500 1-line, a new single-line, entry-level fax server with email integration. The new product features eCopy/Canon integration, a Xerox WorkCentre Interface and five new administrative support utilities.

The FaxPress 2500 1-line offers the same features as the FaxPress 2500 2-line and FaxPress 5000, all of which operate on Castelle's new FaxPress 8.2 software. FaxPress 8.2, released in December 2005, offers new features such as scanner, copier and MFP integration with eCopy ShareScan OP 3.0 and Xerox WorkCentre systems, as well as five new administrative support utilities that can be implemented to address system and network environment-specific issues.

"The FaxPress 2500 1-line is an important addition to our FaxPress product line," said Scott McDonald, President and CEO of Castelle. "The FaxPress 2500 was previously available only as a two-line model; however, given our customer needs for a single line fax server with email integration, we added the option of the same fax server in a one-line model. The FaxPress Email Gateways allow users to send and receive faxes through Exchange, Lotus Notes, GroupWise and SMTP-compatible email programs, which is a highly efficient way to manage corporate communications. By offering a single-line fax server with email capabilities, we are able to better market to the entry-level fax server customer."

Network Faxing with Castelle

FaxPress and FaxPress Premier™ fax servers from Castelle provide a comprehensive hardware and software solution for the network environment. FaxPress gives users a versatile fax management solution that runs in Microsoft Windows, Novell NetWare and Linux environments and integrates with many popular email systems, corporate contact databases and PBXs. Designed as a departmental or workgroup fax server, FaxPress offers a scalable fax solution ranging from an entry-level, single-line unit to an eight-line unit.

Castelle's FaxPress Premier fax servers were designed for enterprise-level applications and are available in both analog and digital configurations. FaxPress and FaxPress Premier fax servers can work together on the same network, which means additional units can be added to the network at any time to handle increased fax demand.

FaxPress 2500 1-Line Availability

As of January 1, 2006, the FaxPress 2500 1-line is available for shipment in North America, the United Kingdom and Europe through a network of resellers. For information on sales and fax server trade-ins please contact Castelle Sales at (408) 852-8000 or (800) 289-7555 or email sales@castelle.com.

If you would like to be added to Castelle's investor email list, please contact Karin Smith at ksmith@castelle.com.

About Castelle

Castelle, a market leader in 'all-in-one' network fax solutions for business and enterprise, develops office automation systems that allow organizations to easily implement faxing over local area networks and the Internet. Castelle's network fax servers, FaxPress™ and FaxPress Premier, provide a simple way to integrate fax with email, desktop and back-end applications. Castelle products are designed to be easy to use and maintain, and provide an economical way for companies to share resources over the network. Castelle was founded in 1987 and is headquartered in Morgan Hill, California. Its products are available through a worldwide network of distributors, resellers, and online retailers. Visit Castelle online at www.castelle.com.

FaxPress™ and FaxPress Premier™ are trademarks of Castelle. All other trademarks are the property of their respective owners.

Forward-Looking Statements

This press release may contain forward-looking statements. These statements are subject to risks and uncertainties. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements as contained in our reports to the Securities and Exchange Commission, including our Forms 10-Q and 10-K. The Company assumes no obligation to update the forward-looking information.