CAMELOT LAUNCHES DIGIPHONE DELUXE COMPATIBLE WITH WINDOWS 95 AND BUNDLED
WITH NETSCAPE NAVIGATOR

DALLAS, Texas (January 22) -- Camelot Corporation, (NASDAQ symbol CAML),
announces that it has completed the development of DigiPhone Deluxe, the
improved upgraded version of its revolutionary software that allows full
duplex voice communication over the Internet. DigiPhone Deluxe, which will
be released to retail stores in the next few weeks, is Windows 95
compatible. The latest version of Netscape Navigator client software, will
be bundled in the Digiphone Deluxe retail box.

DigiPhone Deluxe has enhanced telephone features including conference
calling capability, voice mail, speed dialing, voice sound effects,
conversation recording and playback, and macro command capabilities. It
comes with a full suite of Internet tools including Netscape Navigator 2.0
from Netscape Communications Corporation, an e-mail program, a news
reader, an FTP program, and a Telnet program.

In addition, a free Windows 95 upgrade for the existing DigiPhone software
is also announced. Further, both DigiPhone and DigiPhone Deluxe will now
be marketed with two licenses in each retail box. Effectively, this will
provide two Windows 95 compatible licenses for DigiPhone or DigiPhone
Deluxe for the price of one, and will enable consumers to immediately
start Internet telephone conversations with a family member or a friend
without any extra cost. All existing DigiPhone users will be provided with
a free extra license and a free Windows 95 upgrade. Consumers who buy
DigiPhone currently stocked in retail stores will receive an extra free
license and a free Windows 95 upgrade upon registration.

Camelot also announces that its subsidiary, Third Planet Publishing, Inc.
the publishers of DigiPhone and DigiPhone Deluxe, has now activated the
Global Directory feature of DigiPhone. The Global Directory allows any
DigiPHone and DigiPhone Deluxe user to search and access any other
DigiPhone and DigiPhone Deluxe user worldwide. The Directory may be found
on Third Planet's web site on the Internet at http://www.planeteers.com.

"DigiPhone and DigiPhone Deluxe are now Windows 95 compatible, include two
licenses in the retail box, and have access to a DigiPhone Internet phone
book, making voice communications on the Internet even more
user-friendly," said Danny Wettreich, Chairman and Chief Executive Officer
of Camelot. "The additional phone features of the Deluxe version together
with the inclusion of Netscape Navigator and the provision of a full suite
of Internet tools makes me very confident that DigiPhone Deluxe will be a
big success in 1996," he said. It is estimated that DigiPhone Deluxe,
which has an MSRP of $149.95, will have an approximate retail shelf price
of $79.00. DigiPhone has an MSRP of $89.95 and an approximate retail shelf
price of $50.00.

Netscape Navigator 2.0 client software is a powerful, flexible, and
easy-to-use online environment that lets users communicate and conduct
business on Intranet enterprise networks and the Internet. Netscape
Navigator 2.0 combines point-and-click network navigation, secure email,
and threaded discussion groups with support for such advanced features as
Java, sophisticated layout capabilities, and inline multimedia plug-ins to
give users access to a new generation of live online applications.
Available for all popular desktop environments, Netscape Navigator 2.0 is
optimized to run smoothly over 14.4 kilobit/second modems as well as
higher bandwidth lines.

Camelot Corporation is a holding company with subsidiaries focusing on
CD-ROM software. Third Planet Publishing publishes the revolutionary new
software DigiPhone and DigiPhone Deluxe, the world's first full duplexing
digital phone system for the Internet. Camelot Distributing distributes
CD-ROM software to independent retailers, and Mr. CD- ROM Stores is the
first CD-ROM software specialist retail chain in the world.

For information contact: Danny Wettreich, Chairman and Chief Executive
Officer at (214) 733-3005

Corporate Sales: 415/528-2555; Personal Sales: 415/528-3777
 
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