Exhibit 99.1


FOR IMMEDIATE RELEASE                                                MAY 1, 2002

CONTACT:          Scott C. McDonald, President & CEO          408-852-8000


Castelle Reports First Quarter 2002 Results

MORGAN HILL, Calif., May 1, 2002 - CASTELLE (NasdaqSC: CSTL) today announced
financial results for the first fiscal quarter ended March 31, 2002.

Net sales for the first quarter of fiscal 2002 were approximately $2.4 million,
compared to approximately $2.3 million for the same period in fiscal 2001. The
Company recorded a net profit for the first quarter of fiscal 2002 of $32,000 or
$0.01 per diluted share, compared to a net loss of $408,000 or $0.09 per diluted
share for the same period in fiscal 2001.

Sales in the first quarter of fiscal 2002 reflected the implementation of the
new accounting standard, Emerging Issues Task Force No. 01-09, Accounting for
Consideration Given by a Vendor to a Customer (Including a Reseller of the
Vendor's Products), which was adopted with effect from January 1, 2002 and
requires certain marketing development funds to be classified as reductions to
sales rather than classified as operating expenses. The effect of the
implementation of this new accounting standard was a reduction of sales of
$88,000 and $56,000 in the first fiscal quarters of 2002 and 2001, respectively,
with a corresponding reduction in operating expenses. The new accounting
standard has no impact on the Company's operating margin, net income or earnings
per share.

The $408,000 loss in the first fiscal quarter of 2001 included a restructuring
charge to income of $180,000, or $0.04 per diluted share. Excluding this charge,
the results in the first quarter of fiscal 2001 would have reflected a loss of
$228,000, or $0.05 per diluted share. The restructuring charge included the
write-down of assets and expenses associated with worldwide consolidations.

On April 22, 2002, Donald L. Rich, 60, announced his retirement as CEO. He will
continue on as Chairman of the Board. Scott C. McDonald, who joined Castelle as
its new President and CEO, stated, "I am very pleased with the opportunity to
take over from Don who has turned the Company around since taking the CEO reins
in 1998. The first quarter 2002 results extend the Company's record of
profitability to eight of the past ten quarters. I believe that Don and the
Castelle team have done an outstanding job in positioning and refocusing
Castelle over the past few years in what has been a very tough economic time."

Mr. Rich stated, "Scott has been a Director of Castelle for the past three years
and has worked closely with me as well as the Company, so he is already familiar
with the business. I look forward to supporting Scott and the management team as
they lead the Company forward."

Mr. McDonald continued, "Castelle's core fax server business has held steady
during this difficult economic period in the technology sector. Faxing is a
basic method of business communication. Castelle fax servers help automate
faxing as well as integrate faxing into backoffice and email systems. Castelle's
economical and easy-to-use fax servers help bring basic faxing into the Internet
age."

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About Castelle
Founded in 1987, Castelle develops and markets products that enable
organizations to easily implement Internet and Intra-office messaging, data
storage and printing over local area networks. Castelle is one of the pioneers
of application server appliances and has developed expertise to integrate most
complex functions into very easy-to-use and maintain, "plug-&-forget" shared
devices. Castelle believes that its products are more economical than comparable
software-only solutions, as they do not require a large technical staff to
install, operate and maintain. Castelle products are utilized by industry
leaders including Fortune 1000 companies and also by small and medium-sized
business worldwide and are available through a worldwide network of
distributors, value-added resellers, systems integrators, e-commerce retailers,
and the Castelle On-Line Store. Castelle is headquartered in Morgan Hill,
California and can be reached at 408-852-8000, fax 408-852-8100 or
www.castelle.com.

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