EXHIBIT 10(z)

Thursday, February 04, 1999





2568
Farmstead Telephone Group, Inc.
Mr. Robert LaVigne
22 Prestige Park Circle
East Hartford, CT 06108


Re:   Temporary increase to Line of Credit
       With FINOVA Capital Corporation

Dear Mr. LaVigne,

FINOVA Capital Corporation ("FINOVA") is pleased to advise you of our 
commitment to offer Farmstead Telephone Group, Inc. (the "Borrower") a 
$3,000,000.00 temporary increase in your line of credit from $2,000,000.00 
to $5,000,000.00 (the "Line of Credit") for the period through March 31, 
1999.  After such time, the line shall return back to its original amount 
and continue as stated herein.

FINOVA maintains a common due date program whereas all payments are due in 
our office on the 1st, 10th, & 20th of each month.  The terms under which such 
financing will be provided to your are 3pay90 from invoice date, with 
interest to accrue per annum ADB at 2.5% above Prime for those programs not 
fully rate supported for 90 days by the vendor.  Of course the option is 
always available to avoid those interest charges by accepting shorter terms 
actually sponsored by the vendor.  The default (maturity) rate commences on 
the day following the due date of each unpaid invoice.  Offsets to payments 
to your account are not to be made unless previously authorized in writing 
by FINOVA.  Unauthorized deductions shall be charged the default rate until 
the offset has been satisfied.  From time to time, FINOVA may offer 
different terms to you after notice.

This commitment is made subject to the following terms and conditions:

A.    Amount of Line of Credit
      ------------------------

      The Line of Credit shall be in a maximum amount of $5,000,000.00 (as 
      described above).  FINOVA may from time to time finance sums above 
      the committed line at its sole discretion.  Further, any such 
      additional advances are not intended to be and should not be 
      construed as a permanent commitment above the approved line and are 
      subject to immediate repayment, at our sole option, upon notice by 
      FINOVA.  There shall be no minimum extension of credit required of 
      FINOVA under this commitment.  All extensions of credit shall be made 
      in the sole and complete discretion of FINOVA.  The outstanding 
      balance under the Line of Credit shall be computed by adding the 
      principal outstanding amount and the amount of unpurchased approvals.

B.    Line of Credit Utilization
      --------------------------

      FINOVA will set aside up to $500,000.00 of Farmstead's line of 
      credit.  This portion of the Line of Credit will be used to finance 
      Borrower's open account inventory purchases (Other Eligible 
      Inventory).

C.    Other Eligible Inventory
      ------------------------

      FINOVA will finance other Eligible Inventory as follows:

      *     Repayment terms shall be 1/2 30, 1/2 60 from the advance date;
      *     Rate of Prime plus 1.5 percent (1.5%) per annum ADB from 
            advance date;
      *     Advances shall be in FINOVA's sole discretion and shall be made 
            directly to Farmstead on a per invoice basis upon FINOVA's 
            receipt of all appropriate support documentation;
      *     Advance rate shall be up to 50 percent (50%) of the wholesale 
            value of the invoice;
      *     FINOVA reserves the right to approve vendors for advances on 
            Other Eligible Inventory;
      *     There shall be a per advance transaction fee equivalent to 0.10 
            percent (0.1%) of invoice amount;
      *     No minimum balance requirement.

D.    Duration of Line of Credit
      --------------------------

      The term of the Line of Credit shall continue through March 31, 1999 
      ("Expiration") at which time the Line of Credit shall terminate and 
      revert back to its original amount of $2,000,000.00 through 03/31/99.  
      Currently FINOVA is considering a $5,000,000.00 permanent inventory 
      credit line for your account projected to be effective after such 
      time for a period of one year.  FINOVA will annually review the line 
      for renewal based on our receipt and satisfactory review of your next 
      fiscal year end financial statement.  FINOVA may, in its sole and 
      absolute discretion extend the Line of Credit for such additional 
      periods of time and under such terms and conditions as FINOVA 
      determines to be appropriate.  No advances will be made by FINOVA 
      until FINOVA actually receives executed copies of any and all 
      documentation required by FINOVA.

E.    Early Termination
      -----------------

      The Line of Credit may be terminated by FINOVA at any time prior to 
      the Expiration specified above if:

      1.   The Borrower fails to execute and/or deliver any and all 
           financing documents required by FINOVA, which financing 
           documents shall include, but shall not be limited to, a Dealer 
           Loan Security Agreement, Certificate of Corporate Borrowing 
           Resolutions, and a UCC-1 broad lien on all assets.
      2.   The Borrower is in breach of any of the provisions of any of the 
           financing documents required by FINOVA, or is in default under 
           any such document.
      3.   There has occurred any adverse change in the financial 
           condition, structure, ownership, or business prospects of the 
           Borrower (or any guarantor of the Borrower's indebtedness to 
           FINOVA), or if FINOVA shall learn of any misrepresentation or 
           omission of a fact or circumstance by the Borrower (or any 
           guarantor of the Borrower's indebtedness to FINOVA) which FINOVA 
           deems to be material.  The Borrower and all guarantors shall be 
           obligated to notify FINOVA Capital Corporation in writing of any 
           change in either their financial condition, structure, 
           ownership, or business prospects.
      4.   The Borrower is in breach of any of the Conditions as set forth 
           by FINOVA, and itemized below.

F.    Recurring Conditions:
      ---------------------

      1.   Collateral Covenants:
           a)   The ratio of total collateral available to FINOVA after 
                deduction of senior liens to total FINOVA indebtedness must 
                be at least 1.5 to 1 (1.5:1).
           b)   The ratio of Other Eligible Inventory to advances on Other 
                Eligible Inventory must be at least 2 to 1 (2:1).
           >    In the event of a collateral shortfall, an immediate 
                paydown shall be required.

      2.   Reporting Requirements:
           a)   Monthly collateral reports of Accounts Receivable, Accounts 
                Payable, and Inventory valuation reports are to be provided 
                within 10 business days after the end of each month.
           b)   Monthly Borrowing Base to accompany collateral reports.
           c)   Quarterly 10-QSB's, if not easily obtainable by FINOVA.

      3.   Operational Requirements:
           a)   Evidence of Casualty insurance in an amount greater than, 
                or equal to the credit facility, accompanied by a Lender's 
                Loss Payable clause favoring FINOVA Capital Corp.

G.    Current Conditions [to be satisfied within the next 30 days]:
      -------------------------------------------------------------

      1.   Conversion of all required documentation from our predecessor, 
           AT&T Capital Corporation, to that of our current name, FINOVA 
           Capital Corporation.
      2.   Completion of the Y2K survey provided by FINOVA.
      3.   Satisfactory Audit, tentatively scheduled for the first week of 
           March 1999.
      4.   Updated insurance certificate.  The policy shows continued 
           through 10/99, but FINOVA needs an actual copy of the insurance 
           certificate to evidence the amount of contents coverage.  
           Additionally, the Loss Payee name should be amended from AT&T to 
           that of FINOVA.
      5.   Conversion of Intercreditor document with First Union (formerly 
           Affiliated Business Credit) to amend our corporate name change 
           from AT&T to FNV.

H.    No Assignment
      -------------

      This commitment may not be assigned by the Borrower without the prior 
      written consent of FINOVA, which consent shall be granted or withheld 
      in the sole and absolute discretion of FINOVA.

We look forward to a continuing relationship!



Respectfully,


/s/Mitchell J. Reaver
---------------------
Mitchell J. Reaver
Account Executive
INVENTORY FINANCE



                                       Accepted:  /s/ Robert G. LaVigne
                                                  ------------------------
                                                  (Name)

                                                  Executive Vice president
                                                  ------------------------
                                                  (Title)

                                                  2/8/99
                                                  ------------------------
                                                  (Date)