Wednesday October 31, 8:01 am Eastern Time

Company Press Release

North American DataCom Reports First Quarter Results: Revenues Up and Expenses Down

IUKA, Miss.--(BUSINESS WIRE)--Oct. 31, 2001--North American DataCom, Inc. (OTC BB:NADA), the broadband data storage company, announced preliminary financial results for its first quarter ended September 30, 2001. For the three-month period, the Company reported revenues of $138,923, an increase of approximately 100% over the previous year's results of $69,432.

"We are pleased about this continued revenue growth, but recognize that significant growth from our operations will not be achieved until the planned bandwidth network is in place,'' said Jack Freeman, President, North American DataCom. "The Company is very pleased with the early success of Global PTX, our joint venture with Infusion Software Group, LLC,'' said Mr. Freeman. "Global is ahead of its business plan with revenues exceeding $45,000.''

"The Company plans to announce other strategic partnerships that should greatly strengthen Global's private trade exchange market position over the next 60 days,'' said Robert R. Crawford, CEO of North American DataCom. "Also, the combination of the Company's data storage and communications network services and Infusion's PTX software and ASP expertise provide Global customers a wide solution for global marketing and product supply requirements.''

The reported net loss for the three-month period was $312,568, compared with $869,086 for the same period a year ago. This 64% reduction in the net loss is directly attributable to expense reduction program put in place in June 2001. The program has significantly reduced consulting charges and certain network development costs.

Selling, general and administrative (SG&A) costs for the period amounted to $421,198, compared with $715,864 a year ago. Other Expenses were reduced from approximately $175,000 a year ago to a modest income level of $42. The Other Expenses last year were largely attributable to the imputed interest charge treatment of certain assets associated with the acquisition agreement for 505 miles rights-of-way and fiber conduit from New Orleans to Jacksonville, Florida. The Company will shortly file its Form 10Q, which will provide more detail.

As the Company discussed in earlier press releases, it plans to fund its $18 million capital plan for this fiscal year largely through its funding agreement with IFG Equity Funding LLC, subject to market conditions. This funding will be augmented through continued private placements of equity and debt capital. Discussions with funding sources are presently underway.

Safe Harbor Statement

Statements in this release express management's beliefs and expectations regarding future performance. These statements are forward-looking and involve risk and uncertainties. These risks include, but not limited to, the ability to negotiate venture agreements, properly identify acquisition partners, manage and integrate acquired businesses, react to quarterly fluctuation in results, raise working capital and secure other financing, respond to competition and other rapidly expanding technology, deal with market and stock price fluctuation, and other risks. These risks are and will be detailed, from time to time, in North American DataCom, Inc. Securities and Exchange Commission filings. Actual results may differ materially from management's expectations.

North American DataCom's principal executive offices are located at 751 County Road 989, Building 1000, Iuka, MS 38852. For further information, contact Investor Relations, 662-424-5030, or by e-mail at


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North American DataCom Reports First Quarter Results: Revenues Up and Expenses Down

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