Thursday February 21, 9:55 am Eastern Time

Company Press Release

North American DataCom Reports Six-Month Results: Revenues Up and Expenses Down

IUKA, Miss.--(BUSINESS WIRE)--Feb. 21, 2002--North American DataCom, Inc. (OTCBB:NADA - news), the broadband data storage company, announced financial results for its second quarter ended December 31, 2001. For the six-month period, the Company reported revenues of $244,859, an increase of 57% over the previous year's results of $156,373.

``The revenue growth is planned to continue, but we recognize that significant growth from our operations will not be achieved until the planned bandwidth network is in place,'' said Robert Crawford, Chief Executive Officer, North American DataCom. ``In addition, while the Global PTX, LLC revenues of approximately $100,000 are not included in our consolidated results we are pleased with the start up success of Global PTX, our joint venture with Infusion Software Group, LLC,'' said Mr. Crawford.

``The Company is currently negotiating the formation of other strategic partnerships that should greatly strengthen Global's private trade exchange market position,'' said Mr. Crawford. ``These ventures are building on the combination of the Company's data storage and communications network services to provide PTX software and ASP expertise to customers needing solutions for global marketing and product supply requirements.''

The reported net loss for the six -month period was $874,692, compared with $1,802,870 for the same period a year ago. This 51% reduction would have been greater but it includes approximately $200,000 in one time charges. The reduction is directly attributable to expense reduction program put in place in June 2001.

Selling, general and administrative (SG&A) costs for the period amounted to $995,669 compared with $1,513,954 a year ago. Other Expenses were reduced from approximately $350,000 a year ago to $51,808. This year includes the Company's allocation of the Global PTX startup loss of $51,896. The Other Expenses last year were largely attributable to the imputed interest charge treatment of the 505 miles rights-of-way and fiber conduit from New Orleans to Jacksonville, Florida acquired in March 2000.

The Company has reduced its capital budget for the balance of this fiscal year to approximately $3 million. It is planned that this budget will be partially funded 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 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 capitol 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, and by e-mail at


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