Tuesday May 21, 8:11 am Eastern Time

Company Press Release

North American DataCom Reports Nine-Month Results: Debt and Losses Reduced

IUKA, Miss.--(BUSINESS WIRE)--May 21, 2002--North American DataCom, Inc. (OTCBB:NADA - News), the broadband application service and data storage company, announced financial results for its third quarter ended March 31, 2002. "I am greatly pleased to report that our cost reduction and capital structure programs have reduced our debt by 88%, and our net loss by 78%, compared to last year's results," said Robert Crawford, President and Chief Executive Officer, North American DataCom.

For the nine-month period ended March 31, 2002, the Company realized net revenues of $346,877, compared to $358,372 in fiscal 2001. The net revenues for continuing services increased by 16%, to $300,911, 81% of which was realized from Internet revenues, and 19% from paging revenues. The nine-month period ended March 31, 2001 included data storage revenues of $62,884, and conduit sales of $43,534 to Bell South. Comparing the nine-month period ended March 31, 2002, with the same nine-month period of the prior year revealed the following results: Internet revenues increased markedly to $243,991 (from $192,816) while paging revenues decreased slightly to $56,920 (from $59,138). Conduit and broadband sales for 2002 have not been actively pursued due to market conditions. However, the Company sold $15 million of conduit in 2002, compared to $43,534 in the three-month period ended March 31, 2001, but did not record this one-time revenue. The data storage business for 2002 has decreased from $62,884 to $45,966. The Company expects this revenue source to improve considerably in the next year as the Global PTX application service business develops.

"We believe that the Global PTX application services startup revenues of approximately $110,000, which are not included in our consolidated results, foreshadow the success of Global PTX, in which the Company is a joint venture partner," said Mr. Crawford.

"We are very excited about the Company's prospects in China, where the Company has recently opened a satellite office. Through the Shanghai office, we are negotiating the formation of strategic partnerships that should greatly strengthen Global PTX's private trade exchange market position," said Mr. Crawford. "These ventures will build on the Company's application services, data storage capabilities and communications network services to provide PTX software and ASP expertise to customers in need of global marketing and product supply solutions."

The Company reported a net loss for the nine-month period of $575,362, a figure that is 78% lower than the $2,659,434 loss for the same period a year ago. Roughly half of this dramatic reduction is directly attributable to the expense reduction program established in June 2001. Selling, General and Administrative costs for the period were reduced by 35%, to $1,453,556, compared with $2,245,673 a year ago. The balance of the reduction comes from Other Income that totaled $637,189. This resulted from the income from a one-time fiber optic conduit sale, and is slightly reduced by charges of $84,026 resulting from the start up of the Global PTX venture.

The conduit sale is part of the Company's plans to improve its capital structure for future growth. The $15.1 million sale was the major reason in an 88% reduction in debt and $627,000 increase in shareholder equity. The 505 miles of fiber optic conduit from New Orleans, Louisiana to Jacksonville, Florida was acquired in March 2000. A debt reduction of $15.1 million resulted from the $14.5 million of fiber optic conduit assets sale. This sale was also the primary reason for the improvement of shareholder equity, providing over $720,000 of income.

The Company has been able to reduce its capital budget for this fiscal year to approximately $1 million. These expenditures are earmarked for equipment and software support of the Company's broadband application services. This reduction is due to the Company's success in acquiring necessary software and hardware on much more favorable terms than were originally planned. This budget has been funded through the continued private placements of equity and debt capital.

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 go to our website, www.nadata.com, or contact Investor Relations, 662/424-5030, and by e-mail at investorrelations@nadata.com.


North American DataCom, Inc. (NADA), announced today that has halted its operations due a lack of funding.

North American DataCom Reports Unaudited Fiscal Year 2002 and First Quarter Results

North American DataCom Reports Nine-Month Results: Debt and Losses Reduced

North American DataCom Expands Its Operation in Greater China/Shangai

North American DataCom Announces Bandwidth Agreement

North American DataCom Expands Board and Announces Revised Business Plan

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

North American DataCom Announces Expansion of Internet and Data Services Business

North American DataCom Acknowledges Equity Investment Support

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

North American DataCom Announces Revised Business Plan

North American DataCom Reports Fiscal Year 2001 Results: Net Revenue and Development Expenses Up

North American DataCom, Inc. and Infusion Software Group, LLC Launch GLOBAL PTX

North American DataCom Announces Management Changes

North American DataCom Announces Third Quarter Financials: Net Revenues Increased by 113% and Development Expenses Up

North American DataCom Enters Into Agreement for Up to $50 Million of Equity Financing

North American DataCom Announces New Lease with State of Mississippi

North American DataCom Reports Second Quarter Results: Net Revenue and Development Expenses Up

North American DataCom Announces Interim Business Plan

North American DataCom Receives Enterprise Data Storage Contract

North American DataCom Announces Deployment of Microwave Tower and Right of Way Agreement With Local Railroad

North American DataCom Subsidiary Announces Appointment of Gordon Evans

North American DataCom Announces Fiber Optic Conduit Agreement

North American DataCom Receives Certification as a Competitive Local Exchange Carrier -CLEC-

Broadband Pioneer Makes Tracks With EMC As Core Info Infrastructure

North American DataCom Changes Trading Symbol

Pierce International Changes Name To North American DataCom

Pierce International Names Jerry Buuck to Head Sales for Its Newly Formed Subsidiary North American InfoTech, LLC

Pierce International Acquires North American Software

North American Software Acquires Freedom 2000 Internet Service