Friday January 3, 9:00 am Eastern Time

Company Press Release

NORTH AMERICAN DATACOM Reports Unaudited Fiscal Year 2002 and First Quarter Results

December 31, 2002– North American DataCom, Inc. (NADA), the Application Service and Data Storage Company, announced today that ,due to unforeseen delays with the Company’s audit firm, the Company has been unable to timely file its 10K for the period ending June 30, 2002 or its 10Q for the period ending September 30, 2002.

The Company’s unaudited financial results for these periods are available. The Company generated revenues of $469,244 in fiscal 2002, a decrease of 1% over the previous years’ revenue of $475,426. For its first quarter ended September 30, 2002 the Company had revenues of $194,036, an increase of 40% over the prior year’s results of $138,923, and a net loss $212,907 that is 32% lower than 2001results.

“Due to the dramatic weakness of the financial markets and telecommunications sector in the past 2 years the Company changed the direction of its Business Plan,” said Robert Crawford, President of NADA. NADA is now developing revenue-producing application services and existing data storage services, and is delaying any capital intensive network development and installation. The Company is currently providing superior quality and secure broadband communications in connection with its existing application services and data storage service business lines. The Company is actively developing these business lines both domestically and internationally.

NADA provides application services including Internet access services and digital and alphanumeric paging services plus data storage and application development. The Company also operates a 5,000 square foot Data Storage Center at its Iuka facility that enables it to archive data. The Company’s 150-mega byte per second (mbs) broadband fiber optic and redundant wireless connectivity into its headquarters in Iuka, Mississippi supports its services.

In collaboration with its Global PTX affiliate, NADA has expanded its Application Services. Global PTX, LLC is a joint venture with SB Consulting. This venture is focused on “end-to-end” vendor/customer supply chain synchronization. Initial development activities are designed to target Manufacturing and Retail Business Industry Sector corporations that makeup strategic supply chain trading groups. The objective is reducing enterprise expenses and providing significant improvement in operating efficiencies for the entire supply chain group.

‘‘The Company will announce strategic international partnerships that should greatly strengthen Global’s private trade exchange market position once the 10k is filed,” said Robert R. Crawford. “The combination of the Company’s data storage, the communications network services and Global PTX software and ASP expertise provide a wide solution for global marketing and product supply requirements."

The fiscal 2002 application service revenues increased 15.4% to $405,471. Application Development and Data Storage revenues decreased to $56,663 or 22.3 as a result of completion of a contract The Company's cost of services was reduced by 38% to $139,683 in fiscal 2002 as the result of an incremental costs control and other cost reduction efforts. The 2002 gross profit in was $329,561 compared with $249,507 in fiscal 2001, an increase of 32%.

The Company’s fiscal 2002 selling, general and administrative expenses were $2,306,205 compared with $3,293,230 in fiscal 2001, a decrease of approximately 30%. This decrease was primarily attributed to the expense reduction program enacted in June 2001, which decreased labor expense by $1,096,000, professional fees by $700,000, and travel expenses by $94,000. These savings were partially offset by the recording of the potential loss due to litigation with Portal Software of $505,345. As a result, the Company's operating loss decreased from $3,043,723 in fiscal 2001 to $1,976,644 in fiscal 2002, reflecting a decrease of 35%.

In 2002 the Company had $427,358 in other income compared with $525,378 in 2001 other expense. The other income resulted from a non-operating gain of $721,109 from the one-time sale of fiber optic assets to Qwest Communications in February 2002.

For the fiscal year 2002 the Company reduced its net loss by 50.4% to $1,799,286 compared to a net loss of $3,569,101 for the same period of the prior year. As discussed the net loss reduction is due to the expense reduction program and the non-operating gain.

The net loss for the first quarter ending September 30, 2002 was $212,907 compared with $312,568 for the previous year. This 32% reduction is directly attributable to the continuation of expense reduction program.

Selling, general and administrative (SG&A) costs for this quarter amounted to $330,323, compared with $421,198 a year ago. Other Expenses were $46,323 compared to a modest income level of $42 a year ago. The Other Expenses are largely attributable to the net equity loss of the Global PTX venture startup. The Company’s Form10Q, when filed, will provide more detail.


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.


 


2003-05-02
North American DataCom, Inc. (NADA), announced today that has halted its operations due a lack of funding.

2003-01-03
North American DataCom Reports Unaudited Fiscal Year 2002 and First Quarter Results

2002-05-21
North American DataCom Reports Nine-Month Results: Debt and Losses Reduced

2002-04-30
North American DataCom Expands Its Operation in Greater China/Shangai

2002-04-25
North American DataCom Announces Bandwidth Agreement

2002-04-23
North American DataCom Expands Board and Announces Revised Business Plan

2002-02-21
North American DataCom Reports Six-Month Results: Revenues Up and Expenses Down

2001-12-04
North American DataCom Announces Expansion of Internet and Data Services Business

2001-11-08
North American DataCom Acknowledges Equity Investment Support

2001-10-31
North American DataCom Reports First Quarter Results: Revenues Up and Expenses Down

2001-10-24
North American DataCom Announces Revised Business Plan

2001-10-16
North American DataCom Reports Fiscal Year 2001 Results: Net Revenue and Development Expenses Up

2001-08-28
North American DataCom, Inc. and Infusion Software Group, LLC Launch GLOBAL PTX

2001-08-07
North American DataCom Announces Management Changes

2001-05-15
North American DataCom Announces Third Quarter Financials: Net Revenues Increased by 113% and Development Expenses Up

2001-03-15
North American DataCom Enters Into Agreement for Up to $50 Million of Equity Financing

2001-03-07
North American DataCom Announces New Lease with State of Mississippi

2001-02-19
North American DataCom Reports Second Quarter Results: Net Revenue and Development Expenses Up

2001-02-15
North American DataCom Announces Interim Business Plan

2000-11-07
North American DataCom Receives Enterprise Data Storage Contract

2000-09-07
North American DataCom Announces Deployment of Microwave Tower and Right of Way Agreement With Local Railroad

2000-09-01
North American DataCom Subsidiary Announces Appointment of Gordon Evans

2000-08-22
North American DataCom Announces Fiber Optic Conduit Agreement

2000-05-12
North American DataCom Receives Certification as a Competitive Local Exchange Carrier -CLEC-

2000-05-11
Broadband Pioneer Makes Tracks With EMC As Core Info Infrastructure

2000-04-07
North American DataCom Changes Trading Symbol

2000-03-24
Pierce International Changes Name To North American DataCom

2000-03-07
Pierce International Names Jerry Buuck to Head Sales for Its Newly Formed Subsidiary North American InfoTech, LLC

1999-12-21
Pierce International Acquires North American Software

1999-05-20
North American Software Acquires Freedom 2000 Internet Service