Friday May 2, 10:15 am Eastern Time

Company Press Release

NORTH AMERICAN DATACOM HALTS ITS OPERATIONS

IUKA, Miss. – March 31, 2003 – North American DataCom, Inc. (NADA), announced today that has halted its operations due a lack of funding. The Company also announced its results for the first 6 months of fiscal 2003 ending December 31, 2002.

“The 6-month delay by the Company’s auditors in completing their 10K audit, coupled with the continued weakness of the financial markets and telecommunications sector, have prevented the Company from obtaining additional financing to fund Application Service and Data Storage operations” said Robert Crawford, President of NADA. “The unexplained delay in providing current audited financial statements to its equity and debt funding sources prevented the Company from obtaining continued funding of its reduced operating losses.”

The Company’s audit firm has been unable to complete its audit due to unexplained and unreasonable delays. These delays have prevented the timely filing of the Company’s 10K for the period ending June 30, 2002 and its 10Qs for the two quarterly periods ending December 31, 2002.

For the six months ending December 31, 2002 the Company had revenues of $381,044, an improvement of 56% over the prior year’s results of $244,859, and a net loss $316,752 that is 64% less than the 2002 results. The net loss for the first 6 months ending December 31, 2002 was $316,752 compared with $874,692 for the previous year. This 64 % reduction is directly attributable to the continuation of expense reduction program. Selling, general and administrative (SG&A) costs for the six months amounted to $305,119 compared with $822,884 a year ago. Other Income and Expenses were reduced compared to last year. These Other Expenses are largely attributable to the Global PTX startup net equity loss which was reduced to $30,107 for the six month period compared to the 2002 the net equity loss of $51,896. The Company’s unaudited financial results for this period will be available once the Company resolves the significant impediment caused by its auditors. The Company’s Form10Q, when filed, will provide this detail.

The Internet access services and digital and alphanumeric paging services that the Company had provided are now being provided by a local Mississippi firm. This firm in assuming the responsibilities of the internet and paging services has assumed certain liabilities of the Company. The Company has the right to purchase these businesses back under reasonable conditions. The data storage and application development businesses have been terminated. The Company has terminated its headquarters and Data Storage Center facilities lease with the State of Mississippi.

NADA continues to hold a minority interest in Global PTX, LLC. Global provides “end-to-end” vendor/customer supply-chain synchronization systems, and is targeting Manufacturing and Retail Business Industry Sector corporations. Global’s objective is to reduce enterprise expenses and providing significant improvement in operating efficiencies for the entire supply chain group.

‘‘The Company cannot continue its strategic international partnerships until the Company’s damages from the auditor’s delay are addressed and favorably resolved. These multi-national partnership relationships can still strengthen Global’s private trade exchange market position,” said Robert R. Crawford. “The combination of the Company’s data storage, the communications network services and Global PTX software and ASP expertise was planned to provide a wide solution for global marketing and product supply requirements."

Once the CPA audit problem is resolved and interim funding is received the Company intends to restart its business activities. The Company does not have any salaried employees as of this date. Robert Crawford is continuing as a non salaried employee to manage the Company’s affairs.


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 have been relocated at PO Box 37, Iuka, MS 38852. For further information contact (662) 424-5051 or 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