9278 Communications, Inc. Reports First Quarter 2000 Results--Revenues Increase 60% To $16,882,918.

    Business Editors

      NEW YORK--(BUSINESS WIRE)--May 30, 2000--9278 Communications, Inc.
(OTC BB: NTSE - news) is pleased to announce that it has filed its
Form 10-QSB with the Securities and Exchange Commission, reporting its
first quarter financial results.
      Net sales for the three months ended March 31, 2000 rose 60.2% to
$16,882,918, from net sales of $10,532,611 during the three months
ended March 31, 1999. Gross profit increased 87.9% during the 2000
period to $700,927 from $373,292 for the 1999 period. The increase in
gross profit was due to higher gross profit margins achieved by the
sale of private label phone cards, which increased during the current
period. Total expenses increased 758% to $1,193,188 in the 2000
period, as compared to $139,101 for the 1999 period. Included in the
current period expenses are $363,367 of expense attributable to the
sale of the assets of iLink Telecom, a company with which 9278
Communications merged in December 1999. Also included in total
expenses was a $263,474 provision for doubtful accounts, which are due
from a distributor of the Company with whom the Company is in
litigation.
      In addition, general and administrative expenses for the three
months ended March 31, 2000 increased to $481,650, as compared to
$105,493 for the period ended March 31, 1999 as a result of the
addition of new management personnel and increased legal and
accounting costs resulting from the Company becoming a publicly traded
company. As a result of the foregoing, the Company generated a net
loss of $492,261 during the three months ended March 31, 2000, as
compared to net income of $234,191 for the period ended March 31,
1999. Absent the expenses for the provision for doubtful accounts and
the expenses attributable to the sale of the iLink assets, the Company
would have generated net income for the three months ended March 31,
2000 of $134,580.
      9278 Communications Inc. is a value-added integrator of telecom
services and technologies, specializing in the distribution of
pre-paid telecom products including phone cards. 9278 currently has a
network of over 300 master distributors, retailing over 100 different
prepaid card products primarily in the New York, New Jersey and
Connecticut markets. Gross sales for the year ended December 31, 1999
increased to $78,089,670 from $22,169,108 for 1998, an increase of
250%.
      With the expected summer 2000 launch of its B2B telecom services
site, 9278 will provide access and support for its existing
distributors and a mechanism for establishing new markets for the
company's products through the expansion of additional independent
distributors across the US.
      For more information about 9278 Communications, Inc. please
contact:

            Investor Relations:
            Tel:           [phone]
            Email:          [e-mail]
            Website:       www.9278.com

      This press release contains forward-looking statements, which are
made pursuant to the Safe-Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Words such as "will" or "should" and
similar expressions reflecting something other than historical fact
are intended to identify such statements. These forward-looking
statements involve a number of risks and uncertainties, including the
timely development and market acceptance of products and technologies,
successful integration of acquisitions, the ability to secure
additional sources of financing, the ability to reduce operating
expenses, and other factors. The Company undertakes no obligations to
revise or update any forward-looking statements in order to reflect
events or circumstances that may arise after the date of this release.

    --30--et/ny*

    CONTACT: Investor Relations:
             Tel:        [phone]
             Email:      [e-mail]
             Website:    www.9278.com

    KEYWORD: NEW YORK
    INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS E-COMMERCE INTERNET
TELECOMMUNICATIONS EARNINGS