9278 Communications Reports Record Sales of 87 Million and $0.10 Per Share Profit for the First Six Months.

Business Editors

BRONX, N.Y.--(BUSINESS WIRE)--Aug. 17, 2001

9278 Communications, Inc., (OTCBB:NTSE) announced today its results for the second quarter.

The company reported net sales increased $53,277,000 to $87,018,000 for the six months ended June 30, 2001, up 157.9% from net sales of $33,741,000 for the six months ended June 30, 2000. Gross profit increased to $5,914,660 for the six months of 2001, as compared to $1,738,112 is the same period in 2000. Net profit before taxes (EBIT) is $2,226,000 for the six months ended June 30, 2001, as compared to a loss of $386,000 for the six months ended June 30, 2000. Fully diluted earning for the three months were $0.05 as compared to $0.01 for the corresponding 2000 period, and for the six months were $0.10 per share as compared to a net loss of ($0.02) for the corresponding 2000 period.

The company also reported that net sales increased $32,721,000 to $49,579,000 for the three months ended June 30, 2001, up 194.1% from net sales of $16,858,000 for the three months ended June 30, 2000. The increase in net sales was due to acquisitions and geographic expansion in the third and fourth quarters of calendar year 2000 and the first quarter of 2001. Gross profit increased to $3,191.235 for the three months ended June 30, 2001, as compared to $1,037,185 for the same period in 2000. Net profit before tax (EBIT) is $1,249,000 for the three months ended June 30, 2001 as compared to $106,000 for the three months ended June 30, 2000.

In commenting about the above Mr. Sajid Kapadia CEO of 9278 Communications stated: "Our second quarter clearly demonstrates our ability to execute our business model. With the company's acquisitions and geographic expansion completed, in addition to the opening of a Los Angeles California branch, the company increased, dramatically all growth related numbers.

About 9278 Communications, Inc.

9278 Communications, Inc. is a value-added integrator of telecommunications services and technologies, with a focus on the sale and distribution of prepaid phone cards. Over one thousand distributors retail more than 200 different 9278 prepaid card products including over 80 private-label cards. Phonecard products eventually reach an estimated 80,000 retail points of presence in New York, New Jersey, Virginia, Maryland, Washington, D.C., Florida, Texas, Connecticut and California.

For additional information, check website for details www.9278.com and/or to schedule meetings with management, please call Stan Wunderlich at CFSG at 800-625-2236.

This press release contains forward-looking statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to 9278 Communications, Inc., and its business. The predictions embodied in these statements will involve risks and uncertainties and accordingly, 9278 Communications, Inc., actual results may differ significantly from the results discussed or implied in such forward-looking statements.

               9278 COMMUNICATIONS INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                              (UNAUDITED)

                     Three Months Ended         Six Months Ended
                         June 30,                    June 30,
                   2001           2000          2001           2000

Sales        $  49,578,900    $ 16,857,595  $ 87,017,630  $ 33,740,513

Cost of Sales   46,387,665      15,820,410    81,102,970    32,002,401
             -------------    ------------  ------------  ------------
                 3,191,235       1,037,185     5,914,660     1,738,112

Operating
 Expenses        1,942,671         930,856     3,678,887     2,124,044

Income/(Loss)
 from
 Operations
 Before Income
 Taxes           1,248,564         106,329     2,235,773      (385,932)

Provision for
 Income Taxes        6,175               -         9,746             -

Net Income/(Loss)
 attributable to
 common stock    1,242,389         106,329     2,226,027      (385,932)

Basic and
 diluted
 earnings
 (loss)
 per share   $        0.05    $       0.01  $       0.10  $      (0.02)

Shares used in
 the calculation
 of earnings
 per share      23,643,089      20,152,356    23,394,762    20,301,374