Cyber Digital, Inc. Reports On Early Stages of New Growth.

Business Editors & High Tech Writers

NEW YORK--(BUSINESS WIRE)--July 10, 2000

Transformation to Internet Business Model in U.S.

Places Company Squarely in Three of Six Fastest-Growing Areas

Cited by IDC as Key Technology Drivers

Further to its 10K filing on June 29th, Cyber Digital, Inc. (OTC BB:CYBD), a leading developer and provider of Internet access services, today announced that it has transformed itself over the last year and a half from a traditional telecommunications provider to a company it believes is now uniquely positioned to offer IP-based, packet switched broadband services that bypass "narrowband" local loop Incumbent Local Exchange Carriers (ILECs) and that require no modems.

The company also noted that, despite extensive R&D costs associated with its transformation, expenses are down more than 30% over the prior fiscal year. And while sales revenue is still modest, with new customers now signing on regularly, revenues are expected to grow on a regular basis, quarter over quarter.

Cyber Digital's new business model is already proving itself in the Boston area, where the company has signed 17 new customers in the past twelve weeks.

"We have moved very rapidly, not only in the area of Internet access services, including packet switched services and expanded firewall service offerings, but also ISP storage services and network appliances," J.C. Chatpar, chairman and CEO of Cyber Digital, said. "Not surprisingly, International Data Corporation has cited storage services, network services and information appliances -- the areas encompassed by our offerings -- as three of the six technology drivers of the new Internet economy. In addition, since our network is simple and installation is not dependent on local loop carriers, it is quick and easy to implement," Mr. Chatpar noted.

During the last half of the year ended March 31, 1999 ("Fiscal 1999"), Cyber Digital made a strategic shift to enter the fast growing, lucrative high-speed Internet access market. The company rapidly developed its Cyber Business Internet Gateway (CBIG) and Cyber Internet Access Network (CIAN) router.

During the first quarter of the year ended March 31, 2000 ("Fiscal 2000"), the company forged an alliance with AT&T Corporation to become a provider of high-speed Internet access and to create Virtual Private Networks (VPN) for businesses using Cyber Digital's Internet Protocol (IP) Frame Relay-based "broadband" technology. Subsequently, the company developed its Internet Protocol (IP) Frame Relay infrastructure equipment to piggyback on AT&T's rapid deployment of Internet Protocol (IP) Frame Relay-based "broadband" Internet backbone.

In conjunction with AT&T (NYSE:T), Cyber Digital began marketing its high speed broadband Internet service for businesses as part of a package of services that includes AT&T's Internet backbone. Under the terms of Cyber Digital's agreement with AT&T, Cyber Digital will resell AT&T's Managed Internet Service bundled with its own 1.5 Mbps Internet Protocol (IP) Frame Relay-based Internet gateway.

The agreement with AT&T also calls for AT&T to bring the Internet backbone to commercial buildings mutually served by the two companies, anywhere in the United States. Cyber Digital will build, operate and own the Internet facilities in such buildings using its proprietary Cyber Business Internet Gateway (CBIG) and Cyber Internet Access Network (CIAN). CIAN enables companies to distribute and receive enterprise-wide, inter-networked communications, conduct electronic transactions and access vast information resources, all from the desktop.

As a manufacturer and Internet service provider, Cyber Digital is believed to be the first company to have signed such an agreement with AT&T.

About Cyber Digital

Cyber Digital, Inc. provides Fortune 1000 companies and corporate real estate buildings with high-speed, high-bandwidth Internet and virtual private network (VPN) services, allowing business to receive end-to-end IP connectivity over digital circuits, and unsurpassed flexibility, with the assurance of excellent support and ultimate network performance. With its services well established throughout the Boston area, Cyber Digital is currently focusing on extending its offerings to the New York metro area.

Cyber Digital is an Internet Service Provider (ISP) that has forged a strategic alliance with AT&T, the world's premier provider of voice, video and data communications, to offer high-speed Internet connectivity and a wealth of services for commercial properties via AT&T's national IP backbone, coupled with Cyber Digital's cost-saving Internet access solution (CIAN(SM)). The company offers high-bandwidth, high availability Internet access services for firms demanding broadband capabilities on a full-time, full-service IP connectivity basis over dedicated end-to-end digital circuits. Headquartered in Hauppauge, New York, with offices in Manhattan and Woburn, Mass., Cyber Digital is also a provider of central office switches and private branch exchanges for the telephony market. For more information on Cyber Digital, Inc., please visit http://www.cyberdigitalinc.com.

This press release may contain forward-looking statements that involve risk and uncertainties. Among the factors that could cause actual results to differ materially or adversely are the following: the ability of the Company to meet its working capital and liquidity needs, the status of relations between the Company, its primary customers and distributors, the availability of long-term credit, unanticipated changes in the U.S. and international economies, business conditions and growth in the telecommunications industry and the level of growth in internet high speed access sales generally, the timely development and acceptance of new products, the impact of competitive products and pricing, changes in the cost of component materials, changes in product mix, the outcome of litigation in which the Company is involved, along with product delays and other risks detailed from time to time in the Company's SEC reports. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The Company undertakes no obligation to publicly release the results of any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.