Cygnal Strengthens National Market Position and Expands Geographic Presence with Accretive Acquisitions.

MARKHAM, Ontario -- Cygnal acquires Mississauga based Single Point of Contact and Vancouver based Belcom Services

Cygnal Technologies Corporation (TSX:CYN), a leading Canadian provider of network solutions, announced today that it has completed its acquisitions of Mississauga based Single Point of Contact (SPOC), a Nortel voice systems integrator, and Belcom Services, which provides service and support to many Nortel enterprise customers in the Greater Vancouver Area.

The $0.9 million acquisition of SPOC's privately held shares by Cygnal was satisfied with a cash payment of approximately $0.5 million, and the issuance of approximately 250 thousand Cygnal shares at a price of $1.75 per share.

SPOC provides voice and IP telephony solutions to customers in the Greater Toronto Area through the design, integration and maintenance of communications networks. SPOC's authorized product partners include Nortel Networks, Avaya, and NEC.

"The purchase of SPOC has increased Cygnal's product coverage in the Greater Toronto Area, and now allows us to expand our service and support offering to Nortel's enterprise customers," said Kieron Dowling, President and Chief Executive Officer, Cygnal Technologies Corporation. "The SPOC acquisition also complements our local breadth into the small to medium enterprise customer space."

Cygnal has also completed the $75,000 cash net asset purchase of Belcom Services (Belcom), based in Richmond, British Columbia. Belcom provides a full complement of support including design, implementation and extended warranty maintenance to many large Nortel enterprise customers.

The acquisition of Belcom expands Cygnal's coverage into the B.C. marketplace, an area which management expects realize significant growth.

"With these acquisitions, we're solidifying our position as the leading national provider of network communications solutions," noted Kieron Dowling. "SPOC and Belcom are complementary acquisitions for us. The synergies from fully integrating these businesses will lead to new revenue generation opportunities, cost savings, and expanded service offerings to a larger, more diversified client base."

The two acquired companies have annualized sales in the range of $3.0 million to $4.0 million, with gross margins in line with Cygnal's targets. Management expects these acquisitions to be accretive immediately and to contribute to Cygnal's profitability in the second half of 2004.

Company Background

Cygnal Technologies Corporation is a leading Canadian provider of network solutions including the design, installation, maintenance and management of wired and wireless communication networks. The Company offers a full range of technologies and solutions for service providers and enterprise customers. Cygnal has expertise in voice, video and data solutions over traditional and next generation converged technologies.

Cygnal Technologies Corporation is headquartered in Markham, Ontario and has approximately 535 employees supporting end-user customers and business partners through 15 offices across Canada, including Vancouver, Edmonton, Calgary, Winnipeg, London, Burlington, Brampton, Toronto, Sudbury, Ottawa, Montreal, Quebec City and Halifax. Cygnal common shares are listed on the Toronto Stock Exchange under the symbol CYN.