SOURCE: Cyber Digital, Inc.

April 16, 2007 09:50 ET

Cyber Digital, Inc. Receives Approvals From FCC and Six States to Acquire Two Telephone Companies

Closing Expected Before May, 12th; Transactions Initially Add $7.4 Million Revenues and $800,000 to Its Earnings; Grows to $12.2 Million Revenues and $2.1 Million in Earnings After One Year

NEW YORK, NY -- (MARKET WIRE) -- April 16, 2007 -- Cyber Digital, Inc. (OTCBB: CYBD), a leading designer and software developer of advanced digital voice and broadband data switches, announced today that it received all the necessary regulatory approvals from the FCC and the states of New York, New Jersey, Pennsylvania, Ohio, Massachusetts and Florida for the transfer of control of New Rochelle Telephone Corp. and Telecarrier Services, Inc. to Cyber Digital, Inc. Since, Cyber Digital expects to receive written official orders on these approvals within the next few weeks; the closing date is anticipated to be before May 12, 2007.

The acquisition of these two companies initially brings to Cyber Digital revenues of $7.4 million and profit of $800,000. It expects to grow to $12.2 million in revenues with profit of $2.1 million after one year. This improvement in profit is due to moving these companies' customers from the previous technology to Cyber Digital's and the synergies between the companies. At the end of second year, Cyber Digital's projected revenues increase to $36.9 million resulting in profits of $14.2 million. Cyber Digital's EBITDA margins will be increasing from 18% to 40% in the first and second year, respectively. These increases in EBITDA margins are due to Cyber Digital's technology that offers a cost-effective alternative to the current 'Last Mile' voice and broadband solutions provided by the Bells. The recurring nature of the revenues derived from Cyber Digital's 'Last Mile' facilities further strengthens and assures long-term high EBITDA margins as well as free cash flow margins.

"Receiving these approvals is a major milestone. The ballgame has just started. It allows us to enter the free cash flow generators business in telecommunications, which was privy to the 'Last Mile' monopolists. Moving forward, these acquisitions permit us to enlarge our base with good customers and dedicated employees," stated J.C. Chatpar, president and CEO.

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About Cyber Digital, Inc.

Cyber Digital, Inc. is a leading designer and software developer of advanced distributed digital voice switches and high-performance Internet Protocol (IP) broadband systems, such as soft switches, routers, gateways, firewalls and servers for network operators worldwide. For more information, visit

This press release contains forward-looking statements, pursuant to the "safe harbor" provisions as fully described in Cyber's SEC filings.

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