SOURCE: Cyber Digital, Inc.

December 19, 2006 08:00 ET

Cyber Digital, Inc. Signs Definitive Agreements to Acquire Two Competitive Local Exchange Carriers

Transactions Expected to Be Accretive to CYBD Earnings

NEW YORK, NY -- (MARKET WIRE) -- December 19, 2006 -- Cyber Digital, Inc. (OTCBB: CYBD), a leading designer and software developer of advanced digital voice and broadband data switches, announced today that it has entered into definitive purchase agreements to acquire two Competitive Local Exchange Carriers (CLECs), namely New Rochelle Telephone Corp. and Telecarrier Services, Inc. Both CLECs are being acquired on cashless basis through assumption of certain debt. The terms of the transactions were not disclosed and are subject to regulatory approvals or notifications. These transactions are expected to significantly contribute to revenues and be accretive to Cyber Digital's earnings.

In concert with its previously announced strategic initiatives to pursue acquisitions of accretive CLECs, Cyber Digital expects to significantly improve the profitability of acquired CLECs by migrating their customers to its low-cost 'last-mile' voice and data network. The acquisition of these two CLECs permits Cyber Digital to serve about 13,000 subscriber lines in the Northeast region. The Cyber Digital strategy involves both the augmentation of the CLEC's underlying infrastructure by using its technology to create a significant reduction of operating costs in addition to the re-directing of aggregated traffic through an agreement with Level 3 Communications. Cyber Digital believes such a "re-tooling" of the CLEC network infrastructure will result in an improvement of bottom line profitability in excess of 50%.

"These transactions represent a major milestone, allowing us to be one of the first few in the telecom industry to partake in the paradigm shift created by recent FCC rulings to build next-generation 'last-mile' voice and broadband data network for business and residential subscribers. I am thrilled with the execution of these definitive agreements," stated J.C. Chatpar, president and CEO.

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 softswitches, 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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