SOURCE: Cyber Digital, Inc.

March 06, 2007 08:54 ET

Cyber Digital, Inc. Updates on Its Agreements to Acquire Two Competitive Local Exchange Carriers for $1.3 Million

Closing Expected Before April 12th; Transactions Add $7.4 Million Revenues and $800,000 to Its Earnings

NEW YORK, NY -- (MARKET WIRE) -- March 6, 2007 -- Cyber Digital, Inc. (OTCBB: CYBD), a leading designer and software developer of advanced digital voice and broadband data switches, announced today that the closing date of its previously executed definitive purchase agreements to acquire two Competitive Local Exchange Carriers (CLECs), namely New Rochelle Telephone Corp. and Telecarrier Services, Inc. has been set on or before April 12, 2007. Both CLECs are being acquired on cashless basis through assumption of certain debt for $1.3 million. As a baseline, these transactions immediately add $7.4 million in recurring revenues and $800,000 to Cyber Digital's earnings.

Cyber Digital has the potential of being a gold mine by creating an alternative to the Bells' 'Last Mile' voice and broadband local switching network. To-date, the Bells control almost all of the 'Last Mile' local switching network that connects subscribers, whether residential or business. Moreover, Federal Communications Commission (FCC) deregulated telecommunications industry in March 2006 by disallowing CLECs to lease 'Last Mile' voice and data local switching networks from the Bells at FCC set cut-rate prices -- further exacerbating the economic viability of CLECs. As the Ex-Chairman of FCC, Michael Powell said, "Build networks or get bought out." This paradigm shift allows Cyber Digital to aggressively pursue acquisitions of accretive CLECs. Migration of the acquired customers to its 'Last Mile' aggregated VoIP and IP broadband network further leads to improved profitability over 250%.

"We are in a very exciting time of development of our company. Our strategy is to grow through acquisitions as it provides for large-scale expansion and rapid deployment of our networks with minimal cost of customer acquisition. We are not complacent with just these two acquisitions. We are doing our due diligence on a few other profitable non-facilities based CLECs for potential acquisitions," 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 www.cyberdigitalinc.com

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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