New FCC Rules Favor Cyber Digital, Inc.

NEW YORK, NY , a developer of communications systems and a communications service provider, announced today the Federal Communications Commission (FCC) adopted new rules that will enable Cyber Digital to provide telecommunications services to customers in multi-tenant buildings, such as apartment buildings. These new rules permit Cyber Digital to employ its proven and unique distributed switching systems, which are ideally suited for multi-tenant buildings.

Following is a brief of the new rules issued by the Federal Communications Commission on March 19, 2008:

--  FCC Bans Exclusive Contracts for Telecommunications Services in
    Apartment Buildings
--  Consumers Will Benefit from Increased Competition in Voice, Video and
    Broadband Services
    

In an order adopted, the FCC banned carriers from entering into exclusive contracts to provide telecommunications services in residential apartment buildings, and prohibited enforcement of existing contracts that contain exclusivity provisions. The Commission found that these exclusive agreements between carriers and building owners hurt consumers and harm competition, with little evidence of countervailing benefits.

Moreover, exclusive contracts have blocked access by consumers to competitive and popular "triple-play" offerings of voice, video and broadband. Opening the door to competitive telecommunications services will help provide consumers with increased access to and choice of such providers.

The Commission's action is consistent with its previous moves to expand competition for communications services in apartment buildings and other multiple tenant environments, or MTEs. In 2007, the Commission banned exclusive deals for video services in residential apartment buildings, and in 2000, the Commission prohibited exclusive contracts for telecommunications services in commercial MTEs. This order provides regulatory parity between telecommunications and video service providers in the increasingly competitive market for bundled services. Please visit www.fcc.gov.

About Cyber Digital, Inc.

Cyber Digital, Inc. is a designer, software developer and manufacturer of proprietary 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. It also provides communications services through its subsidiaries to small businesses and residential subscribers in the states of New York, New Jersey and Pennsylvania. Please visit www.cyberdigitalinc.com.

Investor Relations Contact: Johnny Kuo Friedland Corporate Investor Services, LLC Tel. [phone]