TEK DigiTel Announces Third Quarter 2000 Operating Results  

GERMANTOWN, MD - November 17, 2000    TEK DigiTel (TEKI:EQS) today announced that sales for the three months ended September 31, 2000 totaled $420,111, an increase of 197% over $ 141,414 for the same period a year ago. Total revenues for the nine months ended September 31, 2000 were $616,101 versus $199,214 for the same period last year. Gross margins, loss from operations and per share loss was 26%, $(786,785) and $(0.04) for the quarter and 24%, $(2,474,732) and $(0.11) for the nine months ended. 

“We are very encouraged with these financial results as they reflect the increased success we are having in securing purchase orders and delivering our products in a timely manner. It appears that the market acceptance of IP Telephony in particular the customer premise equipment (CPE), like our V-Server products, needed to deploy these services is growing,” comments Enghe Chimood, TEK’s CEO. 

For the quarter, the sales and marketing expenses increased to $285,850 or 68% of sales. The increase is a result of the expansion of the company’s sales and marketing personnel. This direct sales organization accounted for the majority of the company’s sales. General and administrative expenses for the quarter were $329,593 or 78% of sales. This increase was due to both the expansion in corporate infrastructure and the increase in legal and accounting fees associated with the preparation of the Form 10-SB. G&A expenses are expected to increase in absolute dollar terms in the future with professional fees decreasing. Research and development spending increased to $284,779 or 68% of sales, primarily as a result of the continued development of the V-Server line of products. R&D expenses are anticipated to increase in the future as the company continues to enhance existing products and develop new ones. 

Recently TEK announced that it has filed amendments to the 10SB originally submitted August 2^nd, 2000. These amendments were submitted in response to the SEC’s request for additional information.  The full amended 10SB12G document and the full 10Q financials are available online at www.freeedgar.com.  In order to be eligible for quotation on the OTC BB, the company’s 10SB must be accepted by the SEC as per the Eligibility Rule adopted in July of 1999. 

About TEK DigiTel Corporation (http://www.tekdigitel.com) 

Based in Germantown, Maryland, TEK DigiTel Corporation delivers integrated CPE (Customer Premise Equipment) communications solutions optimized for use in SOHO, small- and medium-sized businesses. Working with Service Providers and OEM partners, TEK is focused on integrating fax- and Voice-over-IP (VoIP) technologies with conventional PBX systems and data routing devices to create a low- cost, easy-to-use Internet communications hub. Founded in 1998, TEK DigiTel is headed by a management team with extensive related experience gained at leading manufacturers and service providers including IBM, Data General, Hughes, Orbital Communications, Bell Atlantic, and GTE.

Statements made in this press release that are not historical or current facts are “forward looking statements” made pursuant to the safe harbor provisions of the Federal Securities Laws.  Forward looking statements represent management’s best judgement as to what may occur in the future, but are subject to certain risks and uncertainties that could cause actual results and events to differ materially from those presently anticipated or projected.  These factors include the possibility of issues arising that may affect the company’s ability of having it’s listing reinstated, changing economic and competitive conditions, and other risks and uncertainties.