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TEK DigiTel CORPORATION ANNOUNCES ACQUISITION OF ATC GROUP

GERMANTOWN, MARYLAND ---(BUSINESS WIRE)---September 8, 1998-TEK DigiTel Corporation (OTCBB - Symbol TEKI), announces that it has acquired ATC Group, L.L.C., a Maryland limited liability company, in a merger effective July 7, 1998. ATC Group, L.L.C. was merged into ATC Group, Inc., a wholly owned subsidiary of TEK DigiTel. As part of the merger, TEK DigiTel issued to the members of ATC Group, L.L.C. an aggregate of 6,200,000 shares of common stock and 2,066,667 shares of Series A, Voting Convertible Preferred Stock. The Series A preferred stock is convertible into common stock, the number of shares issuable upon conversion being tied to certain sales and product development targets.

Incident to the merger, the former directors and officers of TEK DigiTel resigned, and the following persons were elected to the board of directors: Thomas Yang (also President), Enghe Chimood (also Vice President for Engineering Development), Ke-Ou Chao (also Corporate Secretary and Vice President for System Engineering) and Robert G. Clarke, Chairman of the Board. TEK DigiTel originally was named Diversified Technologies, Inc.

TEK DigiTel has developed a suite of network access routers designed to route data traffic between Local Area Networks (LANs) and Wide Area Networks (WANs). ATC Group currently is developing a more powerful family of routers (the V-Server line) which will serve as an Internet telephony system, routing analog telephone calls over the Internet (or private digital networks) and processing Internet call traffic back into the public switched telephone network.

New President Thomas Yang stated that "As a result of the merger, ATC Group is poised to raise the capital and other resources needed to finish development and to commercially launch our unique new line of proprietary voice servers. Going public is the first step in our plan to aggressively seek a major role in Internet telephony by providing routers designed for handling telephone, fax and data traffic to and from the Internet."

TEK DigiTel intends to raise capital for further development of its proprietary line of voice servers.

20010 Century Boulevard, Suite 300,

Germantown, Maryland 20874

Telephone (301) 428-9798

Facsimile (301) 42801720

Detailed financial and other information about Tek DigiTel is electronically available on the Standard & Poor's website www.advisorinsight.com. Click on "Market Access Program for OTC Bulletin Board Companies" and then click on "Tek DigiTel Corporation."

 

Safe Harbor Statement: Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the development of the Internet as a commercial medium and carrier of telephony traffic, market acceptance risks, technological development risks, seasonality and other risk factors.