TEK DigiTel Corporation Secures $5.5 Million of Equity Financing
Agreement provides funding required to accelerate product rollout

GERMANTOWN, MD - November 11, 1999    TEK DigiTel Corporation (OTC BB: TEKI) a developer of voice/data integration solutions, today announced that they have completed negotiations for $5.5 Million US in equity funding which will be used as working capital, volume manufacturing start-up and to fulfill several marketing program commitments. This when added to the original $1 Million in start-up funding brings the total capital raised to date to $6.5 Million.

The equity funding, provided by a private, arms-length investor consists of an already received $1 million dollars for the purchase of 2M units. Each unit is comprised of one common share and four warrants each to purchase one share at fixed strike prices ranging from 50 cents to 65 cents with the average being 56.25 cents and all expiring over a period from Nov 30, 1999 to Aug 31, 2001. The $500,000 interim loan announced previously has now been converted into equity as part of the above transaction.

"We are pleased to complete this step in our financing process" explains Enghe Chimood, Chairman of the Board of TEK DigiTel Corp. "This investor confidence, and the overwhelming reaction to our Pronto announcement at the ISPCON trade show in San Jose at the end of last month, confirms the market opportunity for our product and services. This funding has enabled us to immediately increase our headcount in both the Sales/Marketing and Engineering areas to support the increasing customer demand we are seeing as a result."

This financing also coincides with TEK DigiTel's engagement of the appropriate audit and legal partners to move toward full reporting company status. The audit process is already underway and expected to be completed by the end of November. The company should have an update on final timing within the next month.

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, the Company 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 publicly traded (OTC BB: TEKI) and headed by a management team with extensive related experience gained at leading manufacturers and service providers including Motorola, 3Com, IBM, Nortel Networks, Rockwell, Hughes, MCI Worldcom, Bell Atlantic, Bell Canada, BellSouth, and GTE.

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.