MARKET SCAMS

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Class Action Lawsuit Commenced Against Datatec Systems, Inc. by Bernstein Liebhard & Lifshitz, LLP
NEW YORK, NY -- (MARKET WIRE) -- 03/31/2004 -- A securities class action lawsuit was commenced on behalf of all persons who acquired securities of Datatec Systems, Inc. ("Datatec" or the "Company") (NASDAQ: DATCE) between June 26, 2003 and December 16, 2003, inclusive (the "Class Period"). A copy of the Complaint is available from the Court or from Bernstein Liebhard & Lifshitz, LLP. Please visit our website at http://www.bernlieb.com or contact us at [phone] or by email at [e-mail].

The case is pending in the United States District Court of New Jersey against Defendants Datatec, Isaac Gaon, Mark Hirschhorn, and Raymond Koch.

The Complaint charges that Datatec and certain officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of Datatec's securities. Specifically, the Complaint alleges that while CEO Isaac Gaon told investors that Datatec was on track to earn $0.14 to $0.16 per share for fiscal 2004, Datatec hid its true financial condition so that it could maintain financing from IBM Credit.

On December 5, 2003, Datatec surprised investors with the news that CEO Isaac Gaon had stepped down as Chairman and CEO. Then on December 17, 2003, the Company revealed that it would suffer a $10 million loss for the fiscal quarter ended October 31, 2003, and that Datatec's Audit Committee had hired outside counsel to review Datatec's valuation of its long-term contracts. IBM Credit has since refused to waive Datatec's non-compliance with financial covenants. As a result, Datatec's stock price fell substantially on large volume.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Datatec securities during the Class Period. If you purchased or otherwise acquired Datatec securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than April 6, 2004.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard & Lifshitz, LLP, or other counsel of your choice, to serve as your counsel in this action.

Bernstein Liebhard & Lifshitz, LLP has been retained as one of the law firms to represent the class. The attorneys at Bernstein Liebhard & Lifshitz, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. For more information about Bernstein Liebhard & Lifshitz, LLP, please visit our website at http://www.bernlieb.com.

If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact the Shareholder Relations Department at Bernstein Liebhard & Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, [phone] or [phone] or by e-mail at [e-mail].





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Contact:
Shareholder Relations Department
Bernstein Liebhard & Lifshitz, LLP
10 East 40th Street
New York, New York 10016
[phone]
[phone]
[e-mail]