The Golden Lounge

[veteran98]

Cyber Digital, Inc. Issues Letter to Shareholders


2006-02-07 08:00 ET - News Release

NEW YORK -- (Business Wire) -- Feb. 7, 2006
Company Website: http://www.cyberdigitalinc.com

Cyber Digital, Inc. (OTC BB: CYBD), today issued the
following letter to its shareholders.
-0-
*T
Dear Shareholders:

The future is Digital Broadband World. And, for the first time in our
history, market opens for our advanced digital voice and broadband IP
(Internet Protocol) switches in the U.S. for the creation of 'last
mile' local switching networks. Thanks to Federal Communications
Commission's (FCC) recent rulings that favor our company. While, our
stock price does not reflect any impact of such rulings on our
company's market potential or the value of next generation
technologies that we have developed, perhaps due to the fact that we
are an unknown entity, we are ready to change that.

We are excited about our future for a number of reasons:

First, FCC disallows long distance carriers (LDCs) and smaller service
providers, known as competitive local exchange carriers (CLECs) and
Internet service providers (ISPs), to lease the local switching
networks from the Bells, at government cut-rate prices, in order to
serve their customers. Currently, the Bells own almost all of the
local switching networks that connect businesses and homes. FCC wants
LDCs, CLECs and ISPs to build their own local switching networks for
providing voice and broadband data services to their customers. This
has created a multi-billion dollar local switching market opportunity
for us.

Second, our industry is consolidating, creating merger and
acquisitions opportunities for us. Those entities that do not want to
build their local switching networks have no choice but to merge with
those that have it or merge with those that have the technology, such
as Cyber Digital. For instance, AT&T merged with SBC, and MCI with
Verizon. Our strategy is to acquire those CLECs and ISPs who do not
want to build their own local voice and broadband data switching
facilities despite the FCC's recent local switching phase-out ruling.
While these CLECs and ISPs are, generally, excellent marketing
companies and have already established a customer base, they lack the
technical and network engineering aspects of building and maintaining
local voice and data switching facilities, which are among our core
competences. These companies totally rely on the Bells for their local
switching needs and currently, face erosion of their customer base due
to FCC's recent rulings. We intend to acquire rapidly as many small to
medium sized CLECs and ISPs that are privately owned. Our objective is
to roll-out our local switching services nationally, which will take
many years even through acquisitions.

Third, CLECs and ISPs currently lease 17 million lines for $4.5
billion per year from the Bells, creating an immediate opportunity for
us to acquire those that will benefit us. By deploying our systems, we
substantially reduces CLECs' and ISPS' cost of leasing local switching
facilities and improve their profitability as well as ours, while they
provide us with instant customer base. In anticipation of this market
opportunity, we signed an agreement with Level 3 Communications who
will provide for global voice and data termination services to all
traffic generated on our local switching systems. We will wholesale
our services on recurring basis for local, long distance and
international calls as well as broadband Internet access, VoIP and VPN
services.

Fourth, our advanced digital voice switching and broadband IP
infrastructure switching systems are based on our proprietary
operating system software, which provides high performance,
reliability and functionality. We regard our software technology and
certain components of our system hardware as proprietary. We believe
the development of comparable systems would require hundreds of
millions of dollars and take several years to complete, therefore
diminishing the threat of new competitors in our markets.

Fifth, the acquired CLECs and ISPs create service provision entities
that use our advanced voice and broadband IP switching systems further
diminishing competitive threats and significantly improving long term
profitability and viability.

We believe that our advanced digital voice and broadband IP switching
systems are ideally suited for the creation of next generation 'last
mile' local switching networks and that it will greatly enhance the
value of our company. Our vast array of both digital voice and
broadband IP systems will provide a diverse revenue stream as well as
solid growth prospects in the future. We have recently secured
significant funding support from an institutional fund, which will
allow us to substantially grow our business through acquisitions as
well as organically over the next several years.

Simply put, our intrinsic value of our technology and our market
potential value created by the recent FCC rulings in our favor are not
yet reflected in our stock price. We are ready to change that.

Sincerely,

J.C. Chatpar
President and Chief Executive Officer

P.S. Please send your request at [e-mail] to
receive updates by email.
*T

About Cyber Digital, Inc.

Cyber Digital, Inc., is a leading designer, software developer and
manufacturer of a range of advanced distributed digital voice switches
and high-performance Internet Protocol (IP) broadband systems, such as
softswitches, routers, gateways, firewalls and servers for network
operators worldwide. For more information, visit
www.cyberdigitalinc.com

This press release contains forward-looking statements, pursuant
to the "safe harbor" provisions as fully described in Cyber's SEC
filings.
Contacts:

Cyber Digital, Inc.
J.C. Chatpar, 631-231-1200
[e-mail]