9278 Communications, Inc. Reports First Quarter 2000 Results-Revenues Increase 60% To $16,882,918

NEW YORK, NY - May 30, 2000--9278 Communications, Inc. (OTC BB: NTSE ) is pleased to announce that it has filed its Form 10-QSB with the Securities and Exchange Commission, reporting its first quarter financial results.

Net sales for the three months ended March 31, 2000 rose 60.2% to $16,882,918, from net sales of $10,532,611 during the three months ended March 31, 1999. Gross profit increased 87.9% during the 2000 period to $700,927 from $373,292 for the 1999 period. The increase in gross profit was due to higher gross profit margins achieved by the sale of private label phone cards, which increased during the current period. Total expenses increased 758% to $1,193,188 in the 2000 period, as compared to $139,101 for the 1999 period. Included in the current period expenses are $363,367 of expense attributable to the sale of the assets of iLink Telecom, a company with which 9278 Communications merged in December 1999. Also included in total expenses was a $263,474 provision for doubtful accounts, which are due from a distributor of the Company with whom the Company is in litigation.

In addition, general and administrative expenses for the three months ended March 31, 2000 increased to $481,650, as compared to $105,493 for the period ended March 31, 1999 as a result of the addition of new management personnel and increased legal and accounting costs resulting from the Company becoming a publicly traded company. As a result of the foregoing, the Company generated a net loss of $492,261 during the three months ended March 31, 2000, as compared to net income of $234,191 for the period ended March 31, 1999. Absent the expenses for the provision for doubtful accounts and the expenses attributable to the sale of the iLink assets, the Company would have generated net income for the three months ended March 31, 2000 of $134,580.

9278 Communications Inc. is a value-added integrator of telecom services and technologies, specializing in the distribution of pre-paid telecom products including phone cards. 9278 currently has a network of over 300 master distributors, retailing over 100 different prepaid card products primarily in the New York, New Jersey and Connecticut markets. Gross sales for the year ended December 31, 1999 increased to $78,089,670 from $22,169,108 for 1998, an increase of 250%.

With the expected summer 2000 launch of its B2B telecom services site, 9278 will provide access and support for its existing distributors and a mechanism for establishing new markets for the company's products through the expansion of additional independent distributors across the US.

For more information about 9278 Communications, Inc. please contact:

Investor Relations:
    Tel:    1-877-787-1777
    Email:   ir@9278.com
    Website:   www.9278.com

This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as will" or should" and similar expressions reflecting something other than historical fact are intended to identify such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, successful integration of acquisitions, the ability to secure additional sources of financing, the ability to reduce operating expenses, and other factors. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.