9278 COMMUNICATIONS REPORTS RECORD SALES OF $37 MILLION AND $0.04 PER SHARE PROFIT FOR FIRST QUARTER

9278 COMMUNICATIONS REPORTS RECORD SALES OF $37 MILLION AND $0.04 PER SHARE PROFIT FOR FIRST QUARTER

Bronx, New York – June 4, 2001 – 9278 Communications, Inc., (OTCBB:NTSE) today reported a net profit of $983,637 as compared to a loss of $492,261 for the comparable first quarter period ended in 2000. This resulted in a $0.04 profit per share on a fully diluted basis. This compares to a loss of ($0.02) on sales of nearly $17 million. Sales as reported for the first three months of 2001 were nearly $37.5 million. This increase of 121.8% from the comparable period ended March 31, 2000 was primarily a result of acquisitions and expansion in the third and fourth quarters of year 2000.

Gross profit increased to $2.73 million for the first quarter ending March 31, 2001 as compared to $701,000 for the same period ended in 2000. This increase is a result of both increased volume and greater sales margins. The increase in gross profit was also attributed to additional higher margin on private label cards. The company was pleased to announce that it had generated nearly $1.9 million in cash from operations primarily caused by efficiencies resulting from increased infrastructure support and new business practices as it related to accounts payable and receivable items.

This was a breakout quarter for our company and a validation of our business strategy," commented 9278s CEO, Sajid Kapadia. In addition, we look forward to strong growth throughout the rest of this year. As our brick and mortar business grows geometrically, the addition of our updated online web site will round out our 2001 corporate goals."

About 9278 Communications, Inc.
9278 Communications, Inc. is a value-added integrator of telecommunications services and technologies, with a focus on the sale and distribution of prepaid phone cards. Over one thousand distributors retail more than 200 different 9278 prepaid card products including over 80 private-label cards. Phonecard products eventually reach an estimated 80,000 retail points of presence in New York, New Jersey, Virginia, Maryland, Washington, D.C., Florida, Texas, Connecticut and California.

For additional information, check website for details www.9278.com and/or to schedule meetings with management, please call Stan Wunderlich at CFSG at 800-625-2236.

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This press release contains forward-looking statements that, if not verifiable historical fact, may be viewed as forward-looking statements that could predict future events or outcomes with respect to 9278 Communications, Inc., and its business. The predictions embodied in these statements will involve risks and uncertainties and accordingly, 9278 Communications, Inc., actual results may differ significantly from the results discussed or implied in such forward-looking statements.