Science Dynamics Corporation Reports First Quarter 2001 Results

CHERRY HILL, NJ -- (March 30, 2001) -- Science Dynamics “SciDyn” (NASDAQ: SIDY), a developer of Internet Protocol-based (IP) telephony solutions and services, announced today financial results for its first quarter 2001, ended March 31, 2001.

SciDyn¹s first quarter 2001 net sales totaled $194,113, an increase of $102,891 compared to fourth quarter 2000 sales of $91,222. This figure compared to net sales of $1,443,482 in the corresponding first quarter of fiscal 2000. The Company posted a net loss for the first quarter 2001 of $1,259,835, or ($0.07) per share, compared with a net loss of $1,693,774, or ($0.10) per share in the fourth quarter 2000, and a net gain of $13,365, or breakeven earnings per share, during the corresponding first quarter of 2000. First quarter 2000 revenue reflects $ 1,138,530 associated with Cascadent Communications, Inc.

Joy Hartman, President and Chief Executive Officer of SciDyn stated, ³In the first quarter, we were able to begin the implementation of several key initiatives designed to bolster our capital structure, enhance our global marketing reach and streamline our operations. We have begun to make inroads with regards to broadening the sales pipeline and diversifying our customer base. To that end, we have continued to seek out opportunities to exhibit our technology. We are currently demonstrating our new Commander II series at the Corrections Technology Association Annual Conference in North Carolina. Our recently announced third generation of Call Control Solutions for our Commander series combines debit calling and complete Web based administration. These advanced capabilities are being demonstrated live and position SciDyn as a premier solution for call control networks of all configurations.²

In the first quarter, SciDyn began a strategic analysis of the financial and human capital that would be necessary to implement the global development and market rollout of SciDyn¹s Internet Protocol based telephony solutions. Through this perspective, the company has moved to realign its workforce with those needs. SciDyn has reduced the current staff by 11 percent. The Company continues to focus its resources on engineering and customer service, as these areas are considered essential to SciDyn¹s strategy. Parallel to management¹s efforts to retool the broader organization, SciDyn is actively looking to hire additional employees in those areas on a selective basis.

Sheldon Hofferman, Chairman, stated, ³We remain committed to taking all the measures necessary to create long term shareholder value. The company is currently in the final stages of arranging bridge financing and we expect to announce the results of those efforts shortly. I remain confident that we are implementing the appropriate strategic initiatives to allow SciDyn to exit the current economic slowdown in a position of strength. While telecommunications spending continues to be weak in the United States, we are seeing opportunities in several regions of the global telecommunications marketplace. Our marketing initiatives continue to gain traction in the international markets and we reaffirm our expectations that these efforts will begin to be reflected in our revenues in the second half of 2001.²

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About Science Dynamics Corporation:

Headquartered in Cherry Hill, New Jersey, Science Dynamics Corporation (SciDyn) is a developer of telecommunications solutions. SciDyn¹s IP telephony products enable the seamless connection between traditional circuit-switch based networks and the next generation of packet-based networks. Products include: The IntegratorC-2000® series of IP Telephony Gateways; the Commander II Inmate Control phone system (also based on the IntegratorC-2000® architecture) and the VFX-200 series of Video over Frame Relay Access Devices (FRADs). Visit Science Dynamics¹ website at http://www.SciDyn.com.

The Company is making this statement in order to satisfy the "safe harbor" provisions contained in the Private Securities Litigation Reform Act of 1995. This press release includes forward-looking statements relating to the business of the Company. Forward-looking statements contained herein or in other statements made by the Company are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to risks, uncertainties and factors relating to the other factors, which Company's operations and business environment, all of which are difficult to predict and many of which are beyond the control of the Company, that could cause actual results of the Company to differ materially from those set forth above and elsewhere in the Annual Report. The Company may encounter competitive, technological, and financial and business challenges making it more difficult to market its products and services, the impact of which may in matters expressed in or implied by forward-looking statements. Although the Company expects to close upon a loan which will provide working capital shortly, until the loan is closed, there is no guarantee that the Company will receive such funds. If the Company does not receive the funds in the near term it will prevent the Company from continuing to operate at current capacity. The Company believes that the following factors, among others, could turn affect the Company¹s results of operations and financial position, affect its future performance and cause actual results of the Company to differ materially from those expressed in or implied by forward-looking statements made by or on behalf of the Company: (a) the effect of technological changes; (b) increases in or unexpected losses; (c) increased competition; (d) fluctuations in the costs to operate the business; (e) uninsurable risks; and (f) general economic conditions.