FOR IMMEDIATE RELEASE

Science Dynamics Corporation
Pennsauken, NJ
 856/910-1166
ir@scidyn.com

Science Dynamics Announces Completion
of Key Acquisition and 
EBITDA-Positive First Quarter

PENNSAUKEN, N.J., July 17, 2003 /PRNewswire/ -- Science Dynamics Corporation, (OTCBB: SIDY), a leading developer of advanced telecommunications solutions, announces that its subsidiary, M3 Acquisition Corp. (M3) has acquired certain business assets and liabilities of Modern Mass Media, Inc. (MMM), based in Florham Park, NJ.  Combined audited financials for 2002 and unaudited pro forma financials for the first quarter 2003 were recently released as part of a Form 8-K/A filing that outlines the terms and conditions of the acquisition.  

The pro forma results for the first quarter reflect the strength of the combined company.  Highlights include total sales of $1,616,169 and an EBITDA of $25,960.  The combined financials show a total loss of $85,842 for the quarter.  However, this figure includes $71,106 in depreciation costs.

“We are excited to officially complete this acquisition. Over the next several months, we will focus on accelerating revenue growth and increasing shareholder value over the long term.” stated Alan Bashforth, CEO and President of Science Dynamics.  “With the first quarter pro forma results showing a positive EBITDA, we believe we are now on track to becoming profitable.”

About Science Dynamics Corporation

Headquartered in Pennsauken, New Jersey, Science Dynamics Corporation is a developer of telecommunications solutions. The Company's 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(R) series of IP Telephony Gateways, the Commander Call Control System, the MinuteMan Calling Card/Billing System and the VFX-200 series of Video over Frame Relay devices. For more information, please visit Science Dynamics’ website at http://www.scidyn.com.

About Modern Mass Media, Inc.  

MMM is a leading East Coast provider of audio/visual services to a wide range of corporate and government clients.  In addition to its corporate headquarters in Florham Park, NJ, the company has a branch office in Jersey City, NJ (serving New York).   For more information, please visit MMM’s website at http://www.mmmusa.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.  The Company believes that the following factors, among others, could in turn affect the Company's 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.
For investor information, please contact Wayne Jenkins of IR Specialists, Inc., at 401-615-0438 or wjenkins@irspecialists.com.


Pro Forma Combined Statements of Operations
March 31, 2003

 

Science Dynamics

 

Modern
Mass Media

 

 

 

 

 

Unaudited

 

Unaudited

 

Adjustments

 

Combined

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 NET SALES

$476,297

 

$ 1,139,872

 

 

 

 $      1,616,169

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales 

           72,807

 

              616,159

 

 

 

            688,966

Research and   development

         121,740

 

 

 

 

 

            121,740

 Selling, general

 

 

 

 

 

 

 

and administrative

       279,142

 

       484,111

 

       16,250

(F)

           779,503

 

 

 

 

 

 

 

                                

 

 

 

 

 

 

 

                                

 

      473,689

 

1,100,270

 

16,250

 

1,590,209

 

 

 

 

 

 

 

                             

EBITDA

$          2,608

$       39,602

 

$      (16,250)

 

$            25,960

 

 

 

 

 

 

 

                             

 

 

 

 

 

 

 

 

    Depreciation

       (64,856)

 

         (4,571)

 

          (1,679)

(D)

           (71,106)

Other income (expenses):

 

 

 

 

 

 

                                

   Interest Income

 

 

                4,917

 

 

 

                4,917

   Miscellaneous Income

 

 

                  2,577

 

 

 

              2,577

   Interest expense

       (24,106)

 

         (1,200)

 

         (3,252)

(F)

         (28,558)

   Finance Expense

       (18,633)

 

 

 

 

 

            (18,633)

 

 

 

 

 

 

 

                                

 

$  (104,987)

 

$       41,325

 

$      (21,181)

 

$         (84,842)

 

 

 

 

 

 

 

                                

Income Tax

 

 

            1,000

 

 

 

           1,000

 

 

 

 

 

 

 

                               

Net Income/Loss After Tax

$  (104,987)

 

$       40,325