Datatec Systems Files 10-Q for Q1 FY2003

Business Wire, Nov 7, 2002

Business and Technology Editors

FAIRFIELD, N.J.--(BUSINESS WIRE)--Nov. 7, 2002

Datatec Systems, Inc. (Nasdaq: DATCE), a leading provider of technology deployment services and software tools, today filed its 10-Q for the first quarter of fiscal 2003.

In advance of the public release of the Company's fiscal 2003 first quarter financial results on November 5, 2002, Datatec's Audit Committee met with senior representatives of its auditors, Deloitte and Touche. Upon the advice of those senior representatives, the Audit Committee approved the financial statements for the first quarter of fiscal 2003. These statements included reporting in the current quarter the cumulative effect of a change to the method of estimating progress toward completion of the Company's contracts.

Datatec subsequently issued a press release at 4:00 PM on November 5, 2002 and attached summary financial information that reflected the recommended accounting treatment of the cumulative effect. This press release was reviewed and agreed to by senior representatives of Deloitte and Touche prior to its release.

Yesterday, Deloitte and Touche notified the Company that the appropriate approach to present this type of accounting change is to record it retroactively. Consequently, the financial results released today in the Company's Form 10-Q filing with the SEC reflect the corrected presentation retroactively.

Isaac Gaon, Datatec Chairman and CEO said, "We rely upon our professional advisors to give us correct guidance on complex accounting issues like the one described above before we go to the market with financial information. As stated above, the Company received advice from Deloitte and Touche that the summary financial information as presented in our November 5, 2002 press release was correct. The adjustment does not change the operating results reported before the accounting change, nor does it change Datatec's forecast for a sales growth of no less than 25% in fiscal 2003."

About Datatec Systems, Inc.

Fairfield, NJ-based Datatec Systems specializes in the rapid, large-scale market absorption of networking technologies. Datatec's deployment services utilize a software-enabled implementation model to configure, integrate and roll out new technology solutions using a "best practices" structured process. Its customers include Fortune 1000 companies and world-class technology providers. Datatec stock is listed on the Nasdaq Stock Market (DATCE). For more information, visit http://www.datatec.com/

This Press Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties that may cause the actual results or objectives to be materially different from those expressed or implied by such forward-looking statements.