FOR IMMEDIATE RELEASE

INVESTOR CONTACT:
Thomson Financial/Carson
Erik Knettel, 212-701-1963
Erik.knettel@tfn.com

Steven Silver, 212-701-1816
Steven.silver@tfn.com

Science Dynamics and Thales Contact Solutions Deliver Integrated Digital Recording on Call Control

Solutions Features Demonstrated at the 2001 ACA 131st Congress of Correction Summer Conference August 13th—15th in Philadelphia

Cherry Hill, NJ—(August 13, 2001)—Science Dynamics Corporation, “SciDyn” (NASDAQ: SIDY), a leading developer of Internet Protocol based (IP) telephony solutions and services, announced today an OEM agreement with Thales Contact Solutions and the release of fully integrated digital recording and playback features on its third generation of call control solutions. The enhanced functionality will be demonstrated during a joint product presentation in booth #425 at the American Correctional Association 131st Congress of Correction Summer Conference August 13th–15th in Philadelphia, PA.

SciDyn’s new integrated, digital recording features take advantage of both the Mirra Series 2 and Wordnet Series 2 product lines from Thales. Currently, SciDyn has the support of Thales’ distribution network in North and South America with access to agents in more than 140 countries. This new relationship complements each company’s marketing efforts in the Public Safety and Corrections vertical market segments.

Customers will now have the option to selectively record and archive telephone calls made by SciDyn Call Control equipment. More importantly, authorities can quickly search call detail records and playback recorded conversations for investigative purposes.

“These cost-effective features are immediately available as options on both our Commander I (8 to 24 lines) and Commander II (24 to 96+ lines) solutions,” said Joe Giegerich, Vice President of Sales and Marketing for Science Dynamics Corporation. “The advanced features of our Commander product line now include state-of-the-art digital recording, blended collect and debit calling, and previously announced VoIP technology. Thales Contact Solutions is an obvious choice for SciDyn due to their strength, engineering excellence and global reach.”

Benefits of the SciDyn/Thales solution

Advanced search and replay
Search by channel, date, time, call duration, pin number, call location identifier or dialed number, then just click on the CDR (Call Detail Record) that you want and the call is replayed through SciDyn’s AdminManager workstation or remotely via WebAdmin.

Easy to use
Integrated, digital recording is controlled through SciDyn’s intuitive, user-friendly AdminManager application.

Reliable, fast access with durable storage
The Mirra uses DVD II RAM media, which gives instant access to any call. The DVD can store up to 1,200 channel hours per side of unattended recording time on a single drive unit and up to 2,400 channel hours of unattended recording time on a dual drive unit. The Wordnet provides the same storage on DVD II RAM at 780 channel hours per side of unattended recording time on a single drive unit and up to 1,560 channel hours of unattended recording time on a dual drive unit. An optional DAT storage media can provide 1,980 channel hours of unattended recording per tape drive and is upgradeable to a dual deck providing 3,860 channel hours of unattended recording time. Recording media can be archived or re-written hundreds of times.

Redundancy
In dual drive configurations these units offer redundancy between drives as well as simultaneous recording and previously archived media playback. As an option, two recorders can be connected in a Master/Slave configuration to provide 100% redundancy recording should the master recording unit fail.

Scalable
SciDyn’s implementation of both Mirra Series 2 and Wordnet Series 2 allow multiple units to be stacked and networked together to offer complete expansion and future proofing.

Customized features
SciDyn’s robust implementation of Thales features allows custom solutions to be developed. Please call and inquire about future planned releases.

About Thales Contact Solutions

Thales Contact Solutions, whose US headquarters are in Herndon, Virginia, is one of the world’s leading manufacturers of voice communications recorders and sophisticated application software. With more than 10,000 installations worldwide, its extensive customer base includes public safety dispatch centers, emergency service providers, public utilities, contact centers, financial institutions, and airport authorities in the US and 140 countries around the world. Thales Contact Solutions is a member of the IT & Services Sector, a part of the Thales Group which employs more than 65,000 people globally and has revenues in excess of $8.6 billion. Please visit us at www.thales-cs.com.

About SciDyn

SciDyn’s third generation of Call Control Solutions follows the previous Collect Call Timing Device introduced in 1986 and current Commander models that serve thousands of inmate beds nationwide. The System operates on SciDyn’s BubbleLINK® software architecture and offers the latest security and call control features to effectively manage inmate telephone calls. Standard features include a wide array of editable call control parameters, advanced call monitoring, real-time call recording and SciDyn¹s patented 3-way call fraud detection featuring 36 tunable parameters that test the call path end-to-end.

Headquartered in Cherry Hill, New Jersey, Science Dynamics Corporation (SciDyn) is a leading developer of telecommunications solutions. SciDyn’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® series of IP telephony gateways, the Commander Call Control System for correctional facilities (also based on the IntegratorC-2000® architecture) and the VFX-200 series of Video over Frame Relay Access Devices.

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 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.

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