Notice is hereby given that a class action lawsuit was filed in the Un…

Notice is hereby given that a class action lawsuit was filed in the United
States District Court for the District of New Jersey on behalf of all
purchasers of the securities of Datatec Systems, Inc. (“Datatec” or the
“Company”) (Nasdaq: DATCE) between June 26, 2003 and December 16, 2003,
inclusive (the “Class Period”).

If you wish to discuss this action or have any questions concerning this
notice or your rights or interests with respect to these matters, please
contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman,
Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
[email protected]

The complaint charges Datatec, Isaac J. Gaon and Mark J. Hirschhorn with
violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934,
and Rule 10b-5 promulgated thereunder. More specifically, the complaint
alleges that, throughout the Class Period, defendants issued numerous
statements to the market concerning the Company’s financial results, which
failed to disclose and/or misrepresented the following adverse facts, among
others: (1) that Datatec, in violation of Generally Accepted Accounting
Principles (“GAAP”), was improperly valuing certain of its long-term
contracts, thereby overstating its revenues and assets; (2) that Datatec had
no viable plan for the commercialization of the Asset Guardian software; (3)
that Datatec had deficient and inadequate internal controls and financial
systems; and (4) that based on the foregoing, Datatec lacked a reasonable
basis for its financial and operational guidance for fiscal 2004.

On December 5, 2003, Datatec announced that defendant Gaon had “stepped
down as Chairman and Chief Executive Officer.” In addition, the Company
reported that Mark Berenblut had resigned as a Board member. Following
release of this news, Datatec stock fell more than 33% on extremely heavy
trading. On December 16, 2003, before the opening of trading on December 17,
2003, Datatec further shocked the investing public when it announced that it
expected a loss of $10 million for the first quarter ended October 23, 2003.
On news of this, Datatec stock fell an additional 14% on extremely heavy
volume.

Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin & Barroway, which prosecutes class
actions in both state and federal courts throughout the country. Schiffrin &
Barroway is a driving force behind corporate governance reform, and has
recovered in excess of a billion dollars on behalf of institutional and high
net worth individual investors. For more information about Schiffrin &
Barroway, or to sign up to participate in this action online, please visit
http://www.sbclasslaw.com.

If you are a member of the class described above, you may, not later than
April 6, 2004, move the Court to serve as lead plaintiff of the class, if you
so choose. In order to serve as lead plaintiff, however, you must meet
certain legal requirements. You may retain Schiffrin & Barroway, LLP, or
other counsel of your choice, to serve as your counsel in this action.

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