EXHIBIT 99.2

ION NETWORKS 1Q03 CONFERENCE CALL TRANSCRIPT
MAY 12, 2003 5PM. EDT

INTRODUCTION (JOE ZAPPULLA - WALL STREET INVESTMENT CORP.)
Good afternoon,  everyone. Welcome to ION Networks first quarter 2003 conference
call.  Just as a  reminder,  ION  changed  its fiscal  year to a  calendar  year
beginning  in January  2003.  By now,  all of you should have seen the  earnings
announcement. If you didn't get a copy, please call ION Networks at 800-395-7450
or go to  www.ion-networks.com,  where you will be able to download the earnings
press  release.  On the call  with us today is Kam  Saifi,  President  and Chief
Executive Officer and Stephen Deixler,  ION's interim Chief Financial Officer. I
would like to remind you that some of the  comments  made on today's  conference
call and some of the  responses to your  questions  may contain  forward-looking
statements.  Such  statements  are  subject  to the risks and  uncertainties  as
described in the company's  press releases and other SEC documents.  I would now
like to turn the call over to Kam Saifi.

Kam Saifi: Before we get into the status of our business, I'd like to have Steve
Deixler,  our interim Chief Financial  Officer,  summarize our financial results
for ION's first quarter ended March 31, 2003. Steve.

STEVE DEIXLER:

Thanks Kam.
As reported, net sales for the quarter ended March 31, 2003 were approximately $
765,000  compared  to  approximately  $853,000  in the  previous  quarter  ended
December 31, 2002. Net sales were approximately $ 2,076,000 in the quarter ended
March 31, 2002.

The  Company  incurred  a net loss  for the  quarter  ended  March  31,  2003 of
approximately  $875,000  or  four  cents  per  share,  which  includes  a  lease
abandonment  charge of $123,510.  This compares with a net loss of approximately
$2,220,000  or ten cents per share for the  previous  quarter and  approximately
$1,218,000 or six cents per share for the quarter ended March 31, 2002.





For the quarter ended March 31, 2003, gross margins were 68 percent, compared to
40 percent for the previous  quarter and 54 percent for the quarter  ended March
31,  2002.  The  increase in gross  margin is mainly due to  lowering  the costs
associated with  manufacturing of the appliances and lack of larger sales orders
that typically require higher volume discounts.

I'll now hand back to Kam for the continuation of the call.

Kam.

KAM SAIFI:

Thanks Steve.

Last quarter,  ION Networks continued to face challenges including poor economic
conditions and a general  softness in IT spending.  However,  our sales pipeline
remains  strong  and we are  currently  involved  in a number  of  proposals  of
significant  value in the enterprise,  service  provider and government  sectors
that we're working diligently to close.

During the quarter  ended  March 31,  2003,  we sold to a total of 37  customers
compared to 40  customers  in the  previous  quarter  ended  December  31, 2002;
extended our  relationship  with our key channel  partners  which included being
involved  in the latest  SIEMENS  MAC  catalog;  and  launched  a new  web-based
marketing campaign.

Despite our  financial  uncertainties,  we continue to control our  expenses and
strive to make progress to reach our revenue breakeven point.

As a result of recent cost reductions,  we estimate that we will reach breakeven
at  a  revenue  level  of  approximately  $2  million  per  quarter,   which  is
considerably lower than our earlier estimate of $3.2 million per quarter.

As you know, we have been trying since August 2002 to secure additional capital.
To date, we have not been able to secure this additional funding. Nonetheless we
have not  given up in our  efforts  to  secure  financing  for ION and are still
pursuing  various  alternatives.  However,  there is no  assurance  we can raise
additional capital on any terms reasonably acceptable to the Company.




In closing,  despite all the  challenges  we have been  facing,  everyone at ION
Networks  continues to work diligently to fulfill orders,  grow our pipeline and
secure new business as well as pursue various financing alternatives to move ION
Networks  forward.  Our entire  company  remains  centered  on a common  goal of
increasing  sales by  aggressively  marketing  our  leading-edge  infrastructure
security  solutions to grow revenue in this tough  economic  climate.  We remain
excited  regarding ION's solutions and are working hard to reach and surpass the
goals we have set for ION.

That concludes our formal statement and I would now like to open the call up for
questions.

NO QUESTIONS WERE ASKED

KAM SAIFI:
I would like to thank our shareholders for their loyalty as we persevere through
the current economically challenging times. We are committed to developing ION's
market and achieving  maximum  shareholder  value. We look forward to presenting
our progress at the next quarterly conference call.