(Rule 14a-101)
                            SCHEDULE 14A INFORMATION
                Proxy Statement Pursuant to Section 14(a) of the
                         Securities Exchange Act of 1934

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                           SANDATA TECHNOLOGIES, INC.
                (Name of Registrant as Specified in Its Charter)

    (Name of Person(s) Filing Proxy Statement, if other than the Registrant)

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(1) Amount previously paid: $258


(2) Form, Schedule or Registration Statement No.: Schedule 14A


(3) Filing Party: Sandata Technologies, Inc.


(4) Date Filed: November 15, 2002


     Sandata Technologies Enters Stipulation of Settlement with Stockholders

     Port Washington, NY, January 27, 2003 - Sandata Technologies, Inc. (NASDAQ:
SAND)  announced  today that it has executed a Stipulation  of Settlement  among
Sandata,  the  members  of its  Board of  Directors  and the  plaintiffs  in two
purported class action lawsuits styled Seitler v. Sandata Technologies, Inc., et
al. Civil Action No. 19886-NC, and Yetzer v. Sandata Technologies,  Inc., et al.
Civil Action No. 19903-NC. The lawsuits,  which were consolidated pursuant to an
Order of  Consolidation  entered on October 22, 2002 by the Court of Chancery of
the State of  Delaware,  allege that the  defendants  breached  their  fiduciary
duties to  Sandata  and its  public  stockholders  in  connection  with  Sandata
Acquisition  Corp.'s  August 5, 2002 proposal to acquire all of the  outstanding
public  shares of Sandata.  The  consolidated  actions also allege,  among other
things,  that the  directors  serving on the Special  Committee  of the Board of
Directors  of  Sandata  are not  independent  and that the  consideration  to be
received under Sandata Acquisition Corp.'s proposal is inadequate.

     The Stipulation of Settlement  provides  generally for the dismissal of the
consolidated  actions  and  release  of any and all  causes of action or claims,
among  other  things,  that any of the  plaintiffs  or members of the class have
against any defendant or their affiliates, including, among others, any of their
associates,  officers,  directors,  attorneys,  investment  bankers,  investment
advisors and valuation  experts,  including Sandata  Acquisition Corp. and Brean
Murray,  among  others,  arising out of any of the Agreement and Plan of Merger,
dated as of October 28, 2002, by and among Sandata,  Sandata  Acquisition Corp.,
Bert E.  Brodsky,  Hugh  Freund  and Gary  Stoller,  the  merger,  or any of the
transactions  contemplated  thereby,  the  negotiation  thereof,  and any public
filings or  statements  by the  defendants  contained  in any of the  above.  In
consideration  for the dismissal of the  consolidated  action and release of all
causes of action and claims,  Sandata  Acquisition  Corp. agreed to increase the
merger  consideration from $1.91 to $2.21 per share of Sandata common stock. The
Stipulation of Settlement further provides that the consolidated actions will be
maintained as a class action by the plaintiffs,  without the right of any of the
members of the class to opt out. The parties  agreed to file the  Stipulation of
Settlement  with the Delaware  Chancery  Court as soon as  practicable.  Sandata
agreed to mail  notice to the  members  of the  class who were  stockholders  of
record at any time from  August 5, 2002,  through  the date of the  merger.  The
defendants to the  consolidated  action also agreed not to oppose an application
by the plaintiffs to the Delaware Chancery Court for plaintiffs' attorneys' fees
and expenses not to exceed $60,000.  If the Delaware Chancery Court approves the
settlement, the parties agreed to move the court for an Order and Final Judgment
(i)  approving  the  settlement  as fair,  reasonable,  adequate and in the best
interests  of  the  class  and  directing  consummation  of  the  settlement  in
accordance with its terms, (ii) formally  certifying the class, (iii) dismissing
the consolidated action with prejudice as against the plaintiffs and all members
of the class,  (iv)  permanently  barring and enjoining the members of the class
from instituting any action or other proceeding in any court in any jurisdiction
that in any way  relates to the  settled  claims,  (v)  authorizing  plaintiffs'
counsel to execute a release of settled  claims on behalf of the  members of the
class,  (vi)  awarding  plaintiffs'  counsel such fees and expenses as the court
deems appropriate and (vii) reserving  jurisdiction over all matters relating to
the  administration  and  consummation  of the  settlement.  The  Stipulation of
Settlement  is subject  to final  approval  of the  settlement  by the  Delaware
Chancery Court of which there can be no assurances.

     Following the execution of the Stipulation of Settlement,  Sandata, Sandata
Acquisition  Corp.  and Messrs.  Brodsky,  Freund and  Stoller  executed a First
Amendment to the Agreement and Plan of Merger, dated as of January 27, 2003. The
Amendment  increases  the merger  consideration  to be paid to the  unaffiliated
stockholders  of Sandata in the merger  from $1.91 to $2.21 per share of Sandata
common stock.


     Stockholders  of the  Company  will be able to  obtain a copy of the  proxy
statement and other relevant documents filed with the SEC  free-of-charge  (when
available) from the SEC's website at  The proxy statement will also
be available upon request by contacting the Company at our principal  office, 26
Harbor Park Drive, Port Washington, New York 11050, 516 484-4400.

     The Company is a leading provider of advanced  Information  Technology (IT)
solutions for payroll and billing,  electronic time and attendance  services and
IT support services.

     This press release contains forward-looking  statements which involve known
and unknown  risks and  uncertainties  or other  factors  that may cause  actual
results,  performance or achievements to be materially different from any future
results,   performance   or   achievements   expressed   or   implied   by  such
forward-looking  statements. When used herein, the words "may", "could", "will",
"believes",   "anticipates",   "expects"   and  similar   expressions   identify
forward-looking   statements  within  the  meaning  of  the  Private  Securities
Litigation Reform Act of 1995. For a discussion of such risks and uncertainties,
including but not limited to those  discussed  above in this press  release,  as
well as risks  relating to  developments  in and  regulation of the  health-care
industry,   new  technology   developments,   competitive  bidding,   risks  and
uncertainties  associated with the Internet and Internet-related  products,  and
other  factors,  readers  are urged to  carefully  review and  consider  various
disclosures made by the Company in its Annual Report on Form 10K-SB for the most
recently  completed  fiscal year and other  Securities  and Exchange  Commission