World Surveillance Group Inc (fka WSGI)

[nilremerlin]

Friday news rehash:

GlobeTel, Internafta Revise Agreement
12:21 am EST
Mar 20, 2006 (financialwire.net via COMTEX) -- March 20, 2006 (FinancialWire) GlobeTel Communications Corp. (AMEX: GTE) has announced that based upon differences between the company and Internafta on the financing process, the parties have agreed to revise their agreement to more accurately reflect the timing of payments GlobeTel expects to receive for the build out of the 30 city wireless network in Russia and allow Internafta additional time to begin making payments.

Internafta has informed GlobeTel that its bank recommends that smaller, more frequent, progress payments be established so that the necessary staged payments can be delivered to GlobeTel as and when the network is delivered and installed. These smaller, more frequent, staged payments do not reduce the total capital value of the agreement with GlobeTel Wireless or change any other terms of the agreement.

GlobeTel will still receive $600 million for deployment of the network. The exact amount of the new proposed initial deposit, and the size and timing of the new proposed progress payments, will be discussed and agreed with GlobeTel once the bank has completed its due diligence and when the bank group formally accepts the terms of Internafta's proposed banking instrument.

The December 2005 contract called for four equal payments of $150 million each, of which the first payment, representing an initial deposit, was to be received by GlobeTel in January 2006. On January 23, 2006, Internafta presented to GlobeTel a document represented to be a Standby Letter of Credit drawn on Banco do Brasil S.A. (Rio de Janeiro) in the amount of $300 million. This Standby Letter of Credit was provided to facilitate the first phase of the network construction. The banking instrument had a maturity date of two years and needed to be confirmed and accepted by a correspondent bank before GlobeTel could receive any funds from the instrument.

The terms and conditions of what constituted an acceptable and functional banking instrument as it related to the December 2005 contract became a matter of interpretation between the parties. After extensive negotiations, Internafta agreed to take sole responsibility for facilitating the financing of their banking instrument in order to be able to present readily-available funds to GlobeTel.

For up-to-the-minute news, features and links click on http://www.financialwire.net

FinancialWire is an independent, proprietary news service of Investrend Information, a division of Investrend Communications, Inc. It is not a press release service and receives no compensation for its news or opinions. Other divisions of Investrend, however, provide shareholder empowerment platforms such as forums, independent research and webcasting. For more information or to receive the FirstAlert daily summary of news, commentary, research reports, webcasts, events and conference calls, click on http://www.investrend.com/contact.asp

For a free annual report on a company mentioned in the news, please click on http://investrend.ar.wilink.com/?level=279

The FinancialWire NewsFeed is now available in multiple formats to your site or desktop, free. Click on: http://www.investrend.com/XmlFeeds?level=268

URL: http://www.financialwire.net

(C) 2006 financialwire.net, Inc. All rights reserved.

nilremerlin