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GlobeTel Communications Enters into Private Placement of Convertible Notes
September 13, 2006 10:06 a.m.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Sept. 13, 2006--

GlobeTel Communications Corp. (AMEX:GTE) announced that it has placed privately 7% Convertible Notes in the amount of $1,075,000, together with Class A and B warrants, with Hudson Bay Overseas Fund Ltd., Hudson Bay Fund LP, Nite Capital LP, Castle Creek Technology, Double U Master Fund, The Nutmeg Group and Brio Capital LP.

Under the arrangement, the Notes are convertible into GTE common shares at a rate of $0.36939 per share. The common shares underlying the notes and the warrants carry with them registration rights that obligate the Company to register such shares within 30 days. Prior to any notice of conversion, GTE has the right, under certain circumstances, to redeem the Notes at a premium for cash, subject to a right to convert by the investor.

The investors will receive one Class A Warrant to purchase one share of common stock for every two shares that the Notes converted into on the closing date, and one Class B Warrant to purchase the identical number of shares. The Class A Warrants are exercisable for a purchase price equal to 150% of the market price on the day prior to closing and the Class B Warrants are exercisable for a purchase price equal to 200% of the market price on the day prior to closing. The Warrants have a five-year term.

The Placement Agent for the transaction, Westor Capital Group, has the right to raise up to $3 million for GlobeTel Communications under the terms and conditions set forth above.


About GlobeTel Communications Corp.


GlobeTel Communications Corp. develops and provides an integrated suite of telecommunications products and services, leveraging its advances in Stored Value, VoIP and Wireless Access technologies. Individually, each of GlobeTel's five business units function as distinct, stand-alone entities. Together they're the components of the Company's SuperHub(TM) worldwide VoIP network, currently in development and to consist of the Sanswire Stratellite(TM) platform and products enabling simpler, cheaper transmission of voice, data and money. GlobeTel has historically focused its business development on markets outside of the United States. Current and pending operations exist in Asia, Europe, South America, Mexico and the Caribbean. For more information, please visit: http://www.globetel.net



Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements.


CONTACT: GlobeTel Communications Corp., Fort Lauderdale
Robert Bleckman, 954-775-1427

SOURCE: GlobeTel Communications Corp.
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