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Holy cow, AMEX listing on GTEL! TO DO that they have to do an RS! OUCH!

GlobeTel Announces Approval to Move to the American Stock Exchange and Continuation of Corporate Restructuring

May 09, 2005 15:52:01 (ET)


FORT LAUDERDALE, Fla., May 09, 2005 (BUSINESS WIRE) -- GlobeTel Communications Corp. (GTEL, Trade) announced today that, by written consent of the majority vote of its shares, the Board of GlobeTel has approved a reverse split of its shares on a one for fifteen (1:15) basis. This restructuring move is being made as part of the Board's overall strategic plan.

Timothy Huff, CEO of GlobeTel, stated: "This capital restructuring is consistent with the overhauling of our various business segments and will place our capital structure and share price to be more in line with a business of our stature, and the credibility of our business standing. This reverse split is being made immediately prior to our move to the American Stock Exchange."

Huff continued: "We are very pleased and excited to be approved to list our shares on the AMEX. The AMEX has an excellent reputation and history and we are looking forward to this next step in our overall plan."

GlobeTel has notified the NASD of the pending reverse split and it is planned that the shares will begin trading (post reverse) on the American Stock Exchange on May 19, 2005. GlobeTel has reserved a future trading symbol with the American Stock Exchange. At the time of the move, GlobeTel will change its symbol from GTEL to GTE.

Mr. Huff stated: "We are a vibrant and growing company and believe that our business initiatives are growing at our desired rate and we are pleased with the success and confidence that our shareholders have placed in us. Our significant success with our Stratellite release today shows that. This decision is one further step toward our continued success. While many companies reverse-split their shares because they are in trouble, we do not fall into that category. I want to stress to our shareholders that this decision is in the best interests of the Company and the shareholders. We are all excited about the future of GlobeTel and our shareholders."

About the American Stock Exchange:

The American Stock Exchange has been a pioneer in market innovation for more than a century and remains committed to developing successful new investment products and innovative services for companies and investors.

As the nation's most diversified financial marketplace, the American Stock Exchange conducts trading through an advanced centralized specialist system and is committed to providing a superior marketplace for the investing public and its members.

The following is for illustration purposes only:

If a shareholder owns 15,000 shares of GTEL at a price of .27 per share (for a total value of $4,050.00), following the reverse split, that same holder would own 1,000 shares of stock with a theoretical price of $4.05 per share for a total value of $4,050.00. The illustration is that the total value of shares may not change as the number of shares owned will.

About GlobeTel Communications Corporation:

GlobeTel Communications Corporation is a diversified Telecommunications and Financial Services Company. GlobeTel Communications Corporation operates business units in Stored Value debit cards, as a certified MasterCard processor, the sale of Carrier grade VOIP of Long Distance to major Long Distance re-sellers, VOIP Technology and development, and high altitude airship research and development. These self contained business units were developed to operate independently of each other. The symbiotic relationship however, provides value to each of the other business units. This strategy offers GlobeTel financial diversity and risk mitigation while striving toward its operating objectives.

Operating on a global basis, GlobeTel has, historically, focused its business development on markets outside of the United States. Current operations and business relationships exist in Asia, Europe, South America, Mexico and the Caribbean.

About Sanswire Networks, LLC:

Sanswire Networks is a wholly owned, privately held, subsidiary of GlobeTel Communications Corporation whose shares are publicly traded under the symbol GTEL.OB. Effective following the move to the AMEX, the shares will trade under the symbol GTE.

A Stratellite(TM) is a high-altitude airship that when in place in the stratosphere (approximately 65,000 feet) will provide a stationary platform for transmitting various types of wireless communications services currently transmitted from cell towers and satellites. It is not a balloon or a blimp, but a high-altitude airship with a rigid structure.

The Stratellite is similar to a satellite in concept, but is stationed in the stratosphere rather than in orbit. Existing satellites provide easy "download" capabilities, but because of their high altitude are not practical for commercially viable "two-way" high-speed data communication. The Stratellite will allow subscribers to easily communicate in "both directions" using readily available wireless devices. http://www.sanswire.com

Additional information concerning other areas and topics of GTEL can be found on our web site at 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 Placement 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. The above are more fully discussed in the Company's SEC filings. The illustration provided herein is strictly for informational purposes and not an indication of share price or any guarantee of performance. GlobeTel has received approval from the American Stock Exchange for approval regarding the reference of the exchange and the announced move. The AMEX has not approved, nor recommended a reverse split of our shares. It is possible that the link provided herein may not be accessible at the time that a user attempts to find it. GlobeTel has no ability to determine how long, if ever, the link shall remain active on the web site as presented. All information regarding the American Stock Exchange can be found at: http://www.amex.com . There may be other variables that affect the actual date of listing of the shares on AMEX and GlobeTel will provide an update, as soon as practical, in the event that the dates listed herein are changed.

SOURCE: GlobeTel Communications Corp.


GlobeTel Communications Corp., Fort Lauderdale
Leigh Coleman, 954-241-0590
[e-mail]

Copyright Business Wire 2005