World Surveillance Group Inc (fka WSGI)

[SEBASS]

Rocky

Revs from magic money switch are suppose to kick in Q3 wright when switch is installed and operations begin.

I am happy to see that UP is rev, margin, total assets, st. equity and net loss is decreasing.


FT. LAUDERDALE, Fla.--(BUSINESS WIRE)--May 16, 2005--GlobeTel Communications Corp. (OTCBB: GTEL - News), reported today in its filing of SEC Form 10Q, that during the quarter ended March 31, 2005, the company had revenues of $18,010,643 resulting in a net loss of $3,600,054. In comparison, the company had revenues of $3,210,333 for the quarter ended March 31, 2004 with a net loss of $1,298,567.
In comparison to the fourth quarter of 2004, the company is providing the following information:

1st Quarter 4th Quarter
2005 2004 Change
----------- ----------- ------------

Revenues $18,010,643 $14,486,589 + $3,524,054
=========== =========== ============

Gross Margin $ 726,680 $ (176,017) + $ 902,697
=========== =========== ============

Net loss $ 3,600,054 $ 8,416,953 - $4,816,899
=========== =========== ============

Total Assets $15,124,388 $ 6,195,977 + $8,928,411
=========== =========== ============

Total Stockholder Equity $12,359,242 $ 5,276,577 + $7,082,665
=========== =========== ============


Timothy Huff, CEO of GlobeTel, stated, "We are pleased with our overall performance and our increase in shareholder value. We will continue to incur losses as we grow out our business, however, we expect the losses to diminish, quarter over quarter. We are also pleased that our numbers that we wanted increases in, increased and those numbers that are supposed to go down went down. Revenues and margins are up. G&A costs and net losses are down. We are exceptionally pleased with the overall financial health of the Company as evidenced by the significant increases in our Total Assets and our Stockholders Equity."

General and administrative costs reported by the company include extraordinary expenses and other non-recurring expenses of approximately $1.87 million. Excluding these costs, the actual operating costs were less than $1.65 million.

Mr. Huff continued, "Our revenues for the FY 2004 were over $29 million and this quarter alone, we had over $18 million. This puts us on our projected run rate of approximately $72 million. As we grow, we will continue to incur one-time charges that will ultimately help the profitability of our company. While the costs have decreased from the last quarter, they are still significant as the company continues to be in an expansion mode."

The company has been building its operations and has been hiring quality personnel to prepare for the future and will be adding additional office spaces at its headquarters which will almost double its current office spaces. Likewise, the company's wholly-owned subsidiary, Sanswire Networks, LLC, is also expanding, hiring high-level aerospace engineers and numerous staff for the build-out of its Stratellite and will be moving to bigger facilities at its new location at Palmdale, California.

Mr. Huff concluded, "The Company is stronger than it has ever been and we continue to have institutional investors invest in the company. We are in the midst of revamping our organization and improving our operations as part of our overall goal of reaching breakeven and then profitability by the end of 2005. With all these significant changes and our move from the OTCBB to the American Stock Exchange in the immediate future, it will be truly exciting times at GlobeTel and especially for our shareholders."

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. 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.



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Contact:
GlobeTel Communications Corp.
Leigh A. Coleman, 954-241-0590
[e-mail]
http://www.globetel.net



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Source: GlobeTel Communications Corp.