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GlobeTel Announces Second Quarter 2005 Results
Thursday August 11, 6:00 pm ET


FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Aug. 11, 2005--GlobeTel Communications Corp. (AMEX:GTE - News), today reported in its filing of SEC Form 10Q that the company had revenues of $19,700,531 during the second quarter ended June 30, 2005, compared to $3,790,085 during the same period in 2004, an increase of 419%. Total revenues for the six months ended were $37,711,175, compared to $7,000,419 during the same period in 2004, an increase of 438%.
The total losses for the second quarter were $3,115,294, excluding non-recurring one-time charges of $2,842,035. The company also provided the following quarterly comparison:

2nd Quarter 1st Quarter 4th Quarter
2005 2005 2004
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Revenues $19,700,531 $18,010,643 $14,486,589
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Gross Margin $(81,985) $726,680 $(176,017)
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Net loss $5,957,329 $3,600,054 $8,416,953
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Total Assets $14,669,233 $15,124,388 $6,195,977
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Total Stockholder Equity $11,530,390 $12,359,242 $5,276,577
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The company reported that margins were lower in the current quarter as it had incurred downtime when it moved its network operations center to its new, larger facility in Los Angeles. When accounting for technical support and amortization and depreciation, there was a resulting negative gross margin.

Operationally, the Company reports that:

The projected run rate now is approximately $75 million;
There is significant progress in its revamping the organization and operations;
The additional space in its Florida headquarters will be ready in October 2005;
Its subsidiary, Sanswire Networks, LLC, has moved to its new facility in Palmdale, California.
Timothy Huff, CEO of GlobeTel, stated, "We continue to be excited about the future of the Company. The losses we incurred were expected as we grew our business. We expect our losses to diminish and reach profitability by the end of the year as we now operate out of our new facilities and as we launch our other products. As I previously stated, the Company is stronger than it has ever been. This will be truly exciting times for GlobeTel and 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 GlobeTel 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., Fort Lauderdale
Maria Vasquez, 954-241-0590
[e-mail]
http://www.globetel.net



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Source: GlobeTel Communications Corp.