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GlobeTel Communications Corp. Divests CGI Assets, Updates Sanswire II Construction, Operations and Financial Position
Business Wire - January 18, 2006 12:30

FORT LAUDERDALE, Fla., Jan 18, 2006 (BUSINESS WIRE) -- GlobeTel Communications Corp. (AMEX:GTE) today announced that it has sold its holdings of Consolidated Global Investments Ltd. (CGI), an Australian company, back to CGI. As part of the transaction GlobeTel will return all its shares and options in CGI and retain a $1.4 million deposit that was held for CGI.

GlobeTel gained a 70% stake in CGI through a series of transactions intended to give the company a foothold in the Asian telecom market and to provide a strategic relationship with a company listed on a foreign exchange. Given GlobeTel's movement to the American Stock Exchange, GlobeTel has decided to not proceed with its goals to list a company on the Australian Stock Exchange.

Timothy Huff stated, "Management of GlobeTel has worked very hard over the past year to strengthen the operations and the capital structure of the Company. We are now in the strongest financial position that GlobeTel has ever been in. With the recent exercise of over $7 million worth of warrants, GlobeTel's debt free status, and the recent contracts gained by GlobeTel, we are in a position to realize the opportunities before us. While we have a lot of work ahead of us, we are excited by the opportunity and are focused on execution of those opportunities."

Huff continued, "All divisions of GlobeTel are moving ahead as planned. Centerline, our carrier division, has experienced significant revenue growth, year over year, and is concentrating on increasing its operating margins. Current carrier based margin has been increasing on a weekly basis as traffic is transitioned onto our internal carrier backbone. The StrateVoIP Division, our SIP phone, is in the final stages of preparation for roll out of its first large scale deployment in Brazil. We expect this business unit to begin producing revenues and margin in the Q1 2006. Magic Money is rolling out several programs here in the US and also with our strategic partner FSS in India. FSS handles financial processing for Visa and MasterCard for 18 of the 20 largest banks in India, with over 120 million cards "on the street" in India, we look for significant market penetration with our remittance and telecom products in India. Magic Money will also add to our top line revenue and margin in the first quarter. As evidenced by the recent Russian announcement, GlobeTel Wireless is inundated with opportunity in virtually every corner of the globe. We continue to work closely with our Russian partners and are confident that site planning and installation will begin as planned and on schedule."

In closing, Huff added, "Sanswire Networks will float Sanswire II, the technology Demonstrator in February. Sanswire II has been equipped with the latest technology and our plans are to break the world high altitude record for rigid airships as we put the airship through its paces in 90 days of testing. Flight schedules over Edwards Air Force Base will be provided after Edward's Test Range approves Sanswire II for flight. This is dependent on approvals from the Range on safety procedures, timeslots on the Range and weather conditions suitable for flight tests. In summary, GlobeTel is moving ahead on all fronts and 2006 is the year that we transition from a R&D company to a sales and marketing company. This is our year to show what we can do."

About GlobeTel Communications Corp.:

GlobeTel Communications Corp. is a diversified Telecommunications and Financial Services company. GlobeTel operates business units in the following areas: (i) stored value debit cards as a certified financial transactions processor; (ii) carrier-grade VoIP long distance sales to major long-distance re-sellers; (iii) VoIP technology; (iv) wireless digital technology and development; and (v) high-altitude airship research, development and deployment. These self-contained business units have been specifically developed to operate independently of each other. Their symbiotic relationships, however, provide value to each of the other business units. This strategy offers GlobeTel both financial diversity and risk mitigation while creating a platform for achieving its unique commercial and social objectives.

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

For more information, please go to: 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. Sanswire Networks and the launch of the Company's high-altitude airship are subject to various risk factors and investors should construe any such investment as speculative. Additionally, there are certain unknown political and economic risks associated with doing business in the Russian Federation that may affect the Company's operations. The company undertakes no duty to update information contained in this press release or in other public disclosures at any time. The above may be more fully discussed in the Company's SEC filings.

SOURCE: GlobeTel Communications Corp.

GlobeTel Communications Corp., Fort Lauderdale
Sibylle Faye Yakan, 954-241-0590
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