World Surveillance Group Inc (fka WSGI)

[SEBASS]

BULLET POINTS OF DOW JONES ARTICLE !!!

Dow Jones highlighted Globetel performance as:

- 121 Million OUTSTANDING SHARES.
This is the most freighting one. I can’t believe one month ago it was 81MM. That is increase of 40MM. By this going rate next month or at best by end of Q1 2006 GTE will reach maximum exchange allowed outstanding shares of 150MM.
Then what ANOTHER REVERSE SPLIT. OMG. DE-JA-VU all over again.
Going back in time not forward and again shares will be stolen from hard working individual investors. Huff will justify this as he did few months ago as growth plan for the company. What about YOU THE SHAREHOLDERS AND YOU ROI (Return on Investment). That’s CEO obligation. Shouldn’t that be your focus ?

- $55 Million losses over past several years.
How is that somewhere near profitability ? Another failure. I remember Huff stating this:” We project that these products and services will provide such revenues and margins that the Company will show profitability by the end of the second quarter of 2005. http://www.globetel.net/about/letter011005.html

- Stratellite was supposed to be tested/demoed many times before yet another failure. “We have scheduled the launch date for the Stratellite prototype for March 25, 2005” http://www.globetel.net/about/letter011005.html

- Columbian $50MM investment similar scheme to Russian pre-payment
That was supposed to be invested and 1 year later and no Columbian money appeared in GTE bank. See the pattern developing for this year ?Also you won’t find this article on GTE webpage. Is GTE trying to hide this. I wonder why ? http://findarticles.com/p/articles/mi_m0EIN/is_2005_July_14/ai_n14788320

– Stored Value cards promise AGAIN !!!
Has the same promise from year ago materialized ? NO. “We will begin expansion by adding calling card functionality to millions of debit cards in Mexico in the first half of 2005 and will repeat the process in India and the Philippines.” http://www.globetel.net/about/letter011005.html

- Paul Taboda. GTE investment banker and his firm was suspended and fined by NASD for “issuing a research report containing material misrepresentations and omissions" He is still with GTE and Huff is supporting him. That should tell you how much integrity these people have.

- Short interest up 32% from last month. GTE stock is heavily shorted because a lot of people do not believe in GTE due to failed business timelines and execution.

My summarization is that scheme is the same as last year but with very innovative spin.