Global Entertainment Holdings Announces Third Quarter Results; Five-Fold Increase in Revenues Reported for the Nine-Month Period

Business Wire, Oct 15, 1999

OMAHA, Neb.--(BUSINESS WIRE)--Oct. 15, 1999--

Global Entertainment Holdings/Equities Inc. (OTCBB:GAMM) (www.globalentertainmentinc.com) Friday announced the results for its third fiscal quarter and nine months ended September 30, 1999.

Revenues for the nine-month period increased five fold over the same period last year as it expanded its licensee sites to ten, up from only one a year ago.

Revenues for the three months ended September 30, 1999 were $332,981 versus $121,473 for the comparable period last year, an increase of 174 percent. For the third quarter, a loss of $381,586 or $0.04 per share was reported, compared with a loss of $7,575 or $0.00 (breakeven) per share for the same period in 1998. The loss for the period is primarily attributable to increased hardware expense and additional staffing needed to expand the company's capacity and upgrade its systems to maximize performance. While the company has added several new licensee Web sites, and has capitalized the cost associated with its increased capacity, significant revenue from those new licensees will not begin to be realized until fourth quarter.

Revenues for the nine months ended September 30, 1999 were $1,581,949 versus $237,867 for the comparable period last year. For the nine-month period, the company reported a loss of $22,146 or $0.002 per share compared with a loss of $55,887 or $0.01. Advertising revenues from Web site ads represented over $61,000 in revenue. This new revenue stream came as a result of Global's recent acquisition of Prevail On-line Inc., an Internet services company that offers highly focused content and services for the online gaming and sports wagering industries.

While Global experienced growth and solid increases in revenue for the current period, the benefit of its recent expansion is not yet evident in the bottom line. Subsequent quarters will benefit from the infrastructure investment made during this quarter. Expenses increased substantially due to the company's ramp up in human resources and equipment during the past quarter. Additionally, revenue during baseball season, which represents a significant portion of overall royalty revenue, was unusually poor. The necessary steps to fundamentally improve capacity, security, and content quality have been taken in order to implement further aggressive expansion in 2000.

Assets increased over 250 percent to $3.3 million primarily as a result of increased License, Maintenance and Royalty Fees Receivable due to the additional licensees, addition and upgrade of computer equipment, and the acquisition of Prevail On-line Inc. As a result, shareholder equity increased 288 percent to $2,390,921 from $615,203 at September 30, 1998.

Global Entertainment Holdings/Equities provides development stage equity financing and merger and acquisition related services to up-and-coming technology companies in the Internet gaming industry. Global Entertainment's wholly owned subsidiary Interactive Gaming and Wagering N.V. (IGW), has developed proprietary software called the Internet & Telephony Sportsbook & Casino System (ITSCS) and maintains a hosting environment in Willemstad, Curacao. The ITSCS is a market leading turnkey sportsbook and casino software product and service combination that is licensed to third party online sportsbook and casino operators. Prevail Online Inc., based in San Francisco, is another wholly owned subsidiary that specializes in web-publishing and operates three online services; www.wheretobet.com, www.thesportsdaily.com and www.netbet.org. Through the added value financial services provided by Global Entertainment, these sites are accepted as leaders in their industry.

Safe Harbor Statement

Some statements in this release are forward-looking and are subject to certain risks and uncertainties. These risks and uncertainties include but are not limited to economic conditions, changes in laws or regulations, demand for products and services of the company and the effects of competition. These risks and uncertainties could significantly affect anticipated results in the future and actual results may differ materially from any forward-looking statements.