GlobalNet Issues Fourth Quarter 2006 Preliminary Operating Update

Business Wire, Nov 6, 2006

Company Indicates Progress in Recently Reorganized Wholesale Sales Division

HOUSTON -- GlobalNet Corporation (Pink Sheets:GLBT) announced today that its wholesale Internet Protocol (IP), long distance sales division has seen preliminary improvement in margins in the fourth quarter of 2006 over the third quarter of 2006.

The company stated recent sales and business development appointments and subsequent strategy changes prompted initiatives that are believed by management to have positively impacted margins so far in the fourth quarter of 2006 over the third quarter of 2006.

In a recently filed current report on Form 8-K, the company indicated revenue for the third quarter of 2006 is expected to approximate $1.6 million, with the excess of revenue over direct costs of transmitting traffic approximating 2 to 3 percent. Revenues for the fourth quarter of 2006 are expected to increase over the third quarter, and the percentage of revenue over direct costs of transmitting traffic is also expected to increase. In the month of October, the company has noted an increase of revenue over direct costs of transmitting traffic, with the percentage in the wholesale IP product lines exceeding 6 percent for the month of October.

Currently, the company said it is reviewing its product offerings and intends to devote additional resources to wholesale IP offerings, while refining and reviewing its retail offerings. Such actions are anticipated to help support new initiatives in Voice over Internet Protocol (VoIP). The wholesale IP long distance business should strengthen GlobalNet's future offerings in VoIP products by leveraging the strengths of wholesale rates and carrier class infrastructure to compete in the higher margin IP and business IP product segments.

GlobalNet is presently reviewing discontinuation of some of its retail products to dedicate resources to the company's new area of focus, business VoIP or more specifically business data and voice convergence. The company is currently pursuing beta customers in the IP trunking and IP/PBX product categories. It expects to sign agreements with Beta customers in their respective product categories during the first quarter of 2007.

Funding Update

The company announced that it had entered into a Securities Purchase Agreement with its existing secured creditors on November 3, 2006 for the sale of (i) $160,000 in callable secured convertible notes (the "Notes") and (ii) stock purchase warrants to buy 10,000,000 shares of its common stock.

The Notes bear interest at 10%, mature three years from the date of issuance, and are convertible into GlobalNet's common stock, at the investors' option, at a conversion price, equal to the lower of (i) $0.03 or (ii) 15% of the average of the three lowest intraday trading prices for GlobalNet's common stock during the 20 trading days before, but not including, the conversion date (the "Variable Conversion Price"). Additionally, the company agreed to amend all previous notes to the existing secured lenders, aggregating to approximately $11.7 million of face value, to the same Variable Conversion Price from the previous variable conversion percentage of 20%.

GlobalNet Corporation will file a current report on Form 8-K with the Securities and Exchange Commission regarding other aspects of the Notes. The company has filed a current report on Form 8-K on November 1, 2006 that contains important additional disclosures regarding liquidity, capital structure, certain defaults and an update on the status of its audits. The reader is strongly encouraged to read both documents for this important information. GlobalNet's current reports on Form 8-K are available for free on the SEC's website at http://www.sec.gov.

About GlobalNet Corporation

GlobalNet Corporation, a Voice over Internet Protocol (VoIP) services company, provides outbound telecommunications traffic to Latin America and counts among its customers both Tier 1 and Tier 2 carriers. GlobalNet provides international voice, data, fax and Internet services on a wholesale basis over a private IP network to international carriers and other communication service providers in the U.S. and internationally. GlobalNet's state-of-the-art IP network, utilizing the convergence of voice and data networking, offers customers economical pricing, global reach and an intelligent platform that guarantees fast delivery of value-added services and applications. More information may be obtained from the company's website at www.gbne.net.

Safe Harbor for Forward-Looking Statements

From time to time, the company may issue news releases that contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. This material may contain statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. For those statements, the company claims the protection of the safe harbor for forward-looking statement provisions contained in the Private Securities Litigation Reform Act of 1995 and any amendments thereto. The financial data provided in this press release represent actual results. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance are not statements of historical fact and may be "forward-looking statements." "Forward-looking statements" are based upon expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties that could cause actual results or events to differ materially from those anticipated. These risks and uncertainties include, among other things, product price, volatility, product demand, market competition, risk inherent in the company's domestic and international operations, imprecision in estimating product reserves and the company's ability to replace and expand its holdings.