GlobalNet Corporation Completes Asset Sales

Business Wire,  Dec 5, 2007  

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Company Reduces Debt to Further Restructuring Initiatives

HOUSTON -- GlobalNet Corporation (Pink Sheets:GLBT) announced it completed the sales of its virtual call center and billing system businesses to reduce debt to further restructuring initiatives.

On November 21, 2007, GlobalNet Corporation entered into agreements of conveyance, transfer and assignment of assets and assumption of obligations with two non-operating, public entities. Pursuant to these agreements, the company transferred certain of its assets relating to its virtual call center and billing system businesses, including certain software and hardware features and functionality.

In consideration of the asset purchases, the buyers assumed certain liabilities associated with the respective businesses being acquired and approximately $6.8 million worth of existing convertible debentures formerly issued by GlobalNet Corporation to institutional investors. The company received waivers from its institutional investors for the assumption of debentures.

Virtual Call Center

GlobalNet Corporation developed its enterprise, Virtual Call Center (VCC) Software solution to help call centers reduce software related, infrastructure costs.

VCC Software provides additional functionality to its core software engine, a licensed soft switch, which encompasses the functionality of a telephony environment in Internet protocol (IP). The VCC technology platform represents a web portal based managed call center controlled by clients.

The buyer retains rights to the product's core software engine, VCC features and any future software development.

Billing Software

GlobalNet Corporation developed its Billing Software solution over a timeframe of three years to enable clients to outsource their billing needs to the solution's platform.

As with the VCC Software solution, Billing Software provides additional functionality to its core software engine. The proprietary features include a billing platform for retail VoIP, calling cards, and phone provisioning.

GlobalNet Corporation agreed that the buyers and GlobalNet will co-own provided source code and original product, meaning that all parties to the transaction may use the source code product without restriction and for any purpose including creating derivative products.

The company's current business plan remains to generate revenue by providing outbound telecommunications traffic on a wholesale basis over a private IP network to international carriers and other communication service providers in the US and internationally.

Mark Schaftlein, GlobalNet's interim CEO said, "To reduce debt from our balance sheet, we have continued to identify certain operating assets for sale. In addition to our prior announced, asset sale earlier this year, we have eliminated secured, convertible debt of more than $9.7 million. Likewise, we continue to look for areas to reduce costs to narrow future borrowing needs."

Schaftlein continued, "We appreciate the continued support we have received from our institutional lenders in both restructuring our existing debt and providing capital for operations and on-going accounting review work."

The company's historical filings contain disclosures regarding liquidity, capital structure, certain note defaults and updates on the status of its audits. The reader is encouraged to read documents for this information. GlobalNet's current reports and periodic financial filings 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.

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