GlobalOptions Group Announces Third Quarter Results

Business Wire, Nov 14, 2007

NEW YORK -- GlobalOptions Group, Inc. (NASDAQ: GLOI), a leading provider of domestic and international risk mitigation and management services, today announced results for the third quarter and nine months ended September 30, 2007.

Revenue for the third quarter was $21.6 million, as compared with $21.0 million for the same period in 2006. This increase reflects the impact from the expanded customer base built through our acquisitions of Hyperion Risk in August of 2006 and On Line Consulting, Bode Technology and FACTICON in the first quarter of 2007. Our operating loss for the quarter was $4.4 million, versus an operating loss of $0.2 million for the third quarter of last year. Net loss and net loss applicable to common stockholders for the third quarter was $4.9 million or $(1.45) per share versus just under break even, or $(0.01) per share for the third quarter of 2006. The company's weighted average common shares outstanding rose to 3.4 million for the third quarter of 2007 versus 2.4 million last year.

For the first nine months of 2007, GlobalOptions reported revenue of $65.4 million, versus $44.6 million in the same period last year. Had all acquisitions been completed as of January 1, 2007, total pro forma revenue for the nine months ended September 30, 2007 would have been approximately $68.6 million. The operating loss was $18.0 million for the first nine months of 2007, as compared with $1.1 million in 2006. GlobalOptions' net loss for the period was $18.4 million as compared to $11.8 million in 2006. Our net loss applicable to common stockholders for the period was $18.4 million, or $(6.21) per share, versus a net loss of $36.2 million, or $(17.25) per share for 2006.

"While the quarter's top line performance was negatively impacted by the delay in our contract with the state of Louisiana, we have recently accomplished a great deal." stated Dr. Harvey Schiller, GlobalOptions' Chairman & CEO. "We began trading on Nasdaq and, more recently, successfully completed a public offering of 4.5 million shares of common stock - raising over $20 million in gross proceeds and enhancing our trading liquidity in tandem. The move to Nasdaq and the public offering have provided the company with greater access to a larger pool of institutional investors. While a portion of the money raised has paid down certain indebtedness, the remainder is available for working capital and to fund potential strategic acquisitions.

"In addition, the completion of the offering streamlined our balance sheet - converting our Series C Preferred Stock into common (or common equivalents) and simplifying our capital structure. At the same time, we continued to aggressively pursue all growth opportunities this quarter and were pleased by the new Louisiana contract, where each year represents nearly $20 million in potential revenue. Our Preparedness Services unit consistently wins high-profile contracts providing disaster planning and recovering assistance to governments and organizations of all sizes. GlobalOptions' other operations are, likewise, seeing increased demand for fraud detection, security planning, forensic analysis, risk mitigation, and investigative services.

"Our revenue outlook for 2007 remains unchanged at $85-$90 million, with an estimated $105- $115 million projected in 2008 - representing organic growth of 15%-35%. With the completion of our secondary offering and move to Nasdaq, the Company is now strategically focused on accelerating top line growth and increasing margins on the path to profitability, solidifying our market leadership."

Conference Call

GlobalOptions Group will host an earnings conference call at 10:00 a.m. Eastern on November 14. During the call, Dr. Harvey Schiller, Chairman and Chief Executive Officer, and Jeff Nyweide, Chief Financial Officer, will discuss the Company's performance and financial results. The telephone number for the conference call is 888-634-9408. A live webcast of the call will also be available on the company's website, www.GlobalOptions.com.

The webcast will be archived on the site, and investors will be able to access an encore recording of the conference call for one week by calling 800-642-1687, conference ID #2473907. The encore recording will be available two hours after the conference call has concluded.

About GlobalOptions Group, Inc.

GlobalOptions, with headquarters in New York City and offices in 16 cities, is an integrated provider of risk mitigation and management services to government entities, FORTUNE 1000 corporations and high net-worth and high-profile individuals throughout the world. We enable clients to identify, assess and prevent natural and man-made threats to the well-being of individuals and the operations of governments and corporations. In addition, we assist our clients in recovering from the damages or losses resulting from the occurrence of acts of terror, natural disasters, fraud and other risks. We deliver risk mitigation and management services through four business units: Preparedness Services; Fraud and Special Investigations Unit Services; Security Consulting and Investigations; and International Strategies. Additional information can be found at www.globaloptions.com.