Global Capacity and VSNL Global Services Complete Strategic Sourcing Agreement

Business Wire, Jan 3, 2008

Partnership Provides Company with Crucial International NOC, Provisioning and Analyst Resources

CHICAGO -- Global Capacity, Inc., (parent: Capital Growth Systems, Inc. (OTCBB: CGSY)), the telecom industry's first logistics company, announced today that it has signed a strategic sourcing contract with VSNL Global Services Limited (parent: Videsh Sanchar Nigam Limited (NYSE: VSL)), a global leader in outsourced carrier operations.

This agreement enables Global Capacity to efficiently scale operations through the establishment of an international network operations center (NOC), as well as utilize additional network analyst and provisioning resources.

"A high quality, scalable service delivery capability is critical to support the rapid adoption of our solutions by our expanding global customer base," said Patrick Shutt, Chief Executive Officer for Global Capacity. "By coupling the resources and capabilities of VSNL Global Services Limited with the core expertise and systems of Global Capacity, we have created a cost effective service delivery capability that exceeds our customer's expectations both immediately and into the future."

The international operations center, located in Pune, India, will work in conjunction with the Global Capacity network operations center in Waltham, MA, to provide "follow the sun" support for the Company's increasingly international customer base. The network analyst and provisioning resources will enable the rapid scaling required to implement key customer revenue initiatives as Global Capacity continues to win major contracts.

Additionally, Global Capacity and VSNL Global Services Limited have signed a Letter of Intent to create a business development agreement that enables each company to leverage the other's portfolio of offerings to its existing customer base.

"We are pleased that Patrick and his team have chosen VSNL Global Services Limited as their strategic sourcing partner," said V. S. Shridhar, Chief Operations Officer of VSNL Global Services Limited. "We believe Global Capacity has developed a unique model and has an unrivaled group of talented industry experts that are creating tremendous value in the market. There are strong similarities in how our two companies do business, and VGSL is very well positioned to help Global Capacity successfully manage its rapid growth."

About Global Capacity

Global Capacity is the operating arm of Capital Growth Systems, Inc. (OTCBB: CGSY). The telecom logistics company provides a fully integrated supply chain management system that streamlines and accelerates the process of designing, building and managing customized communications networks. It offers a comprehensive suite of services to enterprises, systems integrators and carrier customers worldwide. Global Capacity has operational centers in Waltham, MA; Manchester, England and Houston, TX; with offices in Chicago, IL; New York, NY; Minneapolis, MN; and Lisbon, Portugal. For more information, please visit www.globalcapacity.com or contact 866.226.4244.

Forward-Looking Statements

Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements.

Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential ability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. For further information on factors which could impact the Company and its subsidiaries, and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission, including annual reports on Form 10-KSB, quarterly reports on Form 10-QSB and current reports on Form 8-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.