FORT LAUDERDALE, Fla. and MEXICO CITY, April 3, 2007 (PRIME NEWSWIRE) -- GlobeTel Communications Corp. (Pink Sheets:GTEM) and VPN de Mexico S.A. de C.V. (VPN) today announced that they have consummated an agreement to establish a joint venture, 51% owned by VPN and 49% owned by GlobeTel, to build and operate wireless broadband networks in Mexico based on GlobeTel's proprietary HotZone(tm) technology. Despite having the highest percentage of personal computer penetration in Latin America, Mexico has one of the lowest rates of penetration for high speed Internet access. The joint venture, No Mas Cables de Mexico, S.A. de C.V., will help fulfill a critical need within Mexico for more widespread broadband and telephony availability.
No Mas Cables de Mexico expects to build networks that will serve urban areas with a target customer goal of 250,000 customers within the first three years of operation. VPN and GlobeTel anticipate No Mas Cables de Mexico will start producing net income during its sixth month and would become cash flow positive by the end of the first 12 months.
Under terms of the agreement, initial working capital has been infused into No Mas Cables de Mexico, with each partner's contribution proportional to their ownership stake in the joint venture. The initial working capital will be used to continue construction of wireless networks using GlobeTel's products and intellectual property. This amount is consistent with the preliminary business plan and financial model structured and agreed upon by both partners.
Networks built by No Mas Cables de Mexico will be based on the Company's proprietary HotZone 4010 WiFi technology.
This agreement was pursuant to the successful testing and startup of operations of an initial broadband wireless network in Pachuca, State of Hidalgo, Mexico. Construction of the Pachuca network commenced in mid-September 2006 and began serving wireless broadband customers in October.
"VPN is thoroughly committed to providing all necessary resources for No Mas Cables' growth and market penetration, and we look forward to bringing this exciting service to Mexico," stated Pablo Peralta, Chief Executive Officer of VPN de Mexico. "The backbone of our networks, the HotZone technology, has demonstrated cost-efficiency and high scalability, enabling us to penetrate these markets quickly and with less intrusion into the communities than other technologies."
Peter Khoury, Chief Executive Officer of GlobeTel Communications, stated "The Peralta family's innovation within the Mexican telecommunications market is characterized by a number of 'firsts' with respect to the cellular and VoIP markets. Working with the accomplished Peralta family and their telecom subsidiary VPN, we are actualizing our mission of bringing accessible, inexpensive communications resources to Mexico."
About VPN de Mexico S.A. de C.V. and Grupo IUSA S.A. de C.V.
Headquartered in Mexico City, Mexico, VPN de Mexico is part of GRUPO IUSA. Grupo IUSA, founded in 1939, is one of the largest industrial groups in Mexico, with interests in construction, communications, automotive equipment and financial services. Grupo IUSA is a leader in the domestic and international market for supplying integral solutions for diverse industrial and construction sectors. For more information about the company, log on to www.grupo-iusa.com.
About GlobeTel Communications Corp.
GlobeTel Communications Corp. develops and provides an integrated suite of telecommunications products and services, leveraging its advances in VoIP and Wireless Access technologies. Individually, each of GlobeTel's business units function as distinct, stand-alone entities. Together they form a powerful alliance of human talent and technological innovation resulting in the SuperHub(tm) worldwide VoIP network, Sanswire Stratellite(tm) platform and products enabling simpler, cheaper transmission of voice and data. GlobeTel has historically focused its business development on markets outside of the United States. For more information, please visit: www.globetel.net.
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect" "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including an ongoing formal investigation by the U.S. Securities & Exchange Commission and delayed filings of quarterly results, any of which could cause the Company's previously reported actual results, performance (finance or operating) to change or differ from future results, performance (financing and operating) or achievements, including those expressed or implied by such forward-looking statements.