GlobeTel Communications Corp. Files Fiscal 2006 Results On Form 10-KSB


FORT LAUDERDALE, Fla., July 9, 2008 (PRIME NEWSWIRE) -- GlobeTel Communications Corp. (Pink Sheets:GTEM) today announced that it has filed with the United States Securities & Exchange Commission its annual report for the year ended December 31, 2006 on Form 10-KSB.

For the year ended December 31, 2006, the Company reported a net loss of ($27,268,267), or ($0.26) per share, on revenues of $37,808, compared to a net loss of ($39,082,945), or ($0.52) per share, on revenues of $839,163 for the year ended December 31, 2005. The first two quarters of fiscal 2006 consist of results previously issued but restated within the current 10-KSB filing.

The net loss for fiscal 2006 is attributed to an operating loss of ($19,701,385) and losses from discontinued operations totaling ($7,566,882) which include GlobeTel Wireless and Centerline Communications. Restated 2005 revenues were adjusted to show the movement of these divisions to discontinued operations.

Jonathan Leinwand, Chief Executive Officer, stated, "We are happy, finally, to overcome a major compliance hurdle -- the filing of the fiscal 2006 results. We are working diligently to complete our 10-K for fiscal 2007. While we do that, we remain extremely focused on strengthening our core competencies within the high-, mid- and low-altitude airship business. We would like to acknowledge the continuing patience exhibited by the community of GlobeTel stakeholders, and thank them for their support."

GlobeTel Communications has made its Annual Report on Form 10-KSB available via its web site, www.globetel.net.

About Sanswire Networks and GlobeTel Communications Corp.

GlobeTel Communications Corp. develops and provides an integrated suite of aerospace communications products and services, leveraging its relationships with leaders in UAV (Unmanned Aerial Vehicle) technologies. Sanswire Networks is focused on the design and construction of various aerial vehicles, capable of carrying payloads that provide persistent surveillance and security solutions at various altitudes. Please visit www.sanswire.com or www.sanswiretao.com.

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 a lawsuit filed 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. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.



            GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                   FOR THE YEARS ENDED DECEMBER 31,

                                              2006             2005
                                                            (restated)
 REVENUES                               $      37,808    $     839,163
 COST OF REVENUES                              96,168          774,829
    GROSS (LOSS) MARGIN                       (58,360)          64,334
 EXPENSES
   Payroll and related taxes                3,916,409        3,180,953
   Consulting fees                            623,219        3,473,234
   Officers' and directors'
    compensation                            1,931,774       12,082,809
   Bad debts                                   93,571        1,372,221
   Research and development                 1,573,150        9,467,670
   General and Administrative               4,730,437        5,533,417
   Depreciation and amortization              289,914           68,566
     TOTAL EXPENSES                        13,158,474       35,178,870
 LOSS FROM OPERATIONS                     (13,216,834)     (35,114,536)
 OTHER INCOME (EXPENSE)
   Loss on settlement                              --       (1,256,873)
   Loss on disposition of
    unconsolidated foreign subsidiary              --         (352,300)
   Loss on disposition of equipment          (682,695)              --
   Loss on impairment of equipment         (5,222,066)              --
   Interest income                             45,410           44,214
   Interest expense                          (625,200)        (148,414)
     NET OTHER EXPENSE                     (6,484,551)      (1,713,373)
 LOSS FROM CONTINUING OPERATIONS          (19,701,385)     (36,827,909)

 LOSS FROM DISCONTINUED OPERATIONS         (7,566,882)      (2,255,036)
 NET LOSS                               $ (27,268,267)   $ (39,082,945)

 WEIGHTED AVERAGE NUMBER OF COMMON
  SHARES OUTSTANDING
      BASIC and DILUTED                   105,643,655       75,072,487

 LOSS PER SHARE FROM CONTINUING
  OPERATIONS
      BASIC and DILUTED                        ($0.19)          ($0.49)
 LOSS PER SHARE FROM DISCONTINUED
  OPERATIONS
      BASIC and DILUTED                        ($0.07)          ($0.03)
 NET LOSS PER SHARE
      BASIC and DILUTED                        ($0.26)          ($0.52)


            GLOBETEL COMMUNICATIONS CORP. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEETS
 
                                         DECEMBER 31,      DECEMBER 31,
                                            2006              2005   
                 ASSETS                                    (restated)
                                        -------------    -------------
 CURRENT ASSETS
   Cash and cash equivalents            $       4,243    $   1,065,952
   Accounts receivable, less
    allowance for doubtful accounts
    of $0 and $408,128                        271,262           77,905
   Prepaid expense - related party                 --          185,960
   Prepaid expense                                 --           67,060
   Loans to employees                              --           46,068
   Deposits                                    72,987        1,212,921
   Current assets from discontinued
    operations                                106,033          710,840
                                        -------------    -------------
     TOTAL CURRENT ASSETS                     454,525        3,366,706
                                        -------------    -------------
 EQUIPMENT, NET                                    --          717,425
                                        -------------    -------------

 OTHER ASSETS
   Assets held for sale, net                       --        5,279,567
   Other assets from discontinued
    operations                                 54,380        1,047,824
                                        -------------    -------------
     TOTAL OTHER ASSETS                        54,380        6,327,391
                                        -------------    -------------
 TOTAL ASSETS                           $     508,905    $  10,411,522
                                        =============    =============

   LIABILITIES AND STOCKHOLDERS' 
         EQUITY(DEFICIT)

 LIABILITIES

 CURRENT LIABILITIES
   Accounts payable                     $   2,463,605    $     702,052
   Notes and convertible notes
    payable, net of discount
    of $882,128                             6,262,598               -- 

   Bank Overdraft                              14,664               -- 
   Accrued officers' and directors'
    compensation                                   --           97,382
   Accrued expenses and other
    liabilities                               460,097          459,528
   Related party payables                          --           57,500
   Current liabilities from
    discontinued operations                   895,697        1,192,870
                                        -------------    -------------
     TOTAL CURRENT LIABILITIES             10,096,661        2,509,332
                                        -------------    -------------
 LONG-TERM LIABILITIES
   Due to former employee payable
    in stock                                       --          237,600
   Due to related party payable
    in stock                                4,598,333        7,160,000
                                        -------------    -------------
     TOTAL LONG-TERM LIABILITIES            4,598,333        7,397,600
                                        -------------    -------------
 TOTAL LIABILITIES                         14,694,994        9,906,932
                                        -------------    -------------

 COMMITMENTS AND CONTINGENCIES

 STOCKHOLDERS' EQUITY(DEFICIT)
   Series A Preferred stock, $.001
    par value, 250,000 shares
    authorized; no shares issued and
    outstanding:                                   --               -- 
   Series B Preferred stock, $.001
    par value, 500,000 shares
    authorized; no shares issued and
    outstanding:                                   --               -- 
   Series C Preferred stock, $.001
    par value, 5,000 shares
    authorized; no shares issued and
    outstanding:                                   --               -- 
   Series D Preferred stock, $.001
    par value, 5,000 shares
    authorized; no shares issued and
    outstanding:                                   --                1
     Additional paid-in capital -
      Series D Preferred stock                     --          999,999
   Common stock, $.00001 par value,
    250,000,000 shares authorized;
    109,470,803 and 98,192,101 shares
    issued and outstanding                      1,095              982
   Additional paid-in capital              94,733,346       81,570,082
   Stock subscriptions receivable:
     Series D Preferred Stock                      --         (500,000)
     Common Stock                            (130,282)         (44,494)
   Accumulated deficit                   (108,790,248)     (81,521,980)
                                        -------------    -------------
     TOTAL STOCKHOLDERS'
      (DEFICIT) EQUITY                    (14,186,089)         504,590
                                        -------------    -------------
 TOTAL LIABILITIES AND STOCKHOLDERS'
  EQUITY(DEFICIT)                       $     508,905    $  10,411,522
                                        =============    =============

            

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