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GlobeTel Communications and VPN de Mexico establish No Mas Cables de Mexico

April 3, 2007

2 Min Read

FORT LAUDERDALE, Fla. -- 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."

Globetel Communications Corp.

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