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High-Tech Writers / Business Editors AVENTURA, Fla.--(BUSINESS WIRE)--GLBT-- Share Support Commitment Secured from Majority Stockholder Eliminates Previous and Future Dilution of Public Shareholders' Interest in the Company GlobalNet Corporation (OTCBB:GLBT) (www.gbne.net), a major provider of international telecommunications services, today announced that it has secured an additional $3.8 million in funding from the Company's existing convertible debentureholders. Concurrently, the Company's majority shareholder, Growth Enterprise Fund S.A. (GEF), agreed to provide up to 2.5 billion of its shares of the Company's outstanding common stock in order to preclude dilution of any other shareholder's interest which might have otherwise resulted from the conversion of all outstanding debentures issued by the Company, representing approximately $2.5 million dollars in addition to this latest $3.8 million round of financing. Thus, our principal shareholder has volunteered to contribute to the capital account of the Company up to $6.3 million in common stock in order to underwrite certain working capital requirements of the Company, while insulating all other shareholders from any dilution upon conversion of the Company's indebtedness. The Company expects to use this new funding, which is being advanced in three tranches, to bolster its capital account and finance the expansion of its VoIP and retail product lines. The first tranch of $1.3 million has already been disbursed to the Company. A second tranch of $1.3 million will be drawn down by the Company on June 21, 2004, and the third tranch in the sum of $1.2 million will be provided to the Company on July 20, 2004. This new financing was secured by four-year convertible debentures bearing interest at 6% per annum on substantially the same terms as the Company's existing $2.5 million in convertible debentures, with the exception that the newly-issued debentures are convertible into shares of the Company's common supplied by Growth Enterprise Fund S.A. from its holdings, as aforementioned, at the lesser of $.06 or 70% of market price. All of the debentures are subject to conversion limitations that prohibit the debentureholders from collectively owning at any time more than 4.9% of the Company's outstanding common stock. The debentureholders also received five-year warrants to purchase an aggregate of 11.4 million shares of the Company's common stock, exercisable at $.02 per share. The Company has the right to call the newly-issued debentures by paying the debentureholders a prepayment premium, which is 20% in the first 60 days from issuance, 30% in the 61st to 120th day from issuance, and 40% thereafter. This Company may only call the debentures if the market price of the Company common stock is $.06 or less. Growth Enterprise Fund S.A. has agreed that, upon the conversion of any of the convertible debentures (including both the pre-existing $2.5 million in debentures as well as the newly-issued $3.8 million in debentures), GEF will contribute to the Company a number of shares of common stock held by GEF equal to the number of shares to be issued to the debentureholders pursuant to such conversion. The maximum number of shares of common stock that the Company can obligate GEF to contribute is 2.5 billion. At yesterday's market closing price of $.025, the aggregate number of shares that the debentureholders would actually receive pursuant to the formula in place, assuming a full conversion would be approximately 1.78 billion shares. The shares which GEF contributes may either be cancelled or held in the treasury of the Company, at the Company's option. As a result of this agreement, the Company can issue up to 2.5 billion shares of common stock to the debentureholders upon the conversion of debentures without diluting the ownership of any of the Company's common shareholders other than GEF exclusively. Currently, GEF owns of record approximately 4.425 billion shares of the Company's common stock. "Our latest round of financing will be used to accelerate the expansion of service both in the United States and abroad, including wholesale, retail, and enhanced services to support the development and introduction of new revenue-generating opportunities," said Mark T. Wood, Chairman and CEO of GlobalNet Corporation. "This meaningful financial support and continued enthusiasm from our existing principal investors has enabled GlobalNet to devise an innovative, non-dilutive financing package that should greatly enhance our ability to bring our new products to market more efficiently and expeditiously than we had originally anticipated. We are more excited than ever about the future of the Company, and are most appreciative of the confidence that has been placed in our management team." About GlobalNet Corporation GlobalNet Corporation is one of the top ten U.S. service providers of outbound traffic to Latin America and counts among its customers more than 30 Tier 1 and Tier 2 carriers. GlobalNet provides international voice, data, fax and Internet services on a wholesale basis over a private IP network to international carriers and other communication service providers in the United States and internationally. GlobalNet's state-of-the-art IP network, utilizing the convergence of voice and data networking, offers customers economical pricing, global reach and an intelligent platform that guarantees fast delivery of value-added services and applications. More information may be obtained from our website at http://www.gbne.net. Safe Harbor for Forward-Looking Statements: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in the future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product price, volatility, product demand, market competition, risk inherent in the Company's domestic and international operations, imprecision in estimating product reserves and the Company's ability to replace and expand its holdings. KEYWORD: FLORIDA INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING E-COMMERCE INTERNET SOURCE: GlobalNet Corporation CONTACT INFORMATION: GlobalNet Corporation Mark T. Wood, 786-541-0209 investors@gbne.net or Osprey Partners Mike Mulshine, 732-292-0982 osprey57@optonline.net

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