SANTA MONICA, Calif., May 14, 1999 (PRIMEZONE) -- GlobalNet Financial.com, Inc. (OTCBB: GLBN) today clarified the terms of the investment by Freeserve Limited ("Freeserve") in GLBN. Freeserve purchased approximately 6.4 million new shares at $2.00 per share and simultaneously exercised 2.0 million previously owned warrants, each exercisable at $1.00 per share. As a result of the investment, Freeserve currently owns approximately 13% of the issued and outstanding shares of GLBN. All shares issued to Freeserve are restricted securities.
Freeserve is a subsidiary of the Dixons Group plc the UK's largest electrical retailer and was launched on September 22, 1998. It was the first company to offer a fully featured free internet service UK wide. Freeserve is available on a free CD in all Dixons, Currys, PC World, the Link and @jakarta stores in the UK and is primarily intended for home users and small office/home business users.
The exercised warrants were issued to Freeserve in January 1999 as part of a Content Supply Agreement. Pursuant to this Agreement, GLBN became the exclusive provider of financial news, information and services on Freeserve's Money Channel through the GLBN website www.ukinvest.com.
This relationship with Freeserve offers GLBN numerous, revenue generating, E-commerce based opportunities including the exclusive provision of on-line brokerage on the Freeserve platform. In addition, there are opportunities for the sale of other financially oriented products and services.
GlobalNet Financial.com, Inc. is an international multimedia provider of online financial news and information services to the investment community through its wholly owned subsidiaries MicroCap1000.com and UK-iNvest.com. MicroCap1000.com, which was fully launched in early October 1998, provides comprehensive, Internet-based electronic publishing of unique content on the U.S. MicroCap sector. Currently with nearly 165,000 registered users, MicroCap1000.com is recognized for its cutting-edge news and commentary and was rated by Barron's (11/23/98) as one of the top financial websites.
GLBN believes that Freeserve's strategic investment will aid it in expanding on a world-wide basis. GLBN has embarked on a strategy of building market-specific financial websites throughout the world by entering into alliances with key industry players in the various countries. Last month, the company successfully launched UK-iNvest.com (www.ukinvest.com) in alliance with Freeserve, Ltd., becoming the exclusive provider of investment information on Freeserve's Money Channel.
During 1999, GlobalNet and its subsidiaries entered into a number of joint ventures, content alliances and advertising agreements. Telescan, Inc. (Nasdaq: TSCN) acquired 9.9% of GLBN as a result of a technology license agreement as well as a strategic share exchange. UK-iNvest.com, Ltd. hired 24/7 (Nasdaq: TFSM) as its advertising agency and entered into a co-branding agreement with the Motley Fool UK whereby The Motley Fool UK will provide a broad range of content on UK-iNvest.com. Further, MicroCap1000.com, Ltd. teamed up with Lycos (Nasdaq: LCOS) whereby MicroCap1000 will be showcased through advertising within Lycos.com's Money Web Guide. TheStreet.com (Nasdaq: TSCM) will provide a range of content on UK-iNvest.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995. Except for historical information, the matters discussed in this news release that may be considered forward-looking statements could be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. These include uncertainties in the market, competition, legal, success of marketing efforts and other risks detailed from time to time in the company's SEC reports. The company assumes no obligation to update the information in this release.