SANTA MONICA, Calif., May 13, 1999 (PRIMEZONE) -- GlobalNet Financial.com, Inc. (OTCBB: GLBN) and Freeserve Limited ("Freeserve") announced today that Freeserve and GLBN have expanded their alliance as a result of an approximately U.S. $15.0 million cash investment in GLBN by Freeserve. As part of the investment, Freeserve has been granted an option to increase further its stake in GLBN to 19.9%. Specific terms of the investment were not disclosed.
Freeserve is the largest ISP in the United Kingdom with some 1.1 million active accounts. Freeserve is a subsidiary of the Dixons Group plc and was the first company to offer a fully featured free Internet service U.K. wide. GLBN through its web site UK-iNvest.com is the exclusive provider of news and information on Freeserve's Money Channel.
Stanley Hollander, President and CEO of GLBN, stated "We are extremely pleased to expand our alliance with Freeserve such that they have a significant equity stake in our Company. We believe a closer relationship with Freeserve will help us expand at a much faster rate as well as maximize our equity value over the long term".
John Pluthero, CEO of Freeserve, stated, "We are extremely impressed by GLBN and this deal gives Freeserve a further stake in GLBN's growth. Cementing our relationship will enable us to work with GLBN to expand their financial websites world wide".
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 has embarked on a strategy of building market-specific financial websites throughout the world in alliance with key industry players in the various markets. Last month, the company successfully launched UK-iNvest.com in alliance with Freeserve, Ltd. UK-iNvest.com (www.ukinvest.com) is the exclusive provider of financial information on Freeserve with its more than 1.1 million accounts. GLBN has initiated its global Internet expansion through an alliance with the UK's largest and fastest growing Internet Service Provider, Freeserve Limited, a subsidiary of Dixon's Group, plc, the UK's largest electronics retailer.
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.
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.
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