David Propis, President of GlobalNet stated, "our shareholders must be kept aware of the potential and timeframes in this project as well as all other projects currently being worked on. We are excited about the prospects of this project and continue to build the retail divisions of our company.

"Additionally, we continue to work tirelessly at strengthening our position as a leader of wholesale traffic to Latin America as well as review other wholesale markets with limited barriers of entry." GlobalNet's proprietary technologies and years of experience in the Consumer VoIP arena position the company as a leader in the space.

Iraq is a country with a population of approximately 16 million people and an outside military and humanitarian aid presence of almost 150,000. Currently, the amount of civilians with access to any phone service is approximately 190,000 people or a teledensity rate of 1.5%.

As the rebuilding efforts continue, there is currently no reliable and affordable access to phone service available to the Iraqis. The GlobalNet project will not only allow our military the access to this service, but the company plans through distributors in Iraq to offer this service to the average citizen.

Until a national communication infrastructure is constructed, the only available phone service will require satellite access. GlobalNet's access to the Globalstar low-earth orbit satellite allows it to offer the clearest possible satellite calls. With this state-of-the-art satellite and GlobalNet's network architecture, the quality of the calls are unmatched by any other possible competitors that the company is aware of.

The current situation in Iraq is that the international gateways which were destroyed in the military campaign are still being rebuilt, the GSM network is in it's infancy stage and with the uncertainty in the country, could be delayed or destroyed at any time.

Mr. Propis continued, "In America, we take for granted liberties such as access to phone service. Most Americans can not fathom that a huge portion of a population as large as Iraq has never used a phone or had access to a phone. We intend to change that and be a contributor to the rebuilding efforts as well as change the future of Iraq. We plan on using this project as a template for future projects in other countries as well."

GlobalNet will shortly be receiving the initial order of private labeled SIM cards from it's European manufacturing partners which will be provided to its local distribution channel and sold to the Iraqi population.

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