Capital Growth Systems Signs Letter of Intent to Purchase Global Capacity Group.

SCHAUMBURG, Ill. -- Capital Growth Systems, Inc. (OTCBB:CGSY), announced today it has signed a letter of intent to purchase 100 percent of the common stock of Houston-based Global Capacity Group, Inc. (GCG), network-neutral bandwidth logistics experts providing network integration and wholesale network services to both carriers and large enterprise customers. Terms of the transaction, which is expected to close in the third quarter, were undisclosed.

"The acquisition represents a very positive step toward transforming Capital Growth Systems into a worldwide provider of innovative voice and data communications solutions," according to Tom Hudson, CEO of CGSY.

"Acquiring GCG is an integral component of our overall business strategy because of its network management software and technical expertise, especially with its core competencies of providing local access and off-net provisioning," said Hudson. "The market worldwide for independent communications service providers is an estimated $2.5 billion; this will permit CGSY to compete effectively and immediately. GCG has experienced very good growth organically, and they enjoy an excellent reputation within the telecommunications industry and will add an impressive mix of enterprise customers and telecommunications companies to our existing customer base."

The transaction is expected to be accretive to CGSY in the first year of integration.

About Capital Growth Systems, Inc.

Capital Growth Systems, Inc. is a public-reporting company under the Securities Exchange Act of 1934 and is based in Schaumburg, Ill. The company currently has two wholly owned subsidiaries: NexVU Technologies, LLC (www.nexvu.com) and Frontrunner Network Systems Inc. (www.frontrunnernetworks.com). The company's common stock is currently quoted on the Bulletin Board under the stock symbol CGSY.

About Global Capacity Group, Inc.

Global Capacity Group, Inc., network-neutral bandwidth logistics experts, provides network integration and wholesale network services to both carriers and large enterprise customers. The Houston-based company designs, builds and manages complex communications networks using best-in-class service providers and equipment manufacturers to deliver customized solutions. Please visit www.globalcapacity.com for more information.

Forward Looking Statements

Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements.

Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the company's inability to accurately forecast its operating results; the company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the company's business. For further information on factors which could impact the company and the statements contained herein, reference should be made to the company's filings with the Securities and Exchange Commission, including annual reports on Form 10-KSB, quarterly reports on Form 10-QSB and current reports on Form 8-K. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.