Global DataTel Inc. Issues Investment Report.

DELRAY BEACH, Fla.--(BUSINESS WIRE)--Feb. 22, 1999-- -0-

OTCBB: Common Stock           GDIS
Price at 1/28/99             $7.50
52-Week Range: Common Stock  $12.00 to $7.00
Market Capitalization        $56,250,000
Shares Outstanding            7,500,000
Estimated Float               2,000,000
Average Daily Trading Volume  25,000
Fiscal Year Ends              Dec. 31

Headquartered in Delray Beach, Fla., Global DataTel is an international supplier of enterprise-wide information technology solutions. The company is becoming Latin America's first continent-wide data and telecom solution provider. As an IBM Business Partner, the company is engaged in medium to large system integration projects throughout Latin America. Global provides a level of expertise for such diverse services as system consulting, maintenance support, application hardware and software, as well as Y2K utilities and compliance testing throughout Latin America.

Investment Highlights:

-- IBM Business Partner. As an IBM Business Partner, Global is in a

unique position to capitalize on the growing computer and telecom

integration projects within the "Latin American Fortune 1000"

group of companies.

-- Twenty percent Revenue Growth. Revenues for 1998 exceed $25

million, a 20 percent compounded increase over revenues in 1997.

-- Microsoft Certified Solution Provider. This designation elevates

Global into a very special group of companies worldwide. It

enables Global to work on some of the largest server and wide

area network integration projects in Latin America.

-- Acquisitions. Global has planned acquisitions for 1999 that

include computer resellers in Mexico, Brazil and Argentina, with

combined revenues exceeding $70 million.

Overview

Global DataTel operates IBM Authorized Business Partners that market enterprise-wide solutions for medium to large system integration projects throughout Latin America. The company's main business is the sale of new IBM ES/9000, AS/400, RS/6000, Netfinity servers and Thinkpad products and services to multinationals and large national entities such as Siemens, Abbott Labs, etc.

The company provides comprehensive system services and is an authorized reseller for IBM, Compaq, Dell, Hewlett-Packard and Cisco, as well as a Microsoft Certified Solution Provider, Lotus Premier Team Provider and an exclusive distributor of JBA International, an E.R.P. solution company. Global provides a level of expertise for such diverse services as system consulting, maintenance support, both hardware and software, as well as Y2K testing and compliance testing throughout Latin America.

Global has developed a superb reputation for its ability to provide the system solution professionals who are required for today's leading corporations doing business throughout Latin America.

IBM Business Partner

The company includes U.S. and Latin American-based IBM Business Partners specializing in the IBM mid-range and mainframe market. With offices in Costa Rica, Nicaragua, Colombia and the U.S., the "critical mass" that will give the company its initial momentum for going forward is now in place.

This partnership provides Global a unique opportunity to showcase its most valuable resource, its talented personnel. In addition to reselling IBM's entire line, as detailed above, special certifications have also qualified Global as IBM authorized for Point of Sale and Banking equipment. IBM's continued support for the company's efforts throughout Latin America, has provided Global DataTel unprecedented entree into the largest corporate system integration projects.

Through merger, acquisition or purchase, Global plans to have IBM Business Partners from Mexico to Argentina. During 1999, Global plans to acquire one to two IBM mid-range resellers per month in the largest countries in Latin America. Improved economies of scale resulting from these acquisitions will allow Global to efficiently market its strengths as a sales and service-oriented enterprise, increasing revenues by an estimated 25 percent annually, excluding revenues from acquisitions.

Products and Services

The IBM AS/400 and RS/6000 platforms from IBM represent the largest segment of Global's revenue stream. These commercial mini-computers typically operate most mid-to-large sized companies. These systems have an application suite of over 10,000 Y2K compliant programs. These programs not only include financial and database suites, but are excellent Internet platforms as well.

The company's services include pre-purchase system consulting, application testing, wire structure design, contract programming, disaster recovery planning, software training and hardware/software maintenance contracts.

Electronic Latin America On-line

Global's telecom delivery division will supply the computer hardware/software purchaser with a broad range of telecommunications products such as Internet access, high speed voice and data communication lines, satellite uplinks and international telephone service-over-Internet protocol.

With its corporate subsidiary, Electronic Latin America On-line, Global hopes to capitalize on the amazing growth and interest generated by the Internet. Thus, in addition to selling hardware, Global will provide corporate-wide services, such as intranet/Internet integration, WAN -- wide area network -- and LAN upgrades and enhancements and maintenance coverage. Providing these services, Global anticipates steadily impressive growth well into the 21st century.

The Latin American Market

Global estimates the Latin American corporate computer hardware and services market to be approximately $5 billion in 1999. The Latin American computer sales segment of the market is growing at a compound annual rate of 30 percent in hardware and software. Computer services revenue is growing at a substantial 45 percent per year. Global intends to capitalize on this growing market segment anticipating a broad presence throughout the South American marketplace by mid-1999.

This target market for Global's services include corporations with 20 or more employees and revenues typically greater than $1 million annually. The company focuses solely on corporate clients, as the retail market is, at best, highly competitive and marginally profitable. Global hopes to gain a greater portion of its revenue from services, as this is the most profitable segment of the computer business.

Corporate clients worldwide are seeking IT partners that can grow with them to handle their future needs. Specifically, multi-nationals are looking for a technology partner with broad-based geographical presence across Latin America that can offer the guaranteed responsiveness, quality and consistency of service when and where needed.

Global's Marketing Strategy Global's marketing strategy includes the following:

1. Emphasis on service and support: Global's strategy is to

differentiate itself from other resellers by providing a total

solution availability from Mexico to Argentina. Global's

expertise in corporate environments is expected to provide the

competitive edge.

2. Personalized relationships: Nowhere else is the personal

business relationship revered more than in Latin America.

Global intends to capitalize on this in its sales strategy.

3. Expertise in Internet/intranet implementation: Global has the

knowledge base required to succeed in this vast high growth

marketplace.

4. Direct sales: Utilizing an established sales force is the main

mode to generate sales in Latin America. Global's trained

sales force will focus on large accounts in each region.

5. Sales seminars: This is another popular forum for sales and

the company plans at least six strategic seminars per year.

6. Internet online web sales: Sales through the Internet also

will be made available to potential customers.

Acquisition Strategy

Global plans to execute its acquisitions/mergers of corporate resellers in Latin America in a timely fashion. With Revenues exceeding $25 million in 1998, Global's acquisition strategy includes more than $75 million in targeted IBM Business Partners and Internet service providers throughout the region. These acquisitions targets include:

Mexico: Three active IBM resellers with revenues totaling $40 million

Venezuela: Two active IBM resellers with revenues totaling $18 million

Ecuador: One active IBM reseller with revenues totaling $7 million

Peru: One active IBM reseller with revenues totaling $10 million

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Financial Highlights
Following are Global's five year financial projections:

1999
Revenues:             $34,651,747
Gross profit:         $12,242,375
Pre-tax net income:   $ 3,576,954

2000
Revenues:             $41,582,096
Gross profit:         $14,690,849
Pre-tax net income:   $ 4,292,744

2001
Revenues:             $49,898,515
Gross profit:         $17,629,019
Pre-tax net income:   $ 5,151,691

2002
Revenues:             $59,878,318
Gross profit:         $21,154,823
Pre-tax net income:   $ 6,182,429

2003
Revenues:             $71,853,862
Gross profit:         $25,385,788
Pre-tax net income:   $ 7,419,314

Global's revenues, profit and pre-tax net income for the 10 months
ending Oct. 31, 1998:

Revenues:             $24,063,713
Gross profit:         $ 8,501,648
Pre-tax net income:   $ 2,485,383

This report contains various forward-looking statements which represent the company's beliefs or expectations regarding future events. When used, the words "believes," "expects," "projects," "anticipates," "estimates," or similar expressions are intended to identify forward-looking statements. Forward looking statements include, without limitation, projections on the company's future revenues and earnings, expected revenues from planned acquisitions, percentage of growth of the company's sales and/or percentage of growth of the company's industry, etc. All forward-looking statements involve a number of risks and uncertainties that could cause the actual results to differ materially from the projected results, including problems that may arise on the part of third parties. Factors that may cause these differences include, but are not limited to, assumptions concerning production and sales, operating expenses and other costs, competition, changes in the economic climate in which the company does business, problems with the company's ability to raise capital, obtain and retain key management personnel, etc.

Background of the Management Team

Richard Baker, chief executive officer Baker is the founder of International Computer, a large IBM reseller specializing in the mid-range marketplace. He has extensive computer experience in Latin America, which includes his majority ownership of a Colombian computer service organization with more than seven offices. He has a B.A. in Business Administration from Central Ct. State University.

Antonio Serrato, chief operating officer Serrato is a former World Trade vice president for Latin America. He also is a former president of a Colombian computer reseller. He received a B.A. in Business Administration from the National University of Colombia.

Michael J. DeMarie, chief financial officer DeMarie is a Certified Public Accountant with extensive computer-related business experience. He holds a B.A. in Finance from the University of New York at Buffalo.

Oscar Barquero, Central American Group president Barquero is the former president of computer reseller "C.E.O." in Costa Rica. He holds a B.A. in Business Administration from the National University of Costa Rica.

Rafael Delgado, Adean Group president Delgado is the former president of Casa Informatica, an IBM reseller in Colombia. He has a B.A. in Civil Engineering from the National University of Colombia.

For further information:

Richard Baker Hal Schweig Global DataTel Inc.

Martin E. Janis & Company Inc. 3333 Congress Avenue, Suite 404

919 North Michigan Avenue Delray Beach, Fla. 33445 Chicago, Ill. 60611 Tel: [phone] Tel: [phone] Fax: [phone] Fax: [phone]

NOTE: This report was produced by Martin E. Janis & Company Inc. from materials provided by Global DataTel Inc. and other research sources, for the sole purpose of general information. Martin E. Janis & Company Inc. makes no warranties to its factual content. Martin E. Janis & Company is not a borkerage firm or securities dealer, therefore nothing contained in this report shall constitute an offer to sell, solicit or buy any securities or ivestment advice. Investment in the security mentioned here involves risk and should not be considered without first reading the company's most recent financial statements, 10Q and 10K. This report cannot be reproduced without the written permission from the company or from Martin E. Janis & Company Inc. Martin E. Janis & Company Inc. is a shareholder in Global DataTel Inc.