Global Entertainment Holdings Announces Second Year of Profitability; Firm Positioned for Growth in 2002.Business & Entertainment Editors MIAMI--(BUSINESS WIRE)--May 9, 2002 Global Entertainment Holdings/Equities, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :GAMM GAMM Generalized Air Mobility Model GAMM Gimbal Angle Matching Monitor GAMM German Association for Mathematics and Mechanics ) (http://www.globalentertainmentinc.com) Global Entertainment today announced its second consecutive year of profitability for fiscal year end December 31, 2001. The net profit of $117,747 for 2001 follows a profit of $217,662 for year end 2000. These positive earnings reports are in contrast to negative earning reports among many industry competitors, marking Global's steady progress toward achieving a sustainable financial competitive advantage in the online gaming See gaming. software industry. Bryan Abboud, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President of Global Entertainment Holdings/Equities, Inc., stated: "Global made substantial investments in technology and human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. during 2001 which are consistent with the vision of our managed growth. Even with this increased outlay, we were able to maintain a profit for the second consecutive year." Global's revenues for the year ended December 31, 2001 were $4,708,468, representing a 3% increase over the $4,572,489 from the twelve months ended December 31, 2000. The company's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Interactive Gaming & Wagering, N.V., (IGW IGW Increased Gross Weight (Boeing) IGW Investment Grade Wine IGW Integrated Gateway IGW Integral Gateway IGW Inter-Galactic War IGW If God's Willing IGW International Gateway IGW Internet Gateway IGW Industrial Security Gateway ) is the primary source of revenue growth. During the fourth quarter of 2001, IGW experienced its highest level of operations since its inception in 1997, posting revenues of $1,837,589. This is nearly a 60% increase as compared to the same quarter in 2000. Software licensing revenues contributed 82% of Global's total revenues, followed by bandwidth fees which represented 7% of total revenues with $341,859. Special projects, a line item for the marketing services department, contributed 5% of total revenues with $222,886; hosting fees accounted for 2% or $87,312, and initial installation licensing fees added $50,000, or 1% to total revenue. Global's other wholly-owned subsidiary, Prevail Online, Inc., (Prevail) generated revenues of $143,929 for fiscal year end December 31, 2001, representing a decrease of 80% from the year 2000. Prevail's revenue of $143,929 accounted for 3% of Global's total revenue in 2001 as compared to a contribution of 16% for 2000. Prevail showed limited activity during 2001 for several reasons including, 1) a significant unfavorable change in the way portal advertisers are paying for services, and 2) the three-month suspension of Prevail's flagship website www.wheretobet.com, while the search was conducted for an appropriate head of operations. By December 31, 2001, Prevail was live and focused on the future with an aggressive manager and business plan in place. Global's operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased from 75% to 79% as a percentage of revenue at $3,410,044 in the year 2000 as compared to $3,722,796 for 2001. These increases in cost are primarily attributable to investment in software development which is consistent with Global's long-term strategy for growth. Global's investment here reached $883,339, or 17% greater than the prior year. Tax expenses for the twelve months ended December 31, 2001 were $16,667 as compared to $16,912 for 2000. The majority of Global's income is generated from IGW in Curacao and is taxed in that jurisdiction at the rate of 3%. IGW's net income is not taxed in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , while Prevail and Global's net incomes are. Two consecutive profitable years and more favorable cash flow from one of its major customers, have led Global to a more solid cash position. Strategic investments made during 2001 in technology, marketing, and human resources have positioned the firm for stronger growth in 2002. View 2001 Financial Statements at: http://www.globalentertainmentinc.com/finance.htm Notes to Editors: Global Entertainment Holdings/Equities, Inc. (OTCBB:GAMM), is a leading publicly traded holding company that provides business development support and administrative assistance for technology-driven subsidiaries that license, develop and host Internet software applications and operate web publishing Creating a Web site and placing it on the Web server. A Web site is a collection of HTML pages with the home page typically named INDEX.HTML. Web sites are designed using Web authoring software which provides a graphical layout capability or by hand coding in HTML or both. sites in the online gaming sector. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Some statements in this release are forward-looking and are subject to certain risks and uncertainties, including, but not limited to, economic conditions, competition, changes in laws, and the demand for the company's goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. , which could significantly affect anticipated future results. Actual results may differ materially from any forward-looking statements. www.globalentertainmentinc.com www.interactive-gaming.com www.thesportsdaily.com www.netbet.org www.wheretobet.com |
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