Globix Reports Fiscal Second Quarter Results

NEW YORK – May 15, 2002

Globix Corporation today announced financial results for its fiscal second quarter 2002, which ended March 31, 2002.

For the quarter, Globix posted revenue of $21.4 million, a 20% decrease over revenue of $26.8 million in the second quarter of fiscal 2001.

Cost of Revenue was $9.7 million, a 7% decline over the same period last year. Selling, General and Administrative expenses were $21.4, down from $28.3, a drop of over 24% from second quarter of fiscal 2001.

EBITDA loss (losses before interest, income taxes, depreciation and amortization and other non-operating expenses including restructuring charges and losses on impairment of intangible assets) was $9.8 million for the quarter, compared to $12.0 million for the same quarter last year. The Company’s financial results were negatively impacted in the quarter by a restructuring charge of $48.4 million primarily associated with the reduction of data center square footage under lease at the Globix House facility in London, related asset impairment as well as the $3.2 million impairment of certain intangible assets. For the quarter, net loss attributable to common stockholders was $87.6 million, or $2.21 per share based on 39.7 million common shares. For the same quarter in the prior fiscal year, net loss attributable to common stockholders was $33.7 million, or $0.87 per share based upon 38.7 million common shares.

Globix ended the quarter with $56.5 million in cash.

During the quarter Globix and two wholly owned domestic subsidiaries filed Chapter 11 petitions under a pre-packaged plan of reorganization with the support of its bondholders and preferred shareholders. In April Globix emerged from Chapter 11 bankruptcy protection after the US Bankruptcy Court confirmed the plan of reorganization and all conditions necessary for the plan to become effective were satisfied or waived.

Peter Herzig, Vice-Chairman, said, “I am pleased that we have emerged from the bankruptcy process in such an expedient manner. The Company looks forward to building its revenue base as it comes out of the bankruptcy process with a much cleaner balance sheet and a proven value proposition. We have a strong cash position and we will continue to closely manage costs as we work towards our goal of turning the corner to profitability.”

About Globix

Globix is a leading provider of advanced Internet hosting, network and applications solutions for business. Globix delivers services via its secure state-of-the-art Internet DATA Centers, its high-performance global backbone and content delivery network, and its world-class technical professionals. Globix provides businesses with cutting-edge Internet resources and the ability to deploy, manage and scale mission-critical Internet operations for optimum performance and cost efficiency.

This press release contains forward-looking statements relating to the Company’s or management’s intentions, beliefs, expectations or predictions for the future. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company’s actual results to differ materially FROM those projected in the forward-looking statements. These risks, assumptions and uncertainties include the ability to finance the operations and complete the planned expansion of our facilities and network; our reliance on the growth of the Internet and e-commerce; our success against competitors with significantly greater resources; and other risks listed under the heading of Risk Factors in the Company’s filings with the Securities and Exchange Commission.