Globix Reports Fourth Quarter and 1999 Annual Results

NEW YORK and DALLAS – November 18, 1999

Globix Corporation (NASDAQ:GBIX), today reported record revenue for both the fourth quarter and fiscal year ended September 30, 1999.

Fourth quarter revenue totaled $11.4 million, a 97 percent increase over the same period last year. Fiscal year 1999 revenue totaled $33.8 million, representing a 64 percent increase over fiscal 1998

‘During fiscal 1999 we achieved solid top line and corporate growth,’ said Marc H. Bell, Chairman and CEO of Globix Corporation. ‘Looking ahead, we see exciting growth opportunities as we broaden our global network, focus on building more SuperPOPs in Europe and the United States and aggressively leverage a growing suite of application and professional services.’

Revenue in the Internet and Server segments for both the fourth quarter and fiscal year 1999 reached record levels. Fourth quarter revenue from the Internet segment was $4.7 million, a 129 percent increase over the quarter ended September 30, 1998 and 38 percent higher than the quarter ended June 30, 1999. Internet sales for the fiscal year ended September 30, 1999 were $13.0 million a 102 percent increase over the prior year. Sales of Internet Servers and related products for the fourth quarter 1999 were $6.7 million and $20.8 million for fiscal year 1999.

‘Strong revenue in both segments are representative of having more than 30 times the amount of Internet Data Center capacity available,’ added Brian Reach, Chief Financial Officer for Globix. ‘Free from our previous capacity constraints, our sales force was able to more aggressively sell Web Hosting and Co-Location solutions and we are just starting to see the results of those efforts.’

Successful recruiting efforts led to the Company reaching its hiring goals almost a full quarter ahead of schedule, with the majority of the new hires joining our London and Santa Clara, CA SuperPOPs. Selling, general and administrative (SG&A;) expenses were $14.6 million for the fourth quarter ended September 30, 1999 and $36.5 million for fiscal Year-end 1999. Earnings before interest, taxes, depreciation and amortization (EBITDA) were a loss of $10.8 million and $24.9 million for fourth quarter 1999 and fiscal year 1999 respectively. Net loss was $17.1 million and $43.4 million for the fourth quarter 1999 and fiscal year ended September 30, 1999, respectively. Earnings per share were a loss of $2.06 and $6.91 for the fourth quarter 1999 and fiscal year ended September 30, 1999.

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.