Bell Technology Group Ltd. Announces Second Quarter Results

NEW YORK – May 14, 1998

Revenues for the three months ended March 31, 1998 were $4,351,607 compared with $5,229,452 for the three months ended March 31, 1997. For the six months ended March 31, 1998, revenues were $9,091,174, compared with $8,925,851 for the six months ended March 31, 1997. Gross profit margins increased from approximately 22% for the three months ended March 31, 1997 to approximately 37% for the three months ended March 31, 1998. Gross profit margins increased from approximately 23% for the six months ended March 31,1997 to approximately 36% for the six months ended March 31, 1998. The revenue decrease for the three months ended March 31, 1998 was attributable to a decrease in sales of Computer Products and Services which had revenues of $2,899,250 for the three months ended March 31, 1998, compared with $4,618,370 for the three months ended March 31, 1997. The Company is de-emphasizing certain hardware sales and services in favor of software and Internet-related sales, which tend to produce more favorable profit margins.

Marc H. Bell, President and CEO, stated “This quarter was a success for Bell Technology in terms of our shifting our revenue mix toward internet related sales. For this quarter in 1998, 33% of our revenues came from the Internet and Media Development division as compared to 12% for the same period in 1997. In addition, we have successfully grown our Internet services customer base to approximately 500 medium and large businesses as of March 31, 1998, up from approximately 350 as of December 31, 1997.” Revenues from Internet and Media Development, for the three months ended March 31, 1998, increased 131.9% to $1,440,548 compared to $621,082 for the three months ended March 31, 1997. Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for the three months ended March 31, 1998 was a loss of $262,378 as compared to a loss of $264,891 for the three months ended March 31, 1997. The EBITDA loss was primarily attributed to an increase in Selling, General and Administrative expenses in anticipation of Bell’s future expansion plans. EBITDA for the six months ended March 31, 1998 was a loss of $246,147 as compared to a loss of $803,587 for the six months ended March 31, 1997. The net loss for the three months ended March 31, 1998 was $589,063 or $0.17 per share, as compared to a loss of $393,202 or $0.13 per share for the three months ended March 31, 1997. For the six months ended March 31, 1998, the net loss was $870,676 or $0.25 per share, as compared to $1,074,008 or $0.35 per share for the six months ended March 31, 1997.

Marc Bell additionally stated, “The second quarter of 1998 was also pivotal for the Company’s future with regard to the high yield note offering, which was subsequently completed in April for $160 million. The Company now has sufficient capital to execute its future expansion plans.” On April 27, 1998, the Company announced that ING Baring (U.S.) Securities, Inc., an affiliate of Furman Selz LLC, as initial purchaser, had entered into an agreement to purchase 160,000 Units, consisting of $160 million in principal amount of the Company’s 13% Senior Notes due May 1, 2005 and Warrants to purchase 563,200 shares of common stock at $14.03 per share. The Initial Purchaser has sold the offering in the United States to qualified institutional buyers pursuant to Rule 144A. The Company intends to use the net proceeds of the offering to expand its New York SuperPOP facility and to construct and operate SuperPOPs in London and San Francisco. The Company also intends to use the net proceeds of the offering to fund potential acquisitions in its target markets. The Company will use the balance of the net proceeds to increase its sales, marketing, technical and administrative personnel and to fund working capital needs.

The Company will host a conference call to discuss financial results on Friday, May 15, 1998 at 8:30 A.M. Eastern Standard Time. For the United States, the number is 800-272-5652 and for overseas the number is 404-559-1161. The password is 5286#. The conference call will be rebroadcast at 2:00 P.M. Eastern Standard Time at the same phone numbers.

Bell Technology Group Ltd. provides complete Internet solutions for businesses in the New York region and is a premier provider for businesses seeking to effectively exploit the Internet by offering high-speed connections, web services, programming, design and integration. Bell Technology Group also develops and provides training to corporate and academic clients at its state-of-the-art computer and Internet training center and uses cutting-edge technology to develop sophisticated multimedia solutions.

Except for those statements that report the Company’s historical results, the statements being made are forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained under the heading of Risk Factors li Bell Technology Group Ltd. Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended March 31, March 31, 1998 1997 1998 1997 Revenues $ 4,351,607 $ 5,229,452 $9,091,174 $8,925,851 Costs and expenses: Cost of revenues (exclusive of depreciation expense shown below) 2,744,070 4,101,810 5,857,968 6,847,094 Selling, general and administrative 1,869,915 1,392,533 3,479,353 2,882,344 Depreciation and amortization 264,359 139,624 506,219 296,090 Total costs and expenses 4,878,344 5,633,967 9,843,540 10,025,528 Loss from operations (526,737) (404,515) (752,366) (1,099,677) Interest income (expense), net (62,326) 11,313 (118,310) 25,669 Loss before taxes (589,063) (393,202) (870,676) (1,074,008) Provision for taxes — — — — Net loss $(589,063) $(393,202) $(870,676) $(1,074,008) Basic net loss per share ($0.17) ($0.13) ($0.25) ($0.35) Basic weighted average shares outstanding 3,448,450 3,043,280 3,448,450 3,042,248   Bell Technology Group Ltd. and Subsidiaries

Consolidated Balance Sheets

March 31, Sept. 30, Assets 1998 1997 (Unaudited) Current assets: Cash and cash equivalents $984,625 $ 2,401,446 Accounts receivable, net of allowance for doubtful accounts of $272,986 and $194,684 as of March 31, 1998 and September 30, 1997, respectively 2,857,387 3,259,548 Inventories 478,942 487,542 Prepaid expenses and other current assets 324,199 727,765 Total current assets 4,645,153 6,876,301 Property and equipment, net 4,593,760 3,548,838 Long-term investment 325,000 325,000 Other assets 363,702 274,849 Total assets $9,927,615 $11,024,988 Liabilities and Stockholders’ Equity Current liabilities: Short-term borrowings $1,587,984 $ 2,001,157 Current portion of notes payable 373,297 335,021 Accounts payable 2,554,362 2,010,507 Accrued expenses 184,623 425,852 Deferred revenues 87,599 123,046 Total current liabilities 4,787,865 4,895,583 Notes payable, less current portion 807,407 923,217 Other long term liabilities 266,397 191,928 Total liabilities 5,861,669 6,010,728 Commitments and contingencies Stockholders’ equity : Preferred Stock, $.01 par value; 500,000 shares authorized; no shares issued and outstanding — — Common Stock, $.01 par value; 10,000,000 shares authorized; 3,448,450 shares issued and outstanding 34,485 34,485 Additional paid-in capital 9,991,836 10,069,474 Accumulated deficit (5,960,375) (5,089,699) Total stockholders’ equity4,065,946 5,014,260 Total liabilities and stockholders’ equity $9,927,615 $11,024,988

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.