Globix Posts Record Third Quarter Revenue

NEW YORK – July 19, 1999

Globix Corporation (NASDAQ: GBIX) today announced results for the fiscal third quarter ended June 30, 1999. For the third quarter ended June 30, 1999, revenues increased 65% to a record $9.4 million compared with $5.7 million for the quarter ended June 30, 1998. Revenues for the nine months ended June 30, 1999 increased 51% to $22.4 million up from $14.8 million for the nine months ended June 30, 1998.

Revenues from the Internet Segment increased 107% to $3.4 million for the three months ended June 30, 1999 from $1.6 million for the three months ended June 30, 1998. For the nine months ended June 30, 1999 Internet Segment revenues increased 90% to $8.4 million, an increase of $3.9 million when compared to the comparable period ending June 30, 1998. Revenues from the Server Sales and Integration Segment for the three months ended June 30, 1999 increased 48% to $6.0 million from $4.1 million for the three months ended June 30, 1998. Revenues from that Segment for the nine months ended June 30, 1999 increased 35% to $14.0 million up from $10.4 million for the prior nine-month period ended June 30, 1998.

The net loss for the quarter ended June 30, 1999 was $8.8 million or $1.06 per share, as compared to a loss of $4.1 million or $1.16 per share for the quarter ended June 30, 1998. The increase in loss was primarily attributable to an increase in Selling, General and Administrative expenses associated with the Company’s expansion plans. These expenses included an increase in aggregate salaries from $2.0 million for the three months ended June 30, 1998 to $5.0 million for the three months ended June 30, 1999. This increase was due to the number of full time employees increasing from over 120 to over 340 during the period, necessitated by the completion of the Company’s new SuperPOP Internet Data Centers in New York, Santa Clara, CA and London. EBITDA loss (loss before interest, taxes, depreciation, amortization and other non-cash charges) was $5.7 million for the 3rd quarter of 1999, compared to $1.1 million for the 3rd quarter of 1998.

‘This has been a historic quarter for Globix,’ said Marc H. Bell, Globix Chairman and CEO. ‘In addition to hitting record quarterly revenues for the fifth straight quarter, this is the seventh consecutive quarter of sequential revenue growth from our Internet segment. Our new facilities, network and staff make Globix well positioned to capitalize on the growing trend of corporations outsourcing their Internet and advanced technological services.’

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.