Globix Sees Strong Financials As A Key Differentiator In A Decimated Industry

NEW YORK – August 20, 2002

Globix Corporation views its strong financial position as a critical piece of its strategy to attract new customers and retain current ones. The company, which has in excess of $50 million in cash and a very low monthly burn rate (≈$500 thousand) expects to achieve EBITDA-breakeven by the end of September, and to be cash-flow positive by the end of the calendar year. In a recent interview, John McCarthy, CFO of Globix commented, “The results speak for themselves. We are about to turn the corner to profitability. From there, there really are no limits to what our organization can accomplish.”

In an industry littered with service providers teetering on the brink of insolvency, Globix’s strong financial position is certainly a source of competitive advantage. Complementing that position is Globix’s ability to deliver high-quality services to their customers. Even when Globix was going through restructuring earlier this year, customer service levels remained high. Quoted recently on atnewyork.com, Navarrow Wright of BET Interactive said, “The excellent service we have always received from Globix has remained unchanged during this period [the restructuring]. Using Globix services has allowed us to remain a leaner business in our own highly-competitive marketplace.” Echoing Mr. Wight’s sentiments, Mitch Moore, Director of Marketing at Globix stated, “Peter Drucker always challenged businesses to define their true reason for existence. Here at Globix, we sell competitive advantage.”

Having risen successfully from the ashes under a new management team, the future looks bright for Globix. The Company, however, works tirelessly to maintain precise focus on the job at hand. Says Pete Stevenson, CEO of Globix, “We run our business by the minute, the hour and the day. If we do that, and do it right, the months and years take care of themselves.”

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.