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GLOBIX REPORTS FOURTH QUARTER AND 1999 ANNUAL RESULTS

Record Year End Revenue up 64% from Prior Year, Internet Segment Revenue up 102%

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 Corporation is a leading provider of Internet connectivity and advanced Internet services for businesses in the United States and Europe. Through its high-speed, fault-tolerant, fiber-optic network and state-of-the-art Internet Data Centers in New York City, Santa Clara, CA and London, UK, Globix delivers superior reliability, security and performance to companies using the Internet to deploy mission-critical business strategies. Cutting-edge applications include Co-Location, Web Hosting, Dedicated Access, Streaming Media, E-Commerce and Internet Security. Globix currently has points of presence at 18 Internet exchange points with 550 peering connections.

This press release contains 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 listed from time to time in the Company’s filings with the Securities and Exchange Commission.

Contact:
Globix Corporation
Charles Strauzer
VP – Corporate Finance
212-625-7327
[email protected]

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