Genesis Group Board of Directors Provides Outlook for 2012

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Jan 11, 2012, 10:59 ET

BOCA RATON, Fla., Jan. 11, 2012 /PRNewswire/ --

Dear Genesis Group Holdings Shareholders:

We would like to take a moment to review 2011; which was a transformative year for Genesis Group Holdings, Inc. (OTCBB: GGHO) and to look ahead to 2012 and beyond.

We began 2011 with one operating entity, Digital Comm, Inc., that had produced approximately $950K in revenues in 2010. We finished 2011 with three operating subsidiaries producing approximately $6 million in revenue. We are expected to substantially exceed those numbers in 2012.

New Financing

In July, 2011 the Company entered into a definitive master funding agreement with Tekmark® Global Solutions, LLC (Tekmark) and MMD Genesis LLC. Pursuant to the parties' funding agreement, the Company received financing in the original principal amount of up to $2,000,000 from Tekmark and a line of credit in the original principal amount of up to $1,000,000 from MMD Genesis LLC. The financing arrangement was geared towards the development and expansion of the Company's wireless infrastructure work. With that financing in place the Company was able to generate over $1.5 million in wireless infrastructure work in 2011.

Acquisitions

On August 22, 2011, the Company acquired Tropical Communications, Inc. ("Tropical"), a licensed low voltage and underground contractor that constructs, installs, optimizes and maintains structured cabling for commercial and governmental entities in the Southeast.

On December 29, 2011, the Company acquired Rives Monteiro Engineering LLC. ( "RME"), an engineering firm and certified woman owned business with offices in Houston, Texas, and Tuscaloosa, Alabama. Rives-Monteiro has been in business since 1998, performing cable-engineering services in the Southeastern United States with additional services performed internationally.

New Projects/Customers

Verizon Wireless became a key customer of the Company's DCI subsidiary. Through the acquisition of Tropical, the Company has been doing work for Hotwire Communications and Miami Dade Schools. In the 4th Quarter, DCI and Tropical teamed up on a wireless infrastructure install at Miami International Airport. That project is ongoing.

DCI and the Companies new RME subsidiary have teamed up to provide services for Alpha Technologies, Inc. in connection with installs of Alpha's broadband and cable network powering products.

With the acquisition of RME the Company has also been doing work for UniTek/Comcast in Houston, Texas.

New Management

In December, 2011, we took on new management. Billy Caudill, who was the founder of Digital Comm Inc., was appointed President of Genesis Group Holdings, Inc. and became a member of the Board of Directors. Also in December, Mark Munro was appointed CEO and a Director of the Company and Dan Sullivan was named Chief Financial Officer and a Director as well.

The Year Ahead

The Company continues to expand its customer base and look for strategic partnerships and acquisitions. We expect to show rapid growth for our shareholders in 2012 through an increase in business opportunities and strategic acquisitions.

We look forward to keeping you updated and encourage your questions via the contact information below. We also encourage you to learn more by visiting our company website, www.genesisgroupholdingsinc.com. Thank you for your continued support of Genesis Group Holdings and our ongoing progression.

Sincerely,

The Board of Directors

About Genesis Group Holdings, Inc.

Genesis Group operates through its wholly owned subsidiaries. The company provides turnkey operations in outside plant construction, wireless infrastructure; voice-data network technologies, utility infrastructure - water, sewer, electric, gas, fiber/copper buried and aerial cable. Its subsidiaries have master contracts with ATT, Verizon and other communications providers.

Forward- Looking Statement

Statements contained herein are not based on historical fact, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "could," and other similar expressions, constitute "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations, and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in GGHO's annual report on form 10-K for the most recent fiscal year, GGHO's quarterly reports on Form 10-Q and other periodic reports filed from time-to time with the Securities Exchange Commission.

Contact Information:

Lawrence Sands
Corporate Secretary, Genesis Group Holdings, Inc.
(561) 988-1988

SOURCE Genesis Group Holdings, Inc.