Global Capacity Reports Results for Fiscal Year 2009

CHICAGO, April 1 /PRNewswire-FirstCall/ -- Global Capacity (parent: Capital Growth Systems, Inc. (OTC Bulletin Board: CGSY)), the world's leading telecommunications information and logistics company, today announced its financial results for the fiscal year ended December 31, 2009.

Total revenues were $64.4 million for Fiscal Year 2009 compared to $34.2 million for Fiscal Year 2008.  This 88% increase was driven primarily by the acquisition of Vanco Direct, LLC which closed on November 20, 2008.  Fiscal Year 2009 included 365 days of Vanco Direct, LLC operating activity while Fiscal Year 2008 included 41 days of Vanco Direct, LLC operating activity.

Connectivity Solutions recorded $54.9 million of 2009 revenue compared to $17.9 million of 2008 revenue, a 207% increase.  Connectivity Solutions for GAAP reporting purposes represents delivery of turnkey global networks and system management services.  Optimization Solutions recorded $9.5 million of 2009 revenue compared to $16.3 million of 2008 revenue, a 41% decrease.  Optimization Solutions for GAAP reporting purposes represents optimization consulting, automated pricing software, remote management services, and professional engineering services.  The reduction from 2008 to 2009 was attributable to the resolution of the British Telecom negotiations which were concluded in February 2010.

Global Capacity's consolidated gross margin was $15.5 million and 24% for 2009 compared to $13.9 million and 41% in 2008.  Connectivity Solutions margin was $10.6 million and 19% for 2009 compared to $2.7 million and 15% for 2008.  Optimization Solutions gross margin totaled $4.9 million and 51% for 2009 compared to $11.2 million and 69% for 2008.

For additional financial information regarding the Company, please refer to its Form 10-K for the year ended December 31, 2009.

Investor Call

As announced previously, an investor call has been scheduled for April 1st, 2010 at 9:00 a.m., CST, to review results for the fiscal year ended 2009.

The investor call will be available to all interested parties through a webcast from the Company's website or by phone at: 877-303-9150 for North American callers or 760-536-5213 for international callers. Please mention "Global Capacity Reports Financial Results for 2009." A replay of the investor call will be available through April 7th, 2010 beginning two hours after the completion of the call by phone at: 800-642-1687 for North American callers or 706-645-9291 for international callers (Conference ID 65328596) as well as on the web at www.globalcapacity.com

About Global Capacity

Global Capacity (parent: Capital Growth Systems, Inc.) is a telecom information and logistics company providing a fully integrated telecommunications supply chain management system that streamlines and accelerates the process of designing, pricing, building, optimizing, and managing customized communications networks. It offers a comprehensive suite of services to enterprises, systems integrators, and carrier customers worldwide. Global Capacity is headquartered in Chicago, IL, with operational centers in Waltham, MA and Manchester, England; and with offices in Houston, TX; Glastonbury, CT; New York, NY; London, England; and Lisbon, Portugal. For more information, please visit www.globalcapacity.com  or contact the Company at 312-673-2400.

Forward-Looking Statements

Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements.

Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends, and uncertainties such as: the Company's inability to accurately forecast its operating results; uncertainty as to the volume of business or level of profitability of network optimization contracts; the Company's potential ability to achieve profitability or generate positive cash flow; the availability of financing; the risks associated with procuring a listing of its securities on one or more public stock markets; and other risks associated with the Company's business. For further information on factors which could impact the Company and its subsidiaries and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

SOURCE Global Capacity