Globecomm Systems Inc. Announces Plans To Combine NetSat Express, Inc. And Globecomm Operations

NetSat Institutes Cost Reduction Program

Globecomm Repurchases Equity Interest from Certain Minority NetSat Investors

Kenneth A. Miller Named Chief Executive Officer of NetSat



Apr 19, 2001, 01:00 ET from Globecomm Systems Inc.

    HAUPPAUGE, N.Y., April 19 /PRNewswire/ -- Globecomm Systems Inc.
 (Nasdaq:   GCOM), a leading global provider of end-to-end satellite-based
 communications solutions, today announced that the NetSat Board of Directors
 has named Kenneth A. Miller, Chief Executive Officer of NetSat.  Mr. Miller
 replaces Marni S. Ehrlich, who tendered his resignation as Chief Executive
 Officer of NetSat to the NetSat Board of Directors.  NetSat Express, Inc.,
 Globecomm's majority-owned subsidiary, is a global provider of satellite based
 Internet solutions.
     Mr. Miller has served as President of Globecomm since 1994 and is a
 director of both Globecomm and NetSat.  Prior to joining Globecomm, he was
 President of Satellite Transmission Systems, Inc.  Earlier, Mr. Miller was
 manager of satellite systems at Comtech.  He holds a B.S.E.E. from the
 University of Michigan and an M.B.A. from Hofstra University.
     The NetSat Board of Directors also accepted the resignation of Mr.
 Burt H. Liebowitz as President and Chief Operating Officer of NetSat.  Messrs.
 Ehrlich and Liebowitz have also resigned from the Board of Directors of
 NetSat.
     At the same time, NetSat eliminated approximately 44% of its work force as
 part of its cost reduction program.  Globecomm will report a one-time charge
 in connection with these resignations and layoffs in its fourth quarter ending
 June 30, 2001.
     Globecomm also announced that it has completed transactions with George
 Soros and Globix Corporation to buy back their combined 25.2% of NetSat's
 outstanding securities.  Globecomm repurchased these combined holdings in
 exchange for 433,304 shares of Globecomm common stock, warrants to purchase an
 additional 487,501 shares of Globecomm common stock and cash in the amount of
 $1,083,335.  Globecomm is in discussion with several other equity investors in
 NetSat with combined interests totaling 16.5%.  If Globecomm successfully
 reaches an agreement with all of these holders, Globecomm will own 100% of
 NetSat.
     David Hershberg, Chairman and CEO of Globecomm, said, "Based on current
 market conditions, we determined the best strategic option was to increase our
 majority ownership of NetSat.  This would allow us to combine the operations
 of NetSat and Globecomm, thereby facilitating our transformation from
 infrastructure provider to end-to-end satellite-based communication solutions
 provider.  We anticipate that these actions will enable us to strengthen both
 of our marketing efforts, reduce NetSat's operating costs and continue to
 provide customers with a high level of services."
     Kenneth A. Miller, Chief Executive Officer of NetSat and President of
 Globecomm, said, "We continue to believe strongly that by offering 'one stop
 shopping' for end-to-end managed network solutions, we will increase the size
 of our markets significantly beyond that of our traditional infrastructure
 business.  We believe our corporate integration strategy strengthens our
 position as a single solutions provider for Globecomm's end-to-end satellite-
 based communications solutions and NetSat's solutions for Internet service
 providers in the 'rest of world'."
     Globecomm Systems provides end-to-end, value-added satellite-based
 communications solutions, and satellite ground segment systems and networks,
 which support a wide range of satellite communications applications.  The
 Company's majority-owned NetSat Express subsidiary is a leader in providing
 end-to-end satellite-based Internet solutions around the world.  Currently,
 NetSat Express offers start-up and expanding ISPs and other enterprises a wide
 range of solutions, including Internet backbone connectivity, network
 applications, back-office capabilities, POP infrastructure, Web hosting and
 network management services.  Both Globecomm Systems' and NetSat Express'
 customers include communication service providers, multinational corporations,
 Internet service providers, content providers and government entities.
     Based in Hauppauge, New York, Globecomm Systems also maintains offices in
 Atlanta, Georgia, Hong Kong and the United Kingdom.
     For more information contact Globecomm Systems Inc., 45 Oser Avenue,
 Hauppauge, NY 11788-3816, USA. TEL: +1 631 231-9800, FAX: +1 631 231-1557;
 e-mail: info@globecommsystems.com ; Web: www.globecommsystems.com .
 
     CONTACT:  David E. Hershberg, Chairman and Chief Executive Officer,
 Globecomm Systems Inc., (631) 231-9800.  Investor Relations: Marilynn Meek,
 The Financial Relations Board, (212) 661-8030. Public Relations:  Robert
 Schaefer, Robert Schaefer Inc., (631) 643-5466.
 
     This press release contains projections or other forward-looking
 statements regarding future events or the future financial performance of
 Globecomm.  These statements are only predictions and reflect the current
 beliefs and expectations of Globecomm.  Actual events or results may differ
 materially.  Some of the factors that could cause actual results to differ
 materially from the forward-looking statements contained herein include,
 without limitation, whether Globecomm can win new projects and whether new
 projects will generate revenue growth, whether NetSat's cost reduction program
 will prove successful, whether Globecomm will be able to purchase 100% of the
 outstanding securities of NetSat, whether combining operations with NetSat
 will enable Globecomm and NetSat to strengthen marketing efforts, reduce
 operating costs and increase the size of their market, whether increased
 backlog compared to the prior fiscal year will result in improved operating
 results in future years, whether Globecomm will be profitable going forward,
 whether and for how long interest and depreciation expenses associated with
 NetSat's investment in long-term transponder leases will continue to
 negatively impact Globecomm's bottom lie, whether Globecomm can successfully
 implement its satellite communications services and achieve recurring revenues
 for such services, whether NetSat will become profitable and successfully
 pursue its growth strategy, whether Globecomm's investment in NetSat will ever
 prove to be beneficial, whether such investments will expand NetSat's
 capabilities in the ISP marketplace, whether the ground satellite
 infrastructure market will grow, whether Globecomm will experience a
 reduction, delay or cancellation of orders from significant customers, whether
 such orders when completed will be profitable, whether increased competition
 in Globecomm's markets will result in price reductions, continued pricing and
 margin pressures, decreases in gross profit, and loss of market share for
 Globecomm, whether the satellite communication industry will continue to
 develop, whether the Internet will continue to grow in international markets,
 whether a significant number of new competitive service providers will be
 launched over the next two or three years, whether Globecomm will be able to
 capitalize on opportunities available to it, or whether continued
 international economic difficulties and/or a decrease in the value of foreign
 currencies relative to the U.S. dollar will adversely affect the demand for
 Globecomm's products and services.  Please refer to the documents Globecomm
 files from time to time with the Securities and Exchange Commission,
 specifically Globecomm's Annual Report on Form 10-K and its Quarterly Reports
 on Form 10-Q. These documents contain and identify important factors that
 could cause the actual results to differ materially from those contained in
 the projections or forward-looking statements.  Globecomm undertakes no
 obligation to publicly release the revisions to such forward-looking
 statements that may be made to reflect events or circumstances after the date
 hereof or to reflect the occurrence of unanticipated events.
 
 

SOURCE Globecomm Systems Inc.
    HAUPPAUGE, N.Y., April 19 /PRNewswire/ -- Globecomm Systems Inc.
 (Nasdaq:   GCOM), a leading global provider of end-to-end satellite-based
 communications solutions, today announced that the NetSat Board of Directors
 has named Kenneth A. Miller, Chief Executive Officer of NetSat.  Mr. Miller
 replaces Marni S. Ehrlich, who tendered his resignation as Chief Executive
 Officer of NetSat to the NetSat Board of Directors.  NetSat Express, Inc.,
 Globecomm's majority-owned subsidiary, is a global provider of satellite based
 Internet solutions.
     Mr. Miller has served as President of Globecomm since 1994 and is a
 director of both Globecomm and NetSat.  Prior to joining Globecomm, he was
 President of Satellite Transmission Systems, Inc.  Earlier, Mr. Miller was
 manager of satellite systems at Comtech.  He holds a B.S.E.E. from the
 University of Michigan and an M.B.A. from Hofstra University.
     The NetSat Board of Directors also accepted the resignation of Mr.
 Burt H. Liebowitz as President and Chief Operating Officer of NetSat.  Messrs.
 Ehrlich and Liebowitz have also resigned from the Board of Directors of
 NetSat.
     At the same time, NetSat eliminated approximately 44% of its work force as
 part of its cost reduction program.  Globecomm will report a one-time charge
 in connection with these resignations and layoffs in its fourth quarter ending
 June 30, 2001.
     Globecomm also announced that it has completed transactions with George
 Soros and Globix Corporation to buy back their combined 25.2% of NetSat's
 outstanding securities.  Globecomm repurchased these combined holdings in
 exchange for 433,304 shares of Globecomm common stock, warrants to purchase an
 additional 487,501 shares of Globecomm common stock and cash in the amount of
 $1,083,335.  Globecomm is in discussion with several other equity investors in
 NetSat with combined interests totaling 16.5%.  If Globecomm successfully
 reaches an agreement with all of these holders, Globecomm will own 100% of
 NetSat.
     David Hershberg, Chairman and CEO of Globecomm, said, "Based on current
 market conditions, we determined the best strategic option was to increase our
 majority ownership of NetSat.  This would allow us to combine the operations
 of NetSat and Globecomm, thereby facilitating our transformation from
 infrastructure provider to end-to-end satellite-based communication solutions
 provider.  We anticipate that these actions will enable us to strengthen both
 of our marketing efforts, reduce NetSat's operating costs and continue to
 provide customers with a high level of services."
     Kenneth A. Miller, Chief Executive Officer of NetSat and President of
 Globecomm, said, "We continue to believe strongly that by offering 'one stop
 shopping' for end-to-end managed network solutions, we will increase the size
 of our markets significantly beyond that of our traditional infrastructure
 business.  We believe our corporate integration strategy strengthens our
 position as a single solutions provider for Globecomm's end-to-end satellite-
 based communications solutions and NetSat's solutions for Internet service
 providers in the 'rest of world'."
     Globecomm Systems provides end-to-end, value-added satellite-based
 communications solutions, and satellite ground segment systems and networks,
 which support a wide range of satellite communications applications.  The
 Company's majority-owned NetSat Express subsidiary is a leader in providing
 end-to-end satellite-based Internet solutions around the world.  Currently,
 NetSat Express offers start-up and expanding ISPs and other enterprises a wide
 range of solutions, including Internet backbone connectivity, network
 applications, back-office capabilities, POP infrastructure, Web hosting and
 network management services.  Both Globecomm Systems' and NetSat Express'
 customers include communication service providers, multinational corporations,
 Internet service providers, content providers and government entities.
     Based in Hauppauge, New York, Globecomm Systems also maintains offices in
 Atlanta, Georgia, Hong Kong and the United Kingdom.
     For more information contact Globecomm Systems Inc., 45 Oser Avenue,
 Hauppauge, NY 11788-3816, USA. TEL: +1 631 231-9800, FAX: +1 631 231-1557;
 e-mail: info@globecommsystems.com ; Web: www.globecommsystems.com .
 
     CONTACT:  David E. Hershberg, Chairman and Chief Executive Officer,
 Globecomm Systems Inc., (631) 231-9800.  Investor Relations: Marilynn Meek,
 The Financial Relations Board, (212) 661-8030. Public Relations:  Robert
 Schaefer, Robert Schaefer Inc., (631) 643-5466.
 
     This press release contains projections or other forward-looking
 statements regarding future events or the future financial performance of
 Globecomm.  These statements are only predictions and reflect the current
 beliefs and expectations of Globecomm.  Actual events or results may differ
 materially.  Some of the factors that could cause actual results to differ
 materially from the forward-looking statements contained herein include,
 without limitation, whether Globecomm can win new projects and whether new
 projects will generate revenue growth, whether NetSat's cost reduction program
 will prove successful, whether Globecomm will be able to purchase 100% of the
 outstanding securities of NetSat, whether combining operations with NetSat
 will enable Globecomm and NetSat to strengthen marketing efforts, reduce
 operating costs and increase the size of their market, whether increased
 backlog compared to the prior fiscal year will result in improved operating
 results in future years, whether Globecomm will be profitable going forward,
 whether and for how long interest and depreciation expenses associated with
 NetSat's investment in long-term transponder leases will continue to
 negatively impact Globecomm's bottom lie, whether Globecomm can successfully
 implement its satellite communications services and achieve recurring revenues
 for such services, whether NetSat will become profitable and successfully
 pursue its growth strategy, whether Globecomm's investment in NetSat will ever
 prove to be beneficial, whether such investments will expand NetSat's
 capabilities in the ISP marketplace, whether the ground satellite
 infrastructure market will grow, whether Globecomm will experience a
 reduction, delay or cancellation of orders from significant customers, whether
 such orders when completed will be profitable, whether increased competition
 in Globecomm's markets will result in price reductions, continued pricing and
 margin pressures, decreases in gross profit, and loss of market share for
 Globecomm, whether the satellite communication industry will continue to
 develop, whether the Internet will continue to grow in international markets,
 whether a significant number of new competitive service providers will be
 launched over the next two or three years, whether Globecomm will be able to
 capitalize on opportunities available to it, or whether continued
 international economic difficulties and/or a decrease in the value of foreign
 currencies relative to the U.S. dollar will adversely affect the demand for
 Globecomm's products and services.  Please refer to the documents Globecomm
 files from time to time with the Securities and Exchange Commission,
 specifically Globecomm's Annual Report on Form 10-K and its Quarterly Reports
 on Form 10-Q. These documents contain and identify important factors that
 could cause the actual results to differ materially from those contained in
 the projections or forward-looking statements.  Globecomm undertakes no
 obligation to publicly release the revisions to such forward-looking
 statements that may be made to reflect events or circumstances after the date
 hereof or to reflect the occurrence of unanticipated events.
 
 SOURCE  Globecomm Systems Inc.