Global Capacity Expands 2010 Strategy

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May 03, 2010, 08:00 ET

CHICAGO, May 3 /PRNewswire-FirstCall/ -- Global Capacity (parent: Capital Growth Systems, Inc. (OTC Bulletin Board: CGSY)), the world's leading telecommunications information and logistics company, today announced it has revised its 2010 strategic plan to include a broader range of network delivery options to complement its Software & Optimization and Network Solutions product portfolio. This expanded product set will enable Global Capacity to deliver greater customer value, while creating deeper account relationships within its customer base. The Company had previously announced an agreement to sell certain off-net customer contracts as part of its strategy to focus more narrowly on higher margin products, with a particular focus on One Marketplace. The proposed sale was subject to certain customer, supplier, and lender consents, along with regulatory approvals. The required consents were not obtained within the timeframe of the agreement, and the proposed transaction has expired.

During the course of 2010, conversations with key Global Capacity customers made it increasingly clear that the design, pricing, provisioning, and managing of off-net extension services are viewed by those customers as a core part of Global Capacity's value, enabling lower cost, highly efficient access network solutions as part of an overall access network strategy. Global Capacity has also demonstrated the ability to incorporate off-net extension services into high value, truly differentiated solutions such as One Marketplace. These factors, coupled with a number of activities that have strengthened the Company's balance sheet, as well as the realization that there were challenges to closing the sale of the off-net contracts, have compelled Global Capacity to revise its 2010 strategic plan, including off-net extension services as a core product within the Network Solutions business going forward.

"As we spoke to customers about the Company's announced strategy, they made it clear that offering off-net extension in addition to core Software & Optimization Solutions and Network Solutions like One Marketplace was an important part of Global Capacity's overall value proposition to them," said Patrick Shutt, Global Capacity CEO. "Customers look to us to provide a complete portfolio of access network solutions. We are extremely fortunate to have strong, long term relationships with our key customers, and their feedback caused us to reassess our approach."

The resolution in February of an outstanding commercial dispute in the U.K., coupled with the continued success of the Company's core portfolio of products, have enabled Global Capacity to strengthen its balance sheet without requiring the funds that would have been generated by the limited asset sale, enabling the Company to pursue this revised strategy.

"Strong customer relationships are difficult to earn, and vital to maintain," continued Shutt. "We are confident that this revised strategy is the right one for our business, and more importantly, for our customers."

Global Capacity has organized its offerings between two lines of business, Software & Optimization Solutions and Network Solutions, creating the greatest opportunity to deliver targeted solutions that maximize value to the customer while simultaneously maximizing revenue and margin opportunities for the Company.

Software & Optimization Solutions

The Software & Optimization Business provides three offerings:

Automated quotation management software
Customized access network pricing software
Network optimization consulting

Network Solutions

The Network Solutions Business provides five offerings:

One Marketplace
Network Novations
Off-net Extension
Network Engineering Services
Remote Network Management Services (RMS)

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.

www.globalcapacity.com

SOURCE Global Capacity