C2 Global Technologies Inc.
TSX : CXS
OTC Bulletin Board : COBT

C2 Global Technologies Inc.

May 12, 2006 17:55 ET

C2 Global Technologies Inc. Reports 2006 First Quarter Results

TORONTO, ONTARIO--(CCNMatthews - May 12, 2006) - C2 Global Technologies Inc. ("C2" or the "Company", formerly Acceris Communications Inc.) (OTCBB:COBT) today reported its financial results for the first quarter ended March 31, 2006. All amounts are stated in US dollars.

The Company had net income of $1.0 million in the first quarter of 2006 compared to a net loss of $8.1 million in the first quarter of 2005. The net income per common share was $0.05, basic and diluted, in the first quarter of 2006 compared to a net loss per common share of $0.42, basic and diluted, in the first quarter of 2005. As a result of the disposition of the Company's telecommunications business in September 2005, the telecommunications operations for the three months ended March 31, 2006, as well as for all prior periods, have been reported as discontinued operations in accordance with GAAP. Consequently, the Company's total operating revenue from continuing operations for the three months ended March 31, 2006 and March 31, 2005 was $nil. The Company had a loss from continuing operations of $2.7 million in the first quarter of 2006 compared to a loss of $3.6 million in the first quarter of 2005.

Please see the Company's Annual Report on Form 10-K for the year ended December 31, 2005, filed with the SEC on March 29, 2006, and the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2006, filed with the SEC on May 12, 2006, for further information.

About C2 Global Technologies Inc.

C2's business is focused on licensing its patents, which include two foundational patents in Voice over Internet Protocol ("VoIP") technology. C2 plans to realize value from its intellectual property by offering licenses to service providers, equipment companies and end-users that are deploying VoIP networks for phone-to-phone communications. For further information, please visit C2's website at www.c-2technologies.com.

Forward-Looking Statements

This release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended, that are based on management's exercise of business judgment as well as assumptions made by, and information currently available to, management. When used in this document, the words "may", "will", "anticipate", "believe", "estimate", "expect", "intend", and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect our current view of future events and are subject to certain risks and uncertainties as noted in our securities and other regulatory filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. We undertake no obligation, and do not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements.



C2 GLOBAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In thousands of dollars, except March 31, December 31,
share and per share amounts) 2006 2005
-------------------------------- -----------------------

ASSETS
Current assets:
Cash and cash equivalents $ 76 $ 327
Restricted cash 1,065 1,506
Non-trade accounts receivable -- 172
Other current assets 7 13
-----------------------
Total current assets 1,148 2,018
Other assets:
Intangible assets, net 55 60
Goodwill 173 173
Investments 1,100 1,100
Other assets 120 139
-----------------------
Total assets $ 2,596 $ 3,490
-----------------------
-----------------------
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued liabilities $ 1,733 $ 2,523
Convertible note payable, net of
unamortized discount 1,765 1,765
Subordinated notes payable to a
related party, net of unamortized discount 74,760 72,022
Liabilities of discontinued operations -- 3,763
-----------------------
Total current liabilities 78,258 80,073
Convertible note payable, less current
portion and net of unamortized discount 691 1,078
Warrant to purchase common stock 203 281
-----------------------
Total liabilities 79,152 81,432
-----------------------

Stockholders' deficit:
Preferred stock, $10.00 par value,
authorized 10,000,000 shares, issued
and outstanding 618, liquidation
preference of $618 6 6
Common stock, $0.01 par value,
authorized 300,000,000 shares,
issued and outstanding 19,237,135
at March 31, 2006 and December 31, 2005 192 192
Additional paid-in capital 189,590 189,162
Accumulated deficit (266,344) (267,302)
-----------------------
Total stockholders' deficit (76,556) (77,942)
-----------------------
Total liabilities and stockholders'
deficit $ 2,596 $ 3,490
-----------------------
-----------------------

The notes contained in our Quarterly Report on Form 10-Q are an
integral part of these condensed consolidated financial statements



C2 GLOBAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
for the Three Months Ended March 31, 2006 and 2005
(Unaudited)


Three Months Ended
(In thousands of dollars, except March 31,
per share amounts) 2006 2005
-------------------------------- -------------------------


Revenue $ -- $ --
-------------------------
Operating costs and expenses:
Selling, general and administrative 397 837
Research and development -- 150
Depreciation and amortization 5 9
-------------------------
Total operating costs and expenses 402 996
-------------------------
Operating loss (402) (996)
-------------------------
Other income (expense):
Interest expense (2,342) (2,631)
Interest and other income 3 --
-------------------------
Total other income (expense) (2,339) (2,631)
-------------------------
Loss from continuing operations (2,741) (3,627)
Income(loss) from discontinued
operations (net of $0 tax) 3,699 (4,481)
-------------------------
Net income(loss) $ 958 $ (8,108)
-------------------------
-------------------------

Basic and diluted weighted average shares
outstanding 19,237 19,237


Net income(loss) per common share -
basic and diluted:
Loss from continuing operations $ (0.14) $ (0.19)
Income(loss) from discontinued operations 0.19 (0.23)
-------------------------
Net income(loss) per common share $ 0.05 $ (0.42)
-------------------------
-------------------------

The notes contained in our Quarterly Report on Form 10-Q are an
integral part of these condensed consolidated financial statements


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