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

C2 Global Technologies Inc.

March 29, 2006 16:00 ET

C2 Global Technologies Inc. Reports Fiscal Year 2005 Results

TORONTO, ONTARIO--(CCNMatthews - March 29, 2006) - C2 Global Technologies Inc. ("C2" or the "Company", formerly Acceris Communications Inc.) (OTCBB:COBT) today reported its financial results for the year ended December 31, 2005. All amounts are in U.S. dollars.

The following significant events, which will contribute to the long-term success of C2, occurred in the year ended December 31, 2005:

- the Company completed the disposition of its Telecommunications business, recording a net gain on sale of $6.4 million and the accompanying extinguishment of $23.5 million of third party obligations. As a result of this transaction, C2's majority stockholder, Counsel Corporation, agreed to extend the maturity of C2's debt to Counsel to December 31, 2006 and to extend its "keep well" agreement to provide funding for C2's cash requirements, via intercompany advances or equity contributions, until the same date.

- the Company was awarded patents in Voice over Internet Protocol ("VoIP") technology from the People's Republic of China and in Canada, which correspond to its U.S. Patent No. 6,243,373. The Company also received a Notice of Allowance for a Canadian patent in VoIP technology that corresponds to its U.S. Patent No. 6,438,124.

As a result of the disposition of the Telecommunications business, the Telecommunications operations for the year ended December 31, 2005, 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 year ended December 31, 2005 was $nil compared to $0.5 million in 2004. The Company had a loss from continuing operations of $14.9 million in 2005 compared to a loss from continuing operations of $11.1 in 2004. The Company recorded a net loss of $18.5 million in 2005 compared to a net loss of $22.8 million in 2004. The net loss per common share was $0.96 in 2005 compared to a net loss per common share of $1.18 in 2004.

"The sale of our telecommunications business will allow C2 to focus on licensing our intellectual property", said Allan Silber, CEO of C2 Global Technologies Inc.

Please see the Company's Annual Report on Form 10-K for the year ended December 31, 2005, filed with the SEC, for further information.

About C2 Global Technologies Inc.

C2 Global Technologies Inc. ("C2") is focused on licensing its patents, which include two foundational VoIP patents. 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, 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

(In thousands of dollars, except December 31, December 31,
share and per share amounts) 2005 2004
---------------------------

ASSETS
Current assets:
Cash and cash equivalents $ 327 $ 44
Restricted cash 1,506 --
Other current assets 185 1
Net assets of discontinued operations -- 14,965
------------------------
Total current assets 2,018 15,010
Furniture, fixtures, equipment and
software, net -- 50
Intangible assets, net 60 80
Goodwill 173 173
Investments 1,100 1,100
Other assets 139 211
Assets of discontinued operations, less
current portion -- 7,385
------------------------
Total assets $ 3,490 $ 24,009
------------------------
------------------------
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued liabilities $ 2,523 $ 2,010
Convertible note payable, net of
unamortized discount 1,765 1,768
Subordinated notes payable to a related
party, net of unamortized discount 72,022 --
Liabilities of discontinued operations 3,763 32,584
------------------------
Total current liabilities 80,073 36,362
Convertible note payable, less current
portion and net of unamortized discount 1,078 2,630
Warrant to purchase common stock 281 322
Subordinated notes payable to a related
party, less current portion and net of
unamortized discount -- 46,015
Liabilities of discontinued operations,
less current portion -- 645
------------------------
Total liabilities 81,432 85,974
------------------------

Stockholders' deficit:
Preferred stock, $10.00 par value,
authorized 10,000,000 shares, issued
and outstanding 618 at December 31, 2005
and 2004, liquidation preference of $618
at December 31, 2005 and 2004 6 6
Common stock, $0.01 par value, authorized
300,000,000 shares, issued and
outstanding 19,237,135 at
December 31, 2005 and 2004 192 192
Additional paid-in capital 189,162 186,650
Accumulated deficit (267,302) (248,813)
------------------------
Total stockholders' deficit (77,942) (61,965)
------------------------
Total liabilities and stockholders'
deficit $ 3,490 $ 24,009
------------------------
------------------------

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



C2 GLOBAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Year Ended
(In thousands of dollars, except December 31,
per share amounts) ----------------------
2005 2004
----------------------

Revenue $ -- $ 540
----------------------

Operating costs and expenses:
Selling, general and administrative 2,785 4,117
Research and development 389 442
Depreciation and amortization 32 20
----------------------
Total operating costs and expenses 3,206 4,579
----------------------
Operating loss (3,206) (4,039)
----------------------
Other income (expense):
Interest expense (12,812) (8,553)
Interest and other income 1,084 1,487
----------------------
Total other income (expense) (11,728) (7,066)
----------------------
Loss from continuing operations (14,934) (11,105)
Loss from discontinued operations (net of
$0 tax) (3,555) (11,678)
----------------------
Net loss $ (18,489) $ (22,783)
----------------------
----------------------

Basic and diluted weighted average shares
outstanding 19,237 19,256

Net loss per common share - basic and diluted:
Loss from continuing operations $ (0.78) $ (0.57)
Loss from discontinued operations (0.18) (0.61)
----------------------
Net loss per common share $ (0.96) $ (1.18)
----------------------
----------------------

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


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