C2 Global Technologies Inc.
OTC Bulletin Board : COBT

C2 Global Technologies Inc.

March 16, 2007 17:25 ET

C2 Global Technologies Inc. Reports Fiscal Year 2006 Results

TORONTO, ONTARIO--(CCNMatthews - March 16, 2007) - C2 Global Technologies Inc. ("C2" or the "Company") (OTCBB:COBT) today reported its financial results for the year ended December 31, 2006. All amounts are stated in US dollars.

For the year ended December 31, 2006, the Company had a net loss of $7.7 million compared to a net loss of $18.5 million for the year ended December 31, 2005. The net loss per common share for the year ended December 31, 2006 was $0.40, basic and diluted, compared to a net loss per common share for 2005 of $0.96, basic and diluted. The Company had a loss from continuing operations of $12.0 million for the year ended December 31, 2006 compared to a loss of $14.9 million for the year ended December 31, 2005.

The following significant events occurred during the year ended December 31, 2006:

- the Company recognized net gains of $4.3 million upon the disposition of discontinued operations in the first and second quarters.

- the Company's wholly-owned subsidiary, C2 Communications Technologies Inc., filed a patent infringement lawsuit in the second quarter. The complaint names several large providers of telecommunications services and alleges that their Voice over Internet Protocol ("VoIP") services and systems infringe the Company's U.S. Patent No. 6,243,373, entitled "Method and Apparatus for Implementing a Computer Network/Internet Telephone System", and seeks an injunction, monetary damages and costs.

- the Company's majority stockholder, Counsel Corporation, converted $3.4 million of the $83.6 million debt owed to it by the Company to common shares in the fourth quarter, and forgave the balance. This will significantly reduce the Company's interest expense during 2007.

Please see the Company's Annual Report on Form 10-K for the year ended December 31, 2006, filed with the SEC on March 16, 2007, for further information.

About C2 Global Technologies Inc.

C2's business is focused on licensing its patents, which include two foundational patents in 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
(audited)
December 31, December 31,
(In thousands, except share and per share amounts) 2006 2005
------------ -------

ASSETS

Current assets:
Cash and cash equivalents $ 3 $ 327
Restricted cash - 1,506
Non-trade accounts receivable - 172
Other current assets 70 90
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Total current assets 73 2,095
Other assets:
Intangible assets, net 40 60
Goodwill 173 173
Investments 1,100 1,100
Other assets - 62
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Total assets $ 1,386 $ 3,490
------------- --------
------------- --------

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
Accounts payable and accrued liabilities $ 550 $ 1,774
Convertible note payable, net of unamortized
discount 1,299 1,544
Subordinated notes payable to a related party,
net of unamortized discount 6 72,022
Liabilities of discontinued operations - 4,512
------------- --------
Total current liabilities 1,855 79,852
Convertible note payable, less current portion
and net of unamortized discount - 1,299
Warrant to purchase common stock - 281
------------- --------
Total liabilities 1,855 81,432
------------- --------

Stockholders' deficit:
Preferred stock, $10.00 par value, authorized
10,000,000 shares; issued and outstanding
612 shares, liquidation preference of $612 at
December 31, 2006; issued and outstanding
618 shares, liquidation preference of $618 at
December 31, 2005 6 6
Common stock, $0.01 par value, authorized
300,000,000 shares; issued and outstanding
23,084,850 shares at December 31, 2006 and
19,237,135 shares at December 31, 2005 231 192
Additional paid-in capital 274,499 189,162
Accumulated deficit (275,205) (267,302)
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Total stockholders' deficit (469) (77,942)
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Total liabilities and stockholders' deficit $ 1,386 $ 3,490
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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
(audited)

Year Ended
December 31,
----------------------
(In thousands, except per share amounts) 2006 2005
----------- --------

Revenue $ - $ -
----------- --------

Operating costs and expenses:
Selling, general and administrative 1,281 2,758
Research and development - 389
Depreciation and amortization 20 32
----------- --------
Total operating costs and expenses 1,301 3,179
----------- --------
Operating loss (1,301) (3,179)
----------- --------
Other income (expense):
Interest expense (10,900) (12,812)
Interest and other income 155 1,084
----------- --------
Total other expense (10,745) (11,728)
----------- --------
Loss from continuing operations (12,046) (14,907)
Income(loss) from discontinued operations
(net of $0 tax) 4,370 (3,582)
----------- --------
Net loss $ (7,676) $ (18,489)
----------- --------
----------- --------

Basic and diluted weighted average shares
outstanding 19,258 19,237

Net loss per common share - basic and diluted:
Loss from continuing operations $ (0.63) $ (0.77)
Earnings (loss) from discontinued operations 0.23 (0.19)
----------- --------
Net loss per common share $ (0.40) $ (0.96)
----------- --------
----------- --------

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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