C2 Global Technologies Inc.
OTC Bulletin Board : COBT

C2 Global Technologies Inc.

March 18, 2009 16:57 ET

C2 Global Technologies Inc. Reports Fiscal Year 2008 Results

TORONTO, ONTARIO--(Marketwire - March 18, 2009) - C2 Global Technologies Inc. ("C2" or the "Company") (OTCBB:COBT) today reported its financial results for the year ended December 31, 2008. All amounts are stated in US dollars.

For the year ended December 31, 2008, the Company had net income of $5.8 million or $0.25 per common share, basic and diluted, compared to a net loss of $0.6 million or $0.03 per common share, basic and diluted, for the year ended December 31, 2007.

During 2008 the Company's revenue from continuing operations was $17.6 million, compared to $0 for 2007. All of the revenue is from settlement and license agreements relating to the Company's intellectual property.

The following significant events occurred during the year ended December 31, 2008:

- The Company entered into settlement and license agreements with six telecommunications companies. These agreements effectively concluded the Company's patent litigation that was begun in June 2006.

- On July 14, 2008, the Company was awarded a patent in South Korea for its Voice Internet Transmission System patent, which is equivalent to its U.S. Patent No. 6,438,124.

- In October 2008, the Company sold its investment in LIMOS.com, LLC for approximately twice the value of its original investment, realizing a gain of $425,000.

"We are extremely pleased with our success in licensing our patents to companies with the stature of AT&T, Verizon, Sprint, Qwest, Global Crossing and Level 3. We plan to continue to pursue licenses from other entities that are using our patented technology, which includes corresponding patents in Australia, Canada, China and Europe", said Allan Silber, Chairman and CEO of C2.

Please see the Company's Annual Report on Form 10-K for the year ended December 31, 2008, filed with the SEC on March 17, 2009, 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)

(In thousands, except share and per share December 31, December 31,
amounts) 2008 2007
----------------------------------------- ------------ ------------

ASSETS

Current assets:
Cash $ 4,076 $ 67
Deferred income tax assets 875 1,000
Other current assets 77 17
------------ ------------
Total current assets 5,028 1,084
Other assets:
Intangible assets, net - 20
Goodwill 173 173
Investments 242 519
------------ ------------
Total assets $ 5,443 $ 1,796
------------ ------------
------------ ------------

LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)

Current liabilities:
Accounts payable and accrued liabilities $ 472 $ 402
Notes payable to a related party - 2,335
------------ ------------
Total liabilities 472 2,737
------------ ------------
Stockholders' equity (deficit):
Preferred stock, $10.00 par value,
convertible, non-redeemable, authorized
10,000,000 shares; issued and outstanding
594 shares at December 31, 2008 and 607
shares at December 31, 2007; liquidation
preference of $594 at December 31, 2008
and $607 at December 31, 2007 6 6
Common stock, $0.01 par value, authorized
300,000,000 shares; issued and outstanding
22,745,530 shares at December 31, 2008 and
23,095,010 shares at December 31, 2007 227 231
Additional paid-in capital 274,761 274,672
Accumulated deficit (270,023) (275,850)
------------ ------------
Total stockholders' equity (deficit) 4,971 (941)
------------ ------------
Total liabilities and stockholders' equity
(deficit) $ 5,443 $ 1,796
------------ ------------
------------ ------------

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) 2008 2007
---------------------------------------- --------- ---------

Revenue
Patent licensing $ 17,625 $ -
--------- ---------

Operating costs and expenses:
Patent licensing 10,729 -
Selling, general and administrative 1,273 1,216
Depreciation and amortization 20 20
--------- ---------
Total operating costs and expenses 12,022 1,236
--------- ---------
Operating income (loss) 5,603 (1,236)
--------- ---------
Other income (expense):
Other income (expense) 17 (288)
Interest expense (43) (196)
--------- ---------
Total other income (expense) (26) (484)
--------- ---------
Income (loss) from continuing operations before the
undernoted 5,577 (1,720)
Income tax expense (recovery) 125 (1,000)
Earnings (loss) of equity accounted investments,
(net of $0 tax) (38) 6
Gains on sale of equity accounted investments 425 75
--------- ---------
Income (loss) from continuing operations 5,839 (639)
Loss from discontinued operations (12) (6)
--------- ---------
Net income (loss) and comprehensive income (loss) $ 5,827 $ (645)
--------- ---------
--------- ---------

Weighted average common shares outstanding 22,907 23,095
Weighted average preferred shares outstanding 1 1

Net income(loss) per share:
Common shares $ 0.25 $ (0.03)
Preferred shares $ 10.19 $ N/A

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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