SOURCE: Global Diversified Industries

September 20, 2005 09:00 ET

Global Diversified Industries, Inc. Announces First Quarter Net Income Up 323% (Percent) Revenue Three Months Ended 7/31/2005 $4,940,023

CHOWCHILLA, CA -- (MARKET WIRE) -- September 20, 2005 -- Global Diversified Industries, Inc. (OTC BB: GDVI), focused on the modular building industry with emphasis on the education market (http://www.gdvi.net), today reported that net income for the first quarter ended July 31, 2005 totaled $349,855 compared to a net income of $82,749 in the previous year's first quarter, a 323 percent increase.

The improvement in net income is due to increased revenues plus the increased gross profit margins because of the Company's recently acquired designs from Aurora Modular Industries. Global Diversified Industries reported that revenues for the first quarter ended July 31, 2005, totaled $4.94 million, up 135 percent compared to revenues of $2.1 million in the first quarter of the previous fiscal year.

"We are pleased to report five consecutive quarters of positive earnings," said Phil Hamilton, CEO. "Our revenues increased due to our increased penetration in our core market, school classrooms, sold to the educational industry by our direct sales force. We are rapidly growing toward our goal of $50 million in sales from our Chowchilla facility."

                Global Diversified Industries
     Selected Consolidated Statement of Operations Information
         (Dollars in thousands, except per share amounts)

Global Diversified Industries, Inc
Selected Consolidated Statement of Operations Information

Un-audited

                                 Three Months Ended
                          7/31/2005    7/30/2004    % Increase
Revenues                  4,940,023    1,936,362      155.12%

Net Income                  349,054       82,749      321.82%

Working Capital Surplus   2,346,989    1,814,248       29.36%


        Selected Consolidated Balance Sheet Information

                                      Unaudited
                                  Three Months Ended
                          7/31/2005    7/30/2004    % Increase
Cash & cash equivalents     815,838      446,082       82.89%

Total current assets      6,506,171    4,785,711       35.95%

Total assets              9,265,492    7,467,213       24.08%

Total current
 liabilities              4,159,182    2,729,032       52.41%

Total stockholder's
 equity                   4,348,923    3,938,199       10.43%

About Global Diversified Industries, Inc.

Global Diversified Industries, Inc. is a holding company with two wholly owned subsidiaries, Global Modular, Inc. and MBS Construction, Inc. Both are engaged in the modular construction marketplace with an emphasis on educational projects. They incorporate the latest in construction software, allowing them to better manage projects incorporating cost vs. profit ratios, construction and manufacturing schedules, purchasing, receiving and other facets of industrial management. The company's work is found in Northern and Southern California, with numerous projects on budget for school systems throughout the state.

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.

Contact Information

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