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Global Capacity Announces Expansion of Major Strategic Sourcing Contract

^{Published on 2009-01-07 06:15:48, Last Modified on 2009-01-07 06:16:47 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Global Capacity, Inc. (parent: Capital Growth Systems, Inc.) (OTCBB:CGSY), the telecommunications industry's first logistics company, today announced a revenue expansion of a Strategic Sourcing agreement with a leading Application Service Provider (ASP) in the healthcare industry. The client currently operates under an existing five-year framework agreement with Global Capacity. To this framework agreement, the client has added network services valued at greater than $5.6 million annually, representing growth of 136% over the initial installation.

As a result, Global Capacity assumes management of the complete lifecycle of the ASP's core network over which it delivers applications to its end customers, from design and pricing through provisioning, management and billing. By sourcing this critical component of its application solution to Global Capacity, the ASP has increased the speed of both quoting and provisioning new services, while also reducing costs. Global Capacity's ability to generate automated quotes in real time for designs that satisfy the stringent engineering requirements of the ASP solution, coupled with its ability to manage tight service level agreements (SLA's), were critical factors in winning this contract.

"Global Capacity's market leading telecom information management systems, coupled with deep network operations expertise enables customers to more effectively and efficiently manage their critical network requirements," said Patrick Shutt, Chief Executive Officer at Global Capacity. "Our Strategic Sourcing Solutions are designed to enable customers to dramatically reduce the cost and increase the efficiency of their networks. ASP customers represent a segment of the telecom market that has been underserved by traditional network providers, and Global Capacity believes it offers the best combination of connectivity solutions for this fast-growing industry."

About Global Capacity

Global Capacity is a telecom logistics company providing a fully-integrated telecommunications supply chain management system that streamlines and accelerates the process of designing, pricing, building, and managing customized communications networks. It offers a comprehensive suite of services to enterprises, systems integrators, and carrier customers worldwide. Global Capacity is headquartered in Chicago, IL, with operational centers in Waltham, MA; Manchester, England; and Houston, TX; and offices in New York, NY; Austin, TX; London, England and Lisbon, Portugal. For more information, please visit [ www.globalcapacity.com ] or contact the Company at 312-673-2400.

Forward-Looking Statements

Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements.

Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends, and uncertainties such as: the Company's inability to accurately forecast its operating results; uncertainty as to the volume of business or level of profitability of network optimization contracts; the Company's potential ability to achieve profitability or generate positive cash flow; the availability of financing; the risks associated with procuring a listing of its securities on one or more public stock markets; and other risks associated with the Company's business. For further information on factors which could impact the Company and its subsidiaries and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission, including annual reports on Form 10-KSB, quarterly reports on Form 10-Q, and current reports on Form 8-K. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.