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Global Entertainment Results Down for Q3 2001

Third quarter revenues were lower for two primary reasons: (i) the week-long cancellation of sporting events at the highest activity point of the year following the unexpected tragic events of Sept. 11, 2001, and (ii) Prevail's continued suspension of marketing activities while redeveloping its Web sites.

Despite the unforeseen factor which impacted the company during this reporting period, its performance during the first nine months of the year 2001 was consistent with its forecast expectations as the company made substantial planned investments in marketing and sales, development of more saleable, equipped products and services suite, and technical personnel.

Cost of goods sold for the quarter ended Sept. 30, 2001 were $225,230 as compared to $147,050 for the same period of 2000 and to $514,182 for the nine months ended Sept. 30, 2001 compared to $216,560 for the same period in 2000.

Operating expenses decreased to $947,774 for the quarter ended Sept. 30, 2001, compared to $1,108,786 for the same period in 2000 and to $2,932,893 for the nine months ended Sept. 30, 2001 as compared to $3,088,490 for the same period in 2000. These changes were primarily caused by the company's adoption of modified accounting procedures.

Global reported a net operating loss of $323,705 for the quarter ending Sept. 30, 2001, as compared to a loss of $44,215 for the same period of 2000. For the nine months ended Sept. 30, 2001, the company's net operating loss was $797,937, as compared to a loss of $5,158 for the same period of 2000.

As a result of converting accounts receivable to notes, the company's total accounts receivable as of Sept. 30, 2001 further decreased to $395,848 as compared to $556,085 as of Dec. 31, 2000, while the average period of collection substantially decreased to 42 days as of Sept. 30, 2001 from 173 days as of Dec. 31, 2000.

The working capital substantially increased to $142,219 as of Sept. 30, 2001, from a negative $218,813 as of Dec. 31, 2000, a net improvement of $361,032 due to the accounts receivable conversion described above and the successful restructuring of $527,275 short term notes payable as long term debt.

Operating activities generated net cash of $77,646 for the nine months ended Sept. 30, 2001 as compared to a net cash outflow of $139,783 in the same period in 2000. Thus, the net income loss of $875,887 for the nine months ended Sept. 30, 2001 consisted primarily of $950,387 in accrued non-cash expenses, leaving $74,500 as the net cash gain from operations.

Net cash used for investing activities increased from $176,715 in the first nine months in 2000 to $585,756 in the first nine months of 2001. During the nine months ended Sept. 30, 2001, Global collected $450,000 in notes receivable that enabled Global to make substantial investments in the purchase of fixed assets, while supporting itself on cashflow.

Although Global will continue to be self-supporting, the company is in the process of seeking outside financing to expedite its growth.

On Aug. 17, 2001 the company conducted its annual shareholder meeting and re-elected the board of directors and ratified the employment of Clyde Bailey, P.C. as the company's independent auditor for the next fiscal year. Former director, David Wintroub, declined to stand for re-election due to his pursuit of other business concerns.

Prevail re-launched wheretobet.com on Nov. 17, 2001 and is beginning to ramp up full operations.

Global expects to show an operating profit in the fourth quarter 2001 although a net operating loss is expected for the entire year 2001.

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