Global Technovations Announces Fiscal 2001 First Quarter Results

    PALM BEACH GARDENS, Fla.--Feb. 21, 2001--Global Technovations, Inc. (AMEX:GTN) or ("GTI") today reported a net loss of $2,869,540 for the fiscal 2001 first quarter ended December 31, 2000, compared with a loss of $1,414,438 in the year-ago quarter. Results for fiscal 2001's first quarter include operations of Onkyo America, Inc. ("OAI"), acquired on August 31, 2000. Total revenue, including OAI, was $15,768,448, versus $185,050 the year before.
    Will Willis, the Company's Chairman and CEO, explained, " Results were negatively affected by the significant slowdown in the automotive OEM market which had an immediate impact on OAI's operations. We have taken aggressive measures to mitigate some of the impact of this softness. We have reduced our manufacturing costs, reduced our OAI workforce and are working on improving our overall efficiencies. Additionally, we are implementing plans to diversify our business to reduce our reliance on the automotive OEM industry, thereby improving gross margins.
    "In January 2001, we received purchase orders from a major automotive aftermarket supplier for approximately $2,000,000. in current orders. We anticipate this account could expand to as much as $4,000,000 for the full calendar year 2001, and $10,000,000 for calendar year 2002. Additionally, we expect to receive a first-time purchase order for approximately $1.5 million from a supplier of home speaker systems.
    "However, despite these measures, given the weakness forecasted for the automotive industry, which is projected to continue until at least the third calendar quarter of this year, we expect our OAI operation to post operating losses for the remainder of this calendar year."
    Mr. Willis continued, "On the OSA-II front, we have progressed to a point where a number of initiatives are entering their final phase of implementation. We remain confident that calendar year 2001 will be the year that our MotorCheck(TM) technologies achieves broad-scale market distribution."

                      GLOBAL TECHNOVATIONS, INC.

                            FINANCIAL TABLE

                                          (Unaudited)
                                      Three Months Ended
                                          December 31,
                                  2000                   1999

Total revenue                 $15,768,448              $185,050

Gross profit (loss)               964,786               (87,442)

Loss from operations           (1,577,157)           (1,114,311)

Net loss                       (2,790,790)           (1,028,152)

Dividends and warrants 
 related to preferred stock       (78,750)             (386,286)

Net loss available to 
 common stockholders          $(2,869,540)          $(1,414,438)
                              ============          ============

Basic and Diluted Earnings 
 (Loss) Per Share

Net loss                          $ (0.10)              $ (0.05)
                                  ========              ========

Weighted average number of 
 common shares outstanding -
 basic and diluted             29,338,047            29,333,047
                               ==========            ==========