Global Technovations Announces Fiscal 2001 Second Quarter Results

    PALM BEACH GARDENS, Fla.--May 21, 2001--Global Technovations, Inc. (AMEX:GTN) or ("GTI", or the "Company") today reported a net loss of $4,217,818 for the second fiscal quarter ended March 31, 2001 compared to a net loss of $1,362,034 for the same three-month period ended March 31, 2000. The net loss for the six months ended March 31, 2001 was $7,008,608, compared to a net loss of $2,390,186 for the same six-month period ended March 31, 2000. Results for fiscal year 2001's three and six-month periods ended March 31, 2001 includes operations of Onkyo America Inc. ("OAI") acquired on August 31, 2000. The net loss for the most recent three and six-month periods includes approximately $1,358,000 and $2,700,000, respectively, of non-cash items such as amortization of goodwill, depreciation, and deferred interest. This compares to approximately $232,000 and $431,000 of non-cash items, respectively, for the same three and six-month period ended March 31, 2000.
    Will Willis, the Company's Chairman and CEO stated, "Unfortunately, shortly after we acquired OAI on August 31, we encountered the worst U.S. auto industry downturn in a decade. We immediately recognized the problem and moved swiftly and decisively to take counter actions. It took the last six months for the corrective actions taken to begin to flow through the system. Currently, with the reduced operating cost and initial signs of an industry turnaround, we find ourselves well positioned for OAI to return to and exceed the level of historic operating performance from when we originally acquired OAI. Additionally, we are aggressively pursuing new opportunities which may favorably impact OAI's future."
    Mr. Willis continues, "On the OSA front, the level of activity is at a record high. The signing of the Jiffy Lube agreement represented a major milestone and the most positive event in the Company's history. We are working diligently to secure financing and during July expect to receive a firm purchase order from Jiffy Lube for the installation of the first 300 OSA units at their company-owned stores by calendar year end. We are hopeful that other Jiffy Lube stores and franchisees will place future orders under our recently announced agreement to sell or lease 1,000 units. Concurrently, Jiffy Lube will be implementing Memorial Day and July 4th promotions that will begin to feature our MotorCheck(TM) technology. The initial, unadvertised on-site and mail-in rollout that began in Sacramento earlier this month has exceeded initial expectations and, prompted Jiffy Lube to accelerate this national rollout. More locations are expected to be added to the initial mail-in sample program by month-end.
    "In addition to the Jiffy Lube contract, we continue to advance efforts on numerous additional initiatives. We are cautiously optimistic that one, and possibly two, major agreements comparable to the Jiffy Lube potential revenue will be executed and commenced before calendar year-end."
    In closing, Mr. Willis further stated, "We are closely managing our Audio Strategic Business Unit through this difficult industry period, while we aggressively implement our Diagnostic Divisions' market development plans. Our business plan remains firmly on track to generate measurable results during the upcoming months."
    David Natan, Vice President and CFO commented, "During the last 90 days, the Mennen Trust has infused $4,000,000 of cash into GTI in the form of preferred stock to help provide working capital for OSA and corporate activities as well to help OAI to weather the unexpected significant sales decline. Currently, we are in meaningful discussions with third parties to secure additional working capital for operations and to finance OSA units for the anticipated rollout at Jiffy Lube. In order to accelerate that process, we have hired Raymond James & Associates, Inc., a member of the New York Stock Exchange, as our investment banker."

                        GLOBAL TECHNOVATIONS, INC.

                              FINANCIAL TABLE
                            


                        Three Months Ended        Six Months Ended
                             March 31,                March 31,
                        2001         2000        2001          2000
                        ----         ----        ----          ---- 
Total Revenues      $12,626,195    $298,503   $28,394,643    $483,553

Gross profit (loss)     606,326    (123,853)    1,571,112    (211,295)

Loss from operations (2,923,072) (1,401,490)   (4,500,229) (2,515,801)

Net loss             (4,217,818) (1,362,034)   (7,008,608) (2,390,186)

Dividends and warrants
 related to preferred 
  stock                (192,931)    (78,750)     (271,681)   (465,036)

Net loss available 
 to common 
  shareholders      $(4,410,749) $(1,440,784) $(7,280,289)$(2,855,222)
                    ============ ============ =========== ============ 

Basic and Diluted 
 Earnings (Loss) 
  Per Share

Net Loss                 $(0.15)      $(0.05)      $(0.25)     $(0.10)
                         =======      =======      =======     =======

Weighted average number 
 of common shares
  outstanding - basic 
   and diluted       29,341,436   29,333,047   29,339,723  29,333,047
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