Global Technovations Initiates Orderly Liquidation or Sale of its Onkyo America Automotive Subsidiary

    PALM BEACH GARDENS, Fla.--Oct. 24, 2001--Global Technovations, Inc. (AMEX:GTN) or ("GTI", or the "Company") announced today that Onkyo America, Inc. ("OAI"), its wholly-owned subsidiary, had entered into an agreement with OAI's bankers and OAI's principal customer, to initiate and fund the orderly liquidation or sale of the OAI, located in Columbus, Indiana. This decision was made as the result of certain events that made it clear that OAI could no longer meet the needs of its customers in the competitive United States automotive industry. The liquidity issues facing OAI were not adequately addressed by cost savings initiatives implemented by OAI management and the additional $4 million invested by GTI during the last twelve months. OAI is currently in negotiations with all of its major customers to enter into comparable type agreements. As a result of entering into this agreement, GTI expects to write-off its investment in OAI and record a one-time charge against earnings that could exceed $20,000,000 for the period ended September 30, 2001.
    Will Willis, GTI's Chairman and CEO, stated, "We acquired 100% of OAI from Onkyo Japan and affiliates on August 31, 2000. Since the acquisition, we have done everything possible to attempt to overcome operating issues. Additionally, we implemented numerous other business enhancement efforts. This included GTI investing an additional $4,000,000 in cash and spending considerable management time and resources to support OAI operations. Unfortunately, we were not successful. Considering the circumstances, we feel that the course of action we are now pursuing provides OAI's operations and customers with the least disruption and maximizes OAI's potential enterprise value during an orderly liquidation process or a sale."
    Mr. Willis continued, "Although we are very disappointed about this failed venture, the OAI actions that we have taken should not significantly impact current OSA business building initiatives. The events at Onkyo have been a tremendous diversion of senior GTI management time and resources away from its OSA business. We can now return to our principal mission, which is commercializing the OSA and providing stockholder value."
    Global Technovations, Inc., develops, assembles, and markets the patented MotorCheck(TM) and TruckCheck(TM) On-Site Analyzer, "an oil analysis mini-lab in a box", solid state spectroscopic analyzers for liquid petroleum marker detection systems, the PetroAnalytics(TM) line of diesel fuel and gasoline properties analyzers for the automotive, truck and heavy-duty equipment service markets. For more information, visit http://www.Globaltechnovations.com.

    Forward-Looking Statements

    The matters discussed in this press release relating to (1) OAI entering into similar agreements with other major customers and suppliers, (2) the timing of the write-off and its amount, (3) the ability to effect an orderly liquidation, and (4) OAI actions that we have taken should not significantly impact current OSA business are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Additionally, words such as "expects", "intends", "believes" and similar words are used to identify forward-looking statements within the meaning of the Act.
    Some or all of these forward-looking statements may not occur. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Such risks and uncertainties include the following: (1) the ability of OAI to reach agreements with major customers and suppliers, (2) the ability of OAI to obtain favorable prices from the sale of its real estate, property and equipment following OAI's shutdown, (3) the condition of the local real estate market in Columbus, Indiana, (4) the time the major customers will require to obtain approved alternative sources for the speaker products manufactured by OAI, and (5) the liquidation of OAI may adversely impact GTI's ability to obtain new financing to meet its working capital needs and to continue its ongoing marketing, manufacturing and support activity for OSA. Investors should also consider the factors contained in the Company's filings with the Securities and Exchange Commission.