theglobe.com Announces $28 Million Private Placement from Institutional Investors

FORT LAUDERDALE, Fla.--()--March 10, 2004--theglobe.com (OTCBB:TGLO) announced today that it has accepted subscriptions for a $28 million private placement with several institutional investors. The financing was led by a large, Boston-based institutional investment management firm that invested $15 million on behalf of certain clients. The investment also included other US-based institutional investors and a prominent group of Mexican investors with significant holdings in telecommunications and other industries. In connection with the private offering, our Chairman and CEO, Michael Egan, also converted his $2 million bridge note at the same blended price paid by the investors.

"We are obviously quite proud of the caliber of the investors we were able to attract," said Ed Cespedes, President of theglobe.com. "We believe that our voiceglo business is well-positioned to capitalize on the enormous opportunity in VoIP, and the investment confirms that significant institutional investors agree."

Michael Egan, theglobe.com's Chairman and CEO continued, "we are at a moment in time where we believe that voiceglo's products, especially the 'glophone' (www.glophone.com), will rapidly be adopted by consumers all over the world. We believe that the new capital will give us the resources we need to help "jump-start" that adoption."

In connection with the closing of the private placement, theglobe.com issued to the investors approximately 32,991,647 shares of common stock priced at $0.85. The investors also received five-year warrants to purchase approximately 16,495,824 shares of common stock with an exercise price of $.001. theglobe.com has agreed to register the shares of common stock issued, as well as the common stock underlying the warrants that were issued. Pursuant to the offering, theglobe.com is obligated to file a registration statement relating to these securities on or about April 22, 2004 and to cause such registration statement to become effective on or about July 6, 2004 (or 30 days earlier if such registration statement is not reviewed by the SEC). In the event the Company is late in any of its registration obligations, it will be liable for payment of a late fee of 5% of the amount raised in the Private Offering per month (not to exceed 25% in the aggregate). Any such late fee may be payable in either cash or additional shares of Common Stock (valued for such purpose at the blended price per share of the offering), or any combination of the two, at the option of the Company. The securities have not been registered under the Securities Act of 1933, as amended, and may not be offered or resold in the United States absent registration under the Securities Act and applicable state securities laws or an applicable exemption from those registration requirements.

The company said it intends to use the net proceeds for general corporate purposes, which include the continued development of its voiceglo product offerings, as well as other working capital requirements.

Halpern Capital acted as placement agent for the transaction.

This press release includes forward-looking statements related to theglobe.com, inc. that involve risks and uncertainties, including, but not limited to, risks and uncertainties relating to product delivery, product launch dates (particularly as they pertain to our voiceglo services), the Internet, development and protection of technology, the management of growth, market acceptance of our voiceglo VoIP products, our ability to compete successfully against established competitors with greater resources, the uncertainty of future governmental regulation (particularly as it pertains to the Internet and the provision of telephony services using the Internet) and other risks. These forward-looking statements are made in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. For further information about these and other factors that could affect theglobe.com's future results and business plans, please see the Company's filings with the Securities and Exchange Commission, including in particular our Annual Report on Form 10-K for the year ended December 31, 2002 and our Quarterly Report on Form 10-QSB for the quarters ended March 31, 2003, June 30, 2003 and September 30, 2003. Copies of these filings are available online at http://www.sec.gov. Prospective investors are cautioned that forward-looking statements are not guarantees of performance. Actual results may differ materially and adversely from management expectations.

Contacts

theglobe.com, Fort Lauderdale
Edward Cespedes, 954/769-5900
edc@corp.theglobe.com

Contacts

theglobe.com, Fort Lauderdale
Edward Cespedes, 954/769-5900
edc@corp.theglobe.com