Global Entertainment Corporation Reports Fiscal Year End 2010 Results

Global Entertainment Corporation (OTCBB:GNTP) – an integrated event and entertainment company, today announced financial results for its fiscal year ended May 31, 2010.

The Company realized a net loss of $2.6 million or $0.39 per share compared to net income of $0.03 million or $0.00 per share for the prior fiscal year.

Revenue for the fiscal year ended May 31, 2010 was $11.3 million compared to $13.2 million during the fiscal year ended May 31, 2009, a decrease of $1.9 million or 14.2 percent. The business lines which have contributed the most to this decline are ticket service fees and license fees – initial and transfer. Ticket service fees fell to $0.9 million or 8.3 percent of revenues from $2.8 million or 21.1 percent of revenues, a decline of $1.8 million or 66.3 percent. License fees – initial and transfer were $0.1 million in fiscal year 2010 down from $1.6 million in 2009, a decrease of $1.5 million or 93.7 percent. It must be noted that initial fees and transfer fees are not regularly recurring and are difficult to predict.

The two business lines that were the main drivers of revenue during the past fiscal year were facility management fees and food service revenues. Facility management fees accounted for 40 percent of Global Entertainment’s revenues over the past year, rising to $4.6 million in 2010 from $3.2 million in 2009, a gain of $1.4 million or 43 percent. The most encouraging business segment over the past year has been food service revenues which expanded to $1.6 million in fiscal year 2010 from $0.7 million the previous year, a jump of $1.0 million or 144 percent.

Total operating costs increased to $13.8 million for fiscal 2010 from $12.6 million in the prior fiscal year, a jump of $1.2 million or 9.5 percent. This was due largely to $0.7 million of additional preopening costs, primarily for the Allen, Texas and Independence, Missouri projects, $0.3 million of additional food service costs, related to the increase in food service revenues and $0.8 million of additional facility payroll expense. However, these increases were offset by decreases in the majority of other expense categories totaling $0.6 million, which were chiefly as a result of cost reduction initiatives.

Richard Kozuback, President and Chief Executive Officer stated, "Unfortunately our operations, cash flows and liquidity have continued to be adversely impacted by the economic downturn and its effect on the markets in which we operate. However, we are actively managing our liquidity, have reduced head count and salaries and are in the midst of executing other changes in our operations, all in an effort to minimize the uncertainty that faces us and to improve our cash position. In addition, we are continuously evaluating the validity of all of our various business units. While revenues and cash flow are dependent on our ability to finalize certain transactions that are difficult to predict as to timing, we are hopeful that the actions we have taken thus far, along with future initiatives, will alleviate some of the negative conditions we face and improve our future results.”

Kozuback continued, "In addition, based on recently executed contracts, we anticipate ticket service fees to increase significantly in fiscal year 2011. Finally, we expect to continue to earn project management fees through the third or fourth quarter of fiscal 2011 and are contracted to provide facility management service, ticket service and advertising sales at the Dodge City, Kansas facility.”

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Global Entertainment Corporation is an integrated events and entertainment company focused on mid-size communities that is engaged, through its seven wholly owned subsidiaries, in sports management, multi-purpose events and entertainment centers and related real estate development, facility and venue management and marketing and venue ticketing. Global Properties I, in correlation with arena development projects, works to maximize value and develop potential new properties. International Coliseums Company, Inc. (ICC) serves as project manager for arena development while Encore Facility Management and GEC Food Service, LLC coordinate arena operations and concessions. Global Entertainment Marketing Systems (GEMS) pursues licensing and marketing opportunities related to the Company’s sports management and arena developments and operations. Global Entertainment Ticketing (GetTix.Net) is a ticketing company for sports and entertainment venues. The Western Professional Hockey League, Inc., through a joint operating agreement with the Central Hockey League, is the operator and franchisor of professional minor league hockey teams in nine states.

Certain statements in this release may be "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. These forward-looking statements may include projections of matters that affect revenue, operating expenses or net earnings; projections of capital expenditures; projections of growth; hiring plans; plans for future operations; financing needs or plans; plans relating to the company's products and services; and assumptions relating to the foregoing.

Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking information.

Some of the important factors that could cause the company's actual results to differ materially from those projected in forward-looking statements made by the company include, but are not limited to, the following: limited liquidity and the need for additional financing, intense competition within the sports and entertainment industries, past and future acquisitions, expanding operations into new markets, risk of business interruption, changing consumer demands, dependence on key personnel, sales and income tax uncertainty and increasing marketing, management, occupancy and other administrative costs.

The condensed "audited” consolidated balance sheets and statements of operations contained in this press release are derived, and should be read in conjunction with, the Company’s audited financial statements and notes for its fiscal year ended May 31, 2010, which are included in the Company’s annual report on Form 10-K. This press release does not include all disclosures normally required by accounting principles generally accepted in the United States.

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