GEE Global Entertainment Corp.

Global Entertainment Corporation (NYSE Alternext US: GEE) today reported revenue for the first quarter ended August 31, 2008 was $2.36 million compared to revenue of $3.22 million in the first quarter period ended August 31, 2007. While in the aggregate revenue decreased, project management fees increased $0.34 million in the first quarter fiscal 2009 and include fees associated with the projects in Independence, Missouri that began in February 2008 and the Allen, Texas project that started in June 2008. The increase in project management fees was offset however by a combination of the decreases of $0.52 million in facility management revenues, $0.54 million in license fees and $0.16 million in ticket service fees. The cancellation of a facility management contract in Ohio and the decline in the number of events held and the decrease in attendance at facilities under management in Rio Rancho, New Mexico and Prescott Valley, Arizona negatively affected facility management fees and ticket service fees in the first quarter fiscal 2009. License transfer fees, a part of the prior year first quarter revenue and not a regularly recurring event, did not occur in the current first quarter fiscal 2009. For the first three months of fiscal 2009, the company realized a net loss of $0.16 million or $0.02 per share compared to a net loss of $1.52 million or $0.23 per share for the three-month period ended August 31, 2007. The loss for the first quarter fiscal 2009 includes $0.05 million from discontinued operations, net of income taxes and a loss of $0.07 million from discontinued operations net of income taxes in the three-month period ended August 31, 2007. Richard Kozuback, president and chief executive officer, stated, �As a company in the entertainment business through our subsidiaries involved in arena development, facility and venue management and marketing, and venue ticketing we are doing our best to fight through these difficult economic times and are generally pleased with our results for the first quarter fiscal year 2009. We experienced a decline in the number of events held in the facilities we manage as well as a decline in venue attendance, which likely reflects people reining in their discretionary spending. Nonetheless we approached breakeven in the first quarter as we focused on our core businesses and cost controls. Our ticketing services (GetTix.Net) continued as a significant contributor to total revenue accounting for 26.3% of revenue in the first quarter of this fiscal year. �The Independence, Missouri and Allen, Texas projects will contribute project management revenue over a 20-month period. In Wenatchee, Washington the grand opening of the multi-purpose events and entertainment center occurred on October 5th with substantial completion of construction effective October 3rd. The $52.8 million state-of-the-art facility hosts its first major events, the first three games of the NAHL hockey season on October 16th, 18th and 19th.� Concluding, Kozuback stated, �We have moved beyond the burden of the expenses associated with our legal defense costs by settling significant legal issues and the losses connected with the operation of Cragar Industries, a business segment that we divested because it was unrelated to our core business model. Our focus now is on the effective operation of our core businesses and on controlling expenses, which in combination we hope will lead to strong operational and financial results for the benefit of our shareholders.� Visit our web sites: � � � � � � � � www.globalentertainment2000.com www.centralhockeyleague.com www.coliseums.com www.GetTix.net Global Entertainment Corporation is an integrated events and entertainment company focused on mid-size communities that is engaged, through its six 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 development potential of new properties. International Coliseums Company (ICC) serves as project manager for arena development while Encore Facility Management coordinates operations for all arena facility scheduling. 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: intense competition within the sports and entertainment industries, past and future acquisitions, expanding operations into new markets, risk of business interruption, management of rapid growth, need for additional financing, changing consumer demands, dependence on key personnel, sales and income tax uncertainty and increasing marketing, management, occupancy and other administrative costs. These factors are discussed in greater detail in the company's Annual Report on Form 10-K for the year ended May 31, 2008, as filed with the Securities and Exchange Commission. GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands) � � � ASSETS August 31, May 31, 2008 2008 Current Assets: Cash and cash equivalents $ 563 $ 443 Restricted cash 1,250 - Accounts receivable, net 1,197 1,111 Investment in Wenatchee, WA project 47,209 34,473 Other current assets 299 2,406 � Total Current Assets 50,518 38,433 � Other Assets 1,171 931 � Total Assets $ 51,689 $ 39,364 � LIABILITIES AND STOCKHOLDERS' EQUITY � � Current Liabilities: Accounts payable and accrued liabilities $ 8,271 $ 8,468 Notes payable - current portion 39,651 27,220 Other liabilities 527 257 � Total Current Liabilities 48,449 35,945 � Notes payable and other long-term liabilities 270 297 � Total Liabilities 48,719 36,242 � Stockholders' Equity: � Common stock 7 7 Paid-in capital 10,938 10,930 Accumulated deficit (7,975) (7,815) � Total Equity 2,970 3,122 � Total Liabilities & Stockholders' Equity $ 51,689 $ 39,364 GLOBAL ENTERTAINMENT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS � (unaudited) (in thousands except per share amounts) � Three Months Ended August 31, 2008 � 2007 Revenue $ 2,359 $ 3,224 Expenses � 2,475 � 4,713 Loss from operations (116) (1,489) Other income � 4 � 39 Loss from continuing operations before income taxes (112) � (1,450) Income tax benefit � - � - Loss from continuing operations (112) (1,450) Loss from discontinued operations, net of income taxes � (48) � (68) Net loss $ (160) $ (1,518) � Loss per common share: Diluted Loss from continuing operations $ (0.02) $ (0.22) Loss from discontinued operations � - � (0.01) Net loss $ (0.02) $ (0.23) Weighted average number of common shares outstanding: Diluted 6,625,114 � 6,508,700