Article: GS Telecom Limited Eliminates Escrowed Shares.

LONDON--(BUSINESS WIRE)--October 26, 1999--

GS Telecom Limited, (OTC/BB:GARD; www.gs-tele.com), today announced it has eliminated 21 million shares of company stock that was placed in escrow for the acquisition rights of the Syntropy special effects film software and a minority stake in film production companies associated with the software. GS Telecom Limited exercised its right to rescind the escrowed shares transaction because the software's commercial development has not progressed as expected. The Company also announced that the escrowed shares would not be re-issued, therefore reducing its total number of outstanding shares by approximately 35 percent.

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