Global Innovative Commences Phase II Lighting Solutions Project for Galaxy StarWorld Hotel and Casino in Macau

As a follow-up to its news release issued May 31, 2006, Global Innovative Systems Inc. (OTCBB: GBSY) is pleased to announce that its subsidiary joint venture, Lightscape Technologies (Macau) Ltd. ("Lightscape Macau"), has executed a formal contract and commenced providing indoor energy-saving lighting solutions for the Galaxy StarWorld Hotel and Casino ("StarWorld Hotel") under development in downtown Macau by Galaxy Entertainment Group Limited ("Galaxy").

The contract value is confirmed to total MOP$15,000,000 (approximately US$1,870,000) with an additional bonus of MOP$1,900,000 (approximately US$237,000) if the job is completed on time and to the satisfactory approval of Galaxy. Lightscape Macau's solutions are for the design and installation of tailor-made LED wall lighting solutions for the indoor casino gaming rooms and other entertainment areas of the StarWorld Hotel. Lightscape Macau's solutions are planned to provide distinguished lighting effects and architainment features which support the ultra-luxurious yet entertaining design concept adopted throughout the world-class hotel and casino resort. At the same time, Lightscape Macau's design is also planned to maximize energy savings through the application of advanced LED lighting systems and software controls based on patented technology.

"Lightscape Macau was pleased to receive formal confirmation of its tender bid and execute the formal agreement for this project," said Bondy Tan, President and Chief Executive Officer of Global Innovative. "Lightscape Macau has commenced work on Phase II, and we are confident in Lightscape Macau's ability to deliver world-class lighting solutions to the StarWorld Hotel in a timely manner."

Continued Mr. Tan, "Following on the success of Lightscape Macau's two tender bids for Phases I and II of the StarWorld Hotel project, we look forward to submitting additional tender bids for energy-saving and lighting solutions projects with other Galaxy developments in the near future. Lightscape Macau's work on the StarWorld Hotel will also serve as a showcase for Galaxy and for owners of other new casino developments in Macau."

Lightscape Macau's tender bid for the StarWorld Hotel Phase II lighting contract was made under the auspices of a master agreement between Tech Team Holdings Limited ("TTH"), a wholly owned subsidiary of Global Innovative, and K. Wah Construction Materials (Hong Kong) Limited in March 2005 under which TTH would provide energy-saving services to the K. Wah Construction Materials Limited group of companies ("K. Wah"). TTH and Lightscape Macau have also been invited by Galaxy to submit a proposal for the design and build of energy-saving and lighting solutions for another of Galaxy's major real estate developments in Macau, the 1,500-room luxury hotel and casino Galaxy Cotai Mega Resort scheduled to open in 2008.

Galaxy Entertainment Group Limited (formerly K. Wah Construction Materials Limited) is a leading operator of gaming and entertainment properties in Macau. Galaxy, a Hong Kong-listed company (HKSE: 00027), currently operates the Waldo Hotel and Casino, and plans to open four additional hotel and casino properties in Macau by the end of 2008. Tracing its roots to the 1950s, Galaxy today has a market capitalization of approximately US$1.4 billion and annual sales of approximately US$145 million.

Galaxy StarWorld Hotel and Casino is a HK$2.5 billion (approximately US$320 million) luxury development project in downtown Macau owned by Galaxy Entertainment Group Limited. The development includes a 34-floor, 507 guest room 5-star hotel (making it the tallest building in Macau) and 180,000 square feet of casino gaming. The property is on schedule to open in mid-2006.

Lightscape Macau is a joint venture company beneficially owned 50.4% by Tech Team Investment Limited ("TTIL"), a wholly owned subsidiary of Global Innovative, and 49.6% by Luminous LED Technologies Ltd. ("LLT"), a wholly owned subsidiary of Lightscape Holding Ltd. ("Lightscape"). Lightscape is a Hong Kong-based researcher, developer, manufacturer and distributor of advanced LED lighting products and technologies. On March 30, 2006, TTIL entered into an agreement to acquire 60.0% of the shares of Lightscape. As a result, if the proposed transaction is completed, Global Innovative would effectively hold an 80.16% ownership interest in Lightscape Macau.

Macau is one of the fastest-growing gaming markets in the world. Macau borders Guangdong Province of China, one of the country's wealthiest and most developed regions. Approximately 1 billion people live within a three-hour flight to Macau. Over 18.7 million people visited Macau in 2005, with over 55% coming from China.

About Global Innovative

Global Innovative Systems Inc. (OTCBB: GBSY) delivers customized energy management solutions, lighting products and innovative lighting solutions. Since 1999, over 100 commercial, industrial, government and multi-residential clients have benefited from Global Innovative's solutions. Through wholly owned subsidiary Tech Team Holdings Limited, Global Innovative provides total energy management products and solutions which optimize energy consumption, lower costs, and enhance competitiveness for clients. Through subsidiary Beijing Illumination (Hong Kong) Limited, Global Innovative manufactures and sells HID (High-Intensity Discharge) lighting products and ultra high-pressure mercury lamps. Through joint venture subsidiary Lightscape Technologies (Macau) Ltd., Global Innovative provides full service lighting design solutions including interior set design and fabrication, computer-controlled special effects, intelligent lighting, laser and multimedia technologies. Our headquarters are in Hong Kong, and we have offices in Singapore, China, Macau and Canada.

Safe Harbor Provision

The Private Securities Litigation Reform Act of 1995 provides a "Safe Harbor" for forward-looking statements. This Press Release may contain, in addition to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "plan," "anticipate" and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from Global Innovative's expectations, and Global Innovative expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to, Global Innovative's and Lightscape Macau's ability to secure sufficient working capital in order to manufacture and deliver energy-saving lighting equipment to StarWorld Hotel; Lightscape Macau's ability to deliver upon the contract conditions in a timely manner to the satisfactory approval of Galaxy; Lightscape Macau's ability to collect payments receivable under the contract; TTIL's 50.4% ownership in Lightscape Macau and the resultant sharing of potential contract revenues with its joint venture partner LLT; Global Innovative's and TTIL's ability to close the transaction to acquire 60.0% of Lightscape; Global Innovative's and Lightscape Macau's ability to successfully obtain additional contracts with other casino development(s) in Macau owned by Galaxy or others; and other factors which may cause the actual results, performance or achievements of Global Innovative to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.

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For more information, please contact: Global Innovative Systems Inc. Investor Relations 1-888-852-8838 Website: www.gistt.com Email: Email Contact

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2006-07-20