AT&T awarded $45 million contract for Bermuda-United States undersea communications system.

BASKING RIDGE, N.J.--(BUSINESS WIRE)--May 16, 1996--AT&T today announced it has been awarded a $45 million contract to design, engineer, install, monitor and maintain a 1,310-kilometer undersea fiber optic telecommunications system between the United States east coast and Bermuda.

The cable system will be privately owned jointly by TeleBermuda International, Ltd. in Bermuda and TeleBermuda International L.L.C. in the United States.

The system, Bermuda-United States-1 (BUS-1), is projected to link a cable station on the United States east coast to Lands End in Bermuda. It will consist of two fiber pairs operating at up to 2.5 gigabits per second (Gb/s), providing capacity equal to 120,000 simultaneous two-way telephone conversations. The Bermuda-U.S. portion of the system is slated for service in October of 1997.

"AT&T's technology will supply service of exceptional quality," said William B. Carter, president of AT&T Submarine Systems, Inc. "In supplying this system, we further our efforts to link all nations to the global network and provide connectivity for ubiquitous service worldwide."

Michael Kedar, chief executive officer and chairman of TeleBermuda International, Ltd. said "BUS-1 will be the high-speed connection for Bermuda onto the Global Information Superhighway and will position the country as a major telecommunications hub in the Atlantic region." He noted "The system will provide TeleBermuda International with the highest quality network possible for international communications and will be the first private SDH transatlantic cable upgradable to 40 gigabits per second." In addition, he said "The BUS-1 segment connecting the United States east coast to Lands End is the first phase of a two-part project that once completed, will connect Bermuda with the United States and Europe."

TeleBermuda International Ltd. (TBI) is being licensed as the second international telecommunications carrier in Bermuda. The company's mission is to develop Bermuda into an international telecommunications hub, thus positioning itself to benefit from the rapidly expanding global telecommunications marketplace.

AT&T Submarine Systems, Inc. is the world's leading supplier of undersea cable. It operates a fleet of six cable ships, and has installed enough cable to circle the globe six times.

CONTACT: Patricia Sieh

AT&T

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Michael Kedar

TeleBermuda

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