COLT announces Europe's first ever ATM/SDH based Internet service, agreement with Teleglobe.

LONDON--(BUSINESS WIRE)--May 28, 1997--COLT Telecom Group plc (COLT) announced today the launch of its new "business class" Internet service, COLTInternet, which will offer a range of Internet access and value-added services for corporate users and other Internet service providers (ISPs).

COLTInternet, initially rolling out in the UK, offers high- quality, high-speed data rates of 64kps to 2Mbps and above, and gives users the benefit of a high-speed 45Mbps, trans-Atlantic Asynchronous Transfer Mode (ATM) backbone network which also utilizes COLT's Synchronous Digital Hierarchy (SDH) access network.

COLT believes this to be a Europe-wide first for Internet service provision, making COLTInternet faster and more resilient than services offered by all other providers.

The ATM backbone has been secured through an agreement with Teleglobe, owner and operator of one of the world's largest inter-continental networks.

The deal with Teleglobe will give users of the new service direct access to Teleglobe's Globeinternet IP routing service in the United States via the Transatlantic ATM network, thus avoiding domestic congestion. Other advantages of the Globeinternet service include extensive global transit routing.

Paul Chisholm, president and CEO of COLT Telecom Group, commented, "COLT intends to be at the forefront of the Internet as it becomes a major transactional medium for business applications. COLTInternet, coupled with our highly reliable network and COLT's usual value and quality, will offer customers an unbeatable combination.

"I am sure that the unprecedented speed, resilience, security and reliability of the COLTInternet service, afforded by its SDH and ATM network structure, will create real business demand. We expect it to generate significant revenue for us."

Value Added Services

Apart from the technical advantages afforded by COLT's network, COLTInternet boasts a number of unique selling points that provide real benefits to business users. These include:

-- Content filtering at source using embedded "CyberNOT" software from Microsystems Software, enabling companies to control the web sites that their employees can visit.

-- Migration within days to COLTInternet's service, compared to the industry standard of 3-4 weeks for the installation of an Internet service.

-- Frame Relay technology allowing COLTInternet to offer services that have a perceptible performance gain due to the ability to burst. Furthermore, it allows for rapid upgrades through a simple software change.

-- Interface into COLTSource service management software, enabling systems managers to track service performance, order progress, service changes, etc.

-- Managed firewall facility.

As the service is developed, COLTInternet will also provide targetted, vertical business information content for its key customer base sectors such as the finance, insurance, shipping, broadcast and government sectors.

COLTInternet is run by a specialist team of staff and management headed by Managing Director Peter Mothersill, formerly General Manager of Data Broadcasting International Ltd. -0- Note to Editors:

COLT Telecommunications is a wholly owned subsidiary of the COLT Telecom Group plc which also includes COLT Telecom GmbH, Germany and COLT Telecommunications France SAS. The company started in 1993, based in the city of London.

In 1995 and 1996, COLT expanded its operations to Frankfurt and Paris, and in December 1996, with a proven track record in high-quality network installation and service, the company floated on NASDAQ and the London Stock Exchange.

As of March 31, 1997, COLT had an end-to-end fibre optic network in the UK as follows: 146 km that covered the city of London, Docklands, Westminster and the West End serving 660 buildings and over 600 corporate customers. In Frankfurt, as of March 31, 1997, the network covered 78 km and served 114 buildings.

Since its launch, COLT has differentiated itself from other PTOs in its approach to customer service, whether in the way it tailors its products to the customer's requirements, or by guaranteed delivery and service quality, and as its experience increases, so does its commitment to customers.

CONTACT: COLT Telecommunications

Ross Sampson, 0171 390 3900

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or

Firefly Communications

Shelley Facius/Jo Pratt, 0171 381 4505

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