CONXION TO EXPAND GLOBAL HOSTING INTO EUROPE VIA ACQUISITION OF VERSATEL'S SPEEDPORT N.V.

U.S. based Internet infrastructure provider Conxion Corporation and European telecommunications provider Versatel Telecom International N.V.(Nasdaq: VRSA) have announced an important transaction and strategic relationship in which Conxion will acquire from Versatel its Internet subsidiary SpeedPort and will purchase European network services from Versatel. Versatel will obtain global Internet transit services from Conxion. This long-term partnership between Versatel and Conxion will result in revenue commitments from Conxion to Versatel for the provisioning of infrastructure services and revenue commitments from Versatel to Conxion for services for the next three years.

The relationship with Versatel marks the first phase of Conxion's expansion into international markets to offer managed hosting, connectivity and technical services to global companies. Conxion will quickly integrate the five-country European SpeedPort network and data centers with its own nationwide US backbone in order to create a fault-tolerant, transatlantic wide area network (WAN). With SpeedPort's assets, Conxion will add data center capacity for 10,000 servers in Europe by the end of the year. Conxion expects to have 100,000-server capacity by Q4 2001.

In the agreement, Versatel will provide Conxion with the ability to light fiber on demand across the Atlantic and within Europe at up to STM 16 (7.4 Gbps, bi-directional) fiber backbone capacity during the first year, with higher capacity available within the year thereafter. The fiber route and bandwidth build-out will provide SONET-protect, dual redundant connectivity between at least five European cities and the US by the end of 2000, which will bring the network up to Conxion's reliability standards.

The agreement with Versatel gives Conxion rights to the equivalent of up to OC-48/STM-16 capacity in Europe, with available capacity increasing after the first year. In April 1999, Conxion announced an agreement for Tulsa-based Williams Communications to provide Conxion with up to OC-192/STM-64 (10 Gbps, bi-directional) fiber backbone capacity within the United States.