Cable & Wireless U. S. Data Customers Migrating to New Edge Networks; Company Honors Current Rates and Ensures Continuous Service.

Business Editors

VANCOUVER, Wash.--(BUSINESS WIRE)--Sept. 24, 2002

New Edge Networks, a national data communications and business broadband services provider, today announced it has reached an exclusive agreement to migrate certain U. S. based data communications customers from Cable & Wireless USA Inc. (NYSE:CWP).

New Edge Networks will honor existing agreements that Cable & Wireless has with its data communications customers and agents. Both companies will closely coordinate efforts, ensuring smooth and seamless migrations of about 1,500 affected data communications customers with connections dispersed across the United States and Canada.

If all affected customers migrate to New Edge Networks, this transaction could boost New Edge Networks' revenues by up to $45 million a year. The potential aggregate value to Cable & Wireless is about $4 million.

Under terms of the agreement, New Edge Networks will pay Cable & Wireless a fee for successful migrations of customers for dedicated Internet access, frame relay, and private line services. Cash payments are based on the customers' actual monthly usage amounts and will be made over 12 months. Migrations are starting immediately and will be completed by January.

"Cable and Wireless has publicly announced changes in its U. S. strategy and its management is to be commended for thinking first of finding safe havens for their customers," said Dan Moffat, president and CEO of New Edge Networks. "The profiles of these customers and their data services match our own almost exactly. This will go a long way for ensuring continuous service for affected customers. We have become pretty proficient at migrating customers in the past couple years."

Last May Cable & Wireless announced it would divest certain of its U. S. retail voice and data communications business.

Affected Cable & Wireless customers will receive letters along with instructions for initiating, by Oct. 18, the migration of their data communications and broadband services to New Edge Networks. Customers that migrate to New Edge Networks will retain their current Internet protocol addresses and existing premises equipment. New Edge Networks, in cooperation with Cable & Wireless will take care of all the details to complete the migrations.

"One of the first things new customers notice about New Edge Networks is the high level of personal care and responsiveness that our employees consistently demonstrate," Moffat said. "We take our motto of "Better Business Broadband" quite seriously. A key reason why New Edge Networks continues to grow and thrive in the face of adversity is our team's ability to focus on our business broadband customers and execute our plan to exceed our investors' expectations."

About New Edge Networks

New Edge Networks is a national business class broadband services provider that owns and operates one of the largest multi-service data communications networks in the United States. In addition to providing frame relay, ATM, IP and other advanced data services nationally, New Edge has one of the largest DSL coverage footprints for small and midsize cities across the country. The company also provides dedicated high-speed Internet access in 27 major cites around the country. New Edge Networks offers frame relay access and gateway products through channel partner programs or wholesale relationships. It provides a wide variety of business-class DSL and T-1 solutions through Internet Service Providers and its own TransEdge brand. Top-tier private venture firms, global financial institutions and worldwide technology firms provide financial backing to New Edge Networks. The company's Web site is www.newedgenetworks.com. Telephone: [phone].