Carrier1 Predicts Data Business, Revenues To Increase Significantly In 2001; All Financial Figures are in US Dollars.

Business Editors

ZURICH, Switzerland--(BUSINESS WIRE)

Dec. 20, 2000 - Reflecting its ability to capture the increasingly important data market, Carrier1 International S.A. (Neuer Markt: CJN; NASDAQ: CONE) today issued a business outlook for 2001 that predicts a 240 percent increase in data revenue, and a more profitable revenue mix of 40 percent data and 60 percent voice.

Carrier1 also projected total revenue of $420 to $450 million in 2001, representing more than 50 percent growth over the $270 to $275 million guidance given for the year 2000.

"We are very pleased with the strong growth of our business in data, Internet and bandwidth services," said Stig Johansson, President and CEO of Carrier1. "The demand for our services is exploding in Europe, and we're excited about being at the forefront as the communication partner of choice with a reputation for high-quality and reliable services, as well as a very stable financial position."

Revenue backlog at the end of 2000 will amount to approximately $285 million and includes bandwidth and infrastructure sales that are recognized over the 15 to 20 year period of the contract.

In making the announcement Carrier1 also said that its EBITDA projection will improve dramatically from its guidance of a loss of $34 to $36 million in 2000 to an estimated positive EBITDA of $15 to $25 million in 2001.

"Carrier1's services will generate significant positive EBITDA in 2001 - its third year of commercial operations - thanks to its ability to use capital efficiently and to generate high margin revenues rapidly on the back of capital investments," said Joachim Bauer, Chief Financial Officer of Carrier1. The company is achieving this with a relatively low SG&A margin, similar to the 13 percent margin expected in 2000, thanks to its pan-European focus and its reliability on highly skilled personnel adept at managing the latest network technologies."

Carrier1 will proceed with its next phase of buildout in 2001. It continues to deploy high-bandwidth metro rings in 20 European cities, each city extending 60 kilometres on average. These metro rings will connect on average 10 points of presence fitted with web hosting and co-location facilities.

Over the first six months of 2001, Carrier1 will make available co-location space in 11 sites across Europe including Berlin, Frankfurt, Geneva, Hannover, London, Milan, Munich, Oslo, Paris, Stockholm, Zurich. The facilities, which will be marketed under the brand ClearSpace, will extend to a total of 11,000 sq.m. (121,000 sq. ft.) and will be bundled with Carrier1's Internet services and managed bandwidth offerings.

Investments ranging from $220 to $250 million will be spent in 2001 into new data technologies servicing the company's existing platforms and adding fibre capacity to its metropolitan and city-to-city fibre networks. Infrastructure sales contracts are expected to generate upfront cash of approximately $50 to $70 million in 2001. Additionally, Carrier1 is entering 2001 with a projected 32 percent debt to capitalization and an unrestricted cash position of approximately $320 million.

"We have a long-term fully funded business plan as well as a significant cash reserve of about $150 million and are very confident in achieving our financial targets. Our capital efficient strategy consolidates our strong financial position and helps us gain market share in Europe," said Stig Johansson.

About Carrier1

Carrier1 International S.A. is a leading European provider of end-to-end Internet, voice, bandwidth, data-centre and access solutions to large users of communication services. Carrier1 provides its clients with carrier-grade transport and network solutions as well as end-user ready value added services. Carrier1 customers brand and market these solutions and services to their respective end-users.

The Carrier1 pan-European, inter-city fiber network connects 12 countries and currently spans over approximately 11,000 route kilometers, connecting points-of-presence in over 20 European cities. Carrier1 is operational in all 12 countries and has secured all the necessary interconnects and operational licenses that allow it to provide network solutions and end-user-ready, value-added services. Carrier1 has completed 2 metro ring fibre networks and is currently constructing 5 metro ring fibre networks and expanding one existing metro fibre network. Carrier1 plans to build/acquire at least 13 additional city-ring fiber networks. Carrier1 has space available for service in Digiplex data centre facilities and in 8 Carrier1 network service areas. These co-location facilities are marketed under the name ClearSpace.

Forward Looking Statements:

The information contained in this press release contains "forward-looking statements" within the meaning of the U.S. Federal Securities Laws. These statements include: (i) in paragraphs one and two: statements relating to the growth in demand for outsourced communication, data, internet and bandwidth services, increase in demand for such services from Carrier1, a more profitable revenue revenue mix for Carrier1, and the total revenue growth, (ii) in the third paragraph: statements relating to our backlog, (iii) in the fourth and fifth paragraph: the statements relating to the expected timing when the Company will be EBITDA positive, the amount thereof and the SG&A margin, (iv) in paragraphs six and seven: statements relating to the timing, cost, scope, service levels and implementation of planned or announced metropolitan rings and datacentres, (v) in paragraphs eight and nine: statements relating to the Company's cash position and its business plan being fully funded on the long term, the scope and use of investments, the amount of and expected cash from infrastructure sales and the market share of Carrier1.

These statements are based on the current expectations of the management of Carrier 1 International S.A., and performance is subject to risks, uncertainties and other factors that could cause actual results to differ materially from these statements. Such risks include, but are not limited to, adverse regulatory, technological or competitive developments, decline in demand for the company's services or products, inability to timely develop and introduce new technologies, products and services, pressure on pricing resulting from competition, unforeseen construction delays, and failure to receive on a timely basis necessary permits or other governmental approvals, and failure to obtain any necessary financing if management's business plan assumptions are not met, and failure of third parties with whom the Company has contractd including for the supply or maintainance of infrastructure components. For a more detailed discussion of these risks, uncertainties and other factors affecting the company, please refer to the company's prospectus and 10-K,10-Q and 8-K reports filed with the U.S. Securities and Exchange Commission, including its 10-K for the year ended 31 December 1999 and its 10-Q for the 3-month period ended 31 March 2000, the 3-month period ended 30 June 2000 and the 3-month period ended September 30, 2000.