Carrier1 and Star One AG Sign Long-Term, Multi-Million Dollar Deal.

Business Editors

ZURICH, Switzerland--(BUSINESS WIRE)--March 29, 2000

Carrier1 to provide fibre-optic network

infrastructure and comprehensive service

package to dynamic German market provider, Star One AG

Carrier1 International S.A. (Neuer Markt:CJN)(Nasdaq:CONE), the Pan European facilities-based provider of end-to-end Internet, bandwidth, data center and access solutions, and Star One AG, the early leader in the German market for broadband access, today announce the signing of a DM 144 million ($71.5 million) contract.

Under the 20-year deal, Star One has secured unrestrained rights of use for two fibres from Carrier1's existing fibre-optic network covering 17 German cities. This contract is Carrier1's biggest to date and confirms its position as one of the leading providers of pan-European network services and fibre optic infrastructure.

"With the acquisition of a fibre-optic backbone infrastructure from Carrier1, Star One is one of the few carriers in Germany which fully controls its own broadband infrastructure 'end-to-end' right up to the customer" explains Christian Golaszewski, COO of Star One AG. "By this means, Star One is able to provide more customers than ever with fast and affordable access to the whole potential range of broadband telecommunications services from a single source."

Star One has started to establish a Point-to-Multipoint (PMP) wireless broadband telecommunications network that will offer customers `last mile' broadband connectivity. The company will provide its targeted customers with a variety of individual and bundled high-quality services at competitive prices, including high-speed data transport, Internet access, local and long distance voice services, and specialized application services. Star One primarily addresses city carriers, internet service providers and small and medium-sized businesses in most of the major markets in Germany.

"The synergies between our two organisations have been significant: two "new generation" telecommunications organisations proposing state-of-the art communications for the telecoms market," explained Edward Gross, Managing Director/Carrier1 Germany. "Initially Star One was impressed with the quality and reliability of our offer, but the deciding factor in this important contract was the flexibility Carrier1 has shown in creating the services Star One AG specified. This flexibility is paramount in all of our dealings with our European customers."

The fibre-optic network provided to Star One will cover Hamburg, Berlin, Dresden, Leipzig, Nuremberg, Munich, Stuttgart, Mannheim, Frankfurt, Cologne, Dusseldorf, Essen, Dortmund, and Bremen with extensions into Bielefeld, Hanover and Magdeburg.

About Carrier1

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

The Carrier1 Pan European inter-city fiber network connects 11 countries and spans over 9000 route kilometers. Carrier1 is already fully operational in all 11 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 is also constructing at least 20 intra-city fiber networks and, through its investment in the joint venture HubCo S.A., is building at least 20 full-service data center facilities.

Carrier1 headquarters are in Zurich, Switzerland. Carrier1 is listed on the Neuer Markt in Frankfurt under the ticker symbol "CJN" and on the NASDAQ in New York under the ticker symbol "CONE".

About STAR ONE

Star One AG, is headquartered in Frankfurt, Germany. The company was founded in March 1999 by a group of leading experts in the European telecommunications industry and has since established itself as the early leader in the German broadband WLL market. In September 1999 the company was awarded 158 license areas to build and operate a PMP-WLL network in the 26 GHz and/or 3,5 GHz frequency band in Germany. Service areas cover approximately 50 Million people and 850.000 enterprises. The company's license coverage area includes a majority of the metropolitan areas in Germany and although no national license exists, the aggregation of Star One's individual market licenses creates a footprint that is probably the largest using the 26 / 3,5 GHz PMP-WLL spectrum in Germany.

To achieve Star One's long term goal, to position itself as a European broadband access provider the company is also part of a consortium in Spain which has won a national PMP-WLL license in the 26 GHz area. Furthermore Star One is also participating in the upcoming license tenders in Switzerland, Austria, France, and other European countries.