Carrier1 and mcn tele.com Sign Multi-City Telehousing Deal; Carrier1 Frankfurt Facility Kicks-off Aggressive Pan-European Telehousing Build-Out.

Business & Technology Editors

FRANKFURT, Germany--(BUSINESS WIRE)--March 10, 2000

Carrier1, a rapidly growing pan-European provider for voice, data and IT-Infrastructure services - (Nasdaq: CONE); Neuer Markt (CJN) - announced today its first customer - mcn tele.com - for a new telehousing facility in Frankfurt. This five-year contract includes the provisioning of "conditioned space". mcn tele.com - already a user of the Carrier1 co-location center in Munich, Germany - will occupy the Frankfurt locale in the coming months.

The 55, 000 square meters (550, 000 square feet) facility will be the largest co-location facility in Europe and launches Carrier1's aggressive 22-city build-out of major European business centers. As the central telecommunications gateway to Europe, Frankfurt offers unparalleled opportunity to expand Carrier1's network of data centers into the rapidly growing telecomm and Internet business community throughout Europe.

By making use of the Carrier1/Frankfurt facilities, mcn tele.com - an innovative provider of intelligent communication solutions for business customers - received a turnkey telecommunications solution from Carrier1 that will allow initial implementation of its services as of April 1st, 2000. "Important for us is the high quality and availability of Carrier1's infrastructure which is supported by Carrier1's well equipped "Co-Location Center" says Dr. Jrgen Kaack, CEO of mcn tele.com AG

Carrier1's co-location facilities are full service carrier/network data centers, providing bandwidth-intensive Internet and telecomms customers with state-of-the-art conditioned and managed co-location services in a secure environment.

Industry research has confirmed that the growth of the European e-commerce and communication industry is booming. A recent study by Forrester Research estimates that online business and consumer trade will grow at triple-digit rate over the next five years reaching 1,6 trillion Euros by 2004. With the co-location centers throughout the major urban centers in Europe, Carrier1 is uniquely positioned to serve the growing needs of both the telecommunications and Internet industries. This was the main reason for the cooperation between mcn tele.com AG and Carrier1.

"As the growth in the European communications markets continues to surge, there is an increasing demand for bandwidth-intensive co-location facilities and services. Key to our success will be our ability to leverage our strength as a pan-European facilities provider with related services to provide a comprehensive brand of user-ready-services. As a pioneer in this market, we are well positioned to service the tremendous telecommunications growth in Europe" says Stig Johansson, CEO of Carrier1.