Chello Broadband N.V. Selects Hermes Euro Railtel to Carry Its Message.

AMSTERDAM--(BUSINESS WIRE)--Nov. 2, 1998--

Europe's leading broadband internet service provider chooses

Hermes Europe Railtel to provide high speed IP network services

Chello broadband n.v., the pan-European broadband internet service provider (ISP), today announced that it has signed an agreement with Hermes Europe Railtel (HER) to lease services on its high capacity fibre optic network.

Tim Morel, CEO of chello broadband, said: "Hermes European Railtel's proven existing and extensive network provides us with the ability to start delivery of our services earlier in our target markets. Choosing HER as part of the construction of our own IP network service, Aorta(tm), helps us to achieve high levels of service quality and deliver our broadband internet services at very competitive prices."

Initially Aorta will connect five European cities - Amsterdam, Brussels, Oslo, Stockholm and Vienna, with others being added next year. The agreement provides chello broadband with priority high-performance rights-of-way across Europe to distribute its value-added multimedia content and portal services to subscribers' PCs.

In addition, HER subsidiary Ebone also provides a 45mb Transatlantic internet link. It provides chello broadband customers with fast access to multiple entry points in the US for internet content and messaging services. The link is distributed across the three main hubs, offering capacity to all affiliates with redundancy and load balancing.

"Chello broadband's partnership with HER provides it with a head start over its competitors for some very key reasons," said Jan Loeber, HER Managing Director. "First, it provides instant coverage in five initial target countries as well as the opportunity to expand. Secondly, HER's and Ebone's high quality network gives chello broadband customers a congestion-free internet service and a reliably engineered network. HER provides a best of class customer service that can help Aorta grow at a rapid pace. The state-of-the-art equipment ensures a strategic path for investment protection and lower operating costs. We look forward to a long and mutually beneficial relationship."

The Amsterdam-based broadband internet service company, chello broadband, will utilise its own termination equipment to connect its central and regional data centres to Hermes' Customer Access Points (CAPS) which provide access to high speed VC4 ring service paths. This provides chello broadband the ability to directly control and manage its own IP based broadband services paths, providing flexible least-cost routing for traffic switching onto the fibre optic IP network across Europe.

The partnership with Hermes Europe Railtel enables chello broadband to offer peering agreements for organisations wishing to transmit internet traffic across Europe and the Atlantic.

"Using HER's fibre optic circuits, together with our own in-house expertise, will enable us the flexibility to build a completely resilient network and provide us with very fast, balanced rights-of-way between our hub cities," said chello broadband's CEO Tim Morel.

The HER network utilises the latest transmission technologies, including Dense Wavelength Division Multiplexing (DWDM) and Synchronous Digital Hierarchy (SDH), optical multiplexing equipment and fibre optic cables. This network provides chello broadband with a level of trans-border services not available today in Europe through traditional leased line agreements.

About chello broadband n.v.

Chello broadband is the first pan-European broadband internet service provider, delivering next-generation internet services and broadband content to consumers via high-speed cable modems. It provides a turnkey service to cable network operators based in Europe.

The company is a wholly-owned subsidiary of United Pan-Europe Communications (UPC), with headquarters in Amsterdam and offices in London, Paris, Vienna, Brussels and Oslo. By providing unparalleled content and communications services, chello broadband will deliver the `m@ximum internet' experience to this and future generations.

About United Pan-Europe Communications N.V.

Headquartered in Amsterdam, United Pan-Europe Communications N.V. (UPC) is the largest privately-owned and one of the most innovative broadband communications companies in Europe, providing cable television, telephony, internet and programming services. It has well established multi-service telecommunication systems in 11 countries in Europe and Israel, serving approximately 4.6 million homes, 3.3 million subscribers (including announced transactions), 82,000 telephony access lines, 18,000 indirect access telephony customers and 23,500 broadband internet connections.

UPC is strategically located in the capital cities of its core European markets with operations in Amsterdam, Vienna (two of the world's largest communications clusters), Brussels, Oslo and the suburbs of Paris, as well as in capital cities in Eastern Europe and Israel.

UPC delivers voice, video and data services whUPC delivers voice, video and data services which allow it to offer stand alone and bundled service solutions to suit its individual customer's needs. UPC recently launched Priority TelecomTM, its CLEC and integrated telephony company and chello broadband n.v.TM, its high speed broadband internet company.

UPC is wholly owned by Denver based United International Holdings Inc. (UIH) (NASDAQ symbol UIHIA). UIH is a leading provider of voice, video, data and programming services in 23 countries outside the United States.

About Hermes Europe Railtel

Hermes Europe Railtel's pan-European fibre-optic network provides trans-border services exclusively to telecommunications companies, including established and emerging carriers.

It is the first and largest network of its kind in Europe. HER's 4,500 kilometre network currently extends to 14 cities and seven countries. It is expected to grow to 10,000 kilometres and 18 cities by the end of this year. By the end of 1999 it is expected to be in 16 countries and 34 cities with an 18,000 kilometre network. The company is a joint venture between Global TeleSystems Group (Nasdaq & Easdaq: GTSG), an independent US-based developer of telecommunications services companies in Europe and Asia, and two European railways. Additional information about HER can be obtained from its Web page at http://www.her.com.