Comsat International Acquires CCI - Expands in Mexico and Into Central America and the Dominican Republic.

MCLEAN, Va. -- Comsat International, Inc. ("Comsat"), a full-service provider of voice and data communications throughout Latin America, announced today that it has acquired Florida based Convergence Communications, Inc. ("CCI") and its wholly-owned subsidiaries GBnet Corporation ("GBnet") and Convergence Communications S.A. de C.V. ("Convergence"), which provide broadband access, Internet and data solutions throughout Central America, the Dominican Republic and Mexico. Under the terms of the agreement Comsat will acquire more than 90% of the outstanding shares of CCI.

The extensive fiber and satellite coverage of Comsat combined with GBnet's and Convergence's strong presence in Central America, the Dominican Republic and Mexico will further enhance Comsat's position as the leading alternative full-service provider in the Americas. GBnet and Convergence, like Comsat, focus on custom communications solutions for enterprises that combine broadband access for Internet, data and VoIP and video applications throughout the region. GBnet had once been the Central American portion of IBM's worldwide value-added network, "IBM Global Network". Convergence was started as an alternate pan-Mexico data communications provider with last mile connectivity.

The GBnet and Convergence local fiber-optic networks in Panama City, Panama and in Mexico City and Monterrey, Mexico will add to Comsat's base of local or "last mile" assets, complementing Comsat's extensive pan-regional long-haul fiber and satellite networks. Comsat's customers will also benefit from GBnet's and Convergence's broad array of service offerings of high speed access technologies, Internet and data services and a suite of managed Virtual Private Networks (VPNs) and VoIP offerings.

"We are delighted with this acquisition," said George Kappaz, CEO of Comsat. "GBnet and Convergence will be very complimentary to Comsat's Latin American operations, and will expand our base of network, services and customers across the region. The Central American markets served by GBnet are very important to Comsat. Our unique ability to provide seamless terrestrial, wireless and satellite communications solutions across the region to our customers will be greatly enhanced with this acquisition." He added, "The transaction will also give us important 'last mile' fiber-optic connectivity in three major metropolitan markets, enabling us to more cost-effectively serve our customers seamlessly."

Carlos Christensen, acting President of CCI, said, "GBnet and Convergence complement Comsat's market position by expanding its network, local staff and customer base in Central America, the Dominican Republic and Mexico." He continued, "Just as GBnet's infrastructure represented the Central American portion of the IBM Global Network, GBnet and Convergence will expand the capillarity and strength of Comsat's integrated national and pan-regional fiber and satellite network into Central America and the Dominican Republic and in Mexico."

About Comsat International, Inc.

Comsat International, Inc. provides local, national and pan-regional network services and solutions for more than 1,300 enterprise and service-provider customers over modern, integrated terrestrial and satellite network facilities in key Latin American markets. It owns domestic networks in Argentina, Brazil, Colombia, Mexico, Peru, Guatemala, Venezuela and Turkey and has two gateways interconnect points in the USA. It also provides services via terrestrial and satellite links to Bolivia, Chile, Ecuador and Uruguay. In addition, it operates over 2,000 square meters of data center and teleport collocation space throughout the region. Comsat International, Inc. is headquartered in McLean, Virginia USA.

About Convergence Communications, Inc.

Convergence Communications, Inc. is a facilities-based telecommunications service provider focusing on the corporate sectors in Central America, the Dominican Republic and Mexico. Founded in 1995, the company's primary focus is providing last-mile broadband connections across a variety of delivery technologies including fiber optic, cable, and broadband fixed wireless and a broad portfolio of Internet and data services including high-speed Internet access, virtual private networks and IP-Telephony through its wholly owned subsidiaries, GBnet Corporation ("GBnet") and Convergence Communications S.A. de C.V. ("Convergence"). GBnet has operations and facilities in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, and the Dominican Republic. Convergence has operations and facilities throughout Mexico. Convergence Communications, Inc. is headquartered in Florida.