Esat Telecom Forms Joint Venture With Racal Telecom.

DUBLIN, Ireland--(BUSINESS WIRE)--Oct. 6, 1999--

Esat Telecom Group plc ('the Group') (NASDAQ/EASDAQ:ESAT) today announced that it has formed a joint venture with Racal Telecom, the UK's wholesale carrier services supplier, to provide a highly resilient broadband ring between Dublin and London. This will be achieved through an infrastructure sharing agreement that will utilise Racal Telecom's UK network and Esat Telecom's national and local infrastructure in Ireland and its new submarine cable system expected to be completed by the end of 1999.

This strategic alliance gives both Racal Telecom and Esat Telecom access to two growing, liberalised telecom markets for minimal investment as it utilises the existing high-capacity networks that both carriers have completed over the last 18 months. The alliance provides the infrastructure framework for both partners to target the wholesale carrier and ISP markets.

The key link between the two national networks will be the new submarine cable systems that Esat Telecom is installing between Ireland and the UK. Esat Telecom will operate a cable running between Wexford and Lands End to provide international connectivity for its Irish customers. This cable system is already connected to Racal Telecom's network at Penzance to provide high-capacity links to London. A second cable will connect into Racal Telecom's network at the Ainsdale cable landing station south of Stockport. This will complete a highly resilient broadband ring between London and Dublin -- the principal telecom artery for most traffic between the two countries.

Under the terms of the agreement, Esat Telecom will have a controlling interest by virtue of its larger share in the value of joint venture assets. The joint venture will have an independent management structure, with each company retaining responsibility for sales and marketing in its respective domestic markets.

Esat Telecom Group plc comprises Ireland's business telecommunications company, Esat Telecom; corporate Internet Services Provider, Esat Net; networking systems integration company, BridgeCom Group, as well as 49.5% of GSM mobile phone operator, Esat Digifone. Esat Clear, a division of Esat Telecom, provides phone and Internet services to the residential market. Earlier this year, Esat Telecom Group plc became the official National Partner in Ireland of Global One.