Flag Telecom to Complete North Asian Loop; Extends Service Into Korea and Japan.Business Editors HAMILTON, Bermuda--(BUSINESS WIRE)--May 21, 2002 FLAG Telecom Holdings Limited (Nasdaq: FTHLQ; LSE LSE - Language Sensitive Editor : FTL (Flash Translation Layer) See flash memory. ), along with its group companies ("FLAG Telecom"), announced today that it has reached another major milestone in the completion of the FLAG North Asian Loop cable system, or "FNAL FNAL - Fermi National Accelerator Laboratory (Illinois, USA). ", further cementing FLAG Telecom's position as a leading independent network services provider in the Asian region. Ed McCormack, Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. said, "As part of the continuing progress being made on the construction of FNAL, we are pleased to announce that another major segment, the route between Seoul, Korea and Tokyo, Japan has been brought into service. This is the second segment of the system to go into service. The first segment, between Hong Kong and Tokyo, which was constructed by Reach, has been in service since last year. The remaining segment from Seoul to Hong Kong, required to close the loop, is at a very advanced stage and is expected to enter service this quarter." This announcement follows the order entered by the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. on May 14th, 2002, confirming the agreement among FLAG, Reach and Alcatel to enable FNAL to be completed. Alcatel is the main supplier for FNAL. Completion of FNAL may provide FLAG Telecom with an additional source of revenue as it continues the process of restructuring. FNAL is an integral part of the FLAG global network, providing reinforcement to the traffic flows on the FLAG Europe Asia ("FEA (Finite Element Analysis) A mathematical technique for analyzing stress, which breaks down a physical structure into substructures called "finite elements." The finite elements and their interrelationships are converted into equation form and solved mathematically. ") cable in the Asia region. It is a high capacity six fiber pair redundant loop system, upgradeable using leading Dense Wave Division Multiplexing (spelling) wave division multiplexing - A common misnomer for wavelength division multiplexing. ("DWDM (Dense WDM) The term given to wavelength division multiplexing (WDM) when significantly more channels were being added. Since WDM is increasingly more "dense" all the time, both terms are used synonymously. See WDM. DWDM - wavelength division multiplexing ") technology. Following loop closure, it will allow FLAG Telecom to support the strong growth in intra-Asia Internet traffic and provide intra-regional, city-to-city connectivity between Hong Kong, Seoul, Tokyo and Taipei, and on to the rest of the world. About the FLAG Telecom Group The FLAG Telecom Group is a leading global network services provider and independent carriers' carrier providing an innovative range of products and services to the international carrier community, ASPs and ISPs across an international network platform designed to support the next generation of IP over optical data networks. On April 12 and April 23, 2002, FLAG Telecom Holdings Limited and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. Also, FLAG Telecom Holdings Limited and the other companies continue to operate their businesses as Debtors In Possession under Chapter 11 protection. FLAG Telecom Holdings Limited and certain of its Bermuda-registered subsidiaries - FLAG Limited, FLAG Atlantic Limited and FLAG Asia Limited - filed parallel proceedings in Bermuda to seek the appointment of provisional liquidators to obtain a moratorium to preserve the companies from creditor actions. Provisional liquidators were appointed and part of their role is to oversee and liaise with the directors of the companies in effecting a reorganization under Chapter 11. Recent news releases and further information are on FLAG Telecom's website at: www.flagtelecom.com Forward-looking Statements Statements contained in this Press Release that are not historical facts may be 'forward-looking' statements as the term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. To identify these forward-looking statements, look for words like 'believes,' 'expects,' 'may,' 'will,' 'should,' 'seeks,' 'intends,' 'plans,' 'projects,' 'estimates' or 'anticipates' and similar words and phrases Words and Phrases® A multivolume set of law books published by West Group containing thousands of judicial definitions of words and phrases, arranged alphabetically, from 1658 to the present. . These, and all forward-looking statements, are based on management's current expectations and necessarily are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors which include, but are not limited to: our ability to achieve revenues from products and services that are in the early stages of development or operation; our ability to deploy sophisticated technologies on a global basis; our ability to upgrade and expand our network and respond to customer demands and industry changes; regulatory enactments and changes; changes in interpretation of US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ; competition and pricing pressure; rapid technological change; adverse economic or political events; the ongoing war on terrorism Terrorist acts and the threat of Terrorism have occupied the various law enforcement agencies in the U.S. government for many years. The Anti-Terrorism and Effective Death Penalty Act of 1996, as amended by the usa patriot act ; risks of international business; uncertainty regarding the collectibility of receivables and insolvency of counterparties to IRUs; risks associated with debt service requirements and interest rate fluctuations; our financial leverage; completion of construction of the FLAG North Asian Loop; and the outcome of the current Chapter 11 proceedings Chapter 11 Proceedings Provisions of the Bankruptcy Reform Act under which the debtor firm is reorganized by a court because the estimated value of the reorganized firm exceeds the expected proceeds from its liquidation. . More detailed information about these risks is contained in our filings with the U.S. Securities and Exchange Commission. We caution readers not to rely on forward-looking statements, and we disclaim any intent or obligation to update these forward-looking statements. |
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