Infonet signs agreement with Hughes Olivetti Telecom; extends its World Network via Satellite Services in Eastern Europe, Middle East.

EL SEGUNDO, Calif.--(BUSINESS WIRE)--Dec. 13, 1994--Infonet Services Corp. Tuesday announced that it has signed an agreement with Hughes Olivetti Telecom Ltd. to extend its World Network via Satellite Services in Eastern Europe and parts of the Middle East.

Infonet's World Network is already accessible in more than 160 nations.

The company now leases transponder space aboard a Eutelsat satellite from Hughes Olivetti Telecom, who will handle two-way Ku-band transmissions for Infonet's World Network customer sites in Eastern Europe and the Middle East. All transmissions destined to or from these parts of the world are funnelled through a shared satellite hub facility in the United Kindgom.

Infonet Product Marketing Manager Bill Evanow said Infonet chose to establish a relationship with Hughes Olivetti Telecom because of the latter's track record as one of the world's most experienced and reputable satellite service providers. "This partnership is purposefully designed to reduce the inherent risks of the global networking environment in which our customers operate," he stressed.

Evanow pointed out that these new X.25 Satellite Services will enable multinational companies who already use the Public Data Network (PDN) and Virtual Private Data Network (VPDN) services on Infonet's World Network to rapidly and inexpensively add connections in places like Poland, Hungary, Turkey and Israel.

"The benefit of a VSAT (very small aperture terminal) is that it can be installed on a customer's premise long before a terrestrial link can be implemented in most of these countries," added Managing Director Mike Cook of Hughes Olivetti Telecom.

Infonet will secure the necessary licenses and arrange for two-way communications between each satellite service site and the rest of the client's Infonet PDN or VPDN, as well as 24-hour user support. Additionally, these Satellite Services will be maintained and managed from end-to-end with Infonet serving as the single point of accountability round the clock.

"As a result, we can offer our clients substantially higher network availability than would otherwise be possible in nations with traditionally weak terrestrial infrastructures," emphasized Evanow. "In some cases, customers may also want to use this solution as an economical back-up link to private terrestrial circuits with gateways to their Infonet PDN or VPDN."

According to Principal Analyst Sean Phelan of the Yankee Group Europe, "Infonet's new turnkey VSAT offering removes the terrestrial infrastructure constraints that often pose a major challenge to network managers in globally expanding corporations, while meeting their demands for ever-higher standards of end-to-end service and accountability."

Hughes Olivetti Telecom is a joint venture between two leaders in their respective fields, namely information systems and satellite technology. The mission of this new company is to build and manage a pan-European network based on digital satellite communications, offering European users an alternative to the present telecommunications infrastructure.

Each of the partners has 50 percent of the equity and the company incorporates Hughes' existing U.K. VSAT business. In the United Kingdom, Hughes Olivetti Telecom operates a shared hub service with MAXAT Ltd., a wholly owned subsidiary of France Telecom, from MAXAT's Teleport at Brookman's Park.

Infonet(R) Services a world leader in providing reliable, state-of-the-art international communication solutions to global enterprises. Infonet specializes in value-added services and managed networks which are supported locally in 54 countries. Infonet's World Network(TM) is currently accessible in more than 160 countries. The company is jointly owned by a number of the world's leading telecom operators.

CONTACT: Infonet Services Corp., El Segundo

              Bill Evanow, 310/335-4527, Pat Gale 310/335-2877
                 or
              For Hughes Olivetti Telecom:
              Edelman PR Worldwide
              Maxine Ambrose, Sandra Richardson 44-71-344-1200