RSL COM Continues European Expansion -- Acquires Belgium's European Telecom.

HAMILTON, Bermuda--(BUSINESS WIRE)--Jan. 13, 1998--

Acquisition Solidifies RSL COM Pan-European Network

RSL Communications Ltd. (NASDAQ: RSLCF), a global telecommunications company, today announced that RSL COM Europe LTD., its wholly-owned European subsidiary, has reached a definitive agreement to acquire 90 percent of European Telecom, one of Belgium's largest telephone carriers with operations in Luxembourg.

Terms of the acquisition were not disclosed.

European Telecom offers international telephone service and has approximately 4,000 customers comprised primarily of small and medium sized businesses. With seven points-of-presence (POPs) and four sales offices in Belgium and one POP and sales office in Luxembourg, European Telecom had revenues in 1997 estimated to be $11 million.

"The acquisition of European Telecom, with its licensed operations in Belgium and Luxembourg, means that RSL COM, through its subsidiaries and partners, is now able to carry voice traffic in and among 14 European countries on its own Pan-European network," said Itzhak Fisher, president and CEO of RSL COM. "This provides us greater economies of operation, since the traffic travels over our own facilities. RSL COM passes on the cost savings to its customers."

The 14 European countries include Austria, Belgium, Denmark, Germany, Finland, France, Italy, Luxembourg, The Netherlands, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. RSL COM's facility-based network also operates in Australia, Japan, the United States, and Venezuela.

"Today's announcement re-emphasizes RSL COM's commitment to strengthening our European operations through the acquisition of companies with a similar strategy and focus to RSL COM's," said Fisher. "European Telecom is one of Belgium's leading telecommunications companies with a customer base of small and medium sized businesses and an outstanding management team that has exhibited the experience and capabilities that are needed in the rapidly changing and growing European marketplace."

Lucien Gaumier, managing director of European Telecom, said, "When we decided we needed a strong and established partner to realize our full potential, RSL COM was one of several suitors. However, RSL COM's entrepreneurial business philosophy and quick-thinking approach, combined with one of the largest Pan-European voice networks, will ensure that European Telecom's already successful business will continue to flourish to our mutual advantage and to the benefit of our customers."

"With the acquisition of European Telecom, RSL COM is quickly realizing its goal of interconnecting all the major telecommunications markets of Europe entirely over our own network," said Richard Williams, president of RSL COM Europe. "This means that RSL COM is making efficient use of our network to compete in Europe's estimated $200 billion market and that RSL COM customers throughout Europe will benefit from the cost-savings for their voice and fax traffic."

RSL Communications Ltd. is a global facilities-based telecommunications company that provides international services to every country and place in the world, including long-distance, calling card, private line, value-added and Internet-based services to businesses, consumers and other carriers. The company, which was founded in 1994 by Ronald S. Lauder and Itzhak Fisher, serves customers on four continents in 18 countries that account for more than 60 percent of the world's international traffic. -0- This release is available on the RSL COM website at www.rslcom.com and the KCSA website at www.kcsa.com.

CONTACT: RSL Communications, Ltd.

Alan Garratt

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KCSA

Jeff Corbin/Joe Mansi

Tel: [phone]-1205

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