Teleglobe Becomes First Global Network Service Provider to Serve All Commercial International ISPs in China; Sale of Internet Access to China Unicom Marks Milestone.

Business Editors/Hi-Tech Writers

RESTON, Va. & BEIJING--(BUSINESS WIRE)--Aug. 21, 2001

Teleglobe (NYSE, TSE: BCE), the e-World Communications Company, today announced the sale of Internet connectivity to China Unicom (NYSE: CHU; HIS:0762.HK).

With the sale, Teleglobe becomes the first global network service provider to serve all of China's commercial international Internet Service Providers (ISPs). Teleglobe will provide China Unicom with connectivity to Teleglobe's global, high speed Internet backbone through a 45 megabits per second (Mbps) connection from Beijing. Terms of the transaction were not disclosed.

China Unicom will use the high speed bandwidth from Teleglobe to provide faster Internet connections and international data transport. Teleglobe and China Unicom also have agreed to cooperate in the development and deployment of advanced Internet services such as hosting and Internet Protocol Virtual Private Networks (IPVPN).

"China Unicom is quickly building a state-of-the-art network in China and introducing many new services such as Internet access service, IPVPN, IP value added services, mobile Internet access, web hosting and content delivery," said Marc Bouchard, executive vice president of Teleglobe's data and Asia/Canada operations. "We look forward to joining them in developing and delivering additional broadband solutions for their customers."

"Teleglobe's global IP network brings China Unicom the high performance Internet connectivity our customers need to exchange information and conduct business virtually anywhere in the world," said Pei Hua Jiang, China Unicom's general manager of Internet and eCommerce. "They are having much success both here in China and in the global Internet marketplace. We particularly like their vision of the potential of the Internet for content distribution and rich media management."

Nearly 30 years ago, Teleglobe became the first major global service provider to establish direct telecommunications circuits to China. Customers include China Mobile, China Netcom, ChinaSAT, China Unicom, China Telecom and Jitong--the country's commercial international ISPs. These commercial relationships enable Teleglobe to offer more direct access to Internet content originating in China than any other service provider.

The company also recently announced the opening of its new Asia-Pacific regional office in Hong Kong, supporting Teleglobe's operations in Australia, Brunei, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Macau, New Zealand, the Philippines, Singapore, Taiwan and Thailand.

China United Telecommunications Corporation (China Unicom) was established in 1994, marking the introduction of competition in the basic telecommunications service area and positively propelling reform and progress of the telecom sector in China. China Unicom has more than 300 branches and subsidiaries in 30 provinces, autonomous regions and municipalities of the country.

China Unicom Ltd. focuses on providing quality services to its subscribers and has introduced pioneering practices such as eCommerce, VPN-based on Asynchronous Transfer Mode (ATM) or Frame Relay, Virtual Private Data Networks and IPVPN. UNINET is China Unicom's commercial network approved by the state council. It has the direct access to the international network. It offers Internet service to the public all over China, covering 2000 cities.

It is an advanced, integrated, unified and secure network with the nationwide roaming function. The ATM/IP-based network makes it very easy to provide private line, IPVPN, etc.

Teleglobe, a leading provider of global communications and eBusiness services, enables its customers to maximize the potential of the Internet through delivery of hosting services, content distribution and global connectivity. With a maximum lit capacity of 10 million+ Gbps-miles, 57 major POPs and 300,000 square feet of hosting facilities (year-end 2001), Teleglobe is one of the world's largest international Internet backbones serving a broad base of enterprise, Internet content provider (ICP), Internet service provider (ISP), application service provider (ASP) and carrier customers.

Teleglobe is expanding its network with its GlobeSystem initiative, a multi-billion dollar IP network and hosting deployment that will increase current capacity 200-fold and provide a robust platform for a portfolio of Internet and data services. For more information, visit www.teleglobe.com

This release contains information about management's view of Teleglobe's future expectations, plans and prospects that constitute forward looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements, as a result of a variety of factors including, but not limited to, competitive developments, risks associated with Teleglobe's growth, the development of the Internet market, regulatory risks and other factors that are discussed in Teleglobe's Annual Information Form and other documents periodically filed with the SEC.