Teleglobe Purchases Capacity on Global Crossing AC-1 Network.

BERMUDA--(BUSINESS WIRE)--March 24, 1998--Teleglobe, one of the world's largest intercontinental telecommunications carriers, has agreed to acquire transmission capacity on Global Crossing Ltd.'s Atlantic Crossing (AC-1) submarine cable network and corresponding inland backhaul capacity, the companies announced Tuesday.

As part of the agreement, the AC-1 cable will provide restoration capacity for Teleglobe's CANTAT-3 and CANUS-1 cables. Global Crossing Ltd. is a private investor-owned developer and owner of transoceanic fiber optic cable systems around the world.

"This agreement marks a milestone for AC-1," said David Lee, Global Crossing president and chief operating officer. "As a carrier's carrier, we are committed to providing high-quality transmission capacity at competitive prices."

The 14,000-kilometer Atlantic Crossing (AC-1) is the first of a series of submarine cables planned by the company. AC-1 will commence operations in May, transmitting voice, high-speed data and video between the United States, the United Kingdom, the Netherlands and Germany. AC-1 is currently being built using the most advanced wave-division multiplexing (WDM) technology available today.

As Teleglobe continues to pursue its aggressive global expansion strategy, the company will use AC-1 to enhance its network capabilities and to handle the demand that continues to grow for transatlantic capacity.

"The wholly owned capacity purchased on AC-1 allows us to continue to offer our carrier, business and Internet customers the latest in a high quality, low cost transmission infrastructure between North America and Europe," said Paolo Guidi, president and CEO for Teleglobe Global Telecom Services.

"Moreover, our agreement for restoration capacity on AC-1 will allow us to implement ring protection for our transatlantic traffic, and open up a new range of networking opportunities. With our recent major investment in the China-US cable network, this arrangement with AC-1 helps us achieve our objective of creating a fully integrated and flexible global transport network."

Teleglobe operates North America's second largest intercontinental network in terms of global reach and capacity, and is the third largest owner of capacity in submarine fiber optic cable systems worldwide.

Global Crossing is an independent operator and developer of international telecommunications systems, offering competitively priced capacity on demand. In addition to AC-1, Global Crossing has announced plans to build fiber optic cables that will link the United States with Japan, Central America and the Caribbean in an expanding worldwide telecommunications network.

Teleglobe Global Telecom Services group is the global carrier unit of Teleglobe Inc., recognized as a world leader in the global intercontinental telecommunications industry.

The Teleglobe network includes fiber optic submarine cable and satellite facilities linking North America with over 240 countries and territories, meeting the global connectivity needs of established and emerging carriers from around the world, as well as those of Internet Service Providers, multinational corporations and broadcasters.

Teleglobe Inc. is listed on the New York Stock Exchange (NYSE), the Montreal Exchange and the Toronto Stock Exchange under the symbol "TGO."

CONACT: Teleglobe, Corporate Communications

John Murray, 703/821-4857

Internet : [e-mail]

or

Global Crossing Ltd.

Steve Anreder, 310/278-8801 or 212/421-4020