Teleglobe Wins $3 Million Contract to Expand Advanced Network Linking U.S. to Asia-Pacific.

Business Editors/Hi-Tech Writers

RESTON, Va.--(BUSINESS WIRE)--Dec. 4, 2001

Agreement Supports Indiana University's Leadership of Asia-Pacific

Research and Education Network

Teleglobe (NYSE, TSE:BCE), the e-World Communications Company, today announced an agreement with Indiana University to provide TransPAC, a consortium of high performance networks enabling international research and education collaboration, with Internet connectivity between many of the principal research and education networks in the United States and those in the Asia Pacific.

Scientists in the United States and their counterparts in the Asia-Pacific area collaborate in developing the next-generation Internet's new networking protocols and services and for international scientific, research and educational collaborations. Indiana University is responsible for network engineering, operation, and management for TransPAC within the United States.

TransPAC offers its high-bandwidth research network to nearly 300 Asia-Pacific and United States educational institutions and research laboratories for testing a range of applications, including astronomy, molecular biology, high-energy physics, medicine, meteorology, computational science, and distance learning.

The agreement with Teleglobe is worth an estimated U.S. $3 million.

TransPAC provides high performance international Internet services connecting the Asia Pacific Advanced Network (APAN) to the Internet2 Abilene high-performance network, vBNS, and other global networks for the purpose of international collaborations in research and education. Major funding for TransPAC comes from the United States' National Science Foundation and the Japan Science and Technology Corporation.

Teleglobe will provide TransPAC with a transpacific fiber optic wavelength (lit fiber) 622 Mbps (megabits per second) connection between Teleglobe's Tokyo Point of

Presence (POP) and its Seattle network facilities. Seattle is the location of a major access point for the Internet 2/Abilene high-performance network, the Canadian Advanced Network for Advancement of Research in Industry and Education's (CANARIE) Ca*net3 network, and various federal networks, providing connectivity to more than 180 North American university and research institutions.

Internet 2 supports advanced applications for learning and research such as interconnecting supercomputer centers and enabling collaborative research that requires real-time multi-media and high bandwidth connections.

"High-speed networking is central to the support of basic science, engineering and other disciplines, and TransPAC provides reliable and flexible connections to key research and education networks in the Asia-Pacific," said Indiana University's Michael A. McRobbie, Vice President for Information Technology and Chief Information Officer. "We are delighted that Teleglobe is able to provide a new high speed connection of the type that was needed by TransPAC to support applications development internationally and we expect that they will play a valuable role in the success of this project."

"Teleglobe's multi-billion dollar investment in a global infrastructure integrates next generation optical, packet and fiber technology into one global network, distinguishing us as one of only a few global service providers who can offer the IP technology and global connectivity required by TransPAC," said Charles Childers, Teleglobe's president of global markets. "We look forward to our role in facilitating the important work of TransPAC in developing and validating new service features and concepts."

Teleglobe was a participant in the early experiments involving the United States, Canadian and European research and education networks that led to the creation of STAR TAP with the University of Illinois at Chicago.

Teleglobe also developed a managed router service for the provision of cost-effective connectivity between research and education networks, while providing access to the global Internet at the same time.

Teleglobe, a leading provider of global communications and Internet services, enables its customers to maximize the potential of the Internet through its delivery of hosting services, content distribution and global connectivity.

With a maximum lit capacity of 10 million+ Gbps-miles, 149 POPs and 300,000 square feet of hosting facilities (year-end 2001) Teleglobe has one of the world's largest international Internet backbones serving a broad base of enterprise, Internet content provider (ICP), Internet service provider (ISP) 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.

Indiana University is one of the oldest state universities in the Midwest and also one of the largest universities in the United States, with more than 110,000 students, faculty, and staff on eight campuses. IU has a growing national and international reputation in the areas of information technology and advanced networking. For more information, visit www.indiana.edu.

For more information about TransPAC, visit www.transpac.org. For more information about Internet2, visit www.internet2.edu.

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.