US Court Approves Impsat's Restructuring Plan to Exit Chapter 11.

Business Editors

BUENOS AIRES, Argentina--(BUSINESS WIRE)--Dec. 12, 2002

Impsat Fiber Networks, Inc. (OTC:IMPT):

-- Impsat's Pre Arranged Restructuring Plan Approved by US Court Six Months after Chapter 11 Filing

-- Streamlined capital structure positions Impsat uniquely in the Latin American Telecommunications Market

Impsat Fiber Networks, Inc. ("Impsat" or the "Company") (OTC:IMPT), a leading provider of integrated telecommunications services in Latin America, today announced that the US Bankruptcy Court for the Southern District of New York approved the Company's Plan of Reorganization yesterday.

The Plan was approved by creditors holding 83% of the indebtedness subject to ballot. The confirmation of the Plan took place exactly six months after Impsat filed for Chapter 11.

The Plan enables Impsat to emerge from Chapter 11 as a financially stronger company, reducing the Company's principal and accrued interest by more than over $700 million. As a result, total consolidated indebtedness will be approximately $ 270 million. According to the terms of the new securities, no cash payments on principal or interest will be required for the first two years. As of November 30, 2002, Impsat had cash and cash equivalents on hand of approximately $57 million. Impsat expects to complete the administrative details to make its Plan effective before year-end. The Company's subsidiaries have continued to operate normally throughout the year.

As part of the approved Plan, a new seven-member Board of Directors will be formed, including Mr. Ricardo Verdaguer, Impsat's chief executive officer, together with Joseph Thornton, William Connors, Thomas Doster IV, Raul Ramirez, Ignacio Troncoso, Elias Makris. The Management team will remain unchanged.

Commenting on today's action by the court, Mr. Verdaguer stated: "The confirmation of our Plan gives us the financial structure we need to maintain our competitive position in the region. Completing the reorganization before year-end has been result of continued support from our creditors, clients and employees. Their vital support has allowed us to sustain and enhance our key commercial relationships, control our cash flow, and even improve our operating margins in difficult times. After sorting the financial challenges we faced, we are in an unmatched position to seize new opportunities in the region."

The terms of the Plan approved are the same the Company previously announced.

Impsat Fiber Networks, Inc. is a leading provider of fully integrated broadband data, Internet and voice telecommunications services in Latin America. Impsat has recently launched an extensive pan-Latin American high capacity broadband network in Brazil, Argentina, Chile and Colombia using advanced technologies, including IP/ATM switching, DWDM, and non-zero dispersion fiber optics. The Company has also deployed fourteen facilities to provide hosting services. Impsat currently provides services to 3,000 national and multinational companies, government entities and wholesale services to carriers, ISPs and other service providers throughout the region. The Company has local operations in Argentina, Colombia, Venezuela, Ecuador, Mexico, Brazil, the United States, Chile and Peru. Visit us at www.impsat.com.

Statements regarding the restructuring or about future results made in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform act of 1995. These statements are based on current expectations and the current economic environment. The Company cautions that these statements are not guarantees of future performance. They involve a number of risks and uncertainties that are difficult to predict. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important assumptions and other important factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's Annual Report on Form 10-K and quarterly reports on Form 10-Q on file with the Securities and Exchange Commission.