Versatel and VersaPoint File a Joint Complaint Before the European Commission Against Belgacom.

Business and Technology Editors

BRUSSELS, Belgium--(BUSINESS WIRE)--Aug. 31, 2000

Belgacom will have been able to delay effective use of its local

loop by at least one year since Belgacom has been aware of at

least one market's player detailed request since March 1, 2000

Versatel Belgium N.V.(NASDAQ:VRSA)(AEX:VRSA) today announced the extension of an earlier complaint filed by Versatel (local access network operator) and VersaPoint (DSL operator) before the European Commission on August 25. This complaint was filed on the grounds of Belgacom's abuse of its dominant position consisting of blunt and persistent refusals to grant access to its local loop. Versatel and VersaPoint are currently deploying DSL services in the Netherlands and Germany and are obliged to wait for the unbundling of the local loop before offering these services in Belgium.

Since March 1, 2000, Versatel and VersaPoint have repeatedly requested, and have been refused, access to Belgacom's local loop. The last refusal dates August 4, 2000 in a letter from Belgacom. Belgacom has yet to reply to Versatel's and VersaPoint's last request in a letter dated August 11, 2000. Each request also asked to obtain information on Belgacom's network architecture which includes addresses of all local exchanges, available capacity and co-location space. By refusing to provide this information, Belgacom prevents new entrants from adequately preparing their business plans and from rolling out their networks without delay.

Belgacom, as a dominant carrier in Belgium, is obliged to provide access to its local loop pursuant to the competition rules. The competition rules are applicable irrespective of any sector regulation. For these reasons, Versatel filed a complaint before the European Commission competition authorities on July 25, 2000. VersaPoint joined this initial complaint in an addendum filed on August 25, 2000. The complaint was filed with the EC authorities considering the blunt character of Belgacom's refusals and the obvious community interest of the matter.

According to a press announcement Belgacom made on August 25, the incumbent will provide the industry with a reference offer "on paper" for access to its loop in the fourth quarter of 2000 which will allow the subsequent conclusion of bilateral contracts.

Philip Mathuis, Managing Director Versatel Belgium comments: "We have reasons to question the real scope of Belgacom's intentions which were voiced after our complaint before the EU Commission based on four reasons:

First, Belgacom did not add anything new compared to earlier statements of the regulator and the Minister of Telecommunications.

Second, Belgacom's statements lack any indication as to the primary content of the announced offer. As a result, we have no indication that the type of access we legitimately requested will be awarded to us.

Third, Belgacom alleges that it wants to be constructive and proactive whereas it simultaneously refuses to provide us with the necessary information on its network architecture. This information is needed to allow new entrants to effectively implement unbundling of the local loop without delay once a bilateral agreement is signed. In addition, Belgacom did not accede to our concrete proposals for co-location and interim solutions in order to completely unbundle the local loop. We made these proposals in order to accommodate Belgacom as much as possible but the incumbent makes an "unilateral" offer instead.

Fourth, experience has taught us that there is still a long way to go from Belgacom's first proposal before a mutually satisfying solution, if any, is reached. An example of this is the recent deadlock on Belgacom's unreasonable and hence unused wholesale offer for the reselling by new entrants of its own ADSL retail service (TurboLine). Months of sector and bilateral negotiations culminated in a formal complaint before the regulator. This, despite efforts by the regulator to encourage Belgacom to at least make the offer financially acceptable. For these reasons, we decided to pursue our action and filed an extension to our initial complaint."

Importance of unbundling of local loop for the Belgian economy

The unbundling of the local loop is critical to allow for the formation of competition in the market for nationwide high-speed telecommunication services. This enables all European citizens and businesses to access the Internet at high speed and competitive prices. New entrants can offer such services through the application of DSL technology on the copper lines of the incumbent (who deployed its copper network over a significant period of time with public funding). Today, only Belgacom is able to offer such DSL services through TurboLine. In the absence of competition, the incumbent's offerings remain artificially limited to asymmetrical DSL services that are restricted in terms of speeds and service level agreements (SLAs). These restrictions are meant to avoid/delay cannibalisation of its competing leased lines business. Symmetrical DSLservices would allow leased line applications but at much lower prices. As a result of the absence of competition for DSL services in Belgium, consumers and businesses are deprived of services that could better suit their needs even though the technology to offer such advanced services is currently available and used in other countries.

About VersaPoint

VersaPoint, based in Amsterdam, is building a pan-European digital subscriber line (DSL) network. As the first phase of the company's ambitious network build out, VersaPoint's services are available today to businesses in the Netherlands and Germany. VersaPoint will continue to deploy broadband services to other countries as quickly as regulatory conditions permit, with the goal of becoming the largest European DSL service provider. DSL delivers affordable, always-on Internet access at speeds up to 100 times faster than traditional dial-up modems. VersaPoint was founded in March 2000 through a strategic partnership between Amsterdam-based Versatel Telecom (Nasdaq and AEX: VRSA) and San Francisco-based NorthPoint Communications (Nasdaq: NPNT). For additional information, visit http://www.versapoint.com

About Versatel

Versatel Telecom International N.V. (Nasdaq & AEX: VRSA) based in Amsterdam, is a rapidly growing, facilities-based, competitive local access broadband network operator focused on The Netherlands, Belgium and Germany. Founded in October 1995, the Company holds full telecommunications licenses in Netherlands, Belgium and Germany and has over 42,500 business customers and 1,400 employees. Versatel is currently building a broadband network that will use the latest network technologies to provide business customers with high bandwidth voice, data and Internet services. Besides the CLEC, Versatel group companies consist of VersaPoint a 50/50 Joint venture with US-based NorthPoint (www.northpoint.net), to build European wide high-speed DSL internet access and Versatel Internet Group a concentration of Consumer and Business ISP's, Portals, and Hosting companies. Versatel is a publicly traded company on the Amsterdam Stock Exchanges and Nasdaq National Market under the symbol "VRSA". News and information are available at www.versatel.com

Certain statements in this Press Release are "forward-looking statements" within the meaning of The Private Securities Litigation Act of 1995. Such statements are based on the current expectations of the management of Versatel Telecom International NV only, and are subject to a number of risk factors and uncertainties, including but not limited to changes in technology and market requirements, decline in demand for the company's products or services, inability to timely develop and introduce new technologies, products and services, loss of market share, pressure on pricing resulting from competition, inability to maintain certain marketing and distribution arrangements, and construction delays, which could cause the actual results or performance of the company to differ materially from those described therein. For a more detailed description of the risk factors and uncertainties affecting the company, refer to the Company's reports to be filed from time to time with the Securities and Exchange Commission.

Note to Editors : The Versatel brand is a registered trademark of Versatel Telecom International NV