Global Crossing Announces First Quarter Results /

Accelerates Pacific Crossing Connecting Asia and the Americas HAMILTON, Bermuda (ots-PRNewswire) - -- Expanding customer base drives first quarter revenues to$178

million and adjusted EBITDA to $95 million. -- Acquisition of Global Marine undersea cable service fleet

expected to close within 60 days. -- Merger with Frontier expected to close in third quarter. -- Pacific Crossing accelerated to fill current shortage of

trans-Pacific capacity. Global Crossing Ltd. (Nasdaq: GBLX; BSX), the owner andoperator of the world's most advanced IP-based fiber opticnetwork, today reported results for the first quarter ended March31, 1999, and announced the acceleration of its Pacific Crossingfiber optic cable connecting the U.S. to Japan. First quarterrevenues were $178 million, adjusted EBITDA was $95 million, thenet loss before extraordinary item was $0.2 million, and the netloss was $15 million. "We're very pleased with our progress in the first quarter,"said Bob Annunziata, Chief Executive Officer of Global Crossing."Our expanding sales and customer base, along with soaring demandfor telecommunications in Asia, drives our decision today toaccelerate to December 31 the initial service date for ourPacific Crossing system connecting Japan and the Americas. InNorth America, our agreement during the quarter to acquireFrontier Corporation puts us on a path to add 120 cities in theU.S. to our global network. We expect to close the merger in thethird quarter, as we announced previously. In the meantime, weare pushing to complete the global fiber optic network we arealready building. We saw full ring completion on AtlanticCrossing 1 (AC-1) in February, expanded our plans in Europe, andannounced new systems for South America and the Atlantic. We alsoreached an agreement to combine our network with Cable &Wireless' Global Marine's undersea capabilities, allowing us tooffer unprecedented service packages to our customers." Pacific Crossing service accelerated Initial service for Pacific Crossing (PC-1), previouslyplanned for March of 2000, has been accelerated to December 31,1999. PC-1, a fiber optic cable link between Asia and theAmericas, will connect with the Global Crossing global network attwo landing points in the United States and two landing stationsin Japan. A 1,300 route-kilometer terrestrial system beingconstructed by Global Access Limited (GAL) will link PC-1 withTokyo and also be in service by December 31, 1999. GAL will addOsaka and Nagoya to the system in 2000. "Tokyo, Osaka, and Nagoya account for more than 70% of Japan'sinternational telecommunications traffic," said David Lee, GlobalCrossing's President and Chief Operating Officer. "GlobalCrossing and Marubeni Corporation, our partner on PC-1 and GAL,are entering the market just as Japanese internet users approachthe 20 million mark and bandwidth needs between Japan and majorcities of the world are growing at 50% per year." Global Marine acquisition On April 26, Global Crossing announced a definitive agreementto acquire the Global Marine business of Cable & Wireless plc ina transaction valued at 550 million pounds (approximately $885million). Global Marine is the world's largest and most advancedundersea cable installation and maintenance company servicingmore than one-third of the undersea cable in the world. Theacquisition will give Global Crossing a unique asset at a time ofrapid growth in the $10 billion market for undersea cabledeployment driven by exploding international demand for data,voice, video and Internet connectivity. Global Marine is expectedto generate cash flow approaching $100 million in the currentfiscal year. The transaction, which is expected to be completedwithin 60 days, is subject to certain regulatory and otherapprovals. Financial highlights for the three months ended March 31, 1999and 1998

Three Months Ended Three Months Ended

March 31, 1999

March 31, 1998

(Unaudited)

(Unaudited)

(in millions, except per share data) Results of Operations: * Revenues

$ 178.2

$

-- Operating income (loss)

$ 41.1

$ (3.8) Income (loss) before extraordinary item and

preferred dividends

$ 12.8

$ (3.7) Net loss before extraordinary item

$ (0.2)

$ (8.1) Net loss applicable to common shareholders

$ (15.0)

$ (8.1) Adjusted EBITDA

$ 94.8

$ (3.8) Income (loss) per share before extraordinary

item and preferred

dividends, diluted

$ 0.03

$(0.02) Net loss per share before extraordinary

item, diluted

$ (0.00)

$(0.02) *See Statements of Operations and accompanying footnote. Network highlights

Route Kilometers

In-service

14,300 km

Under contract

55,500 km

Announced

87,900 km

Network Service Capacity

(STM-1 circuits)

256 Accounting for start-up activities Global Crossing adopted Statement of Position 98-5 (SOP 98-5),"Reporting on the Cost of Start-Up Activities," issued by theAmerican Institute of Certified Public Accountants, in the firstquarter of 1999. SOP 98-5 requires that certain start-upexpenditures previously capitalized during system development beexpensed. Global Crossing incurred a one-time charge in the firstquarter of 1999 of $14.7 million (net of tax benefit), thatrepresents startup costs spent and capitalized during previousperiods. During the first quarter of 1999, Global Crossingincurred approximately $3.8 million of start- up expenditures,which were expensed. Quarterly milestones -- Merger with Frontier. Global Crossing entered into adefinitive agreement and plan of merger with FrontierCorporation, which, if completed, will create a combined networkconnecting 159 cities around the world. The board of directors ofeach company has approved the merger. Completion of thetransaction is anticipated to occur during the third quarter of1999. -- Bob Annunziata becomes Chief Executive Officer. BobAnnunziata joined the company in February as Chief ExecutiveOfficer and a Director. Since September 1998, Annunziata had beenPresident of AT&T's $22 billion business services group,responsible for AT&T's global network and for providing voice,data, and Internet services to 8 million business customersworldwide. -- South American Crossing. Also in March Global Crossingannounced plans for the development of South American Crossing(SAC), an 18,000 km undersea and terrestrial fiber optic networkdirectly linking the major cities of South America. Service isscheduled to commence in the fourth quarter of 2000, with fullring completion expected in the first quarter of 2001. -- Pan European Network expanded to 24 cities. GlobalCrossing announced in March the addition of an eastern ringconnecting six German cities including Berlin, Munich, andStuttgart to its previously announced Pan European Crossing.Global Crossing's Pan European Crossing system will feature morethan 620,000 fiber kilometers, stretched over a geographic routeof 10,000 kilometers, linking 24 major metropolitan centers inEurope. -- Atlantic Crossing-2. Global Crossing announced itsintention in late March to develop and construct AtlanticCrossing-2 (AC-2), an additional eight fiber pair, 2.5 terabitcable connecting the United States to Europe. The new cable isexpected to be in service in the first quarter of 2001. -- Lucent Agreement. Global Crossing signed a technologyagreement with Lucent Technologies Inc. in late January that willgive Global Crossing priority access to Lucent's fiber optictechnology. In addition, Global Crossing entered into a supplycontract with Lucent to provide fiber, equipment, and financingfor Pan European Crossing (PEC). The agreement with Lucent alsoprovides for financing of future systems if Lucent is selected asthe contractor. -- Stock split. The Board of Directors declared a 2-for-1stock split in the form of a stock dividend to shareholders ofrecord on February 16, 1999, effective March 9, 1999. About Global Crossing Global Crossing is building and operating the world's mostadvanced global IP-based fiber optic platform for data, voice,video and Internet transmissions. The Global Crossing Networkwill span four continents and address 80% of the world'sinternational traffic. Global Crossing's operations areheadquartered in Hamilton, Bermuda, with offices in Los Angeles;New York City; Morristown, New Jersey; San Francisco; Miami;London; Amsterdam; and Buenos Aires. Statements made in this press release that state the company'sor management's intentions, beliefs, expectations, or predictionsfor the future are forward-looking statements. It is important tonote that the company's actual results could differ materiallyfrom those projected in such forward-looking statements.Information concerning factors that could cause actual results todiffer materially from those in the forward-looking statements iscontained from time to time in the company's filings with theU.S. Securities and Exchange Commission (SEC). Copies of thesefilings may be obtained by contacting the company or the SEC.ots Original Text Service: Global Crossing Ltd. Internet:http://www.newsaktuell.de Contact: Investor/Analyst: JensenChow, 310-385-5283, jchow@globalcrossing.com, or Press: Tom Goff,310-385-5231, tgoff@globalcrossing.com, both of Global CrossingLtd. Web site: http://www.globalcrossing.bm

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