Global Crossing to Acquire Racal Telecom for 1 Billion Pounds Sterling / Acquisition Substantially Accelerates Global Crossing's Global Strategy in Europe

London (PROTEXT) - Global Crossing Ltd (Nasdaq: GBLX) ("GlobalCrossing"), which is building and operating the world's mostadvanced global IP-based fiber optic network, and RacalElectronics Plc ("Racal"), today announced that an agreement hasbeen reached for Global Crossing to purchase Racal Telecom, agroup of wholly owned subsidiaries of Racal, for 1 billion poundssterling (approximately $1.65 billion) in cash. This acquisition represents an important step in the expansionof Global Crossing's pan-European business, and its overallstrategy of providing customers with integrated global end-to-endconnectivity and a wide range of services. Racal Telecom's IP capabilities and deep national networkcomplement Global Crossing's growing reach across fivecontinents. This combination is expected to create significantnew opportunities for revenue growth and cost synergies arisingfrom: -- A platform for targeting multinationals and largebusinesses with a range of products and services, both within theUK and internationally; -- A strategic position in the European and UKtelecommunications markets

- the UK is the world's fourth largest and fastest growingmarket for international telecommunications traffic; -- Racal Telecom's strong presence in the government andtransport sectors, enhancing Global Crossing's existing UKoperations (including the Global Network Center located in theLondon Docklands and the UK business recently acquired fromFrontier); and -- Global Crossing's ability to offer seamless end-to-endconnectivity on attractive terms for origination and terminationof traffic between the Americas, Europe and Asia. The purchase of Racal Telecom accelerates Global Crossing'sdrive to be a fully integrated provider of data-oriented productsand services in the most important telecommunications markets inthe world. Racal Telecom is already rolling out an extensivepipeline of new products focused on corporate needs, which willenhance the utilisation of its carrier grade network. The RacalTelecom network is the primary source of MCI Worldcom's UKnetwork capacity, in addition to its other significant carrierrelations with Cable & Wireless, NTL and Telewest. RacalTelecom's operations are highly complementary to GlobalCrossing's UK business, with no duplication of personnel orassets. Racal Telecom has recently undergone a reorganisation ledby a new management team with significant industry expertise. Thekey executives include Martin Lea (Racal Telecom's managingdirector), Martin Burvill (previously at Equant and BT SyncordiaGlobal Solutions), Keith Dewar (former marketing director atCable & Wireless Global Markets), Paul Gaffney (previously e-commerce manager for IBM Global Services), Trent Homes (Director,International Carrier Services) and Bob Falconer (Director,Networks). In addition, Racal Telecom has a wealth of skilledengineers whose technical knowledge can be leveraged acrossGlobal Crossing's pan-European operations. Racal Telecom's highly secure network comprises 7,300 routekilometers of fiber laid alongside railway lines and utilisingIP-centric leading technologies (SDH, DWDM, ATM and Frame Relay).Racal Telecom's network reaches more than 2,000 cities and townsacross the UK and will be within 5km of almost 70% of all UKbusiness customers by 2001. Additionally, Racal Telecom'sadvanced network provides Global Crossing with 20 ATM dataswitches, 4 AXE-10 voice switches, a frame relay network acrossEurope and the largest X25 network in the UK. Through the depthof this network, Racal Telecom has more interconnection pointswith British Telecommunications than any other UK carrier,thereby significantly reducing its costs. In the financial yearended 31 March 1999 Racal Telecom had proforma revenues ofapproximately 200 million pounds sterling and earnings beforeinterest, tax and depreciation of approximately 38 million poundssterling. The combination of Racal Telecom's extensive data expertise,skilled workforce and high quality network further drives GlobalCrossing's ability to offer a full range of IP/data products andservices both in the UK and throughout Europe. Commenting on the announcement, Bob Annunziata, the CEO ofGlobal Crossing, said: "Racal Telecom's extensive network adds to Global Crossing'sexisting UK operations and soon to be completed pan-Europeannetwork, and represents an exceptional opportunity to accelerateour development of the world's first global independenttelecommunications company. The customer-focused business andskilled workforce that Racal Telecom provides will create aplatform for us in Europe from which we can offer businesses thefull benefits of Global Crossing's worldwide operations." Lodwrick Cook, KBE, the Co-Chairman of Global Crossing, added: "Racal has invested over 400 million pounds sterling in thepast few years to create the UK's broadest IP-centric network inthe UK. This network puts us close to the customer with thecapabilities they require. Our data-centric global network alsopositions us well to provide the backbone for the new third-generation mobile operators, soon to be licensed." Global Crossing was advised by Goldman Sachs. A presentation to analysts will be made at 09.30 (UK time) atthe City Presentation Centre, 4 Chiswell Street, London EC2. Enquiries: Global Crossing: Rick Laubscher, Monday 11 October: +44 (0)207251 3801, Tuesday 12 October -- Friday 15 October at Telecom 99,Geneva: +41 (0)79 615 50 31, Thereafter: +1 310 385 3820,http://www.globalcrossing.com Finsbury: Roland Rudd, Justine Samuel, Melanie Bosworth, +44(0)20 7251 3801 Goldman Sachs International, which is regulated in the UnitedKingdom by The Securities and Futures Authority Limited, isacting for Global Crossing in connection with the transactiondescribed in this announcement and for no-one else and will notbe responsible to anyone other than Global Crossing for providingthe protection afforded to customers of Goldman SachsInternational or for providing advice in relation to thetransaction. 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. About Global Crossing Global Crossing (Nasdaq: GBLX) owns and operates a state-of-the-art fiber optic network in the United States and isdeveloping and operating the world's first truly global IP-basedfiber optic network with 88,100 announced route miles to connectfive continents, 24 countries and 170 cities. The Global CrossingNetwork and its product offerings will be available to over 80%of the world's international communications traffic. Through itssubsidiary Global Crossing Marine, based in Chelmsford, GlobalCrossing also owns the largest fleet of cable laying andmaintenance vessels in the world and currently services more thana third of the world's undersea cable miles. Global Crossing isincluded in both the S&P 500 and the Nasdaq 100. GlobalCrossing's operations are headquartered in Hamilton, Bermuda,with executive offices is Los Angeles, California, Morristown,New Jersey, and Rochester, New York. For more information, visitwww.globalcrossing.com. ots Original Text Service: GlobalCrossing Ltd Internet: http://www.newsaktuell.de Contact:Global Crossing: Rick Laubscher, Monday 11 October: 44-0-20-7251-3801, Tuesday 12 October -- Friday 15 October at Telecom 99,Geneva: 41-0-79-615-50-31, Thereafter: 310-385-3820; or Finsbury:Roland Rudd, or Justine Samuel, or Melanie Bosworth, 44-0-20-7251-3801 Web site: http://www.globalcrossing.com

Subscribers please note that material bearing the slug"PROTEXT" is not part of CTK's news service and is not to bepublished under the "CTK" slug. Protext is a commercial serviceproviding distribution of press releases from clients, who areidentified in the text of Protext reports and who bear fullresponsibility for their contents.

PROTEXT