At the same time, while international voice traffic has increased more than 13 percent a year, international data traffic has expanded at 10 times the rate of voice traffic. One of the primary factors contributing to this telecommunications revolution is the expanded use of broadband applications, such as the Internet, corporate intranets and video conferencing.

Against this backdrop, Global Crossing has emerged as the world's first independent provider of global long distance telecommunications facilities and services, utilizing a network of undersea digital fiber-optic cable systems and associated terrestrial backhaul capacity. As such, the Company believes it is the first to offer its customers access to multiple destinations worldwide through "one-stop shopping." Global Crossing operates as a "carrier's carrier," offering tiered pricing and segmented products to licensed providers of international telecommunications services. Global Crossing offers equal access to its network capacity, at competitive prices, to all customers, to meet the varying needs of the global carrier market. The Company also offers customers the ability to purchase increments of capacity on demand, thereby eliminating their need to commit capital to building their own infrastructure, and decreasing the risk associated with forecasting their future capacity requirements.

While there has been significant demand for global telecommunications capacity, there has not been a corresponding growth in the number of new facilities, especially in the undersea fiber-optic cable industry. At Global Crossing we believe that additional undersea network capacity and faster response times will be required to satisfy current and anticipated growth in telecommunications traffic. We have already begun meeting this challenge.

With the development of its global telecommunications network, Global Crossing has positioned itself at the cutting edge of advanced international undersea fiber-optic telecommunications systems and services. In the last 18 months Global Crossing has funded and developed Atlantic Crossing (AC-1), a network connecting the United States, United Kingdom, Germany and the Netherlands. The Company initiated commercial service on May 26, 1998 linking its United States-United Kingdom segment. By mid-year 2000, Global Crossing will have inaugurated three additional networks, connecting the U.S. to Japan; the U.S., Mexico, Panama and the Caribbean; and the U.S., the Caribbean and Bermuda - thus creating a worldwide link of cities in the Americas, Europe, and Asia.

All of this is directed by a team of knowledgeable, skilled and highly regarded senior management professionals from the telecommunications and business fields. This senior management team all work under the leadership of Chief Executive Officer Jack Scanlon, formerly with Motorola, AT&T and Bell Labs, who has more than 30 years of telecommunications management experience.