IMPSAT Corporation and Global Crossing Sign Comprehensive Framework Agreement - Company Business and Marketing

Cambridge Telcom Report, August 23, 1999

IMPSAT Corporation Tuesday announced the following: - The Agreement will enable IMPSAT to integrate its individual domestic fiber optic networks into a regional, pan-Latin American integrated broadband network.

- The Agreement gives IMPSAT worldwide access and gives Global Crossing ("GC") broad backhaul access to South American cities.

- IMPSAT will provide GC with a terrestrial link between GC's landing points in Argentina and Chile for $64 million.

- Under the Agreement, IMPSAT will supply co-location space in its telehouses throughout South America, undertake maintenance services for GC's terrestrial links and enter into a co-marketing agreement with GC.

- Under the Agreement, IMPSAT will buy a minimum of $46 million in capacity on the GC network at favorable prices.

IMPSAT Corporation ("IMPSAT" or the "Company"), the leading provider of Internet, data transmission and private network telecommunications services in Latin America that is building a pan-Latin American fiber optic broadband network, and Global Crossing Ltd. ("GC"), the owner and operator of the first integrated global IP-based fiber optic network, announced Tuesday a wide-reaching Framework Agreement by which IMPSAT Corporation will enter into a series of arrangements regarding Global Crossing's proposed South American Crossing (SAC).

Global Crossing's SAC is an 18,000 kilometer fiber optic cable system comprised of numerous undersea fiber optic cable segments as well as the Trans-Andean terrestrial link, forming a robust, self-healing ring system that encircles the South American continent.

Under the Framework Agreement, IMPSAT will provide GC with a terrestrial link between its landing points in Argentina and Chile, known as the Trans Andean Crossing (TAC), to complete GC's self-healing ring system for the SAC. The TAC will form the southernmost perimeter of SAC, connecting the SAC system between Las Toninas, Argentina on the Atlantic Ocean and Valparaiso, Chile on the Pacific Ocean. As it crosses the continent, the TAC will pass through Buenos Aires, Argentina and Santiago, Chile. IMPSAT will provide the TAC through the construction of three ducts and related facilities between the landing point in Las Toninas, Argentina and Buenos Aires, Argentina and between the landing point in Valparaiso, Chile and Mendoza, Argentina, as well as through the licensing of a 1,600 kilometer duct on the broadband network that IMPSAT is constructing between the cities of Buenos Aires and Mendoza, Argentina. The purchase price for the TAC to be paid by GC to IMPSAT is $64 million. IMPSAT will also provide GC with maintenance services for the TAC.

In addition, Global Crossing will contract with IMPSAT for the construction and provisioning of terrestrial backhaul networks in all other countries connected to GC's South American Crossing system, including terrestrial links connecting the landing points of GC's submarine cables with Sao Paulo and Rio de Janeiro, Brazil; Caracas, Venezuela; Bogota, Colombia; and Lima, Peru. IMPSAT will construct telehouses in each of those cities and in Buenos Aires, Argentina and Santiago, Chile and will provide Global Crossing co-location space in the telehouses for a term of 25 years. The telehouses are expected to serve as the point of access in each country for Global Crossing's customers.

In addition, Global Crossing and IMPSAT will enter into a co-marketing agreement that will combine IMPSAT's pan-Latin American transportation and distribution network with the Global Crossing network, in effect broadening IMPSAT's product marketing channels. Under the Framework Agreement, IMPSAT has agreed to buy a minimum of $46 million in capacity on the GC's worldwide network at favorable prices.

"We are very pleased to announce this agreement with IMPSAT," said Bob Annunziata, Global Crossing's Chief Executive Officer. "IMPSAT is a pan-regional operator which has pioneered advanced communications throughout Latin America from satellite to terrestrial fiber optics. Our agreement is an important step for Global Crossing toward fulfilling our commitment to build out this critical part of our global network. This partnership gives both parties a total solution. IMPSAT customers will have world access from Berlin to Tokyo through the Global Crossing Network and Global Crossing is assured regional access to businesses and consumers in Latin America's largest cities."

Ricardo Verdaguer, IMPSAT's Chief Executive Officer, stated, "IMPSAT is excited about the partnership with Global Crossing since with the capacity in GC's submarine system, IMPSAT will integrate its individual fiber optic domestic networks in each country into a regional, integrated broadband network. This moves the Company towards the completion of its pan-Latin American broadband network that will be the first of its type in South America. Most importantly, the agreement allows IMPSAT to better service its corporate clients doing business in Latin American and expands its presence worldwide."