Global Crossing Announces Strong Results for Q2 - Company Financial Information

Cambridge Telcom Report, August 9, 1999

Global Crossing Ltd. (Nasdaq: GBLX), which is building and operating the world's first and most advanced global IP-based datacentric network, Wednesday reported results for the second quarter ended June 30, 1999. Second quarter revenues were $190 million and Adjusted EBITDA was $114 million. Income was affected by $8 million of net non-recurring expenses resulting in a reported net loss of $4 million.

"Our strong revenues in the Atlantic demonstrate the steadily growing demand for bandwidth to serve the international market," said Bob Annunziata, Chief Executive Officer of Global Crossing. "We're also seeing growing sales on our other systems around the world, months in advance of their in-service dates, another indicator of future demand. And after we close the Frontier merger, we'll be able to bring their products to the world, over our global network."

The company's solid sales performance resulted in revenue higher than analysts' consensus estimates. Global Crossing also disclosed today that its customer base increased by 29 percent in the first half of 1999, and that 38 percent of its current customers are already repeat buyers of wholesale capacity on the Global Crossing network.

Financial highlights for the three and six months ended June 30, 1999 and June 30, 1998

                    Three Months Ended         Six Months Ended
                         June 30,                  June 30,
                     1999         1998         1999         1998
                       (Unaudited)                (Unaudited)
                        (in millions, except per share data)
Results of Operations: *
Revenues               $190         $101         $368         $101
Adjusted EBITDA        $114          $72         $225          $68
Net loss applicable
 to common shareholders$(4)       $(193)        $(19)       $(202)
Loss per share,
 basic and diluted  $(0.01)      $(0.58)       $(0.05)     $(0.61)

* See Statements of Operations and accompanying footnote.
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Global Crossing Network summary
The company has announced 88,800 kilometers planned for its growing Global
Crossing Network, of which 82,400 kilometers have been either completed or
placed under contract for construction. Of the total kilometers planned,
14,300 kilometers are in service.

Non-recurring expenses
During the quarter, Global Crossing incurred other expenses of $8 million,
arising from various non-recurring transactions, which are net of gains on
the sale of certain marketable securities. Such expenses include losses on
a currency hedging contract related to the purchase of Global Marine
Systems and a fee paid in connection with amendments to outstanding debt
as the company modified its capital structure and implemented a $3 billion
senior secured corporate credit facility.

Senior Secured Credit Facility
On June 24, 1999, the company amended certain terms of its outstanding
9-5/8% Senior Notes as a preparatory step to the creation of a Senior
Secured Credit Facility.

On July 2, 1999, Global Crossing entered into a $3 billion Senior Secured
Credit Facility to refinance certain non-recourse project debt, to fund
the acquisition of Global Marine Systems, and to provide financing for
future network construction.

On July 7, 1999, Global Crossing borrowed approximately $1.5 billion under
the facility. The borrowing was used, as planned, to partially finance the
Global Marine Systems acquisition, provide for current working capital
requirements, and to retire various outstanding obligations including an
Atlantic Crossing 1 Credit Facility, a Mid-Atlantic Crossing Credit
Facility, and financing provided under an agreement with Lucent
Technologies relating to the Pan European Crossing and South American
Crossing systems.

Additional milestones
-- Frontier Merger Progress. In the first quarter, on March 17th, Global
Crossing entered into a definitive agreement and plan of merger with
Frontier Corporation. The merger is subject to approval of shareholders of
both companies and to other customary conditions, including regulatory
approvals. During the second quarter, the company continued to receive
regulatory approvals required for the transaction. Completion of the
Frontier merger is anticipated to occur either late in the third quarter
or early in the fourth quarter of 1999.

-- Termination of U S WEST Merger Agreement. On July 18, 1999, Global
Crossing and U S WEST agreed to terminate their previous agreement to
merge, and Qwest Communications International withdrew its offer to
acquire Frontier. As a result, U S WEST paid Global Crossing a termination
fee of $140 million in cash, and returned to Global Crossing approximately
2.2 million shares of Global Crossing common stock which U S WEST had
acquired in a tender offer, under the terms of the Global Crossing U S
WEST merger agreement, at $62.75 per share. In addition, Qwest committed
to purchase capacity on the Global Crossing network at established market
prices in an aggregate amount of $140 million during the next two years.

-- Africa ONE. On June 4th, Africa ONE, builder of a fiber optic ring
system around the African continent, awarded contracts expected to exceed
$100 million to Global Crossing subsidiaries to provide project management
and undersea construction to the system.

-- Global Marine Systems. In April, Global Crossing agreed to acquire the
Global Marine business of Cable & Wireless plc. On July 2, that
acquisition was completed. The renamed Global Marine Systems is the
world's largest undersea cable installation and maintenance company with a
fleet of 13 cable ships, representing approximately 33% of the world's
total, 21 submersible vehicles and 1,200 employees servicing approximately
35% of the world's undersea cable miles.

-- Irish Ring. On July 5th, Global Crossing announced an agreement with
the Irish government to build an undersea fiber optic cable system that
will link Ireland's leading companies and multinationals, via two diverse
fiber cables, to the Global Crossing Network. The Irish government has
committed to $80 million of capacity purchases.

-- Pan European Crossing. Global Crossing recently announced that it had
received the remaining necessary licenses and authorizations for the
completion of its Pan European Crossing (PEC), which will link 25 European
metropolitan centers to each other and to more than 135 additional
metropolitan centers worldwide through the Global Crossing Network.
Construction of the PEC system is on schedule for a December 31, 1999
initial service date for Phase 1, which will connect 13 European cities,
including Amsterdam, Antwerp, Brussels, Cologne, Copenhagen, Dusseldorf,
Frankfurt, Hamburg, Hannover, London, Paris, Rotterdam and Strasbourg.

Global Crossing is building and operating the world's first and most
advanced global IP-based datacentric network, an end-to-end fiber optic
platform for data, voice, video and Internet transmissions. The Global
Crossing Network will span five continents and address 80% of the world's
international traffic. A new unit of Global Crossing, Global Marine
Systems Limited, possesses the largest flotilla of cable laying and
maintenance vessels in the world and currently services more than a third
of the world's undersea cable kilometers. Global Crossing's operations are
headquartered in Hamilton, Bermuda, with executive offices in Los Angeles.

FMI: www.globalcrossing.com.

>TB

          GLOBAL CROSSING LTD. AND SUBSIDIARIES
       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

  For the Three and Six Months Ended June 30, 1999 and 1998
      (In thousands, except share and per share amounts)
                         (Unaudited)

                    Three Months Ended          Six Months Ended
                     1999         1998          1999         1998

REVENUES           $190,278     $101,256      $368,461    $101,256

EXPENSES:
Cost of capacity sold80,905       41,200       150,292      41,200
  Operations,
   administration
   and maintenance   14,008        2,470        25,869       2,470
  General and
   administrative    22,089        6,508        44,503       8,850
  Sales and marketing13,498        6,529        23,256       7,313
 Network development  4,848        4,314         9,753       4,314
 Stock related expense9,358       22,760        26,074      23,398
  Depreciation and
   amortization       3,989          443         4,200         473
  Provision for
   doubtful accounts  1,819        1,012         3,683       1,012
  Termination of
   advisory services
   agreement            ---      139,669           ---     139,669
                    150,514      224,905       287,630     228,699
OPERATING INCOME (LOSS)39,764  (123,649)       80,831    (127,443)

EQUITY IN LOSS
 OF AFFILIATES       (2,806)         ---        (5,542)        ---

OTHER INCOME (EXPENSE):
  Interest income    17,274        4,327        31,666       4,422
  Interest expense  (22,675)      (7,403)      (46,454)    (7,426)
  Other expense, net (7,683)         ---        (7,683)        ---

INCOME (LOSS) BEFORE
 PROVISION FOR INCOME
 TAXES, CUMULATIVE
 EFFECT OF CHANGE IN
 ACCOUNTING PRINCIPLE
 AND EXTRAORDINARY
  ITEM              23,874     (126,725)       52,818    (130,447)
   Provision for
    income taxes    (13,896)      (9,000)      (30,038)     (9,000)

INCOME (LOSS) BEFORE
 CUMULATIVE EFFECT OF
 CHANGE IN ACCOUNTING
 PRINCIPLE AND
 EXTRAORDINARY ITEM   9,978     (135,725)       22,780    (139,447)
   Cumulative effect of
    change in accounting
    principle, net of
    income tax benefit  ---          ---       (14,710)        ---

INCOME (LOSS) BEFORE
 EXTRAORDINARY ITEM   9,978     (135,725)        8,070    (139,447)
   Extraordinary loss
    on retirement of
    senior notes        ---      (19,709)          ---     (19,709)

NET INCOME (LOSS)     9,978     (155,434)        8,070    (159,156)
  Preferred stock
   dividends        (14,197)      (3,899)      (27,241)     (8,306)
  Redemption of
   preferred stock      ---      (34,140)          ---     (34,140)

NET LOSS APPLICABLE
 TO COMMON
 SHAREHOLDERS       $(4,219)   $(193,473)     $(19,171)  $(201,602)

ADJUSTED EBITDA(a) $113,722      $71,506      $225,230     $68,380

NET LOSS PER COMMON SHARE:
  Loss applicable to
   common shareholders
   before cumulative
   effect of change in
   accounting principle
   and extraordinary item
Basic and diluted   $(0.01)      $(0.52)       $(0.01)      $(0.55)

  Cumulative effect of
   change in accounting
   principle
    Basic and diluted $---          $---       $(0.04)        $---

  Extraordinary loss on
   retirement of
   senior Notes
    Basic and diluted $---       $(0.06)         $---       $(0.06)

  Net loss applicable
  to common
  shareholders
  Basic and diluted   $(0.01)    $(0.58)       $(0.05)      $(0.61)

  Shares used in
   computing loss
   per share
    Basic and
     diluted   413,204,243   332,388,070  412,000,658  332,125,394
>TB

Footnote
(a) Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization (Adjusted EBITDA) is calculated as operating income (loss),
plus depreciation and amortization, cost of undersea capacity sold, stock
related expense, and amounts relating to the termination of the advisory
services agreement.

>TB

                  GLOBAL CROSSING LTD. AND SUBSIDIARIES

            CONDENSED CONSOLIDATED BALANCE SHEETS
      (In thousands, except share and per share amounts)

                                         June 30,     December 31,
                                            1999            1998
                                                 (Unaudited)
ASSETS:
  Current assets:
   Cash and investments                    $676,082      $806,593
   Restricted cash and investments           45,260        77,190
   Accounts receivable, net of
    allowance for doubtful accounts
    of $7,916 as of June 30, 1999
    and $4,233 as of December 31, 1998      132,652        71,195
   Other assets and prepaid costs            51,475        21,637
   Total current assets                     905,469       976,615
  Restricted cash and investments           367,387       367,600
  Accounts receivable                        63,128        43,315
  Capacity available for sale               503,878       574,849
  Property, plant and equipment, net         59,853         5,500
  Construction in progress                  842,439       428,207
  Investment in affiliates                  184,676       177,334
  Other assets                              111,767        65,757
     Total assets                        $3,038,597    $2,639,177

LIABILITIES:
  Current liabilities:
   Accrued construction costs              $158,304      $129,081
   Accounts payable and accrued liabilities  59,560        31,990
   Accrued interest and preferred dividends  15,968        14,428
   Deferred revenue                          35,322        44,197
   Income taxes payable                      20,347        15,604
   Current portion of long term debt            ---         6,393
   Current portion of obligations under
    inland services agreements and
    capital leases                           12,581        14,572
   Total current liabilities                302,082       256,265
  Long term debt                            559,707       269,598
  Senior notes                              796,682       796,495
  Deferred revenue                           60,140        25,325
  Obligations under inland services
   agreements and capital leases             15,237        24,520
  Deferred income taxes                      24,167         9,654
     Total liabilities                    1,758,015     1,381,857

MANDATORILY REDEEMABLE PREFERRED STOCK --
 5,000,000 shares issued and outstanding,
 $100 liquidation preference per share
 (net of unamortized issuance costs
 of $15,042 as of June 30,1999 and
 $17,000 as of December 31, 1998)           484,958       483,000

SHAREHOLDERS' EQUITY:
  Common stock, 600,000,000 shares
   authorized, par value $.01,
   436,167,061 and 432,776,246 shares
   issued as of June 30, 1999 and
   December 31, 1998, respectively            4,361         4,328
  Treasury stock, 22,033,758 shares        (209,415)     (209,415)
  Other shareholders' equity              1,080,671     1,067,470
  Accumulated deficit                       (79,993)      (88,063)
                                            795,624       774,320
  Total liabilities and
   shareholders' equity                  $3,038,597    $2,639,177

>TB