Global Crossing Seeks Over $1 Billion in Suit Against Tyco Submarine Systems - Company Business and Marketing

Cambridge Telcom Report, May 29, 2000

Global Crossing Ltd. (Nasdaq:GBLX) and its subsidiary, South American Crossing (Subsea) Ltd., Monday filed a lawsuit against Tyco Submarine Systems Ltd., a subsidiary of Tyco International Ltd. (NYSE:TYC), in the United States District Court for the Southern District of New York. Global Crossing is seeking damages in excess of $1 billion.

The complaint alleges tortious conduct and breach of contractual obligations related to Tyco's agreements to install the South American Crossing fiber-optic cable system and certain other projects. In addition, Global Crossing's subsidiary, Atlantic Crossing Ltd., together with certain of its affiliates, filed arbitration claims against Tyco for breaches of its obligations in connection with various contracts for the development of the AC-1 System.

"We deeply regret having to resort to litigation with Tyco, our vendor for a number of our early systems," said Leo Hindery, Jr., CEO of Global Crossing. "But after spending nearly a year seeking unsuccessfully to resolve our differences, we have no alternative to legal action in order to enforce our rights and protect our shareholders."

Global Crossing Ltd. (Nasdaq:GBLX) is building and offering services over the world's most extensive global IP-based fiber optic network, which will have more than 101,000 route miles, serving five continents, 27 countries and more than 200 major cities. Global Crossing's subsidiary, GlobalCenter Inc., is a leading Internet service business, and its customers include many of the largest and most densely trafficked sites on the Web. Asia Global Crossing, a joint venture among Global Crossing, Microsoft Corporation (Nasdaq:MSFT), and Softbank Corp. (Tokyo Stock Exchange: 9984), is building the first pan-Asian broadband IP network to provide broadband and Internet services to the Asia Pacific region. Global Crossing's operations are headquartered in Hamilton, Bermuda, with principal offices in Los Angeles, California; London, England; Morristown, New Jersey; Rochester, New York; and Miami, Florida. Visit Global Crossing at www.globalcrossing.com on the Web.