Gst Telecommunications Inc. Adds New Fiber System Linking All Major Hawaiian Islands

Business Wire, March 20, 1995

HONOLULU--(BUSINESS WIRE)--March 20, 1995--GST Telecommunications Inc. (ASE:GST) announced plans Monday to construct a $49.5 million privately funded network, Hawaiian Island FiberNet (Hi FiberNet), through its subsidiary GST Telecom Inc. The network will be the first fiber optic system to link Molokai and Lanai with the state's four major islands -- Oahu, Maui, Kauai and Big Island -- creating a six-island network.

GST Pacwest Telecom Hawaii Inc. and GST International, subsidiaries of GST Telecom Inc., will build and operate the network which, when completed, will be the largest fiber optic system in the state -- a 24 fiber system configured with 18 terminal points, providing twice the capacity that currently exists.

The Hi FiberNet will provide access to the information superhighway and other advanced communications technology enabling the six major islands to have access to fiber services for a variety of professions and industries, as well as to provide services to meet consumer needs. The system will improve user access to Hawaii and the rest of the world, as well as provide improved access for transmitting information from Hawaii via high tech output centers such as Maui's supercomputer.

The Hi FiberNet will result in a variety of economic benefits to the state, private industry and consumers by improving Hawaii's telecommunications infrastructure and by providing construction and high technology jobs. GST Pacwest Telecom Hawaii Inc. alone will hire 25 high-tech specialists over the next two years.

"In announcing the project, William Martin, senior vice president of GST International, said: "Hawaiian Island FiberNet will lay the foundation for all of Hawaii to enter the global marketplace of the 21st century on the cutting edge of technology. This new fiber optic system will provide the tools for a variety of communication services that will enable business and industry of all sizes to be part of the information superhighway. Some of the benefits our network will provide to everyone in Hawaii include enhancing the state's attractiveness to expanding and relocating businesses, reducing communication costs and providing supercomputer, tourism, and healthcare support."

The project, which will involve local construction firms and which is scheduled to begin in the third quarter of 1995 with completion targeted for September 1996 has received support from the state.

Hawaii Gov. Ben Cayatano attended the news conference to announce the project and remarked: "I welcome the Hawaiian Island FiberNet and its potential for expanding and improving Hawaii's economy in diverse fields from healthcare to tourism. This major private sector investment through GST Pacwest Telecom Hawaii confirms my faith that this island state can and should be on the cutting edge of advanced communications technology.

"By reducing communications costs, the network should help attract new business to Hawaii and make those already here more competitive and productive. That sort of positive contribution to our state's economy is most welcome.

"The Hawaiian Island FiberNet will increase present communications capacity. In addition to covering Oahu, I am particularly glad that it will provide access to the global economy from the Neighbor Islands -- including Molokai and Lanai -- where much of Hawaii's future economic development must take place."

The Hi FiberNet project is being designed by AT&T Submarine Systems Inc., which has signed a strategic agreement with GST Telecom Inc. to work toward the establishment of the system.

Completion of the project is contingent upon the receipt of the appropriate landing licenses, regulatory and environmental approvals, and final approval of the directors of GST Telecommunications Inc. Financing is under discussion with Tomen America Inc., a wholly owned subsidiary of Tomen Corp., Tokyo. Tomen is already party to a master financing arrangement with the company which contemplates $100 million in financing on a project-by- project basis.

GST Telecommunication Inc. is engaged in the design and operation of competitive access networks through its subsidiaries. GST Telecom Inc. was formed for the purpose of designing and operating competitive access and other telecommunication networks in the United States and around the world.

CONTACT: GST International

Bill Martin, 808/682-5123

or

GST Telecom Inc.

John Warta, 360/737-7900

or

Darian Robin & Associates

Darian Robin, 808/395-5751