Teleglobe Unveils Plans for Global Internet Data Center Initiative; Cap Gemini Ernst & Young will Provide Systems Integration and Operational Management of the Internet Data Centers

Business Wire, Nov 13, 2000

Business/High-Tech Editors

RESTON, Va.--(BUSINESS WIRE)--Nov. 13, 2000

Teleglobe, an established and leading provider of global Internet services, today unveiled its plans to commence a world-wide Internet Data Center (IDC) initiative. The initiative will create the support platform required to meet customer requirements for managed and enhanced network services.

To meet the needs of a diverse, global customer base that includes application service providers, Internet service providers, Internet content providers and carriers, during 2001 Teleglobe will develop 400,000 square feet of space in the following strategic locations:

-- Frankfurt     -- Miami       -- San Francisco   -- Toronto
-- London        -- New York    -- Tokyo           -- Washington D.C.

In addition, Teleglobe is currently building in excess of 200,000 square feet of collocation space. This will enable Teleglobe to offer collocation services in 33 major markets by Q2 2001.

"Selecting a global partner for systems integration and overall project management is key to the successful execution of this initiative," said Terence Jarman, CEO of Teleglobe. "We sought to work with the best-in-class, and we selected Cap Gemini Ernst & Young for a combination of reasons, including their systems integration and project management capabilities, as well as their global marketplace capabilities."

A newly appointed Teleglobe executive, Steve Wade, will spearhead delivery of the project and be responsible for the build-out and overall operations of the global IDC platform, as well as be the liaison to Cap Gemini Ernst & Young.

"An essential value-add that Cap Gemini Ernst & Young delivers to Teleglobe on such a significant initiative is their ability to manage and grow the IDC initiative globally with Teleglobe," said Alexandre Heaffner, CEO of Cap Gemini Ernst & Young Telecommunications, Media and Networks. "Cap Gemini Ernst & Young will support Teleglobe's marketing of its services and refer customers seeking hosting services to Teleglobe. Regardless of where Teleglobe decides to provide service, it can rest assured that Cap Gemini Ernst & Young has the expertise and reach to provide scalable, global support."

Beyond 2001, Teleglobe plans to expand this initiative further, growing into additional locations based on customer demand. Teleglobe is developing its IDC initiative during a period of dramatically escalating global broadband and Internet growth. Estimates for continued Internet growth include:

-- A recent statement by Boston-based Yankee Group, citing an expectation that
the U.S. market for residential high-speed Internet services will grow from an
estimated 3.3 million subscribers in 2000 to 16.6 million subscribers by 2004.

-- A Forrester Research estimate predicting the number of European households
with broadband access to reach 18 percent

- representing 27 million subscribers by 2005, up from only .2

percent penetration in 1999.

About Teleglobe

Teleglobe, an established and leading provider of global Internet services, enables its customers to maximize the potential of the Internet through its delivery of rich media content, one-stop global connectivity and hosting services. With the world's largest international Internet backbone, extensive peering arrangements and a broad base of carrier, ISP and ICP customers around the world, Teleglobe's GlobeSystem network provides a robust network platform for an increasing portfolio of Internet and data services. For more information, visit www.teleglobe.com.

About Cap Gemini Ernst &Young

Cap Gemini Ernst & Young is one of the largest management and IT consulting firms in the world. The company offers management and IT consulting services, systems integration, and technology development, design and outsourcing capabilities on a global scale to help traditional businesses and "dot companies" continue to implement growth strategies and leverage technology in the new economy. The organization employs more than 56,000 people worldwide and reports global revenues of about Euro 7.7 billion (1999 pro forma). More information about individual service lines, offices and research is available at www.cgey.com