IMPSAT Fiber Networks Announces an Important Milestone: It has Completed 90% of the Original Footprint of Its Broadband Network

Business Wire, Sept 7, 2000

Business Editors, Hi-Tech Writers

BUENOS AIRES, Argentina--(BUSINESS WIRE)--September 7, 2000

-- The Argentine Long Haul Network has been Finalized.

-- The Metro Backbones of Belo Horizonte and Curitiba in Brazil have been
Finalized

-- The Long Haul Network Linking Curitiba, Sao Paulo and Belo Horizonte has
been Completed

-- All the Ducts in the Long Haul Networks in Chile have been Completed.

IMPSAT Fiber Networks, Inc. ("IMPSAT" or the "Company") (NASDAQ:IMPT), a leading provider of broadband data transmission and private telecommunications network services in Latin America with operations in the United States, today announced the completion of the long haul part of its Argentine network, as part of the major progress achieved in the deployment of is Pan-Latin American Broadband Network.

At August 15, 2000 progress in the deployment of IMPSAT's Broadband Network was crowned by the completion of the Argentine long haul network. Other significant achievements were the completion of the metro-backbones in the Brazilian cities of Belo Horizonte and Curitiba, the long haul sub-network linking Curitiba, Sao Paulo and Belo Horizonte in Brazil, and the installation of all the ducts in the Chilean long-haul network. Also worth mentioning is the finalization of the head-end buildings in Rio de Janeiro and Curitiba. By mid-August, the Company had already laid 98.2% of the ducts contemplated in the original footprint and threaded over 91% of the fiber.

Regarding these important accomplishments, Ricardo Verdaguer, IMPSAT's chief executive officer, commented: "The rapid progress achieved in the deployment of our Broadband Network reinforces the nearing completion of our year-end construction targets. In addition, the finalization of the long haul Argentine network undoubtedly confirms the execution abilities of IMPSAT. Finally, having two of our four Brazilian metro backbones in place confirms our growing presence in that highly growing market."

The progress in the deployment of IMPSAT's Broadband Network is depicted in the following table:

                                                   Total Extension
                              At August 15, 2000      Original
            At June 30, 2000  Original Project        Routes(c)
          ================== =================== ==================

           Duct      Fiber       Duct     Fiber    Duct      Fiber
           Route     Route       Route    Route    Route     Route
            Km.       Km.         Km.      Km.      Km.       Km.


Long Haul

Argentina   1,736     1,191     1,766     1,766    1,766     1,766

Brazil      1,368       692     1,566     1,260    1,570     1,570

Colombia        0     1,406         0     1,502        0     1,502

Chile         294       221       340       280      340       340

Total       3,398     3,510     3,672     4,808    3,676     5,178


Metro-
Backbones


Argentina     148       123       158       153      165       188

Brazil        307       204       359       313      423       423

Peru            0         0         0         0        0         0

Total Metro
Backbones     455       327       517       466      588       611


TOTAL       3,853     3,837     4,189      5,274   4,264      5,789

% of
Progress(b)   90.0%    60.8%     98.2%     91.1%




              Total Adjusted    Total Projected
                Projected        Extension for
              Extension for          2001(a)
                 2000(c)
            =================== =================

               Duct      Fiber     Duct     Fiber
               Route     Route     Route    Route
                Km.       Km.       Km.      Km.

Long Haul


Argentina      1,766     3,066     2,266    3,566

Brazil         1,570     1,570     3,070    3,070

Colombia           0     1,502         0    2,000

Chile            340       340       340      340

Total          3,676     6,478     5,676    8,976


Metro-
Backbones


Argentina        265       318       265      318

Brazil           610       610       610      610

Peru              47        47        47       47


Total Metro
Backbones        980       975       922       975

TOTAL          4,656     7,453     6,598      9,951

      (a) Includes fiber and ducts from the additional stretch between
        Brazil and Argentina to be completed during the third quarter
        of 2001
      (b) Calculated as a percentage of the original project layout
      (c) Adjusted for final routes

During July and the first half of August 2000, IMPSAT constructed a total of 336 new route kilometers of ducts and installed a total of 1,437 new route kilometers of fiber. Significant progress was achieved in the long haul Argentine network which was completed and where illumination tests are being carried out successfully. Also, in Brazil, the fast pace achieved in long haul fiber threading allowed the Company to double the deployment existing at June 30, 2000. As a result, the long haul section linking Curitiba, Sao Paulo and Belo Horizonte with an extension of 1,000 kilometers has been finished. Works in the Brazilian operations facilities also progressed ahead of schedule. The head end buildings of Rio de Janeiro and Curitiba have been completed and equipped successfully.