I-Link Obtains Restraining Order Against Red Cube Companies in Federal Court Lawsuit in Utah; February 7th Hearing Set to Determine Arbitration Issue

Business Wire, Jan 26, 2001

Business/Technology Editors

DRAPER, Utah--(BUSINESS WIRE)--Jan. 26, 2001

I-Link Incorporated (Nasdaq: ILNK) today announced that it has successfully obtained a Temporary Restraining Order against Red Cube International AG, a Swiss corporation, and Red Cube, Inc., a Delaware corporation, in the lawsuit filed last week in federal court by I-Link against the Red Cube companies. The TRO was granted following a hearing before the U.S. District Court in Salt Lake City, Utah, at which I-Link's Motion for the TRO, as well as the Red Cube companies' Motion to Dismiss and Compel Arbitration were argued by attorneys for both sides. Pursuant to the order issued by the court, the Red Cube companies are restrained from, among other things, soliciting or interfering with I-Link's customers, master agents, vendors and employees. This Temporary Restraining Order will be in force until a further hearing is held on February 7, 2001, on Red Cube's Motion to Dismiss and Compel Arbitration.

On January 19, 2001, I-Link filed its lawsuit against the Red Cube companies in U.S. District Court in Salt Lake City seeking injunctive relief and damages against the Red Cube companies for business interference and failure to provide approximately $60 million in operational funding pursuant to agreement reached in August 2000 at the time Red Cube International AG agreed to purchase Winter Harbor, LLC's controlling interest in I-Link. In response to the filing of this lawsuit, Red Cube International AG filed a Demand for Arbitration in New York City, claiming breach by I-Link of the May 8, 2000 Cooperation and Framework Agreement that established the commercial relationship between I-Link and Red Cube International AG. Subsequently, the Red Cube companies filed a Motion to Dismiss and Compel Arbitration in the U.S. District Court action in Utah asserting that all of I-Link's claims in that action are related to the Cooperation and Framework Agreement, and as such, are subject to mandatory arbitration in New York under the terms of that earlier agreement.

I-Link maintains that its claims against the Red Cube companies in the U.S. District Court action for business interference and failure to provide funding do not relate to the earlier Cooperation and Framework Agreement, but are the result of a distinctly separate relationship and agreement between the parties that was created when Red Cube International AG later sought to become I-Link's controlling shareholder and agreed to provide I-Link approximately $60 million in operational funding in order to secure I-Link's support of its transaction with Winter Harbor. At the hearing in U.S. District Court at which I-Link's request for TRO against the Red Cube companies was granted, the court did not grant the Red Cube companies' Motion to Dismiss and Compel Arbitration, but scheduled a further hearing on that matter for February 7th.

I-Link continues to provide services to Red Cube and denies that it is in breach under the Cooperation and Framework Agreement. I-Link believes the arbitration demand filed by Red Cube International AG is premature and purely a tactical response to the lawsuit filed in U.S. District Court in Utah by I-Link.

About I-Link

Headquartered in Draper, Utah, I-Link (Nasdaq:ILNK) is an enhanced voice/data applications service provider. With its software-defined network architecture, I-Link simplifies the delivery of unified communications today. I-Link offers a full range of enhanced services such as one- number "follow me," call routing, caller screening, unified voice, fax, pager and e-mail messaging, voice-and fax-on-demand, conference calling and seamless call transfer from cell phone to land-line and vice-versa via a direct connection to its nationally deployed Internet Protocol telephony network. For further information visit I-Link's Web site at www.i-link.com.

The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. Important factors that may cause actual results to differ include, but are not limited to, the impact of competitive products and services, the company's ability to manage growth and acquisitions of technology or businesses, the effect of economic and business conditions, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.