Global Crossing releases operating results for June 2003

Fiber Optics Weekly Update, August 8, 2003

Global Crossing filed a Monthly Operating Report (MOR) with the U.S. Bankruptcy Court for the Southern District of New York, as required by its Chapter 11 reorganization process. Results reported in the June 2003 MOR are unaudited.

In June 2003, Global Crossing reported consolidated revenue of approximately $252 million. Consolidated access and maintenance costs were reported as $168 million, while other operating expenses were $81 million. Global Crossing's consolidated cash balance of approximately $559 million as of June 30, 2003 was comprised of approximately $222 million in unrestricted cash (including $67 million of cash held by Global Marine) and $337 million in restricted cash. Consolidated EBITDA was reported at $3 million. The consolidated net loss for June 2003 was $99 million. The net loss increase from May is in part due to higher professional fees and one-time restructuring costs.

The reported June 2003 depreciation and amortization of $95 million, and therefore the June operating loss and net loss, would have been reduced substantially if the financial statements in the June MOR had reflected the tangible asset impairment anticipated by Global Crossing. As previously reported, in connection with the independent audits being conducted for 2001 and 2002, Global Crossing concluded that its Global Marine subsidiary should no longer be classified as a discontinued operation since the newly emerged Global Crossing expects to retain this business.

As a result, Global Marine was reclassified into Global Crossing's continuing operations beginning with the May MOR. When historical financial statements are filed for 2001 and 2002 Global Marine will be presented as continuing operations for all periods presented. The April financial information in the tables below have been amended from previous press releases to include Global Marine as part of continuing operations to enhance comparability with June financial results.