Fibernet is a communications solutions company. Our goal is to help our customers improve their profitability. We help them to achieve this by delivering individually designed managed network services designed to help improve the effectiveness of communication between systems and between employees. We use our own national and metropolitan fibre optic networks plus the knowledge and skills we have developed in over 16 years of high performance data network design, installation and management to help our customers achieve this single goal. 

FLORHAM PARK, New Jersey and LONDON, October 11 /PRNewswire/ -- 

- Transaction values Fibernet equity at US$94.6 million. 
- Acquisition expected to generate more than US$30 million in annual Adjusted EBITDA after integration. 
- Fibernet's roster of finance, insurance and retail focused customers complements Global Crossing's strength in rail and government sectors. 

Global Crossing Limited (Nasdaq: GLBC) today announced that its subsidiary, GC Acquisitions UK Limited ("GC Acquisitions UK"), has formally acquired Fibernet Group Plc (LSE: FIB). GC Acquisitions UK will pay Fibernet shareholders 78 pence (approximately US$1.48) per share, for a total equity value of approximately 49.8 million British pounds sterling (US$94.6 million). 

In response to its offer to Fibernet shareholders on September 14, 2006, GC Acquisitions UK has received acceptances as to 91 percent of Fibernet's issued shares. Having declared the offer unconditional in all respects and having thereby acquired and taken control of Fibernet, GC Acquisitions UK has ensured its ability to acquire all of the remaining shares through the UK's compulsory share acquisition process. 

"The addition of Fibernet makes us an even stronger competitor, both in the UK and globally, contributing positively to Global Crossing's leadership position as a next-generation communications provider," said John Legere, chief executive officer of Global Crossing. "This acquisition will further accelerate the performance of our 'invest and grow' segment with the addition of Fibernet's valuable enterprise and Internet service provider customers and the opportunity to serve their future requirements with Global Crossing's broader portfolio of
innovative IP solutions." 

Fibernet's roster of enterprise and carrier customers in the financial, insurance and retail segments complements Global Crossing's market position in the UK government and rail sectors.
These customers, Fibernet's world class customer-focused team and its innovative access capabilities are a superb match to Global Crossing's portfolio of advanced IP solutions.
Fibernet and Global Crossing have had a long-standing commercial relationship, which is expected to facilitate a smooth transition for customers of both companies. 

Global Crossing plans rapidly to integrate Fibernet's business into its UK operations, and it expects that Fibernet will add more than US$80 million in annual revenue after elimination of US$10 million of inter-company revenue. After completion of integration and achievement of operating cost reductions, Fibernet is expected to add more than US$30 million in annual Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). Additionally, Global Crossing expects synergies in the form of reduced capital expenditures of as much as US$10 million. Operating and capital expense synergies are expected to be achieved by eliminating duplicative operating and administrative staff and costs, public company expenses, and duplicative leased operating and administrative facilities, and lowering capital requirements through the use of Global Crossing's network. Integration is expected to take 12 to 18 months and to have a one-time cost of up to US$10 million. 

"Acquiring Fibernet strengthens Global Crossing's financials and moves us further past the Adjusted EBITDA breakeven point," continued Legere. "Our participation in industryconsolidation demonstrates that we're successfully executing our strategy to be an industry leader in the provisioning of IP services to global enterprises through both organic and inorganic growth." 

Hawkpoint Partners Limited was Global Crossing's sole financial advisor and Latham and Watkins provided legal counsel on the transaction. 

Adjusted EBITDA 

Adjusted EBITDA is net income plus interest, taxes, depreciation and amortization, other income/(expense), gain on pre-confirmation contingencies, reorganization items, net income from discontinued operations, and preferred stock dividends for the consolidated business of Global Crossing. Global Crossing's calculation of its Adjusted EBITDA measure may not be consistent with EBITDA measures of other companies. Management believes that Adjusted EBITDA is a relevant indicator of operating performance, especially in a capital-intensive
industry such as telecommunications. Adjusted EBITDA is an important aspect of the company's internal reporting and is also used by the investment community in assessing financialperformance. This non-GAAP (Generally Accepted Accounting Principles) financial measure should be used in addition to, but not as a substitute for, the analysis provided in the statement of operations, including the net income metric, which is the most directly comparable GAAP measure. 

ABOUT GLOBAL CROSSING 

Global Crossing (Nasdaq: GLBC) provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 300 cities in 28 countries worldwide, and delivers services to more than 600 cities in 60 countries and 6 continents around the globe. The company's global sales and support model matches thenetwork footprint and, like the network, delivers a consistent customer experience worldwide. 

Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e-commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Solutions and Global Crossing VoIP services, to 36 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs. 

Please visit http://www.globalcrossing.com for more information about Global Crossing. 

This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties that could cause the actual results to differ materially, including: Global Crossing's ability to successfully integrate the Fibernet business and realize anticipated operational and capital expense synergies; Global Crossing's history of substantial operating losses and the fact that, in the near term, funds from operations will not satisfy cash requirements; legal and contractual restrictions on the inter-company transfer of funds by the company's subsidiaries; the company's ability to continue to connect its network to incumbent carriers' networks or maintain Internet peering arrangements on
favorable terms; the consequences of any inadvertent violation of the company's Network Security Agreement with the U.S. Government; increased competition and pricing pressures resulting from technology advances and regulatory changes; competitive disadvantages relative to competitors with superior resources; political, legal and other risks due to the company's substantial international operations; risks arising out of the company's material weaknesses in internal controls and possible difficulties and delays in improving such controls;
the concentration of revenue in a limited number of customers, and the rights of such customers to terminate their contracts or to simply cease purchasing services thereunder; exposure to contingent liabilities; and other risks referenced from time to time in the company's filings with the Securities and Exchange Commission. Global Crossing undertakes no duty to update information contained in this press release or in other public disclosures at any time. 

CONTACT GLOBAL CROSSING: Press Contacts Becky Yeamans +1-973-937-0155 PR@globalcrossing.com Tisha Kresler +1-973-937-0146 PR@globalcrossing.com Mish
Desmidt Europe +44-1256-732-866 EuropePR@globalcrossing.com Analysts/Investors Contact Laurinda Pang +1-800-836-0342 +1-973-937-0435 glbc@globalcrossing.com 

IR/PR1 

Web site: http://www.globalcrossing.com 

Global Crossing Limited 

Becky Yeamans, +1-973-937-0155, PR@globalcrossing.com, or Tisha Kresler, +1-973-937-0146, PR@globalcrossing.com, or Mish Desmidt, +44-1256-732-866,
EuropePR@globalcrossing.com, or Analyst\Investor - Laurinda Pang, 1-800-836-0342, +1-973-937-0435, glbc@globalcrossing.com, all of Global Crossing Limited