Bell Atlantic Selects FLAG Telecom As Primary Supplier Of Subsea Cable

Bell Atlantic Selects FLAG Telecom As
Primary Supplier
Of Subsea Cable Capacity

High-capacity network delivers reliability at lower unit

Jan. 20, 2000


David Frail, Bell Atlantic,

Jane Windsor, FLAG Telecom,

NEW YORK -- Bell Atlantic today announced that it has awarded
preferred supplier status to FLAG Telecom, a leading independent global
carriers' carrier, and agreed to purchase 50 percent of its international
subsea cable capacity on FLAG Telecom systems over the next four years.
Terms of the agreement were not disclosed.

FLAG Telecom owns and operates the world's longest private subsea
cable system, providing direct access to more than 75 percent of the
world's population and is constructing FLAG Atlantic-1, a dual terabit
cable system, offering fully protected direct services between the cities of
New York, London and Paris. The high capacity network supports voice,
high speed data, Internet and other broadband-hungry applications of
today's marketplace.

"This agreement is important to Bell Atlantic's plans for international
connectivity because we gain access to a reliable, high quality network
connecting many of the world's business centers at the best prices," said
Daniel C. Petri, Bell Atlantic president - International

Andres B. Bande, Chairman and CEO of FLAG Telecom, said: "We are
proud to have been awarded primary supplier status by Bell Atlantic. We
offer a range of innovative products and services across our network,
tailored specifically for the global carriers of tomorrow, such as Bell
Atlantic. Reliability and quality are key in our marketplace, and we are
delighted to have been recognized in this way."

Bell Atlantic, which is an investor in FLAG Telecom, received permission
in December from the Federal Communications Commission to provide
long distance services from New York effective January 3.

The FLAG Telecom network comprises: FLAG Europe-Asia, a subsea
cable system with 16 operational landing points in 13 countries, on three
continents, which entered service in November 1997, and a European
terrestrial network providing direct connections to major metropolitan
areas throughout Europe, which became operational last year. Today,
FLAG Telecom has over 90 telecommunications operators and Internet
Service Providers as customers, including most of the world's top carriers.
FLAG Atlantic-1 is being built as a 50-50 joint venture with GTS and is
expected to enter service in the first quarter of 2001. Over 50 percent of
the design capacity has already been sold.

Bell Atlantic is at the forefront of the new communications and information
industry. With more than 43 million telephone access lines and more than 10
million wireless customers worldwide, Bell Atlantic companies are premier
providers of advanced wireline voice and data services, market leaders in
wireless services and the world's largest publishers of directory information. Bell
Atlantic companies are also among the world's largest investors in high-growth
global communications markets, with operations and investments in 23 countries.