IMPSAT Delivers More Than 90% of Trans Andean Crossing ("Tac") to Global Crossing 45 Days Ahead of Schedule
BUENOS AIRES, Argentina--(BUSINESS WIRE)--Oct. 26, 2000--
Completion Will Positively Affect 3Q00 Revenues
And Will Include US$ 4.0 Million Bonus Fees
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 that it delivered a duct system which represents more than 90% of the Trans Andean Crossing, spanning over 2,300 kilometers and linking Las Toninas, Argentina, to Santiago, Chile, to Global Crossing Ltd. ("Global Crossing") (NASDAQ: GBLX), 45 days ahead of schedule. The Trans Andean Crossing (TAC) is the terrestrial link that completes Global Crossing's South American Crossing (SAC) system.
As a result of the anticipated delivery, IMPSAT will receive $4.0 million in bonus fees, which will be booked in the third quarter. Also, the early completion will change the expected revenue recognition for this contract in 2000 and will positively affect 3Q00 revenues. Of the total revenues relating to the construction contract in Argentina and Chile that the company expected to record in the fourth quarter, over 80%-plus the $4.0 bonus- will be booked in the third quarter. Also, costs associated with the completion of the contract will be announced when the company reports its third quarter earnings the first week of November.
The Trans Andean Crossing System ("TAC") was contracted by Global Crossing in the third quarter of 1999 and will enable Global Crossing to commence commercial operations for its South American Crossing System ("SAC") in Argentina and Chile. The system delivered entails the construction of ducts between Las Toninas and Buenos Aires, and between Mendoza, Argentina and Santiago, Chile. However, the largest part of the solution entails the provision of indefeasible rights of use (IRUs) of a duct over 1,600 kilometers of IMPSAT's network between Buenos Aires and Mendoza, Argentina.
The completion of this substantial part of the TAC, delivered on September 30, while originally scheduled for hand over on November 15, demonstrates IMPSAT's excellent network development capabilities in Latin America, considering that the link stretches across the Andes, the highest mountain range in the world, outside of the Himalayas. The network solution assists Global Crossing to ensure the realization of its SAC and to extend its global network into Argentina and Chile while maintaining a high level of performance and quality standards.
Thomas Casey, chief executive officer of Global Crossing said that "This event confirms the trust that we have placed in IMPSAT and its broadband network for our Trans Andean Crossing solution. With this link in place, we will be providing high value-added global solutions to the booming South American data transmission market."
Ricardo Verdaguer, chief executive officer of IMPSAT, stated that "It was a major challenge to deliver this high-standard solution ahead of schedule and we are very proud of having done so. We believe that this accomplishment strengthens our relationship with Global Crossing which is a significant component of our strategy."
IMPSAT has delivered two backhaul links featuring three ducts as part of this contract. The first such link extends 351 kilometers from Las Toninas, Global Crossing's landing point in the Atlantic Ocean, to Buenos Aires. The second, from Mendoza across the Andes to Santiago de Chile, spans 334 kilometers. Under the terms of the agreement, IMPSAT has also provided one 1,600-kilometer duct on an IRU (indefeasible rights of use) basis for 25 years from Buenos Aires to Mendoza.
About Global Crossing
Global Crossing Ltd. is building and offering services over the world's most extensive global IP-based fiber optic network, which will have more than 101,000 route miles (162.509 km), serving five continents, 27 countries and more than 200 major cities. Global Crossing's operations are headquartered in Hamilton, Bermuda, with principal offices in Los Angeles, California; London, England; Amsterdam, The Netherlands; Madison, New Jersey; Rochester, New York; Sunnyvale, California; New York, New York; and Miami, Florida. Visit Global Crossing at www.globalcrossing.com <http://www.globalcrossing.com> on the Web.
About IMPSAT
IMPSAT Fiber Networks, Inc. is a leading provider of Internet and private network integrated data and voice telecommunications services in Latin America. IMPSAT is building an extensive pan-Latin American high capacity Broadband network using advanced technologies, including IP/ATM switching, DWDM, and non-zero dispersion fiber optics. IMPSAT provides services to more than 2,100 national and multinational companies, government entities and wholesale services to carriers, ISPs and other service providers throughout the region. The Company currently has operations in Argentina, Colombia, Venezuela, Ecuador, Mexico, Brazil, the United States, Chile and Peru.
Statements made in this press release that state IMPSAT's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. It is important to note that the company's actual results could differ materially from those projected in such forward-looking statements. Information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in the company's filings with the U.S. Securities and Exchange Commission (SEC). Copies of these filings may be obtained by contacting IMPSAT or the SEC.
CONTACT:
IMPSAT Fiber Networks, Inc.
Guillermo Jofre, Chief Financial Officer
Gonzalo Alende Serra, Investor Relations
Tel: 54.11.4363.3700 or 54.11.4363.3546
www.impsat.com
or
Citigate Dewe Rogerson Inc.
John McInerney/ Robin Weinberg, Investor Relations
Jenna Focarino/Kathy Purcell, Media Relations
Tel: 212/688-6840
KEYWORD: ARGENTINA INTERNATIONAL LATIN AMERICA |
