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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Rupert who wrote (1727)	9/6/1999 10:38:00 AM
From: TechMkt	Respond to of 15615

This sounds like a great deal. GBLX gets to make significant inroads into China and probably the rest of Asia. Fez _________________ Monday September 6, 3:00 am Eastern Time Company Press Release SOURCE: Global Crossing Ltd. Global Crossing Becomes New Partner in Joint Venture with China Telecommunications (Shanghai); Co-Owners of SBSS Submarine Cable Company Global Crossing Acquires 49 Percent Share in SBSS From Cable & Wireless & Hong Kong Telecom China Telecom, Global Crossing's Partner in SBSS, is the Principal Provider of Telecommunications Services in China SBSS Has History of Steady Growth and Annual Revenue in Excess of US $50 Million HAMILTON, Bermuda, Sept. 6 /PRNewswire/ -- Global Crossing Ltd. (Nasdaq: GBLX - news), which is building and operating the world's most advanced global IP-based fiber optic network, today announced that it has signed an agreement with China Telecommunications to acquire the 49% share of S.B. Submarine Systems Company Ltd. (SBSS) that was previously owned by Great Eastern Telecommunications (GET, a Cable & Wireless and Hong Kong Telecom venture). SBSS was established in 1995. The original partnership between China Telecommunications and Great Eastern Telecommunications was formed to provide installation and maintenance of submarine cable systems. SBSS owns and operates two cableships and has berths and a cable depot in its base port of Shanghai. The ships have recently been involved in the installation of the China-US cable system, the Northstar cable system, and the maintenance of cables in the Asia Pacific region. It also provides maintenance services to the Yokohama cable maintenance zone. SBSS has grown steadily since its formation and has an annual revenue in excess of US$50 million. Commenting on Global Crossing's acquisition of the shareholding in SBSS, William B. Carter, President of Global Crossing Development Company and Chairman of Global Marine Systems Limited, said. ``We are delighted that China Telecom has agreed to continue this relationship and allow Global Crossing to acquire the GET share holding in SBSS. When we at Global Crossing acquired Global Marine Systems earlier this year, we were hopeful that we could sustain the relationship and support of China Telecom. This agreement ensures that SBSS will get the continued support in training and technology transfer it needs to keep up with the dramatic growth in Asia's telecommunications industry.' Under the agreement, Global Marine Systems Limited, a wholly-owned subsidiary of Global Crossing, will continue to provide training and technology transfer to SBSS, as well as seconding both marine and shore based staff to SBSS as and when required. The actual transfer of SBSS shares, which was contemplated by the purchase of the marine systems division of Cable & Wireless plc. earlier this year, is subject to regulatory approvals. About China Telecommunications China Telecommunications is owned by the central government of China and is that country's principal provider of telecommunications services. China Telecom's revenue last year rose 36% to $29 billion -- a return that would rank it near the top third in sales of American companies on the Fortune 500.