Tuesday May 25, 9:33 am Eastern Time
Company Press Release
SOURCE: PRIMUS Telecommunications Group, Incorporated
PRIMUS Telecommunications and Global Crossing Announce Reciprocal Satellite And Fiber Capacity Purchase Agreements
MADRID, Spain, May 25 /PRNewswire/ -- At the annual International Global Crossing conference, PRIMUS Telecommunications Group, Incorporated (Nasdaq: PRTL - news), a global facilities-based telecommunications company, announced a reciprocal capacity purchase agreement with Global Crossing Holdings Ltd., a subsidiary of Global Crossing, Ltd. (Nasdaq: GBLX - news). Under the terms of the agreement, Global Crossing will purchase up to $25 million of services on the global satellite network operated by PRIMUS, and PRIMUS will purchase up to $50 million of fiber capacity from Global Crossing's fiber network. ''This agreement underscores PRIMUS's commitment to expand the capacity of its global fiber network, which already is one of the most extensive networks in the world. Global Crossing's agreement to purchase services on PRIMUS's global satellite network validates PRIMUS's strategy to construct a dedicated broadband satellite network,'' said K. Paul Singh, chairman and CEO of PRIMUS. ''PRIMUS's global satellite network extends to places where fiber coverage is not feasible, provides fully redundant capacity and offers unique broadcast capabilities. Thus, we believe that true global Internet and data carriers will need to offer both fiber and satellite network solutions to be a credible player in today's market. Through our Internet and data subsidiary, iPRIMUS.com, we are already well positioned to offer customers an integrated network solution,'' he continued.
PRIMUS Telecommunications Group, Incorporated is a global facilities-based telecommunications company providing domestic and international long-distance voice, data, Internet, private network and value-added services. The Company provides services through an extensive global network of owned and leased transmission facilities, including ownership interests in 23 undersea fiber optic cable systems, 12 international gateway switches, a satellite earth station and a variety of operating relationships that allow the Company to deliver traffic worldwide. Founded in 1994 and based in McLean, Va., the Company has an annual revenue run rate in excess of $500 million and serves more than 650,000 corporate, small- and medium-sized business, residential and telecommunications carrier customers located in the North America, Europe and the Asia-Pacific regions of the world. News and information are available at the Company's Web site at www.primustel.com.
The statements in this release that are forward looking statements are based on current expectations and are not strictly historical statements, which may differ materially from actual results. Not strictly historical statements include, without limitation, those regarding management's plans, objectives and strategy for future operations, product plans and performance, management's assessment of market factors, and future financial performance. Among factors that could cause actual results to differ materially are changes in business conditions, changes in the telecommunications industry and the general economy; competition; changes in service offerings; risks associated with PRIMUS' limited operating history, entry into developing markets, and managing rapid growth; and risks associated with international operations (including foreign currency translation risks), dependence on effective information systems, and development of the network. These factors are discussed more fully in PRIMUS' filings, including its 10K and 10Q filings and the prospectus dated May 6, 1999, filed with the Securities and Exchange Commission.
SOURCE: PRIMUS Telecommunications Group, Incorporated
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