ASIANET: Asia Global Crossing Reports Third Quarter Results

Significant Milestones in Its Expanding Asian Operations

- Third quarter results of pro forma Proportionate Cash Revenue of

$57.7 million and pro forma Proportionate Adjusted EBITDA of

$9.0 million on track with year end targets.

- Network build approximately 50 percent complete.

- Successful completion of initial public equity offering and debt

offering totaling $875 million completes funding of current business

plan.

- Internet Protocol (IP) Services launched in Japan with landmark contract

wins from three of the four top Japanese ISPs.

- Joint venture with Exodus announced to provide complex web hosting

services in the region; Asia Global Crossing majority network provider.

HAMILTON, Bermuda, Nov. 8 /PRNewswire-AsiaNet/ -- Asia Global Crossing (Nasdaq: AGCX) today announced financial results for the third quarter and year-to-date for the period ended September 30, 2000.

(Photo: http://www.newscom.com/cgi-bin/prnh/20001004/ASIALOGO )

In its first financial report as a public company, Asia Global Crossing reported third quarter results of pro forma Proportionate Cash Revenue of $57.7 million and pro forma Proportionate Adjusted EBITDA of $9.0 million; the proportionate metrics reflect Asia Global Crossing's proportionate ownership interests in its consolidated and non-consolidated affiliates. Pro forma results include ownership interests in Hutchison Global Crossing and Global Access Limited which were transferred to Asia Global Crossing at the closing of its initial public offering. Third quarter reported Revenue totaled $21.8 million and the net loss was $23.3 million.

For the nine months ended September 30, 2000, the company reported pro forma Proportionate Cash Revenue of $208.6 million and pro forma Proportionate Adjusted EBITDA of $86.6 million. Reported Revenue for the nine month period was $130.5 million and the net loss was $54.8 million.

"Asia Global Crossing is rapidly executing its business plan to develop and sell advanced telecommunications services over the first pan-Asian network," said John Legere, Chief Executive Officer of Asia Global Crossing. "Our solid sales reflect the growing demand for bandwidth and related services in the Asian region. Demand for bandwidth in Asia continues to accelerate and is growing at more than 75 percent per year, driven by deregulation and the growth of the Internet and corporate data traffic. In addition, Asia Global Crossing is benefiting from being the clear first mover in this space. We are the only independent pan-Asian provider today that has operational assets, product offerings, and a solid customer base.

"Approximately 50 percent of our network is completed and our future business plans are fully funded. All key subsea and backhaul systems, which will take our customers city-to-city, not just shore-to-shore, are expected to be completed during 2001 for Hong Kong, Japan, Korea, Singapore and Taiwan. As we finalize joint ventures with leading companies in the region, we are also progressing very rapidly in obtaining necessary landing rights and securing essential rights-of-way."

IP Services

During the quarter, the company won numerous IP transit contracts from leading Japanese ISPs. With the signing of these contracts, the company now has attracted top ISPs in Japan to its system, including leading providers such as Fujitsu's @nifty, NEC's BIGLOBE, and Sony's So-net.

Added Legere: "Due to its state-of-the-art IP-based network architecture and global reach, Asia Global Crossing has rapidly become the preferred service provider in the region. As each country is connected to the Asia Global Crossing network, we will not only begin selling Indefeasible Right of Use (IRUs), but also a complete suite of IP services. Our success in Japan is the template for rapid rollout in other markets."

Network Build

On the operational front, Asia Global Crossing continues to reach network roll-out milestones, including:

-- Completion of the redundant loop construction for Pacific Crossing 1;

-- Completion of the backhaul link construction in Hong Kong;

-- Completion of the construction of the 296-fiber Tokyo city ring;

-- Award of the EAC Phase 2 contract to NEC, which will extend the network to Malaysia, the Philippines, and Singapore;

-- Inauguration of two terrestrial interconnections to China via Hong Kong;

-- Receipt of preliminary approval for a facilities-based operator's license in Singapore; and

-- Submission of operator's license application in Taiwan.

Web Hosting

Asia Global Crossing continued to expand its participation in complex web hosting, launching new data centers in Hong Kong and Tokyo during the quarter. In addition, Asia Global Crossing announced a 33/ 67 joint venture with Exodus Communications called Exodus Asia-Pacific, which will become the exclusive web hosting vehicle for the two companies in the region, subject to the completion of the GlobalCenter and Exodus merger. All web hosting assets and territorial rights of Exodus and GlobalCenter in the region will be contributed to this joint venture. Asia Global Crossing will be the supplier of bandwidth to Exodus Asia-Pacific, with at least two-thirds intended to be sourced from the Asia Global Crossing network.

Quarterly Results

Financial highlights, for the three months and nine months ended September 30, 2000, were:

Three Months Ended Nine Months Ended

September 30, 2000 September 30, 2000

(unaudited) (unaudited)

(in millions, except for per share data)

Pro forma Proportionate

Cash Revenue* $57.7 $208.6

Pro forma Proportionate

Adjusted EBITDA* $9.0 $86.6

Reported Revenue $21.8 $130.5

Earnings per share $(0.05) $(0.12)

* Pro forma results reflect the current ownership of GAL and HGC, applied

to the respective periods.

Financial Discussion

For the nine months ended September 30, 2000, IRU capacity sales on Pacific Crossing 1 accounted for the majority of pro forma Proportionate Cash Revenue of $208.6 million. Asia Global Crossing's services offerings, which exploit the architectural advantages of its network, are a rapidly growing part of the company's business. IRU sales, however, will continue to provide the majority of the Proportionate Cash Revenue in the near term.

Proportionate Cash Revenue and Proportionate Adjusted EBITDA include proportionate results from consolidated and non-consolidated affiliates. The company believes these metrics are relevant given the importance of joint venture operations in achieving its business objectives. Cash received which may be applied to capacity purchases on systems to be specified at a future time, are not included in calculating Proportionate Cash Revenue or Proportionate Adjusted EBITDA, as the company cannot determine its ownership of the systems on which these payments will be applied. At the end of the quarter, a total of $39.8 million of cash deferred revenue resulted from these cash receipts.

Pro forma Group Customer Cash Revenue reflects total sales to customers by both consolidated and non-consolidated affiliates. Pro forma Group Customer Cash Revenue was $125.2 million for the third quarter and $418.7 million for the year to date.

The company had reported Revenue of $21.8 million and a net loss of $23.3 million in the third quarter with year-to-date reported Revenue of $130.5 million and a net loss of $54.8 million. Year-to-date numbers reflect significant sales type lease activity in the first half of this year. The company's current business practice is to sell capacity under terms that require amortization of revenue over the contract life rather than terms that qualify for immediate revenue recognition. Accordingly, sales type lease activity accounted for a smaller percentage in the third quarter, and is not expected to return to first half levels as a percentage of revenue.

Joint Venture Operational Discussion

Asia Global Crossing's business strategy as an integrated service provider is enhanced and accelerated by joint ventures. These joint ventures with strong local partners provide the company with connectivity and telecommunications solutions such as backhaul and city rings. Currently, Asia Global Crossing has two principal operating joint ventures, Hutchison Global Crossing in Hong Kong, and Global Access Limited in Japan. Negotiations with joint venture partners in Korea, the Philippines, Singapore, and Taiwan are in the final stages.

Hutchison Global Crossing

Hutchison Global Crossing, the 50/50 joint venture between Asia Global Crossing and Hutchison Whampoa, is a leading provider of a wide range of telecommunications and Internet services in Hong Kong, including data, voice, e-commerce and Internet access services. Hutchison Global Crossing's results reduced pro forma Proportionate Adjusted EBITDA by $2.4 million for the quarter and $6.1 million for year-to-date. Its contributions to pro forma Proportionate Cash Revenue were $16.1 million for the quarter and $46.0 million year-to-date.

For the quarter ended September 30, 2000, Hutchison Global Crossing had reported Revenue of $32.2 million, a 12 percent increase from the same period last year. Operating loss for the quarter was $10.4 million, 28 percent lower than third quarter 1999 due to the competitive environment in international voice traffic and new business initiatives in broadband, data center development and the Electronic Service Delivery scheme of the Hong Kong Special Administrative Region. Year-to-date reported Revenue was $92.0 million and operating loss was $27.5 million. No revenue is reflected from backhaul, as it is not yet in service.

HutchCity's 10-Mbps-to-the-desktop pilot service was launched in September 2000 with good initial customer response. During the quarter, interconnection agreements with China Unicom and China Telecom were signed to provide higher quality service. Hong Kong data centers of 43,000 square feet are now in service with Phase 1 completely sold-out. At the end of third quarter, Hutchison Global Crossing has a 892 route kilometer network in service with more than 800 buildings accessed with fiber in the territory.

Global Access Limited

Global Access Limited is the 49/51 joint venture between Asia Global Crossing and Vectant (100 percent owned subsidiary of Marubeni) that is building a 1,560 route kilometer fiber optic network connecting Tokyo, Osaka, and Nagoya with Pacific Crossing 1 and East Asia Crossing. Global Access Limited's results increased pro forma Proportionate Adjusted EBITDA by $5.8 million for the quarter and $39.6 million for year-to-date. Its contributions to pro forma Proportionate Cash Revenue were $10.4 million for the quarter and $51.1 million year-to-date.

During the third quarter, Global Access Limited had reported Revenue of $6.9 million and operating loss of $4.3 million. Year-to-date reported revenue was $15.0 million and operating loss was $11.7 million. Global Access Limited's network initiated service simultaneously with Pacific Crossing 1 at the end of December 1999. Current sales are primarily of Pacific Crossing 1 backhaul and in-city connectivity in Tokyo. Domestic leased circuits between Nagoya and Osaka became available during the quarter. Construction to complete the build-out of Global Access Limited network is on schedule with Ajigaura - Tokyo, Shima - Osaka, Shima - Nagoya and Osaka city ring in full service.

Definition of Terms Used

Asia Global Crossing conducts its business through a number of entities, many of which are not consolidated, in conformity with U.S. Generally Accepted Accounting Principles (GAAP). The company presents certain proportionate financial metrics which management believes reflect the market and economic results of the business in this context. In this press release:

-- Proportionate Cash Revenue represents the sum of the AGC ownership percentage of the Cash Revenue of each member of the Combined Entities (includes Asia Global Crossing, Hutchison Global Crossing, and Global Access Limited) after eliminating certain inter-company transactions. Cash Revenue not assigned to specific systems is also excluded.

-- Proportionate Adjusted EBITDA reflects the sum of the AGC ownership percentage of the Adjusted EBITDA of each member of the Combined Entities after eliminating certain inter-company transactions. Cash Revenue not assigned to specific systems is also excluded.

-- Group Customer Cash Revenue represents the total of all Cash Revenue received by the company and its non-consolidated affiliates from third parties without reference to AGC ownership percentages.

-- Revenue refers to recognized revenue in accordance with U.S. GAAP.

-- Cash Revenue refers to reported Revenue plus the cash portion of the change in deferred revenue.

-- Adjusted EBITDA refers to operating income (loss) plus goodwill and intangible amortization, depreciation and amortization, non-cash cost of capacity sold, stock related expenses and the cash portion of the change in deferred revenue, which definition is consistent with the financial covenants contained in the company's major financing agreements.

About Asia Global Crossing

Asia Global Crossing (Nasdaq: AGCX) is a publicly traded company with Global Crossing (NYSE: GX), Softbank (Tokyo Stock Exchange: 9984), and Microsoft (Nasdaq: MSFT) as principal shareholders. Asia Global Crossing provides the Asia Pacific region with a full range of integrated telecommunications and IP services. Through a combination of undersea cables, terrestrial networks, city fiber rings and complex web hosting data centers, Asia Global Crossing is building one of the first truly pan-Asian networks that in combination with the worldwide Global Crossing Network, will provide the Asia Pacific region with seamless access to major business centers worldwide.

Assets of Asia Global Crossing include a 64.5 percent share of Pacific Crossing-1, a 21,000-km subsea system connecting the U.S. and Japan, and ownership of East Asia Crossing, an approximately 19,500-km fiber optic subsea system that upon completion will link Japan, Taiwan, Korea, Hong Kong, Singapore, Malaysia, the Philippines, and China, as regulations permit.

Note: Condensed Consolidated Financial Statements Follow

Statements made in this press release that state the Company's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete systems within currently estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; changes in the nature of telecommunications regulation in the United States, Asia, and other countries and regions; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; and other risks referenced from time to time in the Company's filings with the SEC.

To be added/removed from Asia Global Crossing's e-mail distribution, please visit:

http://www.asiaglobalcrossing.com/investors/e_mail_distribution/index.htm

To be added/removed from Asia Global Crossing's fax distribution, please call +1 213 244 9031 or email [email protected]

For further information, please contact: investors, Jensen Chow, Los Angeles, of Asia Global Crossing, 310-385-5283, [email protected]; or press, Kim Polan of Citigate Sard Verbinnen, New York, New York, 212-687-8080, [email protected], for Asia Global Crossing.

General information:

Visit Asia Global Crossing at http://www.asiaglobalcrossing.com/

Asia Global Crossing Supplemental Schedule

Performance Milestones

Due to the expansive nature of Asia Global Crossing's network and territorial reach, a set of construction and operational milestones has been defined by management to be reported quarterly to monitor the company's business progress.

The milestones are inclusive of all of Asia Global Crossing's currently planned and announced consolidated and joint venture operational assets. These include the 21,000 kilometer trans-Pacific system (PC-1), the 19,500 kilometer intra-Asia system (EAC), the 1,560 kilometer Japanese backhaul and city network (GAL), the 3,350 kilometer fixed line network in Hong Kong (HGC) and Internet data centers.

The network is planned to serve eight Pan-Asian territories* (including China, if and when regulation permits) and will connect to 200 international cities via Global Crossing's global network.

1999 2000 2001

Q4 Q1 Q2 Q3 Q4

Actual Actual Actual Actual Forecast Forecast

roll-out

Constructed

Route Km 9,801 9,837 9,882 22,426 25,500 37,000

In Service

Subsea

System

Route Km 8,900 8,900 8,900 8,900 20,000 32,000

In Service

Terrestrial

System Km 901 937 982 1,468 1,600 2,300

Data Center

Square

Footage -- -- 11,000 59,400 74,000 74,000

Backhaul

Construction

Completed Japan Japan Japan Japan Japan, Japan,

Hong Hong

Kong Kong,

Taiwan,

Korea,

Singapore

Quarter Ended Nine Months Ended

September 30 September 30

2000 1999 2000 1999

Cost of sales 13,344 -- 98,194 --

Operations,

administrative and

maintenance 12,301 -- 36,499 --

Sales and marketing 1,193 -- 3,021 --

Network development 1,484 -- 2,497 --

General and

administrative 15,375 66 30,310 66

Depreciation and

amortization 5,513 -- 13,539 --

Total operating

expenses 49,210 66 184,060 66

Operating income

(loss) (27,435) (66) (53,605) (66)

Equity in income

(loss) of

affiliates -- (804) -- (3,199)

Interest income 3,236 3,306 11,427 8,745

Interest expense (463) -- (1,551) --

Other expense 229 -- (76) --

Total other

income

(expense) 3,002 2,502 9,800 5,546

INCOME TAXES (21,947) 2,436 (53,437) 5,480

NET INCOME

(LOSS) $(23,300) $2,436 $(54,790) $5,480

COMMON SHARE:

Income (loss)

applicable to

common shareholders

- basic and

diluted $(0.05) $0.01 $(0.12) $0.01

Shares used in

computing income

(loss) per share

- basic and

diluted (1) 450,000,000 450,000,000 450,000,000 450,000,000

All the shares and per share information have been adjusted to

reflect the split retroactively.

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