February 25, 2002 -- A group of shareholders of Global Crossing Ltd. filed in federal bankruptcy court here a letter of intent and term sheet for an infusion of as much as $5.5 billion in new capital to bring the company out of bankruptcy, repaying all creditors and honoring all obligations to bondholders, employees, ex-employees and retirees.

The filing objects both to the proposed investment by Hutchinson Whampoa Limited and Singapore Technologies Telemedia Pte. Ltd. and to Global Crossing's proposed procedures for consideration of alternative investment proposals, noting that the process "fails to address alternative conventional financing mechanisms which are available to the shareholders."

The shareholders' group asked Judge Robert E. Gerber to determine it a qualified investor, allowing it to participate in the court's debtor's auction for the assets of Global Crossing. The group proposes warrant offerings totaling as much as $5.5 billion over three years to recapitalize the company and pay its debts.

After the proposed offerings, the existing shareholders would continue to own at least 37.7% of the company, with the warrant holders owning the remainder. Although the group would like to work with most of current management, the group also proposes to name eight members of a new 11-member Board of Directors.

All Global Crossing shareholders are invited to join the shareholders' group with no financial obligation to themselves and no obligation to participate in any offering.

-End-