March 11, 2002 -- Global Crossing announced it is taking new measures to simplify operations of Global Crossing and align its cost structure with its projected revenues in order to accelerate its efforts to become a more lean and muscular competitor. These additional cost reductions will result from further cutbacks in personnel and consolidation of real estate holdings, as well as voluntary pay cuts by Global Crossing executives. These efforts do not affect Asia Global Crossing.

The announcements are part of the third phase of an effort to restructure the business, begun when John Legere was appointed Chief Executive Officer of Global Crossing in October, 2001. In order to respond to the crisis that has hit the telecommunications industry, Legere immediately ordered significant expense and staff reductions. In January 2002, Global Crossing sought Chapter 11 protection as part of a plan to restructure its balance sheet and arrange for new investment in the company.

"We're taking these significant actions on top of the decisions already implemented, and in parallel with our ongoing restructuring process," Mr. Legere said. "Not only are we committed to delivering a healthy balance sheet, we are on a clear path to becoming the world's most cost efficient and globally competitive data communications service provider. We have the network, technology and customer base in place -- and now we will develop an athletic organization to leverage our existing strengths. At the end of the restructuring process, we will emerge a lean, tightly integrated organization with world-class productivity and an ability to quickly scale up as demand increases."

Legere added, "As we continue to improve our cost structure and operating efficiencies, we become increasingly attractive to strategic investors, financial investors and to our customers -- who will benefit from this transformation as we become more efficient and service delivery improves."

Legere stated that an important attribute of the new business model is to plan for slower growth in new revenues and customers. Resources will be focused on ensuring existing customers are satisfied. "Even during these challenging last few months, we have steadily continued to serve nearly 100,000 customers around the world. Those customers are our number one priority, and we're allocating our resources to satisfy their needs, even if that means sacrificing new customer growth."

Global Crossing is implementing measures designed to improve its cost structure in a tough economic environment. These actions include:

- A previously announced voluntary staff reduction of approximately 800 employees;
- A further staff reduction of up to 1,600 employees, the majority of whom will come from administration and sales;
- Salary reductions among senior leadership and selected managers;
- Real estate consolidations rendering expected annual savings of approximately $150 million through the closure of 71 offices totaling more than 1.2 million square feet;
- A range of program cuts and narrowing of service offerings; and,
- Process improvements that both reduce costs and improve service through the ongoing deployment of automation systems and streamlined workflows.

These measures are expected to reduce operating expenses from $1.5 billion in 2001 to an expected $900 million in 2002 with a projected year-end run rate of $720 million, excluding Asia Global Crossing.

Capital expenditures are being dramatically reduced from $3.2 billion in 2001 to a budget of $200 million in 2002 (also for non-Asian operations).

Headcount is being reduced from a high of approximately 15,000 employees at the beginning of 2001 to fewer than 6,000 employees by the end of March, when the vast majority of voluntary and involuntary separations are expected to have been completed.

Legere said the staff reductions were especially difficult in the face of a vote of confidence by employees that became apparent when fewer than 10% opted for the voluntary severance program offered last week. "We deeply regret that we must make additional reductions in our staff," Mr. Legere commented. "In order to preserve as many jobs as possible, we are also reviewing salary adjustments. To start that process, and as an indication of my personal commitment to turn Global Crossing around, I have taken a 30% reduction in salary, effective immediately."

Global Crossing also said it is considering the sale of its conferencing division and its non-core national network in the United Kingdom. These measures are designed to maximize cash and intensify focus on our core strategy of providing global data services to more than 200 of the world's top business cities.

Legere said that the potential sale of the conferencing division and the non-core UK national network are the most recent in a series of initiatives related to Global Crossing's strategy to divest non-core assets. In December 2001, Global Crossing completed the $360 million sale of its IPC Trading Systems unit to an investment group led by Goldman Sachs Capital Partners 2000 (GSCP), an affiliate of The Goldman Sachs Group, Inc. Earlier in the year, Global Crossing announced that its Global Marine Systems division was also for sale. Global Marine is the world leader in providing submarine fiber optic cable installation and maintenance service.

With a customer base that includes over 60% of the Fortune 100 companies, the conferencing unit is a leader in its market. Efforts to re-establish this division as an independent operating unit are already well underway, making the business fundamentally more flexible and efficient, as well as a more attractive prospect for either strategic or financial buyers. Global Crossing acquired the conferencing unit in 1999 as part of the acquisition of Frontier Corporation. The conferencing division offers a portfolio of state-of-the-art conferencing services including video, audio, and web conferencing.

Legere said Global Crossing will also consider actively marketing the non-core portions of the national network services business it acquired as part of the acquisition of Racal Telecom in 1999. The UK network, which includes approximately 8,000 route kilometers of fiber and reaches more than 2,000 cities and towns, delivers managed data services to government and commercial customers. Global Crossing would retain all core UK assets essential to its strategy as a global data communications service provider.

"In all cases, when talking with potential investors, we will encourage them to consider an ongoing relationship with our organization," Legere added. "When we sold IPC Trading Systems, we retained our relationship as a preferred global network services provider. We intend to do the same as part of possible negotiations in these two new cases. Our network reach, capacity and reliability are still integral to the success of these businesses, and while we believe both the UK national network and the conferencing division are attractive investments independently, our in-place network access will continue to add value."

In concert with these efforts to further focus the organization, Legere also announced a redeployment of certain members of Global Crossing's senior leadership team.

Anthony Christie, senior vice president of product management, will take on the additional responsibility for developing Global Crossing's conferencing offerings as a self-sufficient business, preparing the business to make a greater ongoing revenue contribution or for a potential sale. Mr. Christie will continue to report to Carl Grivner, COO. Chris Nash, senior vice president of corporate development, will continue to work with the growing number of potential investors interested in acquiring Global Crossing, as well as managing the potential sale of portions of Global Crossing's businesses.

Jose Antonio Rios, currently the president of Latin America and the Caribbean operations, will also now manage all European operations. Joe Perrone, executive vice president of finance, will continue to focus on restructuring efforts. To enable him to do so, administrative responsibilities including administration of offices, travel, real estate and vendor management will be distributed to other executives. John Comparin, executive vice president of human resources, will add to his present duties office administration and travel. Dan Wagner, the former head of Global Crossing's European operations, will become senior vice president of information technology, real estate, procurement and vendor management. Mr. Wagner will report to Carl Grivner, COO.

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