Global Crossing extends Senior Note exchange offer and projects lower tax payments

June 20, 2001
June 20, 2001--Global Crossing Holdings Ltd., a subsidiary of Global Crossing Ltd., announced it is extending the expiration date for the exchange offer, and announced lower projected 2001 tax payments.

Global Crossing Holdings Ltd., a subsidiary of Global Crossing Ltd. (NYSE: GX), announced it is extending the expiration date for the exchange offer relating to the exchange of $1 billion in aggregate principal amount of its outstanding 8.70 percent Notes due 2007 (the "Original Notes") for a like principal amount in new notes registered under the Securities Act of 1933 (the "Exchange Notes").

The exchange offer, which commenced on May 9, 2001 and was previously set to expire on June 15, 2001, will now expire at 5:00 p.m., New York City time, on June 22, 2001, unless extended. Except for the absence of transfer restrictions under the federal securities laws applicable to the Original Notes, the Exchange Notes are identical to the Original Notes. Except for the extension of the expiration date, all terms and conditions of the exchange offer remain unchanged and in full force and effect.

As of June 15, 2001, holders of approximately $980 million in aggregate principal amount of Original Notes have tendered Original Notes pursuant to the exchange offer. Requests for assistance regarding the exchange offer or for copies of the exchange offer materials should be directed to United States Trust Company of New York, the exchange agent for the exchange offer.

In addition, Global Crossing Ltd. (NYSE: GX) announced lower projected 2001 tax payments of at least $400 million and an asset-backed receivables financing of $250 million, enhancing the Company's already strong cash position.

Global Crossing had previously published cash flow forecasts that included tax payments by its North American operations of approximately $900 million, reflecting the impact of the sale of its incumbent local exchange (ILEC) telephone business, which is scheduled to close on June 29. The Company said that taxes payable for 2001 by its North American operations are now projected to be less than $500 million, reflecting after tax proceeds from the ILEC sale in excess of $3 billion. The new tax projection reflects both the gain on sale of the ILEC business and operating losses expected to be incurred in North America.

The receivables financing, which has been in preparation for a number of months, was completed on June 15, 2001. The $250 million facility will provide incremental liquidity at a cost significantly lower than that of existing bank facilities. Proceeds will be used to refinance existing bank debt.

About Global Crossing:

Global Crossing Ltd. (NYSE: GX) provides telecommunications solutions over the an integrated global IP-based network. For more information, visit or

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