Etisalat purchases STM-1 from FLAG Telecom

June 27, 2001
June 27, 2001--FLAG Telecom, a global network services provider and independent carriers' carrier, announced that the Emirates Telecommunications Corporation (Etisalat) signed an STM-1 (155 Mbps) capacity agreement.

FLAG Telecom (Nasdaq: FTHL; LSE: FTL), a global network services provider and independent carriers' carrier, announced that the Emirates Telecommunications Corporation (Etisalat) signed an STM-1 (155 Mbps) capacity agreement between the United Arab Emirates (UAE) and San Francisco with IP transit via Japan. This is in addition to the FLAG Telecom STM-1 Etisalat previously acquired on the FLAG Europe-Asia cable between the UAE and Japan. Terms of the multi-million dollar agreement were not disclosed

A telecommunications and Internet service provider in the Middle East, Etisalat selected FLAG Telecom and its cable network as part of its strategy to expand its position as a regional hub for Internet traffic via its Emirates Internet Exchange (EMIX).

The FLAG Europe-Asia cable, with 16 operational landing points in 13 countries, lies along what is considered the most difficult route of any cable system in the world. It took 27 months to complete and required approximately 4,000 permits for its construction It spans many economies and offers direct connectivity to over 75 percent of world's population. Privately financed at a cost of $1.6bn, the cable is designed to meet the growing demand for international communications services, providing carriers with a broadband superhighway. The landing station at Fujairah in the UAE is managed in partnership with Etisalat.

About FLAG Telecom:

FLAG Telecom is a global network services provider and independent carriers' carrier providing products and services to the international carrier community, ASPs and ISPs across an international network platform designed to support the next generation of IP over optical data networks. For more information, visit www.flagtelecom.com.

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