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Cable & Wireless, the global telecommunications group, has today (29 August 2001) announced that FLAG Telecom has selected Cable & Wireless' global Internet protocol (IP) network to enhance its range of Internet services to its carrier and ISP customers. This alliance has been driven by a shared dedication to total quality of service and customer focus.

FLAG Telecom, a leading global network services provider and independent carriers' carrier, has incorporated Cable & Wireless' IP infrastructure as a component of its existing high performance global IP network spanning the USA, Europe, Middle East and Asia. This will allow access to the Internet via Cable & Wireless' dedicated high-speed Internet access service, known as Cable & Wireless global.net. By doing so, FLAG Telecom enhances its current IP network beyond today's needs in order to meet future requirements in a climate increasingly driven by the demands of e-business. Cable & Wireless allows FLAG Telecom to gain access to unprecedented content and routes, and substantially enhances FLAG Telecom's existing peering agreements.

By using Cable & Wireless' global.net services, FLAG Telecom will provide its customers with direct, fast and reliable access to a wide range of Internet content. These customers will also receive industry-leading service level agreements (SLAs) to ensure high quality performance and reliability to support mission critical applications.

FLAG Telecom chose Cable & Wireless' global.net service for its comprehensive, industry leading SLAs on packet loss, latency and availability, underpinned by customer-facing statistics that will allow customers to monitor network traffic and performance.

This alliance builds on a strong relationship between Cable & Wireless and FLAG Telecom that has existed since 1997 when FLAG Europe-Asia came into service.

"The quality and breadth of Cable & Wireless' global infrastructure together with its financial strength and stability makes it the ideal partner to support our Internet services. Cable & Wireless' global IP infrastructure will enable FLAG Telecom to enhance its IP transit product, strengthening our position in key regions - including the USA and Europe and takes our IP services strategy forward to the next stage," said Peter Boland, Vice-President for Engineering and Planning for FLAG Telecom. "Cable & Wireless has industry leading SLAs and only peers with other Tier One networks. Together we guarantee superior quality of service for customers."

"This relationship with FLAG Telecom is clear evidence that Cable & Wireless is the partner of choice for carriers seeking top quality IP connectivity," added Andrew McGrath, President Service Providers, Cable & Wireless. "In the current market we are witnessing a flight to quality: successful carriers are recognising that quality in terms of SLAs and stability, as much as price, is a crucial element in delivering internet solutions to business customers."

FORWARD LOOKING STATEMENT

Statements contained in this Press Release, which are not historical facts, may be forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, those discussed in documents the Company files from time to time with the Securities and Exchange Commission, including the annual report on Form 10-K for the fiscal year ended December 31 2000. The Company cautions readers not to rely on forward-looking statements. The Company disclaims any intent or obligation to update these forward-looking statements.


About FLAG Telecom

FLAG Telecom is a leading global network services provider and independent carriers' carrier providing an innovative range of 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. FLAG Telecom has the following cable systems in operation or under development: FLAG Europe-Asia, FLAG Atlantic-1 and FLAG North Asian Loop. Leveraging this unique network, FLAG Telecom's Network Services business markets a range of managed bandwidth and value added services targeted at carriers, ISPs, and ASPs world-wide. Principal shareholders are: Verizon Communications Inc., Dallah Albaraka Group (Saudi Arabia) and Tyco International Ltd.

Recent news releases and information are on FLAG Telecom's website at: http://www.flagtelecom.com

For further information, contact:

Media:

Ben Banta
Corporate Communications
Tel: +44 20 7478 9745
bbanta@flagtelecom.com


About Cable & Wireless global.net

Global.net delivers access to Cable & Wireless' global IP network and is a high-speed backbone IP service for carriers, Internet Service Providers (ISPs) and multinational corporations that require speedy, reliable and cost effective connectivity. Global.net currently offers direct access to the Cable & Wireless global IP infrastructure via local, national or international circuits to one of 49 nodes world-wide across the U.S., Europe and the Pacific Rim. This will grow 84 nodes later in 2001.


About Cable & Wireless

Cable & Wireless is a major global telecommunications business with revenue of over #8 billion (US$11 billion) in the year to 31 March 2001 and customers in 70 countries. Cable & Wireless' focus for future growth is on IP (Internet protocol) and data services and solutions for business customers. It is developing advanced IP networks and value-added services in the US, Europe and the Asia-Pacific region in support of this strategy. With the capability of its global IP infrastructure and its strength in key markets, Cable & Wireless holds a unique position in terms of global coverage and services to business customers.

For more information about Cable & Wireless, go to http://www.cw.com
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