Global Crossing Announces Sale of Global Marine Systems to Bridgehouse Marine

August 16, 2004 -- Global Crossing announced that it has consummated a series of agreements, which the company values at up to $132 million, with Bridgehouse Marine Ltd. for the sale of wholly-owned subsidiary Global Marine Systems and the transfer of its 49 percent shareholding in S. B. Submarine Systems Company Ltd. (SBSS) to Global Marine. As a result of these transactions Global Crossing will receive consideration of up to $14.8 million, and Bridgehouse will assume $117 million of Global Marine capital lease debt, which had been carried on Global Crossing's consolidated balance sheet. In addition, all operating lease commitments for the Global Marine fleet will remain with Global Marine.

Global Crossing acquired its 49 percent interest in SBSS in 1999, as part of its purchase of Global Marine, and owns the venture in partnership with China Telecom. As part of today's agreement, Global Crossing plans to transfer its shareholding in SBSS to Global Marine, subject only to the approval of China Telecom and Chinese regulatory review.

Global Crossing has also agreed to extend its commercial agreement with Global Marine for the maintenance of Global Crossing's network for an additional five years.