Events
Wainright Research Summit
July 19-21, Boston, MA

Convergencia
August 17-18, Buenos Aires, Argentina

Fall VON
Sept. 11-14, Boston, MA

Do you need help controlling capital and operating expenses while you're managing network complexity, ensuring that network security matches your internal policies and is compliant with regulatory requirements, or resolving the challenges of deploying VoIP and migrating your network to a converged IP environment?

Global Crossing Professional Services deliver strategic business solutions to private and public sector enterprises that are operating a global WAN, from a variety of industries including Transportation & Distribution, Financial Services, Healthcare, Research & Education, Government, and Media.

Our practice is focused on three primary areas including Network, Security and VoIP Professional Services which are delivered via a four-phase process: Assessment, Design, Implementation and Management.

Please contact Darryl Brown, director of advanced solutions at 973-937-0403 for more information or visit our website.

First off, I want to fill you in on recent announcements regarding two concurrent public offerings we've just closed. The reaction to these offerings demonstrates the success of the business strategy we implemented two years ago, and shows that our company is well-positioned to take advantage of opportunities in the new telecom landscape that is emerging.

The two offerings -- one of convertible notes, the aggregate size of which was $143.75 million (which includes the exercise of the underwriters' option to purchase additional notes), and a separate offering of 12 million shares of common stock for $240 million - achieved tremendous results for the company. If the underwriters fully exercise their option to purchase additional common stock as they did with the convertible notes, the total gross proceeds would increase to $420 million. The proceeds will be used for, among other things, general corporate purposes, which may include acquiring assets or businesses that are complementary to our existing business.

The reaction to these offerings has shown that investors believe in the value of Global Crossing. Indeed, Singapore Technologies Telemedia Pte Ltd, through its subsidiary, purchased about half the shares in the common stock offering, in order to maintain its majority stake in our company. That says a lot about the level of confidence our majority investors have in us.

This news comes on the heels of our first quarter results for 2006 - the sixth straight quarter of solid performance against the business plan we announced in October 2004 - and reflects the fact that we continue to move toward profitability as planned. Our first quarter results showed us on track to begin generating positive EBITDA sometime in June, and positive cash flow in the second half of this year. For a full discussion of EBITDA, see our most recent quarterly financial press release.

Our consistent record of execution demonstrates that Global Crossing is a strong, dynamic company that's benefiting from the industry transformation being driven by consolidation and the adoption of IP. I'm proud to lead this company in providing next-generation, global IP-based solutions to our customers, and I thank you for being one of them.

If you have any questions, please feel free to contact either your account manager or me at john.legere@globalcrossing.com

Regards,

John J. Legere
Chief Executive Officer
Global Crossing