[July 08, 2004]

Arcor, the World's Largest Confectionary Company, Selects Global Crossing Converged IP Service

BUENOS AIRES, Argentina, July 8 /PRNewswire-FirstCall/ -- Global Crossing announced today that it has implemented an Internet Protocol Virtual Private Network (IP VPN) for Arcor, the world's largest candy manufacturer, for converging the company's business-critical voice, data, Internet and videoconferencing traffic onto a seamless network. Global Crossing's MPLS-based IP VPN solution, a highly secure network-based platform, provides Arcor with a roadmap for the convergence of site-to-site voice, video and data traffic onto a single connection. The IP VPN service connects Arcor's Latin American, US and European operations for data, voice, Internet and videoconferencing capabilities.

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The IP VPN service builds on the Frame Relay service that Global Crossing has been providing Arcor since November 2001 and is part of the evolution path to a fully converged IP model. The Frame Relay and IP VPN networks are fully integrated for a seamless network experience.
'We needed a global provider for our global needs, with a flexible platform that allows us to connect markets quickly, efficiently and with the customer support to back it up,' commented Oscar Botto, CIO at Arcor. 'We are very pleased with Global Crossing's IP VPN offering.'
'Global Crossing has been a reliable and responsible provider of Frame Relay service for these past two years, which made them our logical choice as we move to IP,' added Fabian Comojo, corporate technology manager at Arcor. 'We have already realized significant cost savings through the implementation of our IP VPN network, and we look forward to the full evolution.'
The IP VPN service will allow Arcor to transmit e-mail and critical business data, and to conduct teleconferences and videoconferences initially with its offices and remote sales force in the eight connected countries over Global Crossing's state-of-the-art IP network -- saving the global confectionary company considerable operational costs. Arcor facilities connected to the IP VPN include those in Argentina, Brazil, Chile, Mexico, Spain and the United States.
'We are pleased to see world-class enterprises like Arcor turning to Global Crossing to find ways to improve their global communications and operational efficiencies. Our IP VPN service is designed to deliver that around the globe,' said John Legere, CEO of Global Crossing. 'The future of telecommunications is being built upon global, IP-based network connectivity and applications converged onto a single access point -- areas where Global Crossing is a clear leader.'
Available today in more than 500 cities and 50 countries, Global Crossing provides one of the most powerful and versatile IP VPN solutions available today, providing true global reach, wider connectivity, multiple access and billing options, and supporting integrated corporate data, VoIP, IP Video and Internet access, all over the same connection.
The Global Crossing IP VPN Service supports three classes of service (CoS) -- Basic, Enhanced and Premium. Each class of service is backed by Service Level Agreements (SLAs) that include latency, packet loss, jitter and availability, depending on the class of service ordered. Basic service is ideal for common service applications, such as e-mail and file transfers. Enhanced service is recommended for critical business applications data delivery to minimize packet loss. Premium service is intended for real-time applications, such as voice and videoconferencing, in which jitter must be tightly controlled. Arcor will run their IP voice and videoconferencing traffic over the Premium CoS to ensure the highest quality of service.
'This new agreement with Arcor demonstrates our ongoing success in developing our existing customer base and migrating them toward a converged IP networking environment,' said Jose Antonio Rios, Global Crossing's chief administrative officer and international president. 'We look forward to growing with our customers around Latin America and the rest of the world.'
ABOUT GLOBAL CROSSING
Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 300 cities and 30 countries worldwide, and delivers services to more than 500 major cities, 50 countries and 6 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide.
Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e-commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to more than 40 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs.
Please visit http://www.globalcrossing.com/ for more information about Global Crossing.
ABOUT ARCOR
Arcor Group is the first candy manufacturer in the world and the largest confectionery exporter of Argentina, Brazil and Chile. It has 31 plants in Latin America, 25 of which are located in Argentina, and the other 6 in Latin America. The Group specializes in the elaboration of foods, and its leading products are candies, chocolates, cookies, preserved fruits and vegetables, and corn by-products. It produces more than 1.5 million kg daily and it reaches 115 countries throughout the five continents with its own brand.
Statements made in this press release that state Global Crossing's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. These statements contain words such as 'anticipate,' 'estimate,' 'expect,' 'project,' 'intend,' 'plan,' 'believe,' 'will,' or similar expressions. Such statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements, including the results of the ongoing review of the company's cost of access liabilities and cost of access operating expenses and the related control environment, and the impact of any restatement, as well as the reaction of the company's shareholders, customers, vendors and prospective lenders; the company's history of substantial operating losses and the fact that, in the near term, funds from operations will not satisfy cash requirements; the ability of the company to arrange the necessary financing to fund its liquidity requirements; the likelihood that the prices the company charges for its services will continue to decrease; the company's ability to continue to connect its network to incumbent carriers' networks or maintain Internet peering arrangements on favorable terms; the consequences of any inadvertent violation of the company's Network Security Agreement with the U.S. Government; the impact of actual and potential customers' bankruptcies on the company's sales prospects and results of operations; increased competition and pricing pressures resulting from technology advances and regulatory changes; competitive disadvantages relative to competitors with superior resources; the impact on the company's competitiveness of its technology choices; the company's dependence on third parties for many functions; political, legal and other risks due to the company's substantial international operations; and other risks referenced from time to time in the company's filings with the Securities and Exchange Commission. The company undertakes no duty to update information contained in this press release or in other public disclosures at any time.
CONTACT GLOBAL CROSSING:
Press Contacts
Tisha Kresler
+ 1 973-937-0146
PR@globalcrossing.com
Fernanda Marques
Latin America
+ 55 21-3820-4712
LatAmPR@globalcrossing.com
Mish Desmidt
Europe
+ 44 (0) 7771-668438
EuropePR@globalcrossing.com
Analysts/Investors Contact
Mitch Burd
+ 1 800-836-0342
glbc@globalcrossing.com
Global Crossing
CONTACT: Press: Tisha Kresler, +1-973-937-0146, PR@globalcrossing.com;Fernanda Marques, Latin America, +55-21-3820-4712, LatAmPR@globalcrossing.com;Mish Desmidt, Europe, +44-7771-668438, EuropePR@globalcrossing.com;Analysts/Investors: Mitch Burd, +1-800-836-0342, glbc@globalcrossing.com, allof Global Crossing
Web site: http://www.globalcrossing.com/

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