Global Crossing Continues to Exceed 2002 Operating Plan Targets
As IP Traffic Grows and Network Performance Peaks

May 2002 financial performance surpasses targets established in operating plan. Cash position remains strong, with total cash in bank accounts of non-Asian entities reaching $880 million as of May 31, 2002, $145 million better than plan.

Monthly Service Revenue for non-Asian entities reaches $245 million, $10 million better than plan. Monthly operating expenses for non-Asian entities continue to decrease substantially to $71 million, a 40% decrease versus the 2001 year-end run rate.

IP traffic grows approximately 400% on annualized basis since January. Network performance reaches highest industry standard as availability stabilizes at 99.999%.

Madison, NJ - July 08, 2002 - Global Crossing filed a Monthly Operating Report (MOR) with the U.S. Bankruptcy Court for the Southern District of New York today, as required as part of its Chapter 11 reorganization process. Consolidated results reported in the MOR, which include Asia Global Crossing, are summarized later in this release.

Global Crossing also announced today that it continued to meet performance targets that were established for its non-Asian entities and presented to creditors in early March. For the month ending May 31, 2002, Global Crossing exceeded all performance targets, including service revenue, operating expenses and cash in its bank accounts.

"Our latest results signal that we are well on our way to completing a successful reorganization and that the turn-around plan we began implementing last year has been tremendously effective," said John Legere, Global Crossing chief executive officer. "Many telecommunications companies are restructuring, and many CEOs have recently announced strategies to refocus their service offerings, lower costs, sell non-core assets, lower headcount, lower operating costs, and dramatically cut capital expenses. The real question is: can that be done without losing customers or harming your franchise?"

Mr. Legere continued, "We announced and initiated our restructuring efforts in 2001 and since then have continued to take all necessary steps to restructure our company. Having taken these steps, our customers, our network and our strategic differentiation are intact. I am very proud of what this team has accomplished, and appreciative of the support our customers, both new and old, have shown."

Operating Results for Non-Asian Entities

• In May 2002, Global Crossing's non-Asian entities beat Service Revenue targets set forth in the operating plan by $10 million (see "Definitions and Notes" below). Actual results were $245 million in Service Revenue, compared to a target of $235 million in the operating plan. Service EBITDA exceeded plan goals, with actual results reflecting a $13 million loss compared to a targeted loss of $18 million.
• Total cash in bank accounts was also higher than targets set forth in the operating plan, with $880 million as of May 31, 2002, compared to a plan of
  $735 million. The aggressive cost-cutting required in the operating plan was ahead of schedule, with operating expenses of $71 million in May, lower than the $75 million in the plan, and approximately 40% lower than the run rate for operating expenses at the end of 2001.

"We have successfully lowered operating expenses month-over-month, met all our goals for Services Revenue, improved network performance, and retained customers. What's more, we have continued to win new customers even though our plan assumed we wouldn't during our chapter 11 proceeding," said Mr. Legere. "This is a testament to the underlying value of the network we completed last year and the commitment of our team to taking care of our customers and ensuring the highest possible service levels."

IP Traffic Increases, Network Availability Reaches 99.999%

Internet demand has grown steadily since the beginning of 2002, and in June Global Crossing recognized an increase in worldwide IP data traffic of approximately 400% since January on an annualized basis. Global Crossing's network, which was completed in 2001, connects more than 200 cities in 27 countries. The 400% growth in IP traffic does not include traffic on its Voice Over IP (VoIP) network, which now carries approximately 25% of the 4 billion minutes per month Global Crossing now supports.

The increase in IP data network traffic is attributed in some part to Global Crossing's continued focus on expediting solutions for its wholesale customers worldwide, including customers who chose to migrate to Global Crossing due           to the cessation of operations by other pan-European providers. The growth in network traffic is also attributed to Global Crossing's demonstrated ability to provision new customers onto its network in less than 24 hours without a decline in network performance. During the second quarter, network performance achieved and sustained 99.999% availability, the telecommunications industry's highest standard.

Global Crossing today issued a release detailing this growth in traffic and  improvements in network performance. A copy of that release can be found at www.globalcrossing.com.

MOR Results

Global Crossing today filed a Monthly Operating Report (MOR) with the U.S. Bankruptcy Court for the Southern District of New York, as required by its Chapter 11 reorganization process. These consolidated results include Asia Global Crossing and revenue from sales of capacity in the form of IRUs that occurred in prior periods, recognized ratably over the life of the relevant contracts.

Results reported in the MOR include the following:

• For continuing operations in May 2002, Global Crossing reported consolidated revenue of approximately $262 million. Consolidated operating expenses were reported at $86 million, while access and maintenance costs were $205 million in May 2002.
• In addition, Global Crossing reported a consolidated GAAP (Generally Accepted Accounting Principles) cash balance as of May 31, 2002 of approximately $1,230 million, including $394 million of cash held by Asia Global Crossing. Global Crossing's $836 million cash balance excluding Asia is comprised of $439 million unrestricted cash, $331 million in restricted cash
  and $66 million of cash at Global Marine
• Global Crossing reported a consolidated net loss of $137 million for May 2002. Consolidated EBITDA was reported at a loss of $29 million

Definitions and Notes

"Service Revenue" refers to revenue less (i) any revenue recognized immediately for
circuit activations that qualified as sales-type leases and (ii) revenue recognized due
to the amortization of IRUs sold in prior periods and not recognized as sales-type
leases.

"Service EBITDA" refers to EBITDA (earnings before interest, taxes, depreciation,
and amortization) but excluding the contribution of (i) any revenue recognized immediately for circuit activations that qualified as sales-type leases and (ii) revenue recognized due to the amortization of IRUs sold in prior periods and not recognized as sales-type leases.

The results for non-Asian entities discussed in the "Operating Results for Non-Asian Entities" section of this release are included in the consolidated results reported in the May 2002 Monthly Operating Report, and are consistent with targets presented to the creditors of Global Crossing's non-Asian entities in March 2002.

These operating results exclude Global Marine (which is a discontinued operation), exclude any revenue contribution of sales of capacity in the form of IRUs (indefeasible rights of use), and reflect certain eliminations and adjustments that do not appear in the  MOR. Cash balances reported in this section are bank balances, not reflecting the estimated impact of outstanding checks and other adjustments as required by GAAP.

Statements made in this press release that state Global Crossing's or management's intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause Global Crossing's actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to complete systems within currently estimated time frames and budgets; the ability to  compete effectively in a rapidly evolving and price competitive marketplace; possible reductions in demand for our products and services due to competition or changes in industry conditions; changes in the nature of telecommunications regulation in the United States and other countries; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; and other risks referenced from time to time in Global Crossing's filings with the Securities and Exchange Commission.

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