FLORHAM PARK, New Jersey, February 17 /PRNewswire/ --

- Global Crossing completes 2008 within guidance ranges for revenue, Adjusted Cash EBITDA and cash.

- Invest and grow revenue increased 21 percent in 2008. Consolidated revenue grew 15 percent to US$2.59 billion.

- Full-year Adjusted Gross Margin percentage increased approximately 400 basis points to 53.3 percent.

- Full-year Adjusted Cash EBITDA improved 89 percent to US$328 million.

- Global Crossing announces 2009 guidance with significant improvement in OIBDA and positive full-year Free Cash Flow.

Global Crossing (Nasdaq: GLBC), a leading global IP solutions provider, today announced fourth quarter and full-year results. The company said it will discuss its consolidated financial and operational results for the fourth quarter and full-year 2008 on a conference call tomorrow. The following table highlights financial results:

(All amounts in US Dollars unless otherwise specified) Results at a Glance Dollars in millions) Fourth Quarter Full Year 2008 2007 Growth 2008 2007 Growth Consolidated Revenues $642 $616 4% $2,592 $2,261 15% Invest and Grow Revenues $541 $504 7% $2,164 $1,794 21% Adjusted Gross Margin $346 $323 7% $1,381 $1,115 24% Adjusted Gross Margin % 53.9% 52.4% 150 Bps 53.3% 49.3% 400 Bps Adjusted Cash EBITDA $96 $100 -4% $ 328 $174 89% Definitions of the company’s Adjusted Cash EBITDA and Adjusted Gross Margin non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures are included in the attached financial tables.

Business Highlights

Global Crossing completed the year within its annual guidance ranges for revenue, Adjusted Cash EBITDA and cash. For 2008, the company reported consolidated revenue of US$2.59 billion, an increase of 15 percent compared with 2007, and Adjusted Cash EBITDA of US$328 million, an increase of nearly 90 percent compared with 2007. Consistent with guidance, unrestricted cash declined by US$37 million for the year but increased by US$42 million during the second half of the year.

Global Crossing delivered a strong 2008, with double-digit growth in revenue and Adjusted Cash EBITDA, and we delivered on our annual guidance despite significant headwinds from foreign exchange in the fourth quarter, said John Legere, CEO of Global Crossing. We enter 2009 well-positioned in the markets we serve, with a world-class network, leading customer satisfaction scores and an experienced team that continues to execute in this challenging global economy.

John Kritzmacher, CFO of Global Crossing commented on the fourth quarter results, saying On a constant currency basis, our revenues and Adjusted Cash EBITDA grew sequentially by 3 percent and 16 percent, respectively, reflecting our sustained momentum in improving our financial performance.

Throughout 2008, Global Crossing made targeted investments in products and services that further support its strategy as a global provider of advanced IP solutions. The company launched six classes of IP VPN service and a suite of value-added VoIP features. Global Crossing invested in Ethernet transport and launched Hosted IP Telephony for both the government and commercial sectors in the UK. In addition, Global Crossing augmented its data center services and global network capacity, enhancing connectivity between North America, Latin America and Europe to meet demand for IP services. The company also began to globalize the former Impsat Managed Security Services product set, and launched High-Definition Videoconferencing. These investments in the company's capabilities provide enhanced value to our customers as they continue to deploy IP capabilities.

Fourth Quarter Results

Global Crossing's consolidated revenue was US$642 million in the fourth quarter of 2008, representing a sequential decline of US$25 million or 4 percent, including a US$43 million unfavorable foreign exchange impact. Year-over-year consolidated revenue increased US$26 million or 4 percent, including a US$47 million unfavorable foreign exchange impact. The company's invest and grow category - that part of the business focused on serving global enterprises and carrier customers, excluding wholesale voice - generated revenue of US$541 million for the fourth quarter. This represents a sequential decline of US$19 million or 3 percent, including substantially all of the US$43 million unfavorable sequential foreign exchange impact. On a constant currency basis, invest and grow revenue increased US$24 million or 4 percent sequentially.

On a segment basis, GCUK generated US$132 million in invest and grow revenue compared with US$152 million in the prior quarter and US$151 million in the fourth quarter of 2007. GC Impsat generated US$120 million in invest and grow revenue compared with US$122 million in the prior quarter and US$101 million in the fourth quarter of 2007. Rest-of-World (ROW) generated US$297 million in invest and grow revenue compared with US$289 million in the prior quarter and US$258 million in the fourth quarter of 2007. On a constant currency basis, all three segments demonstrated sequential and year-over-year revenue improvement.

For the fourth quarter, wholesale voice revenue decreased by US$6 million on a sequential basis and US$11 million year over year to US$100 million. Substantially all of the wholesale voice revenue is earned in the United States, within the ROW segment.

Global Crossing reported Adjusted Gross Margin for the fourth quarter of US$346 million or 53.9 percent of revenue. This compared with US$357 million or 53.5 percent of revenue in the prior quarter and US$323 million or 52.4 percent in the fourth quarter of 2007. The invest and grow business generated US$335 million of Adjusted Gross Margin or 61.9 percent of revenue, compared with US$344 million or 61.4 percent in the prior quarter and US$305 million or 60.5 percent in the fourth quarter of 2007. The company's wholesale voice Adjusted Gross Margin was US$11 million in the quarter or 11 percent compared with US$12 million or 11 percent in the prior quarter, and US$17 million or 15 percent in the fourth quarter of 2007.

Consolidated cost of access expense for the fourth quarter was US$296 million, compared with US$310 million in the prior quarter and US$293 million in the fourth quarter of 2007. The sequential decrease in cost of access is primarily due to a favorable foreign exchange impact and, to a lesser extent, continued cost of access efficiencies. The year-over-year increase was attributable to higher revenue in the period, partially offset by a favorable foreign exchange impact.

Cost of revenue -- which includes cost of access; technical real estate, network and operations; third-party maintenance; and cost of equipment sales -- was US$429 million in the fourth quarter, compared with US$472 million in the prior quarter and US$436 million in the fourth quarter of 2007. Excluding cost of access, cost of revenue was US$133 million in the fourth quarter compared with US$162 million in the prior quarter and US$143 million in the fourth quarter of 2007. The sequential decline was attributable to a US$11 million reduction in accruals for stock-based incentive compensation, as well as a favorable foreign exchange impact of US$14 million. The year-over-year decline was primarily attributable to a US$14 million favorable foreign exchange impact, partially offset by higher technical real estate costs. As a percentage of revenue, cost of revenue was 67.4 percent in the fourth quarter compared to 70.8 percent in both the prior quarter and in the fourth quarter of 2007.

Sales, general and administrative (SGA) expenses were US$111 million in the fourth quarter of 2008, compared with US$125 million in the prior quarter and US$84 million in the fourth quarter of 2007. On a sequential basis, SGA declined primarily due to a reduction in accruals for stock-based incentive compensation, as well as a US$10 million favorable foreign exchange impact. The year-over-year increase was primarily attributable to a net US$30 million non-cash benefit from real estate restructuring reserve reversals in the year-ago period. In addition, a US$10 million favorable foreign exchange impact was effectively offset by an increase in payroll costs. As a percentage of revenue, SGA was 17 percent in the fourth quarter compared to 19 percent in the prior quarter and 14 percent in the fourth quarter of 2007. The year-ago period included the previously mentioned real estate restructuring reserve benefit.

Global Crossing reported US$96 million of Adjusted Cash EBITDA in the fourth quarter, a sequential increase of US$8 million, including a US$6 million unfavorable foreign exchange impact. On a year-over-year basis, Adjusted Cash EBITDA decreased US$4 million, including an unfavorable foreign exchange impact of US$9 million and the previously mentioned real estate restructuring reserve benefit of US$30 million recorded in the year-ago period. On a segment basis, GCUK, GC Impsat and ROW contributed Adjusted Cash EBITDA of US$24 million, US$37 million and US$35 million, respectively.

Global Crossing's consolidated net loss applicable to common shareholders was US$51 million for the fourth quarter of 2008, compared with a net loss of US$71 million in the prior quarter and net income of US$1 million in the fourth quarter of 2007. On a sequential basis, net loss decreased principally due to the Adjusted Cash EBITDA improvement previously described and lower stock-based incentive compensation, partially offset by a higher income tax provision. Year over year, net loss was higher due to an unfavorable foreign exchange impact in 2008 and higher gains on pre-confirmation contingencies recorded in 2007, partially offset by a lower income tax provision recorded in 2008.

Full-Year Results

Global Crossing's consolidated business generated US$2.59 billion of revenue in 2008, including a US$15 million unfavorable foreign exchange impact. Consolidated revenue grew US$331 million or 15 percent year over year. The company generated US$2.16 billion of invest and grow revenue for 2008, an increase of US$370 million or 21 percent year over year.

At the segment level, GCUK generated US$588 million of invest and grow revenue in 2008 compared with US$572 million in 2007, an increase of US$16 million or 3 percent, including a US$36 million unfavorable foreign exchange impact. GC Impsat generated US$466 million in invest and grow revenue in 2008 compared to a partial-year total of US$263 million in 2007. GC Impsat 2008 revenue included a US$10 million favorable foreign exchange impact. ROW segment generated US$1.13 billion of invest and grow revenue in 2008, compared with US$971 million in 2007, an increase of US$157 million or 16 percent, including an US$11 million favorable foreign exchange impact.

Wholesale voice revenue declined by 8 percent or US$38 million year over year to US$424 million. As previously mentioned, substantially all of the wholesale voice revenue is in the United States, within the ROW segment.

Global Crossing reported Adjusted Gross Margin of US$1.38 billion or 53.3 percent of consolidated revenue for 2008. This compared with US$1.11 billion or 49.3 percent in 2007. The invest and grow segment generated US$1.33 billion of Adjusted Gross Margin or 61.3 percent of invest and grow revenue, compared to US$1.05 billion or 58.7 percent in 2007. The company's wholesale voice Adjusted Gross Margin was US$51 million in 2008 or 12.0 percent of wholesale voice revenue compared with US$58 million or 12.6 percent in 2007.

Consolidated cost of access expense for the year was US$1.21 billion, compared with US$1.15 billion in 2007. The year-over-year increase was associated with higher revenues and the inclusion of GC Impsat for a full year in 2008.

Cost of revenue was US$1.82 billion in 2008 compared with US$1.72 billion in 2007. The year-over-year increase in cost of revenue was primarily due to the inclusion of GC Impsat for a full year in 2008 as well as higher overall real estate costs.

SGA expenses were US$501 million in 2008, compared with US$416 million in 2007. The year-over-year increase was primarily due to the inclusion of GC Impsat for a full year and the previously mentioned real estate restructuring reserve benefit in 2007. As a percentage of revenue, SGA was 19 percent in 2008 compared to 18 percent in 2007. Excluding the restructuring reserve benefit, SGA as a percentage of revenue was 20 percent in 2007.

The company reported US$328 million of Adjusted Cash EBITDA for 2008 as compared to US$174 million in 2007, an improvement of US$154 million, including an US$8 million unfavorable foreign exchange impact.

Global Crossing's consolidated net loss applicable to common shareholders was US$281 million for 2008, compared with a consolidated net loss of US$310 million in 2007. The decrease in net loss was primarily due to improvements in Adjusted Cash EBITDA previously described and a lower provision for income taxes, partially offset by higher depreciation and amortization and an unfavorable foreign exchange impact in the current year period.

Non-cash stock compensation includes approximately 3.2 million unrestricted shares being distributed to employees in March and April 2009 under the 2008 annual bonus program.

Cash and Liquidity

As of December 31, 2008, Global Crossing had unrestricted cash of US$360 million compared to US$346 million at September 30, 2008, and US$397 million at December 31, 2007. The company had US$378 million in total cash at December 31, 2008, compared to US$380 million at September 30, 2008, and US$450 million at December 31, 2007.

Cash flow from operating activities for the fourth quarter was US$79 million. Global Crossing received US$41 million in proceeds from the sale of indefeasible rights of use (IRUs) and prepaid services in the fourth quarter. In addition, the company entered into US$14 million of debt and capital lease agreements to finance various equipment purchases and software licenses. Uses of cash for the quarter included US$64 million for capital expenditures and principal payments on capital leases and US$12 million for repayment of long term debt. During the fourth quarter, unrestricted cash increased by US$14 million, including an unfavorable sequential foreign exchange impact of US$12 million.

For the full year 2008, cash flow from operating activities was US$203 million, including US$138 million of interest on indebtedness. Global Crossing received US$146 million in proceeds from the sale of IRUs and prepaid services in 2008. In addition, the company entered into US$48 million of debt and capital lease agreements to finance various equipment purchases and software licenses. Uses of cash for 2008 included US$251 million for capital expenditures and capital lease principal payments and US$24 million for repayment of long-term debt. The company used US$37 million of unrestricted cash during the year.

2009 Outlook

On a constant currency basis, we expect 2009 revenue to grow in the mid- to-high single digits, although foreign exchange impacts are likely to cause reported revenue to appear flat to down. said John Legere. In addition, we anticipate considerable growth in OIBDA and Free Cash Flow in 2009 as the underlying fundamentals of the business continue to improve.

John Legere also noted, Even though our business continues to perform well and operate with a high degree of cost-efficiency, we are preparing for the uncertain economic environment ahead. Our company has launched targeted measures that will reduce our operating expenses and optimize our capital expenditures this year.

In 2009, Global Crossing will begin reporting OIBDA (in place of Adjusted Cash EBITDA) and Free Cash Flow as key measurements of our Company's performance. Definitions are outlined in the Non-GAAP Measures section of this release, and a more detailed explanation of these measures is contained in the attached financial tables.

Company guidance measures for 2009 are as follows: Measures 2009 Guidance ($in millions) Revenue $2,500 - $2,600 OIBDA $320 - $380 Free Cash Flow $50 - $100

The above guidance represents management's current good faith estimates for the designated measures and is based on various assumptions which may or may not materialize. Some of the risks and uncertainties that could cause actual results to differ materially from these estimates are referenced at the end of this press release.

Non-GAAP Measures

Pursuant to the Securities and Exchange Commission's (SEC's) Regulation G, the attached financial tables include definitions of non-GAAP financial measures, as well as reconciliations of such measures to the most directly comparable financial measures calculated and presented in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP).

OIBDA is defined as operating income before depreciation and amortization.

Free Cash Flow is defined as Net cash provided by operating activities less Purchases of property and equipment, as reported in our Consolidated Statements of Cash Flows.

Conference Call

The company will hold a conference call on Tuesday, February 17, 2009 at 9:00 a.m. EST to discuss its financial results. The call may be accessed by dialing +1-212-231-2906 or, if calling from within the United Kingdom, by dialing (0)-800-496-1091. Callers are advised to access the call 15 minutes prior to the start time. A Webcast with presentation slides will be available at http://investors.globalcrossing.com/events.cfm.

A replay of the call will be available on Tuesday, February 17, 2009 beginning at 11:30 a.m. EST and will be accessible until Tuesday, February 24, 2009 at 11:30 a.m. EST. To access the replay, callers should dial +1-402-977-9140 or +1-800-633-8284 and enter reservation number 21414828. Callers in the United Kingdom should dial +44-(0)-870-000-3081 or (0)-800-692-0831 and enter reservation number 21414828.

ABOUT GLOBAL CROSSING

Global Crossing (Nasdaq: GLBC) is a leading global IP solutions provider with the world's first integrated global IP-based network. The company offers a full range of secure data, voice, and video products to approximately 40 percent of the Fortune 500, as well as to 700 carriers, mobile operators and ISPs. It delivers services to more than 690 cities in more than 60 countries and six continents around the globe.

Website Access to Company Information

Global Crossing maintains a corporate website at www.globalcrossing.com, and you can find additional information about the company through the Investors pages on that website at http://investors.globalcrossing.com. Global Crossing utilizes its website as a channel of distribution of important information about the company. Global Crossing routinely posts financial and other important information regarding the company and its business, financial condition and operations on the Investors web pages.

Visitors to the Investors web pages can view and print copies of Global Crossing's SEC filings, including periodic and current reports on Forms 10-K, 10-Q and 8-K, as soon as reasonably practicable after those filings are made with the SEC. Copies of the charters for each of the standing committees of Global Crossing's Board of Directors, its Corporate Governance Guidelines, Ethics Policy, press releases and analysts presentations are all available through the Investors web pages.

Please note that the information contained on any of Global Crossing's websites is not incorporated by reference in, or considered to be a part of, any document unless expressly incorporated by reference therein.

This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties that could cause the actual results to differ materially, including: Global Crossing's history of substantial operating losses and the fact that, in the near term, funds from operations will not satisfy cash requirements; legal and contractual restrictions on the inter-company transfer of funds by the company's subsidiaries; 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; increased competition and pricing pressures resulting from technology advances and regulatory changes; competitive disadvantages relative to competitors with superior resources; political, legal and other risks due to the company's substantial international operations; risks associated with movements in foreign currency exchange rates; potential weaknesses in internal controls of acquired businesses, and difficulties in integrating internal controls of those businesses with the company's own internal controls; the concentration of revenue in a limited number of customers, and the rights of such customers to terminate their contracts or to simply cease purchasing services thereunder; exposure to contingent liabilities; downward pressure on the Company's common stock price that may result from sales of the significant number of shares being paid to employees under incentive compensation arrangements, including approximately 3.2 million unrestricted shares being delivered to employees in March and April 2009 under the 2008 annual bonus program; and other risks referenced from time to time in the company's and GCUK's filings with the Securities and Exchange Commission. Global Crossing undertakes no duty to update information contained in this press release or in other public disclosures at any time.

CONTACT GLOBAL CROSSING: Press Contacts Michael Schneider +1-973-937-0146 Michael.Schneider@globalcrossing.com Analysts/Investors Contact Suzanne Lipton +1-800-836-0342 glbc@globalcrossing.com Antonio Suarez +1-973-937-0233 Antonio.Suarez@globalcrossing.com

IR/PR1

15 PAGES OF FINANCIAL INFORMATION FOLLOW Global Crossing Limited Table 1 Consolidated Balance Sheets ($ in millions) December 31, December 31, 2008 2007 ---- ---- (unaudited) ASSETS: Current assets: Cash and cash equivalents $360 $397 Restricted cash and cash equivalents - current portion 7 18 Accounts receivable, net of allowances of $58 and $52 336 345 Prepaid costs and other current assets 103 121 ------ ------ Total current assets 806 881 ------ ------ Restricted cash and cash equivalents - long term 11 35 Property and equipment, net of accumulated depreciation of $851 and $664 1,300 1,467 Intangible assets, net (including goodwill of $147 and $158) 172 193 Other assets 61 91 ------ ------ Total assets $2,350 $2,667 ====== ====== LIABILITIES: Current liabilities: Accounts payable $329 286 Accrued cost of access 92 107 Short term debt and current portion of long term debt 26 26 Accrued restructuring costs - current portion 13 17 Deferred revenue - current portion 138 164 Other current liabilities 361 395 ------ ------ Total current liabilities 959 995 ------ ------ Long term debt 1,149 1,249 Obligations under capital leases 93 123 Deferred revenue 308 262 Accrued restructuring costs 14 20 Other deferred liabilities 68 81 ------ ------ Total liabilities 2,591 2,730 ------ ------ SHAREHOLDERS' DEFICIT: Common stock, 110,000,000 shares authorized, $.01 par value, 56,696,312 and 54,552,045 shares issued and outstanding as of December 31, 2008 and 2007, respectively 1 1 Preferred stock with controlling shareholder, 45,000,000 shares authorized, $.10 par value, 18,000,000 shares issued and outstanding as of December 31, 2008 and 2007 2 2 Additional paid-in capital 1,387 1,307 Accumulated other comprehensive loss (23) (42) Accumulated deficit (1,608) (1,331) ------ ------ Total shareholders' deficit (241) (63) ------ ------ Total liabilities and shareholders' deficit $2,350 $2,667 ====== ======

Global Crossing Limited Table 2 Consolidated Statements of Operations ($ in millions) Year Ended December 31, ----------------------- 2008 2007 ---- ---- (unaudited) Revenue $2,592 $2,261 Cost of revenue (excluding depreciation and amortization, shown separately below): Cost of access (1,211) (1,146) Real estate, network and operations (406) (385) Third party maintenance (107) (103) Cost of equipment sales (94) (88) ----------- ----------- Total cost of revenue (1,818) (1,722) Selling, general and administrative (501) (416) Depreciation and amortization (326) (264) ----------- ----------- Total operating expenses (2,645) (2,402) ----------- ----------- Operating loss (53) (141) Other income (expense): Interest income 10 21 Interest expense (169) (171) Other income (expense), net (26) 15 ----------- ----------- Loss before preconfirmation contingencies and provision for income taxes (238) (276) Net gain on preconfirmation contingencies 10 33 ----------- ----------- Loss before provision for income taxes (228) (243) Provision for income taxes (49) (63) ----------- ----------- Net loss (277) (306) Preferred stock dividends (4) (4) ----------- ----------- Loss applicable to common shareholders $(281) $(310) =========== =========== Income per common share, basic and diluted: Loss applicable to common shareholders $(5.04) $(7.30) =========== =========== Weighted average number of common shares 55,771,867 42,461,853 =========== ===========

Global Crossing Limited Table 3 Consolidated Statements of Cash Flows ($ in millions) Year Ended December 31, ----------------------- 2008 2007 ---- ---- (unaudited) Cash flows provided by (used in) operating activities: Net loss $(277) $(306) Adjustments to reconcile net loss to net cash used in operating activities: Loss (gain) on sale of property and equipment (4) 1 Gain on sale of marketable securities 2 - Non-cash income tax provision 35 45 Deferred income tax (1) 9 Non-cash stock compensation expense 55 51 Non-cash inducement charge for conversion of debt - 30 Gain on settlement of contracts due to Impsat acquisition - (27) Depreciation and amortization 326 264 Provision for doubtful accounts 6 6 Amortization of prior period IRUs (15) (12) Deferred reorganization costs (3) (3) Gain on preconfirmation contingencies (10) (33) Change in long term deferred revenue 83 102 Change in operating working capital (32) (53) Other 38 (90) ---- ---- Net cash provided by (used in) operating activities 203 (16) ---- ---- Cash flows provided by (used in) investing activities: Purchases of property and equipment (192) (214) Purchases of marketable securities (11) - Impsat acquisition, net of cash acquired - (76) Proceeds from sale of property and equipment 10 - Proceeds from sale of marketable securities 16 7 Change in restricted cash and cash equivalents 31 (47) ---- ---- Net cash used in investing activities (146) (330) ---- ---- Cash flows provided by (used in) financing activities: Proceeds from long term debt 5 597 Repayment of capital lease obligations (59) (43) Proceeds from short term debt 5 - Repayment of long term debt (including current portion) (24) (251) Finance costs incurred - (24) Proceeds from exercise of stock options 1 4 Payment of employee taxes on share-based compensation (3) - ---- ---- Net cash provided by (used in) financing activities (75) 283 ---- ---- Effect of exchange rate changes on cash and cash equivalents (19) 1 ---- ---- Net decrease in cash and cash equivalents (37) (62) Cash and cash equivalents, beginning of year 397 459 ---- ---- Cash and cash equivalents, end of year $360 $397 ==== ====

Global Crossing Limited and Subsidiaries Table 4 Unaudited Consolidated Statements of Operations ($ in millions) Year Ended December 31, 2008 ---------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- REVENUE $599 $475 $1,536 $(18) $2,592 Cost of revenue Cost of access (184) (115) (929) 17 (1,211) Real estate, network and operations (93) (58) (256) 1 (406) Third party maintenance (32) (20) (55) - (107) Cost of equipment sales (69) (11) (14) - (94) ----- ----- ----- ----- ----- Total cost of revenue (378) (204) (1,254) 18 (1,818) Selling, general and administrative (87) (133) (281) - (501) Depreciation and amortization (84) (81) (161) - (326) ----- ----- ----- ----- ----- OPERATING INCOME (LOSS) 50 57 (160) - (53) OTHER INCOME (EXPENSE) Interest expense, net (57) (32) (70) - (159) Other income (expense), net (57) (20) 51 - (26) ----- ----- ----- ----- ----- LOSS BEFORE REORGANIZATION ITEMS, NET AND INCOME TAXES (64) 5 (179) - (238) Net gain on preconfirmation contingencies - 4 6 - 10 ----- ----- ----- ----- ----- INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (64) 9 (173) - (228) Provision for income taxes (1) (17) (31) - (49) ----- ----- ----- ----- ----- NET LOSS (65) (8) (204) - (277) Preferred stock dividends - - (4) - (4) ----- ----- ----- ----- ----- LOSS APPLICABLE TO COMMON SHAREHOLDERS $(65) $(8) $(208) $- $(281) ===== ===== ===== ===== ===== Year Ended December 31, 2007 ---------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- (as (as (as restated restated restated (2)) (2)) (2)) REVENUE $582 $269 $1,422 $(12) $2,261 Cost of revenue Cost of access (169) (75) (913) 11 (1,146) Real estate, network and operations (96) (40) (250) 1 (385) Third party maintenance (35) (14) (54) - (103) Cost of equipment sales (62) (3) (23) - (88) ----- ----- ----- ----- ----- Total cost of revenue (362) (132) (1,240) 12 (1,722) Selling, general and administrative (78) (76) (262) - (416) Depreciation and amortization (84) (44) (136) - (264) ----- ----- ----- ----- ----- OPERATING INCOME (LOSS) 58 17 (216) - (141) OTHER INCOME (EXPENSE) Interest expense, net (60) (22) (68) - (150) Other income (expense), net 2 - 13 - 15 ----- ----- ----- ----- ----- LOSS BEFORE REORGANIZATION ITEMS, NET AND INCOME TAXES - (5) (271) - (276) Net gain on preconfirmation contingencies - - 33 - 33 ----- ----- ----- ----- ----- LOSS BEFORE PROVISION FOR INCOME TAXES - (5) (238) - (243) Provision for income taxes (11) (10) (42) - (63) ----- ----- ----- ----- ----- NET LOSS (11) (15) (280) - (306) Preferred stock dividends - - (4) - (4) ----- ----- ----- ----- ----- LOSS APPLICABLE TO COMMON SHAREHOLDERS $(11) $(15) $(284) $- $(310) ===== ===== ===== ===== ===== (1) Rest of World (ROW) represents operations of Global Crossing Limited and subsidiaries excluding Global Crossing (UK) Telecommunications Ltd. and subsidiaries (GCUK) and GC Impsat Holdings I Plc and subsidiaries (GC Impsat). (2) In May 2008 and August 2008, Global Crossing Limited transferred its GC Brazil and GC Chile operations, respectively, from the ROW Segment to the GC Impsat Segment. Since the transfer is between entities under common control, the Company has retroactively restated GC Impsat's results to include the GC Brazil and GC Chile operations and removed the GC Brazil and GC Chile operations from ROW's results for all periods presented.

Global Crossing Limited and Subsidiaries Table 5 Unaudited Consolidated Statements of Operations ($ in millions) Quarter Ended December 31, 2008 ------------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- REVENUE $134 $122 $394 $(8) $642 Cost of revenue Cost of access (42) (30) (232) 8 (296) Real estate, network and operations (19) (11) (56) - (86) Third party maintenance (7) (5) (12) - (24) Cost of equipment sales (16) (3) (4) - (23) ----- ----- ----- ----- ----- Total cost of revenue (84) (49) (304) 8 (429) Selling, general and administrative (25) (33) (53) - (111) Depreciation and amortization (19) (21) (42) - (82) ----- ----- ----- ----- ----- OPERATING INCOME (LOSS) 6 19 (5) - 20 OTHER INCOME (EXPENSE) Interest expense, net (12) (7) (17) - (36) Other income (expense), net (41) (14) 26 - (29) ----- ----- ----- ----- ----- INCOME (LOSS) BEFORE REORGANIZATION ITEMS, NET AND INCOME TAXES (47) (2) 4 - (45) Net gain on preconfirmation contingencies - - 1 - 1 ----- ----- ----- ----- ----- INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (47) (2) 5 - (44) Provision for income taxes - (2) (4) - (6) ----- ----- ----- ----- ----- NET INCOME (LOSS) (47) (4) 1 - (50) Preferred stock dividends - - (1) - (1) ----- ----- ----- ----- ----- LOSS APPLICABLE TO COMMON SHAREHOLDERS $(47) $(4) $- $- $(51) ===== ===== ===== ===== ===== Quarter Ended September 30, 2008 -------------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- REVENUE $155 $125 $390 $(3) $667 Cost of revenue Cost of access (48) (28) (237) 3 (310) Real estate, network and operations (25) (15) (69) - (109) Third party maintenance (7) (6) (15) - (28) Cost of equipment sales (18) (3) (4) - (25) ----- ----- ----- ----- ----- Total cost of revenue (98) (52) (325) 3 (472) Selling, general and administrative (20) (33) (72) - (125) Depreciation and amortization (22) (20) (42) - (84) ----- ----- ----- ----- ----- OPERATING INCOME (LOSS) 15 20 (49) - (14) OTHER INCOME (EXPENSE) Interest expense, net (14) (8) (18) - (40) Other income (expense), net (17) (9) 1 - (25) ----- ----- ----- ----- ----- INCOME (LOSS) BEFORE REORGANIZATION ITEMS, NET AND INCOME TAXES (16) 3 (66) - (79) Net gain on preconfirmation contingencies - 4 1 - 5 ----- ----- ----- ----- ----- INCOME (LOSS) BEFORE BENEFIT FOR INCOME TAXES (16) 7 (65) - (74) Benefit for income taxes - 2 2 - 4 ----- ----- ----- ----- ----- NET INCOME (LOSS) (16) 9 (63) - (70) Preferred stock dividends - - (1) - (1) ----- ----- ----- ----- ----- INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS $(16) $9 $(64) $- $(71) ===== ===== ===== ===== ===== Quarter Ended December 31, 2007 ------------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- (as (as (as restated restated restated (2)) (2)) (2)) REVENUE $153 $104 $365 $(6) $616 Cost of revenue Cost of access (45) (31) (223) 6 (293) Real estate, network and operations (20) (17) (56) - (93) Third party maintenance (8) (5) (15) - (28) Cost of equipment sales (17) - (5) - (22) ----- ----- ----- ----- ----- Total cost of revenue (90) (53) (299) 6 (436) Selling, general and administrative (20) (29) (35) - (84) Depreciation and amortization (22) (19) (37) - (78) ----- ----- ----- ----- ----- OPERATING INCOME (LOSS) 21 3 (6) - 18 OTHER INCOME (EXPENSE) Interest expense, net (15) (9) (10) - (34) Other income (expense), net (3) 1 15 - 13 ----- ----- ----- ----- ----- INCOME (LOSS) BEFORE REORGANIZATION ITEMS, NET AND INCOME TAXES 3 (5) (1) - (3) Net gain on preconfirmation contingencies - - 31 - 31 ----- ----- ----- ----- ----- INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES 3 (5) 30 - 28 Provision for income taxes (9) (2) (15) - (26) ----- ----- ----- ----- ----- NET INCOME (LOSS) (6) (7) 15 - 2 Preferred stock dividends - - (1) - (1) ----- ----- ----- ----- ----- INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS $(6) $(7) $14 $- $1 ===== ===== ===== ===== ===== (1) Rest of World (ROW) represents operations of Global Crossing Limited and subsidiaries excluding Global Crossing (UK) Telecommunications Ltd. and subsidiaries (GCUK) and GC Impsat Holdings I Plc and subsidiaries (GC Impsat). (2)In May 2008 and August 2008, Global Crossing Limited transferred its GC Brazil and GC Chile operations, respectively, from the ROW Segment to the GC Impsat Segment. Since the transfer is between entities under common control, the Company has retroactively restated GC Impsat's results to include the GC Brazil and GC Chile operations and removed the GC Brazil and GC Chile operations from ROW's results for all periods presented.

Global Crossing Limited and Subsidiaries Table 6 Unaudited Summary of Consolidated Revenues, Cost of Access, and Adjusted Gross Margin ($ in millions) Year Ended December 31, 2008 ---------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- Revenues: Enterprise, carrier data and indirect channels $588 $459 $1,117 $- $2,164 Wholesale voice 11 9 404 - 424 Other - - 4 - 4 Intersegment revenue - 7 11 (18) - ----- ----- ----- ----- ----- Consolidated revenues $599 $475 $1,536 $(18) $2,592 ----- ----- ----- ----- ----- Cost of access: Enterprise, carrier data and indirect channels $(175) $(98) $(564) $- $(837) Wholesale voice (8) (7) (358) - (373) Other - - (1) - (1) Intersegment cost of access (1) (10) (6) 17 - ----- ----- ----- ----- ----- Consolidated cost of access $(184) $(115) $(929) $17 $(1,211) ----- ----- ----- ----- ----- Adjusted Gross Margin: Enterprise, carrier data and indirect channels $413 $361 $553 $- $1,327 Wholesale voice 3 2 46 - 51 Other - - 3 - 3 Intersegment adjusted gross margin (1) (3) 5 (1) - ----- ----- ----- ----- ----- Consolidated adjusted gross margin $415 $360 $607 $(1) $1,381 ===== ===== ===== ===== ====== Year Ended December 31, 2007 ---------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- (as (as (as restated restated restated (2)) (2)) (2)) Revenues: Enterprise, carrier data and indirect channels $572 $260 $962 $- $1,794 Wholesale voice 10 6 446 - 462 Other - - 5 - 5 Intersegment revenue - 3 9 (12) - ------- ------- ------- ------- ------- Consolidated revenues $582 $269 $1,422 $(12) $2,261 ------- ------- ------- ------- ------- Cost of access: Enterprise, carrier data and indirect channels $(161) $(62) $(518) $- $(741) Wholesale voice (8) (4) (392) - (404) Other - - (1) - (1) Intersegment cost of access - (9) (2) 11 - ------- ------- ------- ------- ------- Consolidated cost of access $(169) $(75) $(913) $11 $(1,146) ------- ------- ------- ------- ------- Adjusted Gross Margin: Enterprise, carrier data and indirect channels $411 $198 $444 $- $1,053 Wholesale voice 2 2 54 - 58 Other - - 4 - 4 Intersegment adjusted gross margin - (6) 7 (1) - ------- ------- ------- ------- ------- Consolidated adjusted gross margin $413 $194 $509 $(1) $1,115 ======= ======= ======= ======= ======= (1) Rest of World (ROW) represents operations of Global Crossing Limited and subsidiaries excluding Global Crossing (UK) Telecommunications Ltd. and subsidiaries (GCUK) and GC Impsat Holdings I Plc and subsidiaries (GC Impsat). (2) In May 2008 and August 2008, Global Crossing Limited transferred its GC Brazil and GC Chile operations, respectively, from the ROW Segment to the GC Impsat Segment. Since the transfer is between entities under common control, the Company has retroactively restated GC Impsat's results to include the GC Brazil and GC Chile operations and removed the GC Brazil and GC Chile operations from ROW's results for all periods presented. Definition: Adjusted gross margin is revenue minus cost of access. See Table 10 for the reconciliation of adjusted gross margin to gross margin.

Global Crossing Limited and Subsidiaries Table 7 Unaudited Summary of Consolidated Revenues, Cost of Access, and Adjusted Gross Margin ($ in millions) Quarter Ended December 31, 2008 ------------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- Revenues: Enterprise, carrier data and indirect channels $132 $118 $291 $- $541 Wholesale voice 2 2 96 - 100 Other - - 1 - 1 Intersegment revenue - 2 6 (8) - ----- ----- ----- ----- ----- Consolidated revenues $134 $122 $394 $(8) $642 ----- ----- ----- ----- ----- Cost of access: Enterprise, carrier data and indirect channels $(40) $(24) $(142) $- $(206) Wholesale voice (1) (1) (87) - (89) Other - - (1) - (1) Intersegment cost of access (1) (5) (2) 8 - ----- ----- ----- ----- ----- Consolidated cost of access $(42) $(30) $(232) $8 $(296) ----- ----- ----- ----- ----- Adjusted Gross Margin: Enterprise, carrier data and indirect channels $92 $94 $149 $- $335 Wholesale voice 1 1 9 - 11 Other - - - - - Intersegment adjusted gross margin (1) (3) 4 - - ----- ----- ----- ----- ----- Consolidated adjusted gross margin $92 $92 $162 $- $346 ===== ===== ===== ===== ===== Quarter Ended September 30, 2008 -------------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- Revenues: Enterprise, carrier data and indirect channels $152 $121 $287 $- $560 Wholesale voice 3 3 100 - 106 Other - - 1 - 1 Intersegment revenue - 1 2 (3) - ----- ----- ----- ----- ----- Consolidated revenues $155 $125 $390 $(3) $667 ----- ----- ----- ----- ----- Cost of access: Enterprise, carrier data and indirect channels $(45) $(24) $(147) $- $(216) Wholesale voice (3) (2) (89) - (94) Other - - - - - Intersegment cost of access - (2) (1) 3 - ----- ----- ----- ----- ----- Consolidated cost of access $(48) $(28) $(237) $3 $(310) ----- ----- ----- ----- ----- Adjusted Gross Margin: Enterprise, carrier data and indirect channels $107 $97 $140 $- $344 Wholesale voice - 1 11 - 12 Other - - 1 - 1 Intersegment adjusted gross margin - (1) 1 - - ----- ----- ----- ----- ----- Consolidated adjusted gross margin $107 $97 $153 $- $357 ===== ===== ===== ===== ===== Quarter Ended December 31, 2007 ------------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- (as (as (as restated restated restated (2)) (2)) (2)) Revenues: Enterprise, carrier data and indirect channels $151 $101 $252 $- $504 Wholesale voice 2 3 106 - 111 Other - - 1 - 1 Intersegment revenue - - 6 (6) - Consolidated revenues ----- ----- ----- ----- ----- $153 $104 $365 $(6) $616 ----- ----- ----- ----- ----- Cost of access: Enterprise, carrier data and indirect channels $(43) $(23) $(133) $- $(199) Wholesale voice (2) (2) (90) - (94) Other - - - - - Intersegment cost of access - (6) - 6 - Consolidated cost of access ----- ----- ----- ----- ----- $(45) $(31) $(223) $6 $(293) ----- ----- ----- ----- ----- Adjusted Gross Margin: Enterprise, carrier data and indirect channels Wholesale voice $108 $78 $119 $- $305 Other - 1 16 - 17 Intersegment adjusted gross margin - - 1 - 1 Consolidated adjusted gross margin - (6) 6 - - ----- ----- ----- ----- ----- $108 $73 $142 $- $323 ===== ===== ===== ===== ===== (1) Rest of World (ROW) represents operations of Global Crossing Limited and subsidiaries excluding Global Crossing (UK) Telecommunications Ltd. and subsidiaries (GCUK) and GC Impsat Holdings I Plc and subsidiaries (GC Impsat). (2) In May 2008 and August 2008, Global Crossing Limited transferred its GC Brazil and GC Chile operations, respectively, from the ROW Segment to the GC Impsat Segment. Since the transfer is between entities under common control, the Company has retroactively restated GC Impsat's results to include the GC Brazil and GC Chile operations and removed the GC Brazil and GC Chile operations from ROW's results for all periods presented. Definition: Adjusted gross margin is revenue minus cost of access. See Table 11 for the reconciliation of adjusted gross margin to gross margin.

Global Crossing Limited Table 8 Unaudited Reconciliation of Adjusted Cash EBITDA to Net (Income) Loss Applicable to Common Shareholders ($ in millions) Pursuant to the SEC's Regulation G, the following table provides a reconciliation of Adjusted Cash EBITDA, which is considered a non-GAAP (Generally Accepted Accounting Principles) financial measure, to income (loss) applicable to common shareholders, which is the most directly comparable GAAP measure. Global Crossing's calculation of its Adjusted Cash EBITDA measure may not be consistent with EBITDA measures of other companies. Management believes that Adjusted Cash EBITDA is a relevant indicator of operating performance, especially in a capital-intensive industry such as telecommunications. Adjusted Cash EBITDA is an important aspect of the company's internal reporting and is also used by the investment community in assessing financial performance. This non-GAAP measure should be used in addition to, but not as a substitute for, the analysis provided in the statement of operations. Year Ended December 31, 2008 ---------------------------- GCUK GC Impsat ROW(1) Total ---- --------- ------ ----- Adjusted Cash EBITDA $140 $143 $45 $328 Non-cash stock compensation expense (6) (5) (44) (55) Depreciation and amortization (84) (81) (161) (326) Interest expense, net (57) (32) (70) (159) Other income (expense), net (57) (20) 51 (26) Net gain on preconfirmation contingencies - 4 6 10 Income tax provision (1) (17) (31) (49) Preferred stock dividends - - (4) (4) ----- ----- ------ ------ Net loss applicable to common shareholders $(65) $(8) $(208) $(281) ===== ===== ====== ====== Year Ended December 31, 2007 ---------------------------- GCUK GC Impsat ROW(1) Total ---- --------- ------ ----- (as restated(2)) (as restated(2)) Adjusted Cash EBITDA $147 $63 $(36) $174 Non-cash stock compensation expense (5) (2) (44) (51) Depreciation and amortization (84) (44) (136) (264) Interest expense, net (60) (22) (68) (150) Other income, net 2 - 13 15 Net gain on preconfirmation contingencies - - 33 33 Income tax provision (11) (10) (42) (63) Preferred stock dividends - - (4) (4) ----- ----- ------ ------ Net loss applicable to common shareholders $(11) $(15) $(284) $(310) ===== ===== ====== ====== (1) Rest of World (ROW) represents operations of Global Crossing Limited and subsidiaries excluding Global Crossing (UK) Telecommunications Ltd. and subsidiaries (GCUK) and GC Impsat Holdings I Plc and subsidiaries (GC Impsat). (2) In May 2008 and August 2008, Global Crossing Limited transferred its GC Brazil and GC Chile operations, respectively, from the ROW Segment to the GC Impsat Segment. Since the transfer is between entities under common control, the Company has retroactively restated GC Impsat's results to include the GC Brazil and GC Chile operations and removed the GC Brazil and GC Chile operations from ROW's results for all periods presented. Definition: Adjusted cash EBITDA is earnings before interest, taxes, depreciation and amortization, other income (expense) net, net gain on pre-confirmation contingencies, preferred stock dividends and non-cash stock compensation.

Global Crossing Limited Table 9 Unaudited Reconciliation of Adjusted Cash EBITDA to Net (Income) Loss Applicable to Common Shareholders ($ in millions) Pursuant to the SEC's Regulation G, the following table provides a reconciliation of Adjusted Cash EBITDA, which is considered a non-GAAP financial measure, to income (loss) applicable to common shareholders, which is the most directly comparable GAAP measure. Global Crossing's calculation of its Adjusted Cash EBITDA measure may not be consistent with EBITDA measures of other companies. Management believes that Adjusted Cash EBITDA is a relevant indicator of operating performance, especially in a capital-intensive industry such as telecommunications. Adjusted Cash EBITDA is an important aspect of the company's internal reporting and is also used by the investment community in assessing financial performance. This non-GAAP measure should be used in addition to, but not as a substitute for, the analysis provided in the statement of operations. Quarter Ended December 31, 2008 ------------------------------- GCUK GC Impsat ROW(1) Total ---- --------- ------ ----- Adjusted Cash EBITDA $24 $37 $35 $96 Non-cash stock compensation expense 1 3 2 6 Depreciation and amortization (19) (21) (42) (82) Interest expense, net (12) (7) (17) (36) Other income (expense), net (41) (14) 26 (29) Net gain on preconfirmation contingencies - - 1 1 Income tax provision - (2) (4) (6) Preferred stock dividends - - (1) (1) ---- ---- ---- ---- Net loss applicable to common shareholders $(47) $(4) $- $(51) ==== ==== ==== ==== Quarter Ended September 30, 2008 -------------------------------- GCUK GC Impsat ROW(1) Total ---- --------- ------ ----- Adjusted Cash EBITDA $39 $42 $7 $88 Non-cash stock compensation expense (2) (2) (14) (18) Depreciation and amortization (22) (20) (42) (84) Interest expense, net (14) (8) (18) (40) Other income (expense), net (17) (9) 1 (25) Net gain on preconfirmation contingencies - 4 1 5 Income tax benefit - 2 2 4 Preferred stock dividends - - (1) (1) ---- ---- ---- ---- Net income (loss) applicable to common shareholders $(16) $9 $(64) $(71) ==== ==== ==== ==== Quarter Ended December 31, 2007 ------------------------------- GCUK GC Impsat ROW(1) Total ---- --------- ------ ----- (as (as Restated(2)) restated(2)) Adjusted Cash EBITDA $43 $23 $34 $100 Non-cash stock compensation expense - (1) (3) (4) Depreciation and amortization (22) (19) (37) (78) Interest expense, net (15) (9) (10) (34) Other income (expense), net (3) 1 15 13 Net gain on preconfirmation contingencies - - 31 31 Income tax provision (9) (2) (15) (26) Preferred stock dividends - - (1) (1) ---- ---- ---- ---- Net income (loss) applicable to common shareholders $(6) $(7) $14 $1 ==== ==== ==== ==== (1) Rest of World (ROW) represents operations of Global Crossing Limited and subsidiaries excluding Global Crossing (UK) Telecommunications Ltd. and subsidiaries (GCUK) and GC Impsat Holdings I Plc and subsidiaries (GC Impsat). (2) In May 2008 and August 2008, Global Crossing Limited transferred its GC Brazil and GC Chile operations, respectively, from the ROW Segment to the GC Impsat Segment. Since the transfer is between entities under common control, the Company has retroactively restated GC Impsat's results to include the GC Brazil and GC Chile operations and removed the GC Brazil and GC Chile operations from ROW's results for all periods presented. Definition: Adjusted cash EBITDA is earnings before interest, taxes, depreciation and amortization, other income (expense) net, net gain on pre-confirmation contingencies, preferred stock dividends and non-cash stock compensation.

Global Crossing Limited and Subsidiaries Table 10 Unaudited Reconciliation of Adjusted Gross Margin to Gross Margin ($ in millions) Pursuant to the SEC's Regulation G, the following table provides reconciliation of Adjusted Gross Margin, which is considered a non-GAAP financial measure, to Gross Margin, which is the most directly comparable GAAP measure. Management believes that Adjusted Gross Margin is a relevant indicator of operating performance since it links revenue lines with the largest and most directly related costs incurred to generate such revenue. Adjusted Gross Margin should be used in addition to, but not as a substitute for, the analysis provided in the statement of operations. Year Ended December 31, 2008 ---------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- Adjusted gross margin $415 $360 $607 $(1) $1,381 Real estate, network and operations (93) (58) (256) 1 (406) Third party maintenance (32) (20) (55) - (107) Cost of equipment sales (69) (11) (14) - (94) ---- ---- ---- ---- ---- Gross margin $221 $271 $282 $- $774 ==== ==== ==== ==== ==== Year Ended December 31, 2007 ---------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- (as (as (as Restated(2)) restated(2)) restated(2)) Adjusted gross margin $413 $194 $509 $(1) $1,115 Real estate, network and operations (96) (40) (250) 1 (385) Third party maintenance (35) (14) (54) - (103) Cost of equipment sales (62) (3) (23) - (88) ---- ---- ---- ---- ---- Gross margin $220 $137 $182 $- $539 ==== ==== ==== ==== ==== (1) Rest of World (ROW) represents operations of Global Crossing Limited and subsidiaries excluding Global Crossing (UK) Telecommunications Ltd. and subsidiaries (GCUK) and GC Impsat Holdings I Plc and subsidiaries (GC Impsat). (2) In May 2008 and August 2008, Global Crossing Limited transferred its GC Brazil and GC Chile operations, respectively, from the ROW Segment to the GC Impsat Segment. Since the transfer is between entities under common control, the Company has retroactively restated GC Impsat's results to include the GC Brazil and GC Chile operations and removed the GC Brazil and GC Chile operations from ROW's results for all periods presented. Definition: Adjusted gross margin is revenue minus cost of access.

Global Crossing Limited and Subsidiaries Table 11 Unaudited Pro Forma Reconciliation of Adjusted Gross Margin to Gross Margin ($ in millions) Pursuant to the SEC's Regulation G, the following table provides reconciliation of Adjusted Gross Margin, which is considered a non-GAAP financial measure, to Gross Margin, which is the most directly comparable GAAP measure. Management believes that Adjusted Gross Margin is a relevant indicator of operating performance since it links revenue lines with the largest and most directly related costs incurred to generate such revenue. Adjusted Gross Margin should be used in addition to, but not as a substitute for, the analysis provided in the statement of operations. Quarter Ended December 31, 2008 ------------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- Adjusted gross margin $92 $92 $162 $- $346 Real estate, network and operations (19) (11) (56) - (86) Third party maintenance (7) (5) (12) - (24) Cost of equipment sales (16) (3) (4) - (23) ---- ---- ---- ---- ---- Gross margin $50 $73 $90 $- $213 ==== ==== ==== ==== ==== Quarter Ended September 30, 2008 -------------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- Adjusted gross margin $107 $97 $153 $- $357 Real estate, network and operations (25) (15) (69) - (109) Third party maintenance (7) (6) (15) - (28) Cost of equipment sales (18) (3) (4) - (25) ---- ---- ---- ---- ---- Gross margin $57 $73 $65 $- $195 ==== ==== ==== ==== ==== Quarter Ended December 31, 2007 ------------------------------- GCUK GC Impsat ROW(1) Eliminations Total ---- --------- ------ ------------ ----- (as (as Restated(2)) restated(2)) Adjusted gross margin $108 $73 $142 $- $323 Real estate, network and operations (20) (17) (56) - (93) Third party maintenance (8) (5) (15) - (28) Cost of equipment sales (17) - (5) - (22) ---- ---- ---- ---- ---- Gross margin $63 $51 $66 $- $180 ==== ==== ==== ==== ==== (1) Rest of World (ROW) represents operations of Global Crossing Limited and subsidiaries excluding Global Crossing (UK) Telecommunications Ltd. and subsidiaries (GCUK) and GC Impsat Holdings I Plc and subsidiaries (GC Impsat). (2) In May 2008 and August 2008, Global Crossing Limited transferred its GC Brazil and GC Chile operations, respectively, from the ROW Segment to the GC Impsat Segment. Since the transfer is between entities under common control, the Company has retroactively restated GC Impsat's results to include the GC Brazil and GC Chile operations and removed the GC Brazil and GC Chile operations from ROW's results for all periods presented. Definition: Adjusted gross margin is revenue minus cost of access.

Global Crossing Limited and Subsidiaries Table 12 Unaudited Reconciliations of 2009 OIBDA and Free Cash Flow Guidance ($ in millions) When providing projections for non-GAAP measures, we are required to provide a reconciliation of the non-GAAP measure to the most directly comparable GAAP measure to the extent available without unreasonable efforts. In such cases, we may indicate an amount or range for GAAP measures that are components of the reconciliation. The provision of such amounts or ranges must not be interpreted as explicit or implicit projections of those GAAP components. To reconcile the non-GAAP financial measure to GAAP, we must use amounts or ranges for the GAAP components that arithmetically add up to the non-GAAP financial measure. While we feel reasonably comfortable with the methodology used to generate the projections of our non-GAAP financial measures, we fully expect that the amounts or ranges used for the GAAP components will vary from actual results. We have made numerous assumptions in preparing our projections. These assumptions, including the amounts of the various components that comprise a financial measure, may or may not prove to be correct. We will consider our projections of non-GAAP financial measures to have been achieved if the specific non-GAAP measure is met or exceeded, even if the GAAP components of the reconciliation are materially different from those provided in an earlier reconciliation. Twelve months ended December 31, 2009 ------------------- Low End of Guidance High End of Guidance OIBDA $320 $380 Depreciation and amortization (330) (331) ----- ----- Operating income (loss) (10) 49 Interest expense, net (147) (147) Provision for income taxes (27) (27) Preferred stock dividends (4) (4) ----- ----- Net loss applicable to common shareholders $(188) $(129) ===== ===== Free Cash Flow $50 $100 Purchases of property and equipment 145 155 ----- ----- Net cash provided by operating activities $195 $255 ===== ===== For definitions and further description of these non-GAAP measures see table 15.

Global Crossing Limited and Subsidiaries Table 13 Unaudited Reconciliations of OIBDA to Net Income (Loss) applicable to Common share holders ($ in millions) Pursuant to the SEC's Regulation G, the following table provides a reconciliation of OIBDA to net income (loss) applicable to common shareholders. Twelve months Three months ended ended ------------------ Dec. 31, Dec. 31, Sept. 30, June 30, March 31, 2008 2008 2008 2008 2008 ----- ----- ----- ----- ----- OIBDA $273 $102 $70 $56 $45 Depreciation and amortization (326) (82) (84) (84) (76) ----- ----- ----- ----- ----- Operating income (loss) (53) 20 (14) (28) (31) Interest income 10 2 2 2 4 Interest expense (169) (38) (42) (45) (44) Other income (expense), net (26) (29) (25) 8 20 Net gain on preconfirmation contingencies 10 1 5 4 - Benefit (provision) for income taxes (49) (6) 4 (29) (18) Preferred stock dividends (4) (1) (1) (1) (1) ----- ----- ----- ----- ----- Net loss applicable to common shareholders $(281) $(51) $(71) $(89) $(70) ===== ===== ===== ===== ===== Twelve months Three months ended ended ------------------ Dec. 31, Dec. 31, Sept. 30, June 30, March 31, 2007 2007 2007 2007 2007 ----- ----- ----- ----- ----- OIBDA $123 $96 $61 $(11) $(23) Depreciation and amortization (264) (78) (73) (63) (50) ----- ----- ----- ----- ----- Operating income (loss) (141) 18 (12) (74) (73) Interest income 21 4 5 6 6 Interest expense (171) (38) (51) (47) (35) Other income (expense), net 15 13 (16) 24 (6) Net gain on preconfirmation contingencies 33 31 2 - - Provision for income taxes (63) (26) (16) (9) (12) Preferred stock dividends (4) (1) (1) (1) (1) ----- ----- ----- ----- ----- Net income (loss) applicable to common shareholders $(310) $1 $(89) $(101) $(121) ===== ===== ===== ===== ===== For a definition and further description of this non-GAAP measure see table 15.

Global Crossing Limited and Subsidiaries Table 14 Unaudited Reconciliations of Free Cash Flow to Net Cash Provided by (used in) Operating Activities ($ in millions) Pursuant to the SEC's Regulation G, the following table provides a reconciliation of Free Cash Flow to net cash provided by (used in) operating activities. Twelve months Three months ended ended ------------------ Dec. 31, Dec. 31, Sept. 30, June 30, March 31, 2008 2008 2008 2008 2008 ---- ---- ---- ---- ---- Free Cash Flow $11 $30 $33 $(33) $(19) Purchases of property and equipment 192 49 51 48 44 ---- ---- ---- ---- ---- Net cash provided by operating activities $203 $79 $84 $15 $25 ==== ==== ==== ==== ==== Twelve months Three months ended ended ------------------ Dec. 31, Dec. 31, Sept. 30, June 30, March 31, 2007 2007 2007 2007 2007 ---- ---- ---- ---- ---- Free Cash Flow $(230) $33 $(70) $(110) $(83) Purchases of property and equipment 214 60 77 44 33 ---- ---- ---- ---- ---- Net cash provided by (used in) operating activities $(16) $93 $7 $(66) $(50) ==== ==== ==== ==== ==== For a definition and further description of this non-GAAP measure see table 15. Global Crossing Limited and Subsidiaries Table 15 Definitions of Non-GAAP measures Operating Income (Loss) Before Depreciation and Amortization (OIBDA): OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from operating income (loss), as calculated in accordance with GAAP and reflected on our consolidated financial statements, in that it excludes depreciation and amortization. Such excluded expenses primarily reflect the non-cash impacts of historical capital investments, as opposed to the cash impacts of capital expenditures made in recent periods. In addition, OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for reinvestment, distributions or other discretionary uses. Management uses OIBDA as an important part of our internal reporting and planning processes and as a key measure to evaluate profitability and operating performance, make comparisons between periods, and to make resource allocation decisions. Management believes that the investment community uses similar performance measures to compare performance of competitors in our industry. There are material limitations to using non-GAAP financial measures. Our calculation of OIBDA may differ from similarly titled measures used by other companies, and may not be comparable to those other measures. Additionally, OIBDA does not include certain significant items such as depreciation and amortization, interest income, interest expense, income taxes, other non-operating income or expense items, preferred stock dividends, and gains and losses on preconfirmation contingencies. OIBDA should be considered in addition to, and not as a substitute for, other measures of financial performance reported in accordance with GAAP. Management believes that OIBDA is useful to our investors as it is a relevant indicator of operating performance, especially in a capital- intensive industry such as telecommunications. OIBDA provides investors with an indication of the underlying performance of our everyday business operations. It excludes the effect of items associated with our capitalization and tax structures, such as interest income, interest expense and income taxes, and of other items not associated with our everyday operations. Free Cash Flow: Free Cash Flow is a non-GAAP financial measure. We define Free Cash Flow as net cash provided by (used in) operating activities less purchases of property and equipment as disclosed in the statement of cash flows. Free Cash Flow differs from the net change in cash and cash equivalents in the statement of cash flows in that it excludes the cash impact of: all investing activities (other than capital expenditures, which are a fundamental and recurring part of our business); all financing activities; and exchange rate changes on cash and cash equivalents balances. Management uses Free Cash Flow as a relevant indicator of our ability to generate cash to pay debt. Free Cash Flow also is an important part of our internal reporting and a key measure used by management to evaluate liquidity from period to period. We believe that the investment community uses similar performance measures to compare performance of competitors in our industry. There are material limitations to using non-GAAP financial measures. Our calculation of Free Cash Flow may differ from similarly titled measures used by other companies, and may not be comparable to those other measures. Moreover, we do not currently pay a significant amount of income taxes due to net operating losses, and we therefore generate higher Free Cash Flow than comparable businesses that do pay income taxes. Additionally, Free Cash Flow is subject to variability quarter over quarter as a result of the timing of payments related to accounts receivable and accounts payable and capital expenditures. Free Cash Flow also does not include certain significant cash items such as purchases and sales out of the ordinary course of business, proceeds from financing activities, repayments of capital lease obligations and other debt, and the effect of exchange rate changes on cash and cash equivalents balances. Free Cash Flow should be considered in addition to, and not as a substitute for, net change in cash and cash equivalents in the statement of cash flows reported in accordance with GAAP. Management believes that Free Cash Flow is useful to our investors as it provides an indication of the underlying cash position of our everyday business operations and the ability to pay debt.

Press, Michael Schneider, +1-973-937-0146, Michael.Schneider@globalcrossing.com, Analysts/Investors, Suzanne Lipton, +1-800-836-0342, glbc@globalcrossing.com, or Antonio Suarez, +1-973-937-0233, Antonio.Suarez@globalcrossing.com, all of Global Crossing