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Southern Cross Reaches New Milestone in Sales

1 December 1999

Media Statement from Southern Cross Cable Network

Southern Cross Reaches New Milestone in Capacity Sales

Southern Cross Cable Network has today announced new capacity sales of US$ 553million resulting from its second Data Gathering Meeting in August. This brings total capacity sales to US$1.2 billion. Southern Cross secured initial presales of US$ 642million at its first Data Gathering Meeting in November 1997.

"This is a significant milestone for the project and for the company," says Baldo Sutich, CEO of Southern Cross. "Sales during the construction phase are traditionally low, but we have now covered our network construction costs and guaranteed the financial success of the project."

Strong justification for marketing initiatives The strong uptake of capacity and the financial success of the project are strong justification for Southern Cross' decision to introduce a new marketing package for its second Data Gathering Meeting in August. This included new products and significant reductions in bandwidth prices.

"Our bold move has really paid off," says Ross Pfeffer, Marketing Director Asia Pacific for Southern Cross. "The response from customers was truly outstanding. Our US$553 million in sales came from a combination of new and existing customers, bringing our total customer base to 34."

"It was always our aim to build a large and diverse customer base and we have succeeded in meeting this objective. Southern Cross has had great support from both global and regional telcos, and from ISPs."

Removing the bandwidth bottleneck Southern Cross has received strong demand for connections between Australasia and the United States, as well as US carriers extending their networks to the South Pacific.

"Southern Cross was designed to remove the bandwidth bottleneck between Australasia and the United States," says Mr Pfeffer. "Our success is due to the fact that we are able to offer large amounts of protected capacity on a network which takes the direct route between Australasia and North America. This is what customers want and we have shown we can deliver."

Fast work of cable laying Southern Cross continues to make fast work of its journey across the Pacific. With Sydney-Auckland and Auckland-Hawaii links already completed, the CS Vercors is currently laying the first 3000km of the 4230km link between Hawaii and California. This is the final segment of Phase One of the network, which is expected to be ready for service in June 2000.

Three ships will begin laying Phase Two - the second half of the network - in January. Phase Two has a ready for service date of October 2000.

- ENDS -

See also http://www.southerncrosscables.com/

For further information contact: Geoff Bilbrough Media Contact Southern Cross Cable Network Tel +64-4-4999-111 Email geoff@svl.co.nz


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