Global Crossing Reports First Quarter 2009 Results

• Consolidated revenue of $609 million, representing a year-over-year decrease of 4 percent as reported and an increase of 6 percent in constant currency terms.
• "Invest and grow" revenue of $510 million, representing a year-over-year decrease of 2 percent as reported and an increase of 10 percent in constant currency terms.
• OIBDA of $75 million, representing a year-over-year increase of 67 percent as reported and an increase of 93 percent in constant currency terms.

Florham Park, N.J. - May 4, 2009 -- Global Crossing (NASDAQ: GLBC), a leading global IP solutions provider, today announced first quarter 2009 results. The company said it will discuss its consolidated financial and operational results for the first quarter 2009 on a conference call tomorrow.

Business Highlights
Global Crossing generated consolidated revenue of $609 million for the first quarter of 2009, representing a year-over-year decrease of 4 percent as reported and an increase of 6 percent in constant currency terms. Revenue from the company's "invest and grow" category - that part of the business focused on serving global enterprises and carrier customers, excluding wholesale voice - was $510 million, representing a year-over-year decrease of 2 percent as reported and an increase of 10 percent in constant currency terms. Operating Income Before Depreciation & Amortization (OIBDA) for the quarter was $75 million, representing a year-over-year increase of 67 percent as reported and an increase of 93 percent in constant currency terms. Free Cash Flow was negative $32 million in the quarter, compared to negative $19 million in the year ago period. OIBDA and Free Cash Flow are non-GAAP measures that are defined and reconciled in our press tables. All constant currency comparisons herein reflect first quarter 2009 and prior period results translated at the average actual foreign exchange rates for the applicable prior period.

"On a constant currency basis, 'invest and grow' revenue increased 10 percent year over year, consistent with the underpinnings of our annual guidance," said John Legere, CEO of Global Crossing. "We remain confident about the full-year outlook ahead as demand for our advanced IP-based solutions continues to enable improvements in our annual earnings and Free Cash Flow."

Operational Results
Global Crossing's consolidated revenue was $609 million in the first quarter of 2009, representing a sequential decline of $35 million or 5 percent, including a $20 million unfavorable foreign exchange impact. Year-over-year consolidated revenue decreased $23 million or 4 percent, including a $63 million unfavorable foreign exchange impact. On a constant currency basis, consolidated revenue declined 2 percent sequentially and increased 6 percent year over year. Beyond foreign exchange impacts, revenue in the quarter was unfavorably affected by the long-awaited attrition of the Camelot contract within our GCUK segment and further reduction in wholesale voice revenue as the company continues to optimize that business for margin performance.

The company's "invest and grow" category generated revenue of $510 million for the first quarter. This represents a sequential decline of $33 million or 6 percent, including substantially all of the $20 million unfavorable sequential foreign exchange impact. Year-over-year "invest and grow" revenue decreased $9 million or 2 percent, including substantially all of the $63 million unfavorable foreign exchange impact. On a constant currency basis, "invest and grow" revenue declined 2 percent sequentially and increased 10 percent year over year.

On a segment basis, GCUK generated $107 million in "invest and grow" revenue compared with $132 million in the prior quarter and $150 million in the first quarter of 2008. GC Impsat generated $113 million in "invest and grow" revenue compared with $122 million in the prior quarter and $110 million in the first quarter of 2008. Rest-of-World (ROW) generated $294 million in "invest and grow" revenue compared with $297 million in the prior quarter and $262 million in the first quarter of 2008. Sequentially, on a constant currency basis, "invest and grow" revenues in GCUK and GC Impsat decreased 6 percent and 7 percent, respectively, and ROW increased 1 percent. The decline in GCUK was associated with the Camelot attrition. The decline at GC Impsat was primarily driven by a customer settlement in the prior quarter. Year-over-year, in constant currency terms, "invest and grow" revenues in GC Impsat and ROW increased 16 percent and 15 percent, respectively, but declined slightly in GCUK due to the Camelot attrition.

Wholesale voice revenue decreased by $2 million on a sequential basis and $14 million year over year to $98 million. Substantially all of the wholesale voice revenue is earned in the United States, within the ROW segment.

Cost of revenue -- which includes cost of access; technical real estate, network and operations; third-party maintenance; and cost of equipment sales -- was $430 million in the first quarter, compared with $432 million in the prior quarter and $457 million in the first quarter of 2008. On a sequential basis, cost of revenue declined due to a favorable foreign exchange impact of $13 million and a reduction in access costs attributable to lower revenue. These decreases were offset by higher incentive compensation accruals following a net reversal in the fourth quarter of 2008.

The year-over-year decrease in cost of revenue was primarily attributable to a favorable foreign exchange impact of $38 million, in addition to lower incentive compensation accruals compared to the first quarter of last year. These decreases were offset by higher costs on increased revenue, higher payroll-related costs and severance charges in the first quarter of 2009.

The company reported Gross Margin, defined as "Revenue" less "Cost of Revenue," of $179 million in the first quarter of 2009, compared with $212 million in the prior quarter and $175 million in the first quarter of 2008. On a sequential basis, Gross Margin declined due to an unfavorable foreign exchange impact, an increase in incentive compensation accruals and lower revenue in the period.

Sales, general and administrative (SG&A) expenses were $104 million in the first quarter of 2009, compared with $110 million in the prior quarter and $130 million in the first quarter of 2008. On a sequential basis, SG&A decreased primarily due to a favorable foreign exchange impact of $4 million, savings from cost reduction initiatives implemented in the quarter and a decrease in professional fees. This decrease was partially offset by higher incentive compensation accruals following a net reversal in the fourth quarter of 2008. The year-over-year SG&A decrease was primarily attributable to $13 million favorable foreign exchange impact and lower incentive compensation accruals, as well as savings related to professional fees and cost reduction initiatives implemented in the first quarter of 2009.

Global Crossing reported $75 million of OIBDA in the first quarter, a sequential decrease of $27 million, including a $3 million unfavorable foreign exchange impact and a $16 million increase in incentive compensation accruals following a net accrual reversal in the prior quarter. On a year-over-year basis, OIBDA increased $30 million, including a $12 million unfavorable foreign exchange impact and a $10 million decrease in incentive compensation accruals. In the first quarter, GCUK, GC Impsat and ROW contributed OIBDA of $23 million, $39 million and $13 million, respectively.

Global Crossing's consolidated net loss applicable to common shareholders was $59 million for the first quarter of 2009, compared with a net loss of $53 million in the prior quarter and net loss of $72 million in the first quarter of 2008. On a sequential basis, net loss increased due to the previously described decrease in OIBDA, partially offset by a more unfavorable foreign exchange impact in the fourth quarter of 2008. Year-over-year, net loss improved principally due to the previously described improvement in OIBDA and a lower income tax provision, partially offset by an unfavorable foreign exchange impact in the first quarter of 2009.

Cash and Liquidity
For the first quarter of 2009, the company reported negative Free Cash Flow of $32 million, as compared to positive Free Cash Flow of $30 million in the prior quarter and negative Free Cash Flow of $19 million in the first quarter of 2008. The sequential and year-over-year variances were primarily driven by higher working capital requirements in the first quarter of 2009.

Cash flow provided by operating activities for the first quarter was $6 million. Global Crossing received $32 million in proceeds from the sale of indefeasible rights of use (IRUs) and prepaid services in the first quarter. Global Crossing used $38 million for Purchases of Property and Equipment and entered into $5 million of capital lease agreements to finance various equipment purchases and software licenses.

As of March 31, 2009, Global Crossing had unrestricted cash of $306 million compared to $360 million at December 31, 2008, and $362 at March 31, 2008. The company had $322 million in total cash at March 31, 2009, compared to $378 million in total cash at December 31, 2008, and $420 million at March 31, 2008.

2009 Guidance
The following table is provided for informational purposes only and represents the company's 2009 guidance as provided on February 16, 2009.

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).

Conference Call
The company will hold a conference call on Tuesday, May 5, 2009 at 9:00 a.m. EDT to discuss its financial results. The call may be accessed by dialing +1 212 231 2908 or by dialing +44 203 300 0096. Callers are advised to access the call 15 minutes prior to the start time. A Webcast with presentation slides will be available at investors.globalcrossing.com/events.cfm.

A replay of the call will be available on Tuesday, May 5, 2009 beginning at 11:30 a.m. EDT and will be accessible until Thursday, May 14, 2009 at 11:30 a.m. EDT. To access the replay, callers should dial +1 402 977 9140 or +1 800 633 8284 and enter reservation number 21422929. Callers in the United Kingdom should dial +44 (0) 870 000 3081 or (0) 800 692 0831 and enter reservation number 21422929.

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 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.

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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 paid to employees under incentive compensation arrangements, including approximately 3.2 million unrestricted shares 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 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

Gino Mathew
Europe
+ 1 973 937 0133
gino.mathew@globalcrossing.com

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