Metromedia Fiber Network, Inc. Reports First Quarter2000 Results.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 10, 2000

- Revenues increase 73% over Q1 1999 to $31.9M

- Fiber miles in service increase to 742,000

Metromedia Fiber Network, Inc. (MFN) (Nasdaq: MFNX), the leading provider of optical Internet infrastructure

The company reported a net loss of $85.2 million, or $(.16) per share, for the quarter ended March 31, 2000, compared with a net loss of $5.8 million, or $(.02) per share, for the quarter ended March 31, 1999. The increased net loss was primarily attributable to the amortization of goodwill related to the AboveNet acquisition, the cost of additional debt acquired related to the issuance and sale of 10% senior notes in October 1999, as well as the convertible subordinated notes issued in March 2000, and to a change in accounting treatment for certain contracts.

"We are continuing to see high growth in revenue as the marketplace increasingly realizes the unique value of our offering," said Nick Tanzi, president and chief operating officer for Metromedia Fiber Network. "We are well along in our strategy to build out 67 markets internationally and create our global optical IP network to bring advanced business and media-rich applications across the Internet to our customers."

The company demonstrated aggressive business development in the first quarter, securing contracts to deploy optical networks for a host of leading companies including:

- Freddie Mac;

- ITC^DeltaCom;

- Yipes;

- American International Group Data Center, Inc.; and

- Cogent Communications.

Additional achievements in Q1 included:

- being selected as a major Internet transit providers for

America Online;

- launching its intra-city optical networks in Boston, Houston

and San Francisco; and

- being selected by Electronic Arts selecting AboveNet for

co-location and IP connectivity services.

For the first quarter of 2000, cost of sales was $35.6 million compared with $8.2 million for the same quarter in 1999. The increase was primarily the result of Internet connectivity costs associated with the acquisition of AboveNet Communications, which occurred during the 3rd quarter of 1999. Depreciation and amortization expense was $32.5 million for the quarter ended March 31, 2000, compared with $1.2 million for the quarter ended March 31,1999, resulting primarily from amortization of goodwill relating to the acquisition of AboveNet and increased investment in the company's completed fiber optic network and additional property and equipment acquired.

Interest income increased to $25.0 million for the quarter ended March 31, 2000, compared with $7.4 million for the quarter ended March 31, 1999. The increase is a result of the investment of a portion of the proceeds from the issuance and sale of the company's 10% senior notes due in 2008 and 2009, as well as from the convertible subordinated notes issued in March 2000.

Interest expense increased for the quarter ended March 31, 2000 to $45.2 million, compared with $15.9 million during the same period of 1999. The increase in interest expense reflects the issuance and sale of the company's 10% senior notes due in 2009, as well the subordinated notes issued in March 2000.

As the Company is in the early stage of development, it expects to generate significant operating and net losses as it continues to build out and market its fiber optic network and Internet infrastructure. Management believes that its goals will be achieved through the Company's successful implementation and execution of its growth strategy.

Metromedia Fiber Network, Inc., headquartered in White Plains, New York, the leading provider of end-to-end optical network and Internet infrastructure solutions, is revolutionizing the fiber optic industry. By offering virtually unlimited, unmetered bandwidth at a fixed cost, the Company is eliminating the bandwidth barrier and redefining the way broadband capacity is sold. Metromedia Fiber Network is extending metropolitan optical networking infrastructure to the end user in strategic top-tier markets, enabling its customers to implement the latest data, video, Internet and multimedia applications. In addition to its current expansion in 51 cities in North America, MFN is establishing an international presence with planned fiber optic network builds in 16 cities throughout Europe.

Together with its subsidiaries, AboveNet Communications, Inc., a leading provider of co-location and Internet connectivity solutions, and PAIX.NET, Inc., the leading neutral Internet Exchange, MFN is unleashing full potential of the Internet. The combined company facilitates the explosive growth of e-commerce and advanced Internet applications by delivering secure, reliable and scalable optical networks and IP services to Internet content and service providers, carriers and enterprise users worldwide. For more information about MFN, please visit the company's Web site at www.mmfn.com.

This partial discussion of the statements of financial condition and operations of the Company should be read in conjunction with the consolidated financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 1999.

This news release contains forward-looking statements that involve risks and uncertainties. Factors that could cause or contribute to such risks and uncertainties include, but are not limited to, general economic and business conditions, competition, changes in technology and methods of marketing, and various other factors beyond the Company's control. This also includes such factors as are described from time to time in the SEC reports filed by Metromedia Fiber Network, including the most recently filed Form S-3 and Form 10-K, and its quarterly report on Form 10-Q for the quarter ended March 31, 2000.

             Metromedia Fiber Network, Inc. & Subsidiaries
           Consolidated Statements of Operations (Unaudited)
                 (in 000's, except per share amounts)


                                              Three Months Ended
                                                   March 31,
                                             -------------------
                                                2000       1999
                                             --------   --------

Revenue                                      $ 31,921   $ 18,379

Expenses:
   Cost of sales                               35,576      8,258
   Selling, general and administrative         27,660      6,073
   Depreciation and amortization               32,489      1,195
                                             --------   --------
Income (loss) from operations                 (63,804)     2,853

   Interest income                             25,057      7,437
   Interest expense                           (45,180)   (15,904)
   Loss from joint ventures                    (1,233)      (200)
                                             --------   --------
Net loss                                     $(85,160)  $ (5,814)
                                             ========   ========

Net loss per share, basic                    $  (0.16)  $  (0.02)
                                             ========   ========

Net loss per share, diluted                      N/A        N/A
                                             ========   ========

Weighted average number of shares
 outstanding, basic                           533,410    378,004
                                             ========   ========

Weighted average number of shares
 outstanding, diluted                            N/A        N/A
                                             ========   ========

                        See accompanying notes.


             Metromedia Fiber Network, Inc. & Subsidiaries
                      Consolidated Balance Sheets
                   (in 000's, except share amounts)

                                              March 31,   December 31,
                                                2000          1999
                                              ---------   -----------
                                             (Unaudited)
               Assets
Current assets:
   Cash and cash equivalents                $ 2,535,829   $ 1,262,391
   Pledged securities                            32,312        31,960
   Accounts receivable                           83,501        72,166
   Prepaid expenses and other current assets     15,485        10,948
                                            -----------   -----------
     Total current assets                     2,667,127     1,377,465
Fiber optic transmission network
 and related equipment, net                   1,127,417       796,684
Property and equipment, net                      16,869         9,215
Restricted cash                                  69,355        82,193
Marketable securities                           119,639        29,628
Investment in/advances to joint venture          35,043        23,130
Other assets                                     97,558       102,573
Goodwill, net                                 1,582,230     1,539,097
                                            -----------   -----------
     Total assets                           $ 5,715,238   $ 3,959,985
                                            ===========   ===========

          Liabilities and stockholders' equity
Current liabilities:
   Accounts payable                         $    48,678   $    43,344
   Accrued expenses                             235,898       186,528
   Deferred revenue, current portion             16,598        12,867
   Capital lease obligations and
    notes payable, current portion                7,409         6,781
                                            -----------   -----------
     Total current liabilities                  308,583       249,520
Senior notes payable                          1,660,900     1,660,900
Convertible subordinated notes payable          975,281           -
Capital lease obligations and notes payable      37,291        38,414
Deferred revenue                                191,331       176,475

Commitments and contingencies (see notes)

Stockholders' equity:
   Class A common stock, $.01 par value;
    4,808,062,482 shares authorized;
    476,696,386 and 411,116,800 shares
    issued and outstanding, respectively          4,766         4,111
   Class B common stock, $.01 par value;
    1,044,509,564 shares authorized;
    67,538,544 shares issued and outstanding        676           676
 Additional paid-in capital                   2,792,217     1,995,741
 Accumulated deficit                           (242,335)     (157,175)
 Cumulative comprehensive loss                  (13,472)       (8,677)
                                            -----------   -----------
     Total stockholders' equity               2,541,852     1,834,676
                                            -----------   -----------
     Total liabilities and
      stockholders' equity                  $ 5,715,238   $ 3,959,985
                                            ===========   ===========

                        See accompanying notes