GTS to Provide NORDUnet IP Transit to the U.S.; GTS ToProvide Scalable, Research-quality...

Business Editors/Hi-Tech Writers

WASHINGTON and LONDON--(BUSINESS WIRE)--May 17, 2000

Global TeleSystems (GTS) (NYSE:GTS; Easdaq:GTSG; Frankfurt:GTS), the leading European e-business and borderless broadband services company, today announced a multi-million dollar, multi-year

deal to provide strategic U.S. capacity to NORDUnet. NORDUnet connects Nordic national research and education networks with worldwide networks. This is the latest in a series of agreements between GTS and IP-driven companies, demonstrating GTS's total commitment to maintaining a leadership position in offering IP backbone services in Europe.

The arrangement is the largest IP bandwidth agreement to date for GTS. NORDUnet is purchasing GTS network capacity of 450 Mbps, with a network node in Stockholm and reliable, research-quality links to the United States. In addition, GTS will deliver NORDUnet traffic over its IP backbone and will boost NORDUnet's total U.S. connectivity to over 622 Mbps.

"NORDUnet provides international network connectivity to the research and education institutions in the Nordic countries. Reliability, bandwidth and transparent service are equally important factors for research and education communities when it comes to network operations," says Peter Villemoes, general manager of NORDUnet A/S. "Demand for bandwidth has grown steadily during the last 10 years, and there seems to be no end to this development, especially now when distance education and similar services are beginning to take off in the next-generation networks. The GTS network offers NORDUnet the quality and scalability we need."

"We're proud of the role GTS is playing in the research community. We have built our network based on the enormous bandwidth and quality requirements they demand," says Gerard Caccappolo, president of GTS Carrier Services. "This agreement is a landmark for GTS in terms of achieving our IP strategy, as well as demonstrating our ability to quickly move our customers up the capacity demand curve without constraint."

About NORDUnet (www.nordu.net)

NORDUnet acts as a backbone for national research networks in Finland (FUNET), Denmark (Darenet), Iceland (ISnet), Norway (UNINETT) and Sweden(SUNET) and provides international--to the rest of Europe and USA and the world--IP connectivity to these networks. NORDUnet A/S is a limited company based in Copenhagen, Denmark, and it is responsible for the operation of the NORDUnet network. The day to day operation of NORDUnet is taken care of by KTHNOC at the technical university in Stockholm. For additional information including a topology map, please visit the NORDUnet web site at www.nordu.net.

About GTS (www.gtsgroup.com)

Global TeleSystems is the leading provider of e-business and borderless broadband services across Europe, serving businesses and carriers with a range of broadband, hosting, Internet/IP and voice services. As an industry leader in Europe, the company has the largest cross-border fiber optic network; the largest Tier-1 IP backbone (GTS Ebone); the most widely deployed pan-European e-business sales and service staff; and the largest pan-European customer base. GTS's first and most extensive trans-European broadband fiber network includes on-net points of presence in 32 European cities (with plans for 50 cities) and stretches across 17,500 route kilometers (with plans for 25,000 route kilometers) with five city enterprise networks (CENs), providing intra-city bandwidth (with plans for a total of 16). GTS has also announced plans to build an advanced trans-Atlantic dual-cable system in a joint venture with FLAG Telecom. GTS has corporate offices in the metropolitan Washington, D.C., area and European headquarters in London, as well as sales and support offices in 19 countries.

This press release may include forward-looking statements that involve risk and uncertainty. Although the company believes its expectations reflected in such forward-looking statements are based on reasonable assumptions, no assurance can be given that such projections will be fulfilled. Any such forward-looking statement must be considered along with knowledge that actual events or results may vary materially from such predictions due to, among other things, political, economic or legal changes in the markets in which GTS does business, competitive developments or risks inherent in the company's business plan. Readers are referred to the documents filed by GTS with the U.S. Securities and Exchange Commission, specifically the most recent reports filed under the Securities Exchange Act of 1934 and registration statements filed pursuant to the Securities Act of 1933, which identify important risk factors.