Global Crossing Brings Big Prize To Hutchison Whampoa

SWIFT is an industry owned cooperative supplying secure messaging services and interface software to over 7,000 financial institutions in 196 countries.

We carried 1.2 billion messages in 2000. The average daily value of payment messages on SWIFT is estimated to be above USD 6 trillion. We provide messaging services to banks, broker-dealers and investment managers, as well as to market infrastructures in payments, treasury, derivatives, securities and trade services. These services help our customers reduce costs, improve automation and manage risk.
We recognise our mission-critical role in the international financial system and spare no effort to provide a service that meets the very highest standards of security and reliability. We maintain an open dialogue with regulatory authorities, while working across the company to guarantee the highest levels of system performance. Failure is not an option.
Industry needs are evolving rapidly. While maintaining our full range of existing services, we are rolling out a highly secure, extremely reliable IP network to support our new generation of products and services. Our customers need standardisation. Promoting end-to-end automated communications is at the heart of what we do and SWIFT standards are the accepted norm for financial messaging worldwide. SWIFT is also the messaging hub for a growing number of high-value payment systems, securities infrastructures and foreign exchange settlement systems. These market infrastructures need a trusted third party to provide secure, reliable and proven messaging solutions to their diverse users. Banks and regulators are turning to SWIFT to fulfil that role. Trust is also essential when trading over the Internet. SWIFT's standardised web-based products enable financial institutions to offer trust services and e-payments to corporate customers active in B2B e-commerce.
SWIFT's trusted third-party status extends beyond market infrastructures and the Internet. The international nature of our shareholders and our industry-owned co-operative structure have helped us to shape best practice in the financial industry and act as a forum to advance critical dialogue on industry-level issues and opportunities.

SWIFT and Global Crossing form strategic partnership to deliver global IP-virtual private network to worldwide financial community

Partnership to speed delivery of SWIFTNet services to financial institutions

News release - BRUSSELS, 6 February 2001

SWIFT announced today that it has entered into an agreement to sub-contract its network operations to Global Crossing (NYSE: GX). The partnership, which is worth a minimum of 300 Million USD in revenue to Global Crossing, enables SWIFT to sharpen its focus on messaging services, transaction processing and standards setting while at the same time ensuring a more robust offering for its member-customers.

The partnership leverages the expertise and scale of Global Crossing to achieve the highest levels of availability, reliability and security for SWIFT's IP network while delivering lower costs and faster time to market.

Under the terms of the agreement, Global Crossing will manage the development and operation of SWIFT's Secure IP Network (SIPN) infrastructure, which will become a Virtual Private Network (VPN) within Global Crossing's existing IP extranet infrastructure. Global Crossing will also assume responsibility for maintaining SWIFT's current X.25 network, which over time will be replaced by the SIPN to provide a seamless and unified network to support SWIFT's global products and services.

Spurred by the financial industry's need for reduced costs and increased operational efficiency and Straight Through Processing (STP), the partnership between SWIFT and Global Crossing will enable the two companies to co-market, through a channel sales agreement, a broader range of networking services to SWIFT's customer base. Taking the single-window access model that underpins its SWIFTNet services one step further, SWIFT will now be able to provide its customers with a one-stop-shop for local loop access and managed customer premises equipment end-to-end, as well as broadband, Internet and VPN services.

"A key operations goal for SWIFT is to deliver secure, high-quality solutions to our customers as quickly as possible," said Joe Eng, SWIFT's Chief Information Officer. "Under this unique partnership arrangement, SWIFT will co-design, co-implement, co-test, and co-manage the network with Global Crossing, but our customers will continue to have a single provider, a single network and a single point of contact. It's a win-win-win situation."

"We are excited about working with SWIFT and its community," said Global Crossing's President, David Walsh. "We share a common vision with SWIFT to be the leading provider of global financial communications solutions. The combination of our unmatched fiber-optic network, our proven expertise in meeting the needs of the financial services industry, and now this extraordinary SWIFT opportunity, clearly signals our leadership in providing large scale, fully-managed intelligent IP communications networks."

SWIFT CEO Leonard H. Schrank stated that: "This partnership enables SWIFT to move up its value chain to focus on messaging for value-added financial applications. At the same time, we gain the scale and scope of Global Crossing's global fibre-optic network. Our focus will now be on SWIFTNet messaging for financial institutions, market infrastructures, and on end-to-end non-repudiation messaging services over the Internet."

"This partnership represents a perfect strategic fit," said Tom Casey, CEO of Global Crossing. "We've built the world's first global fiber-optic network precisely to serve institutions like SWIFT, who understand and are leveraging the power of IP technologies to run and grow mission-critical, global businesses."

"For SWIFT, partnering with Global Crossing means they can concentrate on their core messaging offering," said Tom Casey, CEO of Global Crossing. "For Global Crossing, this opens up tremendous opportunities to deploy our unmatched optical fiber assets and managed solutions capabilities to the world's financial institutions. Together, we will enable the changes that will open up new opportunities for members of the financial community to interact more efficiently and effectively than ever."

For further information please contact the SWIFT press office or the Global Crossing press office:

Swift link Here

More to follow...

Posted on SWIFT's website six days before bankruptcy filed.

22 January 2002

Global Crossing status

SWIFT CEO Leonard H. Schrank presents the latest status of our network partner, Global Crossing, and the contingencies SWIFT has in place to ensure absolute network continuity. As the global provider of mission critical messaging solutions to the financial industry, SWIFT is focused on and dedicated to business and operational continuity. The availability of our services and the network solutions that underlie them is of the utmost importance to everybody at SWIFT and is fundamental to our mission.

Some of you have recently contacted SWIFT about the status of our network partner, Global Crossing. You may have seen coverage in the newspapers speculating on how Global Crossing will manage its financial situation. I am writing to you today to summarise the status of our partnership with Global Crossing, to explain the current network configurations, and to cover the contingencies that are in place to guarantee, for any eventuality, the absolute continuity of network service to all SWIFT users.

SWIFT's subcontract to Global Crossing and contingency arrangements

"SWIFT has implemented a range of contingencies that ensure the continuity, security, and reliability of its network offering will never be compromised."

SWIFT has subcontracted its two networks to Global Crossing--X.25 and SIPN. In its initial stage Global Crossing's role is to 'operate' the existing networks on behalf of SWIFT. In subsequent phases, Global Crossing will enhance the backbone SIPN network and, eventually, dismantle our X.25 network once all users have migrated to SIPN. These phases are independent and will be driven exclusively by SWIFT in terms of scope and timing. Let me be more precise.

X.25:
All SWIFT's FIN store and forward messaging traffic runs on our X.25 network. As part of our comprehensive agreement, the network was transferred, as is, to Global Crossing including all our SWIFT Access Points (SAPs), circuits, and certain of SWIFT's network operators. The operators remain in their SWIFT facilities at our SWIFT operations centres in US and the Netherlands. SWIFT and Global Crossing have a framework in place to enable SWIFT to resume ownership and control of the network assets, and assume full responsibility for the X.25 service, should this be necessary. No additional contingencies are required on your part.

SIPN:
SWIFT's Secure IP Network (SIPN) was also transferred, as is, to Global Crossing, including our Points of Presence (POPs), circuits and the same SWIFT network operators as with our X.25 network. The same framework to resume ownership and control, which ensures network continuity for our X.25 network, applies for SIPN as well.

Today, SWIFTNet users are connected to SWIFT in multiple ways:

a) Directly to SIPN.
b) Indirectly to SIPN via Global Crossing's Frame Relay network.
c) Indirectly to SIPN via other access networks. Our original plans allowed for this to complement Global Crossing's network with additional geographic coverage.

In all cases, your contractual relationship is with SWIFT and involves a specific 'connectivity pack' including a line provided by a local carrier.

Until the situation with Global Crossing clarifies, we will be providing all users currently connected to SIPN via (b) with a back-up connection via (a) or (c) as appropriate. We will be contacting the few affected users this week to arrange for installation of this backup line. Once this is done, the necessary contingencies will be in place.

A note on recent media speculation about Global Crossing

"From an operational perspective, the partnership is progressing to plan. Operational service, provided by Global Crossing has been excellent."

You may have seen conjecture in the newspapers on how Global Crossing might manage its debt load. Some journalists have suggested that Global Crossing may pursue reorganisation of its balance sheet through the US court system. One of the alternatives available to businesses in the US includes 'Chapter 11', which allows companies to freeze their debt and continue to operate without interruption while the courts determine an orderly settlement of claims.

We are fully confident that the contingencies we have presented guarantee 100% continuity of service should Global Crossing choose any number of restructuring alternatives. SWIFT of course will keep you informed of any developments in this area, and will take all steps necessary to ensure SWIFT services continue to be provided in a seamless and smooth manner per our above contingencies.

Drivers for our network partnership

From an operational perspective, the partnership is progressing to plan. Operational service, provided by Global Crossing has been excellent.

SWIFT's partnership with Global Crossing continues to be driven as follows:

1) Enhanced network functionality - SWIFT and Global Crossing are working together to co-design, co-test, co-implement and co-manage a new IP network based on Global Crossing's worldwide fibre optic network infrastructure and SWIFT's rigorous standards for security, reliability, and quality of service. Our current Secure IP Network (SIPN) will ultimately evolve into this new network.
2) Lower unit costs - At the same time SWIFT will accrue significant cost savings by benefiting from Global Crossing's worldwide scope and scale. These savings are passed on to our users via lower overall messaging prices.
3) Faster roll-out - The delivery of SWIFTNet services and the deployment of SWIFTNet FIN will also be accelerated by the partnership. This will enable SWIFT to provide end to end oversight and services from the deployment and management, at your customer premises, of interfaces and telecommunications equipment right through to our operating centres.

Conclusion

"...continuity of service at the highest levels of security and reliability are paramount."

SWIFT is deeply involved in its IP network design and stands ready to assume control of both its X.25 and SIPN networks, should it be required. Your continuity of service at the highest levels of security and reliability are paramount. We are also monitoring the Global Crossing situation very carefully and are aware of their efforts to improve their financial situation and succeed with their vision. SWIFT has implemented a range of contingencies that ensure the continuity, security, and reliability of its network offering will never be compromised.

We hope you have found this briefing helpful, and we will keep you informed of further developments.

Leonard H. Schrank CEO, SWIFT

Sounds like insider trading to me...

Statement from John Legere shortly after he and Gary Winnick wiped out all preferred and common shares of Global Crossing.

Global Crossing says corporate sales accelerating

January 28, 2002 3:05:00 PM ET

PHILADELPHIA, Jan 28 (Reuters) - Global Crossing Ltd. (GX), which filed for bankruptcy protection on Monday, said sales to corporate customers accelerated despite intense competition and Wall Street concerns about the financial health of the high-speed communications services company.

"When we announce Q4 results, you'll see we continue to have a very successful enterprise (corporate customer) business, and that in Q1, we're actually accelerating that," Global Crossing Chief Executive John Legere said in a telephone interview. Global Crossing plans to release its fourth-quarter results on February 26.

"Going into January, the rate of business being closed is accelerated over the closure rate of 2001," Legere said. Global Crossing signed $2 billion, based on total contract value, of new sales to corporate customers in 2001, he said.

In order to win new contracts in the fourth quarter, Legere said he and other top Global Crossing executives had to speak to many customers personally to reassure them about the viability of the company, and explain the restructuring efforts.

Hamilton, Bermuda-based Global Crossing filed for bankruptcy protection on Monday as business partners in Asia agreed to pay $750 million in cash to assume control of the company. The exact terms of the pact with Hutchison Whampoa Ltd. and Singapore Technologies Telemedia Pte. were not disclosed.

Global Crossing, the latest telecommunications upstart to reorganize, struggled with the debt incurred from building its global network, which links more than 200 major cities in 27 countries. The one-time Wall Street darling suffered further from a glut of fiber-optic network capacity, slack demand, and declining rates for voice and data transmission services, particularly on its undersea routes. REUTERS

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