ASIA GLOBAL CROSSING LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share data) Quarter Ended Nine Months Ended September 30 September 30 2000 1999 2000 1999 REVENUE $21,775 $-- $130,455 $-- EXPENSES: Cost of sales 13,344 -- 98,194 -- Operations, administrative and maintenance 12,301 -- 36,499 -- Sales and marketing 1,193 -- 3,021 -- Network development 1,484 -- 2,497 -- General and administrative 15,375 66 30,310 66 Depreciation and amortization 5,513 -- 13,539 -- Total operating expenses 49,210 66 184,060 66 Operating income (loss) (27,435) (66) (53,605) (66) MINORITY INTEREST 2,486 -- (9,632) -- OTHER INCOME (EXPENSE): Equity in income (loss) of affiliates -- (804) -- (3,199) Interest income 3,236 3,306 11,427 8,745 Interest expense (463) -- (1,551) -- Other expense 229 -- (76) -- Total other income (expense) 3,002 2,502 9,800 5,546 INCOME (LOSS) BEFORE INCOME TAXES (21,947) 2,436 (53,437) 5,480 INCOME TAXES (1,353) -- (1,353) -- NET INCOME (LOSS) $(23,300) $2,436 $(54,790) $5,480 INCOME (LOSS) PER COMMON SHARE: Income (loss) applicable to common shareholders - basic and diluted $(0.05) $0.01 $(0.12) $0.01 Shares used in computing income (loss) per share - basic and diluted (1) 450,000,000 450,000,000 450,000,000 450,000,000 (1) In October 2000, the Company completed a 375 for 1 stock split. All the shares and per share information have been adjusted to reflect the split retroactively. ASIA GLOBAL CROSSING LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) September 30, 2000 December 31, 1999 (Unaudited) ASSETS: Current assets Cash and cash equivalents $103,782 $9,784 Restricted cash and cash equivalents 57,271 -- Accounts receivable, net 24,480 -- Receivable from affiliates 88,561 89,735 Other assets 15,423 1,170 Total current assets 289,517 100,689 Restricted cash and cash equivalents 18,462 138,118 Property and equipment, net 1,685,272 101,598 Deferred finance fees, net 21,969 -- Other assets 39,401 -- Investments in affiliate -- 263,438 Total assets $2,054,621 $603,843 LIABILITIES: Current liabilities Accrued construction costs $230,699 $-- Accounts payable and accrued liabilities 16,472 1,131 Deferred revenue 5,103 -- Payable to affiliates 21,909 101,402 Total current liabilities 274,183 102,533 Long-term debt 750,000 -- Long-term deferred revenue 142,681 -- Other long-term liabilities 1,421 -- Loan payable to affiliate 9,780 -- Total liabilities 1,178,065 102,533 Minority interest 150,026 -- SHAREHOLDERS' EQUITY: Common stock 12 12 Additional paid-in capital 758,173 478,141 Retained earnings (accumulated deficit) (31,634) 23,157 Cumulative translation adjustment (21) -- 726,530 501,310 Total liabilities and shareholders' equity $2,054,621 $603,843 ASIA GLOBAL CROSSING LTD. AND SUBSIDIARIES SIGNIFICANT JOINT VENTURE INVESTMENTS (PRO FORMA) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands) Quarter Ended Nine Months Ended Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2000 1999 2000 1999 PACIFIC CROSSING LTD. Revenue $17,838 $-- $125,388 $-- Operating income (loss) (6,606) (2,789) 26,953 (4,425) Net income (loss) $(6,241) $(3,393) $27,875 $(7,541) GLOBAL ACCESS LIMITED (1) Revenue $6,936 $-- $15,024 $-- Operating income (loss) (4,253) (2,904) (11,673) (7,430) Net income (loss) $(4,996) $(2,933) $(13,123) $(7,457) HUTCHISON GLOBAL CROSSING HOLDINGS LIMITED AND SUBSIDIARIES (1) Revenue $32,192 $28,638 $91,987 $79,170 Operating income (loss) (10,360) (8,070) (27,531) (19,731) Net income (loss) $(10,693) $(9,872) $(27,510) $(24,518) (1) Concurrent to the Company's initial public offering in October 2000, Global Crossing contributed its ownership interest in Global Access Limited and Hutchison Global Crossing to the Company. The reported results of the third quarter 2000 do not include these joint ventures. ASIA GLOBAL CROSSING LTD. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL AND OPERATING DATA (Unaudited) (In thousands, except share and per share data) Quarter Ended Nine Months Ended September 30 September 30 2000 1999 2000 1999 Revenue $21,775 $-- $130,455 $-- Pro forma Proportionate Cash Revenue 57,652 14,319 208,599 39,585 Pro forma Proportionate Adjusted EBITDA 9,011 (5,593) 86,617 (11,663) Pro forma Group Customer Cash Revenue 125,220 28,638 418,749 79,170 Cash paid for capital expenditure $183,040 $12,000 $450,870 $12,000 Revenue: Sales-Type Leases $16,983 $-- $122,344 $-- Services 2,229 -- 2,751 -- Operations, administrative and maintenance 2,563 -- 5,360 -- Total Revenue $21,775 $-- $130,455 $-- Adjusted EBITDA: Operating income (loss) $(27,435) $(66) $(53,605) $(66) Depreciation and amortization 5,513 -- 13,539 -- Non-cash cost of capacity sold 13,344 -- 98,194 -- Incremental cash deferred revenue 50,791 -- 116,904 -- Adjusted EBITDA $42,213 $(66) $175,032 $(66) Pro forma Proportionate Cash Revenue (1): Pro forma Cash Revenue $72,566 $-- $247,359 $-- Pro forma minority interest in Cash Revenue (11,217) -- (56,434) -- Pro forma proportionate Cash Revenue from non-consolidated joint ventures 23,612 14,319 100,255 39,585 Pro forma elimination adjustments with affiliates (2) (2,309) -- (42,781) -- Pro forma incremental cash deferred revenue from payments for non-specific capacity (3) (25,000) -- (39,800) -- Pro forma Proportionate Cash Revenue $57,652 $14,319 $208,599 $39,585 Pro forma Proportionate Adjusted EBITDA (1): Pro forma Adjusted EBITDA $42,213 $(2,855) $175,032 $(4,491) Pro forma minority interest in Adjusted EBITDA (6,382) 990 (42,493) 1,571 Pro forma proportionate Adjusted EBITDA from non-consolidated joint ventures 489 (3,728) 36,659 (8,743) Pro forma elimination adjustments with affiliates (2) (2,309) -- (42,781) -- Pro forma incremental cash deferred revenue from payments for non-specific capacity (3) (25,000) -- (39,800) -- Pro forma Proportionate Adjusted EBITDA $9,011 $(5,593) $86,617 $(11,663) (1) The pro forma amounts assume that the consolidation of Pacific Crossing Ltd., and the contribution of Global Crossing's ownership interest in Hutchison Global Crossing and Global Access Limited occurred as of the earliest period presented. (2) Affiliates subject to elimination include Global Crossing, Hutchison Global Crossing, Global Access Limited, GlobalCenter Japan, and Pacific Crossing Ltd. (3) Incremental cash deferred revenue from payments for non-specific capacity is excluded from the calculation of Proportionate Adjusted EBITDA and Proportionate Cash Revenue until customers determine the specific traffic connections related to the prepaid capacity.SOURCE: Asia Global Crossing CONTACT: investors, Jensen Chow, Los Angeles, of Asia Global Crossing, 310-385-5283, [email protected]; or press, Kim Polan of Citigate Sard Verbinnen, New York, New York, 212-687-8080, [email protected], for Asia Global Crossing. Photo: Newscom: http://www.newscom.com/cgi-bin/prnh/20001004/ASIALOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, 888-776-6555 or 201-369-3467. (Website: http://www.asiaglobalcrossing.com/)AGCX MSFT GX End.