Global Crossing Buys 49 Percent of Chinese Cable Company

Global Crossing
has acquired a 49 per cent share of S.B. Submarine Systems Company (SBSS)
from Great Eastern Telecommunications (GET), a joint venture of Cable
& Wireless and Hong Kong Telecom.

Global Crossing, which is building the world’s most advanced global
IP-based fibre optic network, reached agreement with China
Telecommunications, the majority partner in SBSS to acquire the
stake.

Established in 1995, SBSS provides installation and maintenance of
submarine cable systems, operates two cableships and has berths and
a cable depot in Shanghai. It has annual revenue over $50 million.

“We are delighted that China Telecom has agreed to continue this
relationship and allow Global Crossing to acquire the GET share
holding in SBSS,” said William B. Carter, president of Global
Crossing Development Company and chairman of Global Marine Systems.

“When we at Global Crossing acquired Global Marine Systems earlier
this year, we were hopeful that we could sustain the relationship
and support of China Telecom. This agreement ensures that SBSS
will get the continued support in training and technology transfer
it needs to keep up with the dramatic growth in Asia’s telecommunications
industry.”

Despite this divestment by Cable & Wireless, the UK remains
the sixth largest global investor in China, with investments
of $13 billion by the end of 1998. British companies are
involved in more than 2000 joint ventures with China.