TLGB Teleglobe International Holdings Ltd. - Common Shares (MM)

Teleglobe International Holdings Ltd (NASDAQ:TLGB), a leading provider of international telecommunications services to Internet service providers, fixed and mobile network operators, today announced that the company has established an agreement with IP Fjarskipti (IPF), a leading edge Internet service provider (ISP) in Iceland, for dedicated international access to Teleglobe's IP backbone. IPF retail customers now receive reliable, high-speed Internet connectivity from Teleglobe at a competitive cost. Under the agreement, Teleglobe provides IPF with dedicated IP access to Teleglobe's robust tier one Internet backbone, which directly connects to over 90 countries. Teleglobe owns and operates one of the most extensive global telecommunications networks and is a leading provider of IP Transit to carriers and ISPs around the world. IPF is a new generation network provider in Iceland that provides triple play services (voice, video and data) over its own ADSL2+ network covering 65% of the Icelandic population. "Teleglobe has come through for IPF as a reliable provider of international bandwidth for our demanding customers," said Arnthor Halldorsson, CEO of IPF. "We are very pleased with Teleglobe's dedication to service and support and we view them as a vital partner in our quest to establish IPF as a leading provider of triple play services to the Icelandic public." "We are pleased to enable IPF to meet Iceland's growing demand for high-speed Internet connectivity," said Michel Guyot, vice president of international markets at Teleglobe. "IPF is committed to delivering the latest available technologies to their customers and has laid the foundation for future IP services." Dedicated international access to the Teleglobe IP backbone is available from virtually any country at bandwidth speeds from 64 Kbps to 10Gbps. Carriers, and ISPs can connect to the Teleglobe Internet backbone using access alternatives such as satellite or cable, leased line or local loop, Ethernet. Teleglobe's global IP network supports a wide variety of advanced data and IP services including global IP transit, international private leased circuits (IPLs), bandwidth capacity, and broadcast services. Teleglobe has ownership in over 100 subsea and terrestrial cable systems and has access to over 40 teleport antennas and transponder capacity serving the Atlantic, Pacific, and Indian Oceans. Teleglobe is a global Tier 1 Internet service provider (ISP) and operates the IP backbone AS 6453 which circles the globe. Our MPLS-enabled IP network connects more than 90 countries to the Internet and is supporting IPv6, the new generation IP protocol. About IP Fjarskipti: IP Fjarskipti (IPF), a privately held triple play operator focusing on the emerging market for digital services for the home, was founded in September of 2004. The company enables triple play services (video, voice, data) over an ADSL2+ and WiFi/home network infrastructure, manages PC-based infrastructure in the home (purposing, provisioning, monitoring), and provides technical support (first line of defence) and billing for third party services. The service is marketed as "HIVE", and the brand is currently targeted at the younger generation (18-30 year olds). The HIVE service website is at www.hive.is. About Teleglobe: Teleglobe International Holdings Ltd is a leading provider of international voice, data, Internet and mobile roaming services with over 50 years of industry expertise in international telecommunications. Teleglobe became a public company trading on the Nasdaq under the symbol TLGB with the acquisition of Voice over IP (VoIP) network leader ITXC Corp. on June 1, 2004. Teleglobe owns and operates one of the world's most extensive telecommunications networks, reaching over 240 countries and territories with advanced voice, mobile, and data services. Teleglobe is the carrier of choice to more than 1,200 wholesale customers representing the world's leading telecommunications, mobile operators and Internet service providers. With an annual run-rate of over 13 billion minutes, and a significant portion of the world's Internet traffic, Teleglobe's network is consistently ranked among the most robust and reliable, performing at the high end of industry standards. Detailed information about Teleglobe is available on the company's web site at www.teleglobe.com. Forward-looking Statements Teleglobe has included in this press release forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including all statements concerning future or expected events or results. Actual results could differ materially from those projected in the companies' forward-looking statements due to numerous known and unknown risks and uncertainties, including, among other things, the risks and uncertainties described in the Form 10-K filed by Teleglobe on March 17, 2005.