Viatel Closes Multi Million Euro Network Deal with Global Voice

London, July 13th, 2006:

Viatel Holding (Bermuda) Limited, the pan-European provider of advanced data and IP communications services, is pleased to announce that it has closed a deal to sell part of its European long haul network to Global Voice Group Limited (GVG).

Through this innovative transaction Viatel has enhanced its network with metro fibre, received immediate cash benefit and an ongoing contribution to its network operating costs. In exchange Viatel has disposed of assets that were unused or surplus to the company needs.

Under the transaction, Viatel received:

• An upfront cash payment of 18.5m Euros on closing
• 5 pairs of metro fibre in each of 7 European cities, Amsterdam, Utrecht, Rotterdam, Frankfurt, Hamburg and Düsseldorf and London - totalling over 750 route kilometres, and
• Preferential pricing for up to 2 additional fibres and building access.

In turn, GVG will acquire approximately 40% of Viatel's existing backbone network assets through an effective 100-year lease with an option to acquire ownership of the assets at a date to be agreed.

After an initial period of one year, GVG will also contribute 50% per year in respect of the network's operating costs. In addition, GVG and Viatel may enter into a 50/50 JV company to acquire new equipment, as and when required, for the purpose of adding "state of the art" transmission equipment to the network.

Through this deal Viatel will be combining ownership of an advanced fibre optic backbone network with metro fibre reach into major business districts. Viatel will now be able to offer its business customers managed IP network services and Voice over IP direct to their premises without being dependent on local third party suppliers.

Viatel's CEO, Lucy Woods said; "This is an exciting deal for Viatel; our revenue growth has been strong, and with this additional network reach and substantial contribution to our network costs, we will have a platform to extend our addressable market and further improve our services to customers."

Note:

This will add to Viatel's infrastructure which currently consists of:

• A 6,800 kilometre pan-European fibre network connecting Germany, France, Belgium, Holland, Switzerland and the UK, built at a cost of 1.2 billion Euros
• Two undersea cross-channel cables linking Continental Europe to the UK
• Metropolitan fibre network infrastructure in each of Paris, London and Frankfurt

About Viatel

Viatel is a pan-European business communications company operating across 6 European markets, including the UK, France and Germany. It has more than 10,000 business customers, providing them a range of business communication services that help companies of all sizes to access the internet, connect their people and places, manage their web applications and increase the security of their data. The company is headed by Lucy Woods, formerly CEO BT Northern Ireland.

For further information on Viatel, please visit:

www.viatel.com

For further information please call:

Ana Williams on +44 (0)207 357 8612

---