Florham Park, N.J. - May 7, 2008 -- Global Crossing (NASDAQ: GLBC), a leading global IP solutions provider, today reported its unaudited consolidated financial and operational results for the first quarter of 2008.

Summary
Global Crossing's consolidated revenue grew 25 percent year over year to $630 million for the first quarter of 2008, and adjusted gross margin was $331 million or 53 percent of revenue. "Invest and grow" revenue increased 36 percent year over year to $517 million. Adjusted cash EBITDA was $67 million, and the company generated $25 million in cash from operating activities. Adjusted cash EBITDA and adjusted gross margin are non-GAAP measures which are defined and reconciled below.

"Our results for the first quarter mark a solid start to 2008. We delivered healthy growth in revenues and the third consecutive quarter of positive adjusted cash EBITDA in all segments," said John Legere, Global Crossing's chief executive officer. "Our performance demonstrates the execution of our strategy and focus on continued growth."

Revenue and Margin
Global Crossing's consolidated revenue grew for the eighth consecutive quarter. For the first quarter of 2008, total consolidated revenue reached $630 million, compared with $616 million in the fourth quarter of 2007 and $504 million in the first quarter of 2007. The company's "invest and grow" category - namely that part of the business focused on serving global enterprises and carrier customers excluding wholesale voice - generated revenue of $517 million for the first quarter, an increase of $13 million or 3 percent sequentially and an increase of $136 million or 36 percent year over year. The sequential growth in "invest and grow" revenue was attributable to continued growth of core services in Global Crossing's "rest of world" (ROW) and GC Impsat segments.

The company's ROW segment reported $278 million of "invest and grow" revenue, an improvement of $11 million or 4 percent sequentially and $38 million or 16 percent on a year-over-year basis. The company's GCUK segment reported $150 million in "invest and grow" revenue, a sequential decrease of $1 million and an increase of $9 million or 6 percent on a year-over-year basis. Excluding currency fluctuations, GCUK experienced sequential revenue growth of $4 million. GC Impsat generated "invest and grow" revenue of $95 million, a sequential increase of $4 million or 4 percent.

Global Crossing's wholesale voice business was stable and generated $112 million of revenue in the quarter, which was an increase of $1 million compared to the fourth quarter of 2007 and a decrease of $10 million year over year.

The company continued to see robust order levels with an average monthly order volume of $4.1 million for the first three months of 2008, an increase over 2007 order levels.

For the first quarter, Global Crossing reported consolidated adjusted gross margin of $331 million or 53 percent of revenue. This compares with $323 million or 52 percent in the fourth quarter of 2007 and $220 million or 44 percent in the first quarter of 2007. The company's "invest and grow" business generated $314 million of adjusted gross margin in the first quarter or 61 percent of revenue. This compares with "invest and grow" adjusted gross margin of $305 million or 61 percent in the fourth quarter of 2007 and $207 million or 54 percent in the first quarter of 2007.

Costs
Cost of access expense for the first quarter was $299 million, compared with $293 million for the fourth quarter of 2007 and $284 million for the first quarter of 2007. Cost of access expense increased by $6 million on a sequential basis, compared with incremental consolidated revenue of $14 million.

Cost of revenue -- which includes cost of access; technical real estate, network and operations; third party maintenance; and cost of equipment sales -- increased to $453 million in the first quarter, compared with $436 million in the fourth quarter of 2007 and $421 million in the first quarter of 2007. Without GC Impsat, cost of revenue would have declined $14 million on a year-over-year basis. Excluding cost of access, cost of revenue would have been $154 million in the first quarter, compared with $143 million in the fourth quarter of 2007 and $137 million in the first quarter of 2007. The sequential increase in these costs resulted primarily from the annual resetting of the annual bonus program accrual to target levels and higher facility operating costs resulting from the company's decision to convert idle real estate into productive operating assets in connection with the establishment of the company's European collocation business.

Sales, general and administrative (SG&A) expenses were $132 million in the quarter, compared with $84 million in the fourth quarter of 2007 and $106 million in the first quarter of 2007. The fourth quarter of 2007 included a net $30 million non-cash benefit as a result of a restructuring reserve release related to the company's decision to convert idle real estate into productive assets as noted above. Excluding the impact of this $30 million non-cash benefit, the remaining sequential increase in the first quarter of 2008 was due to a combination of the annual resetting of the annual bonus program accruals to target levels, increased salary expense resulting from the sales force augmentation, and increased labor-related benefit costs associated with the annual resetting of certain benefit program contribution levels. The year-over-year increase was attributable to the acquisition of GC Impsat. Excluding GC Impsat, SG&A would have declined $5 million on a year-over-year basis.

Earnings
Global Crossing reported adjusted cash EBITDA of $67 million in the first quarter of 2008, compared with $100 million in the prior quarter and a loss of $8 million in the first quarter of 2007.

Adjusted cash EBITDA in the fourth quarter of 2007 included a benefit of $30 million relating to the above described real estate reserve release, which benefited the ROW segment. Excluding the $30 million non-cash benefit, the remaining sequential decline in adjusted cash EBITDA was primarily due to higher facility operating costs associated with the company's decision to convert idle real estate into productive operating assets as noted above, increased salary expense resulting from the sales force augmentation, and increased labor-related benefit costs associated with the annual resetting of certain benefit program contribution levels.

For the third consecutive quarter, all segments reported positive adjusted cash EBITDA. On a segment basis, the ROW, GCUK and GC Impsat segments generated $6 million, $38 million and $23 million of adjusted cash EBITDA, respectively, in the first quarter of 2008.

Global Crossing's consolidated net loss applicable to common shareholders was $70 million for the first quarter of 2008, compared with net income of $1 million in the fourth quarter of 2007 and a net loss of $121 million in the first quarter of 2007. Net income in the fourth quarter of 2007 included a $30 million non-cash benefit relating to the real estate reserve release as noted above and a $31 million net gain on pre-confirmation contingencies. Excluding these fourth quarter movements, the remaining sequential decline in net income was primarily due to an increase in stock-based compensation costs resulting from the annual resetting of the annual bonus program accrual to target levels.

Cash and Liquidity
As of March 31, 2008, Global Crossing had $420 million of cash and cash equivalents, including $58 million of restricted cash and cash equivalents.

Cash flow provided by operating activities for the first quarter was $25 million, including $26 million in cash interest paid and $31 million in proceeds from the sale of indefeasible rights of use (IRUs) and prepaid services in the first quarter. The company used $59 million for capital expenditures and principal payments on capital leases and long-term debt. The company's net decrease in cash and cash equivalents in the first quarter was $35 million.

Note regarding contributions from GC Impsat:
Global Crossing acquired Impsat Fiber Networks on May 9, 2007. Financial results for the first quarter of 2007 do not include contributions from GC Impsat. References made to segment revenue and costs are gross of intersegment eliminations as reported in the attached financial tables.

Guidance
The following table is provided for informational purposes only and represents the company's 2008 guidance as provided on March 12, 2008.

Metric - $ in millions 2008 Guidance
Revenue $2,570 - $2,675
Adjusted Cash EBITDA $320 - $380
Cash Use ($85) - ($35)

Non-GAAP Metrics
Pursuant to the Securities and Exchange Commission's (SEC's) Regulation G, the attached schedules include definitions of Global Crossing's adjusted cash EBITDA and adjusted gross margin measures, as well as reconciliations of such measures to the most directly comparable financial measures calculated and presented in accordance with U.S. Generally Accepted Accounting Principles (U.S. GAAP).

Conference Call
The company will hold a conference call on Thursday, May 8, 2008 at 9:00 a.m. EDT to discuss its financial results. The call may be accessed by dialing +1 212 271 4606 or +44 (0) 870 001 3120. Callers are advised to access the call 15 minutes prior to the start time. A Webcast with presentation slides will be available at investors.globalcrossing.com/events.cfm.

A replay of the call will be available on Thursday, May 8, 2008 beginning at 11:00 a.m. EDT and will be accessible until Thursday, May 15, 2008 at 11:00 a.m. EDT. To access the replay, North American callers should dial +1 402 977 9140 or +1 800 633 8284 and enter reservation number 21382146. Callers in the United Kingdom should dial +44 (0) 870 000 3081 or +44 (0) 800 692 0831 and enter reservation number 21382146.

ABOUT GLOBAL CROSSING
Global Crossing (NASDAQ: GLBC) provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects approximately 390 cities in more than 30 countries worldwide, and delivers services to approximately 690 cities in more than 60 countries and 6 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide.

Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e-commerce to thrive. The company offers a full range of data, voice and security products to approximately 40 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs. Its Professional Services and Managed Solutions provide VoIP, security and network consulting and management services to support its Global Crossing IP VPN service and Global Crossing VoIP services. Global Crossing was the first global communications provider with IPv6 natively deployed in both its private and public backbone networks.

Please visit www.globalcrossing.com or blogs.globalcrossing.com for more information about Global Crossing.