Comsat International acquires CCI

Expands in Mexico and into Central America and the Dominican Republic

Comsat International Inc. announced that it has acquired Florida-based Convergence Communications Inc. (CCI) and its wholly-owned subsidiaries GBnet Corporation and Convergence Communications S.A. de C.V. (Convergence), which provide broadband access, Internet, and data solutions throughout Central America, the Dominican Republic, and Mexico. Under the terms of the agreement, Comsat will acquire more than 90 percent of the outstanding shares of CCI.

The extensive fiber and satellite coverage of Comsat--combined with GBnet's and Convergence's strong presence in Central America, the Dominican Republic, and Mexico--will further enhance Comsat's position as the leading alternative full-service provider in the Americas. GBnet and Convergence, like Comsat, focus on custom communications solutions for enterprises that combine broadband access for Internet, data, VoIP, and video applications throughout the region. GBnet had once been the Central American portion of IBM's worldwide value-added network, "IBM Global Network." Convergence was started as an alternate pan-Mexico

data communications provider with last-mile connectivity.

The GBnet and Convergence local fiber optic networks in Panama City, Panama, and in Mexico City and Monterrey, Mexico, will add to Comsat's base of local or "last-mile" assets, complementing Comsat's extensive pan-regional long-haul fiber and satellite networks. Comsat's customers will also benefit from GBnet's and Convergence's broad array of service offerings of high speed access technologies, Internet, and data services and a suite of managed Virtual Private Networks (VPNs) and VoIP offerings.

"We are delighted with this acquisition," said George Kappaz, CEO of Comsat. "GBnet and Convergence will be very complimentary to Comsat's Latin American operations, and will expand our base of network, services and customers across the region. The Central American markets served by GBnet are very important to Comsat. Our unique ability to provide seamless terrestrial, wireless and satellite communications solutions across the region to our customers will be greatly enhanced with this acquisition." He added, "The transaction will also give us important 'last mile' fiber-optic connectivity in three major metropolitan markets, enabling us to more cost-effectively serve our customers seamlessly."

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