HONG KONG, June 27, 2001 - Level 3 Communications Limited, a subsidiary of Level 3 Communications, Inc. (Nasdaq: LVLT), today announced that it has activated the first leg of the North Asian Loop undersea cable system connecting Hong Kong and Japan. 


"The activation of our new undersea fiber-optic cable system between Hong Kong and Japan underscores Level 3's commitment to providing the most cost- effective broadband services to carriers and other communications companies in key Asian Internet markets," said Steve Liddell,CEO of Level 3 Asia. "The new cable links to the Japan-US cable network and Level 3's extensive network in the United States and Europe, providing seamless, end-to-end connectivity to major destinations around the world." 

Level 3's North Asian cable system offers a maximum capacity of 1.3 terabits per second on its Hong Kong to Japan leg, and 1.9 terabits on the second leg linking Japan, Korea and Hong Kong. 

The Hong Kong to Japan segment is part of the North Asian cable system, which is jointly owned by Level 3 and FLAG Telecom. Following the activation of services in Hong Kong and Japan, Level 3 expects to extend service into Taiwan in the first quarter of 2002 and in Korea in the second quarter of 2002. Cable landings in Taiwan at Toucheng and Pusan, Korea, are expected to take place later this year, providing a fully redundant loop system in 2002. 

Using the latest Dense Wavelength Division Multiplexing (DWDM) technology, Level 3's cable system offers an optimum combination of low unit costs today and upgrade capability in the future. The new cable offers customers a range of products, from a DS-3 circuit to 10 Gbps wavelengths, the largest capacity unit currently available on the market. Level 3 also offers IP services on the cable, including STM-4 circuits -- the first STM-4 international private lines for the Internet in Hong Kong. 

"The North Asian cable system is a key component of Level 3's global IP infrastructure," said Liddell. "Our customers will have end-to-end connectivity over Level 3's global network, which essentially means higher capacity at lower cost, better performance and faster service provisioning for our customers." 

Level 3 currently operates an 80,000 square-foot data center in Hong Kong and a 63,000 square-foot data center in Tokyo. A suite of IP-enabled services is also available in these two markets.