HAMILTON, Bermuda –January 15th, 2003 - FLAG Telecom Group Limited (OTC: FTGLF), (“FLAG”), today announced that together with local partner National Telecom Company (NTC) it has completed the Cairo Regional Internet Exchange (CR-IX), the new Internet Exchange in Cairo, Egypt. This collaboration with NTC is the first of its kind in the region, offering Internet Service Providers (“ISPs”) interconnections to freely exchange domestic Internet traffic. The availability of local peering will deliver substantial benefits to business and residential users in Egypt – promising better responsiveness, improved quality, greater reliability and lower costs. The Internet exchange is now fully operational, extending FLAG’s offering to ISPs and carriers in the region with the addition of a domestic peering capability to the global IP, Ethernet and bandwidth services offered jointly with Telecom Egypt.The exchange was officially inaugurated in Cairo on 18th December, 2002 by H. E. Dr. Ahmed Nazif, Minister of Communications & Information Technology in Egypt. The ceremony was attended by Senior Officials of Telecom Egypt, Internet Service Providers in Egypt and senior telecom representatives from the Arab world.Walid Irshaid, FLAG Regional VP for Middle East commented on the event, ”FLAG has worked in close partnership with Telecom Egypt, developing the Internet market in Egypt and jointly launching global IP services. CR-IX will play an important role in supporting Egypt’s continuing strong growth in both domestic and international Internet traffic and should help in attracting new ISPs to the region.”FLAG Telecom Group Ltd.