Global Crossing Faces Delisting

Global Crossing retains accounting firm for independent review; receives Nasdaq delisting notification

May 5, 2004

2 Min Read

FLORHAM PARK, N.J. -- Global Crossing (Nasdaq: GLBC) announced today that its independent Audit Committee has retained Deloitte & Touche LLP to conduct an independent review of the company's cost of access liabilities and cost of access expenses and the related internal control environment and Grant Thornton LLP to evaluate the company's procedures and its determination regarding the potential restatement of its financial statements. Upon completion of its evaluation, Grant Thornton LLP will determine whether it can reissue its previously withdrawn audit reports. The Audit Committee is committed to resolving the issues presented by the company's previously disclosed review of these matters as soon as possible and returning Global Crossing to compliance with SEC reporting and Nasdaq listing requirements.

The Audit Committee took this action in light of the company's public announcement on April 27, 2004 that its previously reported financial statements for the years ended December 31, 2003 and 2002 should be disregarded because of the company's review and the previously reported subsequent notification by Grant Thornton LLP that its audit reports dated March 8, 2004, December 23, 2003 and September 10, 2003 can no longer be relied upon.

Global Crossing also announced that it received a Nasdaq Staff Determination on April 29, 2004 indicating that, in light of the matters referred to in the immediately preceding paragraph, the company's common stock is not in compliance with the filing requirements for continued listing on The Nasdaq National Market and will be de-listed unless the company requests a hearing with a Nasdaq Listing Qualifications Panel to review this determination. The company will request this hearing shortly. Pending the hearing and the Panel's determination, Global Crossing's common stock will continue to be listed on The Nasdaq National Market. While there can be no assurance that the Panel will grant the company's request for continued listing, the company is hopeful that it will have sufficient time to complete its review and return to compliance with Nasdaq filing requirements. The company's trading symbol will change from GLBC to GLBCE at the opening of business today due to the non-compliance with the filing requirements.

Global Crossing Holdings Ltd.

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