Teleglobe Faces Nasdaq Delisting

Teleglobe receives notice of Nasdaq delisting for failure to timely file 10-Q

August 26, 2004

2 Min Read

HAMILTON, Bermuda -- Teleglobe International Holdings Ltd (NASDAQ:TLGB - News, TLGBE - News) "Teleglobe", a leading provider of international telecommunications services to Internet service providers and to fixed and mobile network operators, today reported that on August 24, 2004, the Company received a letter from the NASDAQ staff indicating that because the Company has failed to timely file its Form 10-Q for the second quarter of fiscal 2004 (the "10-Q"), it is not in compliance with the NASDAQ listing rules and accordingly is potentially subject to delisting. This delisting notification is standard procedure when a NASDAQ listed company fails to complete a required Securities and Exchange Commission filing in a timely manner.

On August 16, 2004, the Company announced that it had identified and is investigating potential instances of noncompliance with the Foreign Corrupt Practices Act (FCPA). The Company is awaiting the conclusion of this investigation before issuing its financial statements for the second quarter of 2004. As a result of the failure to timely file the 10-Q, the Company is currently not in compliance with the filing requirements for continued listing on NASDAQ as required by NASDAQ Marketplace Rule 4310(c)(14). The Company plans to appeal the delisting notification to a NASDAQ Listings Qualifications Panel (the "Panel"), however, there can be no assurance that the Panel will grant the Company's request for continued listing. Teleglobe's securities will remain listed pending a decision in the appeals process, but its trading symbol as of August 26, 2004, will be amended from "TLGB" to "TLGBE" to reflect the Company's filing delinquency. The Audit Committee of the Company has engaged an outside law firm, Debevoise & Plimpton LLP, to investigate the FCPA matters and expects to file the 10-Q promptly upon completion of the investigation. The Company has not identified, and the Company does not believe it is likely, that any material adjustment to its financial statements is or will be necessary as a result of this investigation.

Teleglobe International Holdings Ltd.

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