FLAG Adds CFO

LONDON -- FLAG Telecom Group Limited (OTC: FTGLF.PK) (the "Company" or "FLAG Telecom") today announced the appointment of Alex Gersh as its new Chief Financial Officer (CFO). Mr. Gersh, who takes up his appointment in July 2003, replaces Michel Cayouette who has decided to leave the company to pursue other business interests.

Alex Gersh graduated with honours Cum Laude from Baruch College (City University of New York) and is a Certified Public Accountant (CPA).  He has held a number of senior international and national finance roles within Motorola and British Telecommunications and, most recently, was Executive Vice President and Chief Financial Officer at NextiraOne LLC.

Patrick Gallagher, Chief Executive Officer of FLAG Telecom, said: "Alex brings a wealth of knowledge and experience to FLAG which will be invaluable in the next phase of FLAG's development.  He will complement an experienced team that was recently reinforced with the appointment of Jayne Gymer as Senior Vice President Human Resources.  Michel Cayouette was a key member of the team that took FLAG through its successful restructuring.  We are grateful to him for his dedication and hard work and wish him well in his future endeavours."

Alex Gersh said: "I am pleased to be joining FLAG Telecom.  The Company has a strong Board and management team, a sound and focused strategy and the determination to capture the opportunities that present themselves.  I look forward to being part of FLAG's success story in the years ahead."

FLAG Telecom Group Ltd.