HAMILTON, Bermuda -- FLAG Telecom Holdings Limited announced today that it has successfully emerged from Chapter 11 proceedings in the United States. Accordingly, FLAG Telecom's ongoing business operations are no longer subject to the restrictions imposed by the Chapter 11 process or the U.S. Bankruptcy Court. The Company, which commenced Chapter 11 proceedings on April 12, 2002, has been reorganized as FLAG Telecom Group Limited and will initially trade over the counter under the symbol FLHLQ. Concurrently, FLAG Telecom announced that it has appointed Mark Spagnolo, a member of the Company's newly constituted Board of Directors, to serve as its new interim Chief Executive Officer, and that it has commenced a search for a permanent CEO. Mr. Spagnolo, an industry veteran who served as the President and CEO of Metromedia Fiber Network, Inc. from 2001 to 2002 and of UUNet from 1997 to 2000, will replace Andrés Bande, who has resigned as Chairman and CEO after five years with FLAG. Mr. Bande will act as an advisor to the CEO and the Board for the remainder of this year. "I am pleased to accept this position with FLAG," stated Mr. Spagnolo. "On behalf of the Board, I'd like to wish Mr. Bande well in his future endeavours. I'd also like to thank him and each of the Company's employees, for their dedication and hard work, which has led to the successful restructuring of the Company. The Company, with the overwhelming support of its creditors, has emerged from bankruptcy with a financially sound capital structure and can now concentrate 100% of its energies on implementing its business plan. We greatly appreciate the tremendous support of our customers and vendors during the Chapter 11 proceedings and look forward to continuing to regain their confidence." FLAG Telecom's developed global fiber-optic network, which has been built with network segments and through collaboration with third parties, remains intact. The FLAG network reaches key high-volume destinations in Europe and the United States, as well as a number of countries in Asia and the Middle East, and enables the Company to service its established customer base of over 130 worldwide customers. The Company's principal customers are incumbent national operators, international licensed telecommunications companies, emerging telecommunications companies and ISPs. FLAG Telecom Group Ltd.