FLORHAM PARK, N.J. -- Global Crossing (NASDAQ: GLBC) announced today that the U.S Securities and Exchange Commission (SEC) investigation of the company's reciprocal purchases and sales of telecommunications capacity with other carriers and related matters has been resolved by the SEC's entry of an administrative order.

"We're happy to have reached a settlement with the SEC and that we can put these issues solidly behind us without a finding of fraud or a financial penalty against the company," said Global Crossing CEO John Legere. "We look forward to focusing on Global Crossing's bright future and building our brand as a provider of IP services to our customers around the world."

The order finds that the company did not comply with certain reporting obligations under the securities laws and requires the company to cease and desist from committing any future violations. In addition, the order states that the SEC staff received significant cooperation from the company during the course of its investigation. No fines or penalties were assessed against the company, and the order does not include a finding of fraud. The company neither admitted nor denied the SEC's findings.

Global Crossing first announced that the SEC was conducting a formal investigation into allegations regarding its reciprocal transactions in February 2002.

Global Crossing Holdings Ltd.