COLCHESTER, Conn. -- SCOTT + SCOTT, LLC (http://www.scottscott.com) (e-mail: [email protected]), a Connecticut based law firm with offices outside of Philadelphia commenced a class action lawsuit on April 2, 2002 in the United States District Court for the Southern District of New York on behalf of purchasers of the shares of FLAG Telecom Holdings, Ltd. ("FLAG" or the "Company") (Nasdaq: FTHL) between March 23, 2001 and February 13, 2002, inclusive. The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between March 23, 2001 and February 13, 2002, thereby artificially inflating the price of FLAG shares. The complaint alleges that throughout the Class Period, FLAG reported strong year-over-year revenue growth. Unbeknownst to investors, however, as alleged in the complaint, FLAG was experiencing diminishing revenue growth. The complaint alleges that in order to create the impression that FLAG was continuing to experience growth, the Company engaged in a series of reciprocal transactions with certain competitors for the purchase and sale of dark fiber optic cable -- the so-called dark fiber swap. The complaint alleges that as a result of these transactions, FLAG artificially inflated its operating results and materially misrepresented its financial results at all relevant times. If you bought the securities of FLAG TELECOM between March 23, 2001 and Feb. 13, 2002 and you wish to serve as lead plaintiff, you are required to move to do so with the Court no later than June 3, 2002. If you would like to discuss this action or have any questions concerning this notice or your rights or interests, please contact Scott + Scott lawyers, Neil Rothstein ([email protected]), David R. Scott ([email protected]) or James E. Miller ([email protected]) by e-mail or by phone at 800/404- 7770. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.