Teleglobe and Saudi Telecom Sign Agreement to Create Service and Market New Middle Eastern IP Exchange; Exchange to Provide High Quality Internet Access and V

"It also offers a number of data
and other value-added services, making it a comprehensive solution for
all of our customers' connectivity needs. In addition, our ME-IEX will play a significant
role in continuing to promote the collective cooperation within the
GCC community and the region via their integration with the global
broadband networks.stc.sa

About Teleglobe:

Teleglobe International Holdings Ltd is a leading provider of
international voice, data, Internet and mobile roaming services with
over 50 years of industry expertise in international
telecommunications .
Teleglobe owns and operates one of the world's most extensive
telecommunications networks, reaching over 240 countries and
territories with advanced voice, mobile, and data services.

Research and Markets: Approximately half of Israel's households are subscribers to broadband but majority of connections are in the sub-1Mb/s range.

com/cgi-bin/prnh/20040820/RESEARCH )
This annual report provides an insight into the developing Broadband and
Internet markets of the Middle East.com/reports/c18855

Laura Wood
Senior Manager
Research and Markets
press@researchandmarkets .

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Teleglobe's global network
expertise combines with STC's regional leadership to provide
exceptional network performance."
Mr. Demyati added, "STC with its self-healing national backhaul
network and border-crossing terrestrial fiber optics links that extend
to all the neighboring countries, represents the most resilient,
reliable and cost effective connectivity in the region for both
carriers and ISPs. The Middle East
Internet Exchange (ME-IEX) supports the region's rapidly growing needs
for direct exchange of regional traffic and also provides efficient,
high quality transit for international traffic," said Michel Guyot,
Vice President of International Markets at Teleglobe.

The company's Headquarters are located at King Abdulaziz Telecom
Complex in Riyadh and its 21 ,000 employees operate from 13 major
regional offices and numerous customer service locations throughout
the Kingdom. Detailed information about STC is
available on the company's web site at www. Teleglobe became a public company trading on the
Nasdaq under the symbol TLGB with the acquisition of Voice over IP
(VoIP) network leader ITXC Corp.teleglobe.

east qatar

"The Middle East IP Exchange offers our customers secure access,
faster connections, direct regional connectivity to each other, and
worldwide connectivity ," said Mr."

About Saudi Telecom Company:

Saudi Telecom Company (STC) was established on 2 May 1998 to take
over the telecommunications operations of the Kingdom of Saudi Arabia,
previously managed by the Ministry of Post, Telephone and Telegraph
(MOPTT).8 million fixed lines and over 9
million mobile subscribers, STC is the largest telecommunication
companies in the Middle East region and is currently the sole provider
of telecommunication services in the Kingdom of Saudi Arabia . STC is 30% publicly owned with the remaining 70% owned by
the Government.com

The
increase in competition, demand for broadband content such as Video-on-Demand
(VoD), and maturing market will result in increased demand for higher
bandwidth connections.researchandmarkets.

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Business Editors /High-Tech Writers

HAMILTON, Bermuda----Teleglobe
International Holdings Ltd (NASDAQ:TLGB) today announced that
Teleglobe and Saudi Telecom Company (STC) have established the Middle
East IP Exchange (ME-IEX) in Saudi Arabia to serve Middle Eastern and
Arabian Gulf ISPs and carriers.

This enables
a host of flexible, innovative services to help customers,
particularly enterprises , cut overhead, streamline operations and
provide unparalleled connectivity. Sa'ad Demyati, STCs Vice President
for the International Telecom Sector."
"As the Internet grows, it becomes more local .
STC has invested heavily in a technologically advanced digital
network.com. Teleglobe
is the carrier of choice to more than 1,200 wholesale customers
representing the world's leading telecommunications , mobile operators
and Internet service providers. DUBLIN, Ireland, Research and Markets
(http: //www. Broadband was introduced into a number of Arab
countries last year and growth has or is set to take off in a few others,
namely Bahrain, Iran, Jordan and Turkey, attributed to tariff reductions and
recent government initiatives

For more information visit
http://www.

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The exchange is the first
true IP exchange node in this region with diversified international
connectivity .
With a network of approximately 3. Global access is provided by STC via a terrestrial fiber
network that covers almost all the Kingdom of Saudi Arabia and extends
to connect to all neighboring countries; via its active participation
and ownership in number of Submarine Cable Systems to more than 50
countries worldwide; and via satellite. Three International Switching
Centers in Riyadh, Jeddah and Dammam provide direct connectivity to
more than 230 carriers worldwide.
With an annual run-rate of over 13 billion minutes, and a
significant portion of the world's Internet traffic, Teleglobe's
network is consistently ranked among the most robust and reliable,
performing at the high end of industry standards. Detailed information
about Teleglobe is available on the company's web site at
www .newscom. Topics detailed in the report include the
following:

- Regional Internet and broadband market developments and analysis
- xDSL, Cable Modems, Fibre-to-the-home (FTTH), WiFi
- Growth in regional broadband penetration and availability (Trends,
Growth Patterns , Prospects)
- Major Broadband Service Providers
- Internet Access Locations and ISPs
- Censorship of the Internet in Middle East countries

Countries covered: Bahrain , Iran, Iraq, Israel, Jordan, Kuwait, Lebanon,
Oman, Qatar, Saudi Arabia, Syria, Turkey United Arab Emirates, Yemen

Extract:
Approximately half of Israel's households are subscribers to broadband but
research has shown that the majority of connections are in the sub-1Mb/s
range .

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The new ME-IEX currently carries
traffic for six customers from Qatar, Bahrain, Kuwait and Yemen and
supports peering arrangements between ISPs.
The ME-IEX supports direct regional traffic interchange amongst
its local customers and provides them with reliable, high performance
international traffic exchange via Teleglobe's network for direct
connections to leading American and European carriers and ISPs and
direct and transit connections to ISPs and carriers across Asia,
Australia, Africa , and Latin America.
The exchange combines STC's established regional and international
infrastructure with the global reach of Teleglobe's Tier 1 IP network
and is backed by the support services of both companies. The ME-IEX ensures high
availability for customers' services via a number of fail-safe and
redundant mechanisms that guarantee stable, reliable connectivity. "This deepened
relationship with STC builds upon Teleglobe's Canadian heritage and
our long tradition in providing advanced international
telecommunications services to carriers and ISPs across the Middle
East.
STC is currently the sole provider for International Internet
Connectivity to all local ISPs, and is also one of the Kingdom 's
leading Internet Service Providers with 1 million subscribers. on June 1, 2004.researchandmarkets .com/reports/c18855) has announced the addition
of 2005 Middle Eastern - Broadband and Internet Markets to their offering
(Logo: http://www. Broadband is Israel is set to go mainstream with the bundling of voice
and video services by the cable companies that have recently launched Voice
over Internet Protocol (VoIP) services and eventually by incumbent Bezeq which
is currently prevented from bundling its services for competitive reasons.com
Fax: +353 1 4100 980

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