become a subsidiary of GlobeNet Communications Group Ltd., a newly-created Bermuda exempt company.

The decision was made at the company's annual general meeting on Thursday and announced after sanction by the Bermuda Supreme Court on Friday. TBI shares were suspended from trading on the Bermuda Stock Exchange after the company's AGM.

"The reorganisation will enhance GlobeNet's ability to respond to the many new challenges and opportunities presented in today's international telecommunications marketplace,'' the company stated. "TeleBermuda, GlobeNet's principal operating company and one of the only two international telecommunication service carriers licensed in Bermuda, will continue to function as before, providing high-quality, competitively priced international telecommunication services throughout Bermuda.'' TBI's shareholders will not be required to take action on their share certificates until further notice.