Friday said it is in talks to sell several or all of its subsidiaries, and it is suspending its semi-annual interest payments, in an effort to preserve cash.

RSL, based in Hamilton, also said it decided to defer payment on the $100 million loan extended to the company late last year by RSL Chairman Ronald Lauder, who is the son of make-up legend Estee Lauder.

RSL said it is in various stages of talks with potential buyers for all or part of a number of its subsidiaries, and it has closed on the sale of its pre-paid calling card business in the United States and most of its UK residential mobile customer base.

The company said the interest payments due March 1 total about $22 million, to holders of its 9-1/8 percent notes, maturing March 1, 2008; its 12-7/8 percent US dollar denominated notes, maturing March 1, 2010; and 12-7/8 percent Euro denominated notes, maturing March 1, 2010.

RSL Bermuda, said it has been working with a committee representing holders of its outstanding notes on restructuring RSL's note obligations.

RSL COM has closed on the sale of its prepaid calling card business in the USA and most of the residential mobile customer base in the UK.

It announced in early January it had closed on the sale of its investment in Telegate AG, yielding gross proceeds of nearly EUR 300 million.

As previously announced, the Board of Directors of RSL COM has retained the investment banking firm of Dresdner Kleinwort Wasserstein to advise the company with respect to its strategic alternatives and to assist it in executing a plan to sell assets.

The Board of Directors has also appointed Keith Maib as Chief Restructuring Officer.

Mr. Maib has extensive experience in complex operational and financial restructurings. He said: "Over the past several months we have worked closely and cooperatively with an unofficial group of noteholders to address and resolve many of the issues facing the company.

"The most important issue is cash resources, and the action today is consistent with our goal to maintain adequate levels of cash flow to support operations while we seek to refocus the business.'' RSL Communications is a facilities based communications company that provides a broad range of data/Internet, voice and value-added product and service solutions to customers in selected markets around the globe.

RSL COM has executive offices in New York City.