IXnet, Inc., the leading provider of specialised Internet provider-based network services to the global financial services community.

IXnet provides desktop-to-desktop broadband data and voice services to more than 600 leading financial institutions worldwide, including investment and commercial banks, asset managers, broker/dealers and trading firms.

It also hosts and distributes market data, news, streaming video, research and analytics for more than 30 leading content providers to the global financial community.

The company has a presence in 37 countries.

Global Crossing, which is building and operating the world's most advanced global Internet provider-based fibre optic network, will acquire both IXnet and its parent company, IPC Communications, Inc., which owns approximately 73 percent of IXnet's fully diluted shares.

Bermuda's Global Crossing to buy IXnet IPC is the leading provider of sophisticated desktop trading systems to the global financial community with a market share estimated at 70 percent of the US market and 60 percent worldwide.

Under the terms of the definitive merger agreement, 1.184 Global Crossing shares will be exchanged for each IXnet share not owned by IPC and 5.417 Global Crossing shares will be exchanged for each share of IPC.

Based on Friday's closing price of Global Crossing shares, the transaction is valued at approximately $62.03 for each of IXnet's 59.2 million fully diluted shares, and $283.71 for each of IPC's 10.1 million IPC fully diluted shares, or a total of approximately $3.8 billion.

This transaction values IXnet at a total of approximately $3.65 billion, and values IPC shares -- excluding the value of the IXnet shares owned by IPC -- at a total of approximately $150 million.

Bob Annunziata, CEO of Global Crossing, said: "IXnet is a great strategic fit for us.

"We will now move to the next level beyond providing building-to-building connectivity in major cities -- providing desktop-to-desktop connectivity for multinational corporations worldwide.

"IXnet will leverage our seamless global network through the provision of sophisticated Internet provider and data services to financial institutions, one of the largest and fastest growing customer segments.

"We can also eliminate substantial network costs by moving IXnet from leased lines onto the Global Crossing Network, which is nearing completion.

"IXnet will give us new capabilities and increased presence in Asia where we are currently partnering with Microsoft, Softbank and Hutchison Whampoa, as well as in the financial markets of Europe and the Americas where it is already the market leader.'' IXnet's blue-chip clients include Morgan Stanley, Goldman Sachs, Merrill Lynch, Citigroup, Chase, Bear Stearns, Donaldson Lufkin & Jenrette, Deutsche Bank, ABN AMRO, NatWest, HSBC, Nomura, Sumitomo, Barclays, Spear Leeds & Kellogg, Fidelity Investments, Janus, many of the leading ECNs, and leading market data providers such as First Call and News Edge.

The acquisition is expected to be completed in the second quarter of 2000, and is subject to regulatory approval and customary closing conditions.

The acquisition is not subject to shareholder approval; Citicorp Venture Capital, which owns approximately 60 percent of IPC, has approved the transaction and IPC, which owns approximately 73 percent of IXnet, has also approved the transaction.

The acquisition will be accounted for as a purchase and is expected to be tax-free to shareholders of IXnet and IPC.