Full year 2000 revenues increased by 42.7 percent over 1999. The net loss, inclusive of non-recurring charges, was $(47) million or $(0.24) per share for the fourth quarter.

Unless otherwise noted, the discussion and tables, including references to operating profit/(loss) and EBITDA, have been adjusted to exclude, where applicable, share plan costs; non-recurring items; losses of our unconsolidated affiliate, Radianz; write down of value on unquoted investments; and extraordinary charges in all periods to provide more meaningful comparisons. The consolidated statements of operation on page 8, together with the associated notes, do include all of the above items stated.

In the first two months of our new financial year, we have not seen any impact in Network Services from the current economic slowdown. Preliminary indications for the first quarter of 2001 are that Network Services revenues will grow by about 40% year-over-year and gross margins will increase year-over-year, but be lower than the fourth quarter of 2000. With the completion of the France Telecom/Global One transaction, the current network cost sharing mechanism will end and we will take full control of the network and can better manage the cost and revenue relationship.

Last November we announced a transaction with France Telecom and Global One that ensures Equant will become a world leader in IP and data communications. We are planning the integration of Global One’s data business with Equant and are able to confirm that the synergies we announced in November are real and achievable. On a pro forma basis, we expect revenues to be over $3 billion in 2001 and to turn EBITDA positive in the fourth quarter.

Affirmative clearance by the Merger Task Force of the European Commission and the Department of Justice were key milestones on the way to closing the deal by the end of June 2001. As a result of the excellent progress that we made during 2000, we are uniquely positioned to exploit the growth opportunities in our target market. We are able to benefit from the falling price points of fiber infrastructure while standing clear of the negative conditions affecting much of the industry.

Revenues

The company’s revenues this quarter grew 32.8 percent compared with the fourth quarter 1999.

Network Services’ reported revenues increased by 36.9 percent to $215.7 million in the fourth quarter of 2000 driven by the Radianz contract and the continued demand for advanced, high speed data network services such as frame relay, asynchronous transfer mode (ATM) and Internet protocol (IP). Radianz contributed $18 million, or about 11 percentage points, to this growth. For the full year 2000, Network Services’ revenues reached $751.7 million, an increase of 35.8 percent over 1999.

Revenues from advanced high-speed data services grew 27.8 percent over last year’s fourth quarter and represented 64.8 percent of Network Services’ revenues during the quarter. Revenues from traditional, lower speed managed data services increased 10.7 percent.

Network connections at December 31, 2000 were 33,500, an increase of 23.6 percent from December 31, 1999. Characters transmitted across the network increased 125 percent to 329 trillion in the fourth quarter of 2000 compared with the comparative 1999 quarter.

The number of quota bearing sales people at Network Services was 289 at December 31, 2000. Order intake for the year 2000 totaled $1.3 billion, representing a substantial improvement in sales force productivity.

In the fourth quarter we won 47 contracts from major international corporations, each valued at more than one million dollars. Network Services signed contracts with many new multi-national businesses, including Alstom, The Coca Cola Company, Mitsubishi Corporation, New Zealand Dairy Board, Sonera and Wm. Wrigley Jr. Company, as well as renewing contracts with British American Tobacco and Accor.

Network Operations’ revenues of $100.8 million in the fourth quarter of 2000 increased by 46.3 percent over the fourth quarter 1999, reflecting Equant’s increased capital investment in the network and the transfer of additional local network operators (LNOs). Revenues attributable to LNO transfers are matched by an equal amount of costs.

Integration Services’ revenues increased 21.9 percent to $118.4 million this quarter. Services account for approximately 69 percent of the division’s total revenues. The division’s results this quarter were the best ever for both revenues and operating profit.

Application Services’ revenues were $6.5 million in the fourth quarter of 2000, an increase of 20.4 percent compared with the same period in 1999. The fourth quarter reflected a slow down in Application Services’ business due to the decline in the demand for Internet based, retail commerce applications. As a result, the division is restructuring its operations in the first quarter 2001 to rationalize employment levels and close a number of sales offices. Total costs of the restructuring are currently estimated at $2 million.

The Company’s revenues continued to be adversely affected by the movement in exchange rates, particularly the strengthening of the US dollar against European currencies. The effect of these movements was to lower revenue growth in the quarter by about 7 percentage points.

Gross Profit and Gross Margin

Network Services’ gross profit of $59 million this quarter was broadly comparable with the gross profit in the fourth quarter 1999. Excluding Radianz, fourth quarter revenues rose by 25 percent over the comparable quarter in 1999. Network charges from the joint venture grew 29 percent in the quarter compared with the same period in 1999. Under the cost sharing mechanism, the Company received 80 percent of the incremental costs of the network in the fourth quarter of 2000, up from a 66 percent share in the fourth quarter 1999. Network Services’ gross margin was 29.8 percent this quarter, excluding Radianz, a decline from last year’s fourth quarter but an increase from the third quarter 2000.

Gross profit for Network Operations increased to $10.8 million for the fourth quarter 2000 compared with $7.7 million in the same period last year reflecting the Company’s increased investment in the network and the higher finance charge to our joint venture partner for its use of Equant funded assets.

Integration Services’ gross profit of $26.5 million in the fourth quarter of 2000 was broadly comparable with the same period of 1999. The gross margin was 22.4 percent this quarter compared with 28.0 percent last year, reflecting a decline in fulfillment margins.

Application Services’ gross profit of $2.4 million in the 2000 fourth quarter improved from $1.8 million in the comparable quarter 1999. The gross margin percentage was 36.1 percent this quarter, an increase from 34.0 percent in the comparable period last year.