Leading-edge telecommunications company enters into long-term sponsorship deal with British American Racing

Montreal, Monday, January 4, 1999 - Teleglobe Inc., a world leader in international telecommunications, is also becoming a significant player on the international motor sports scene. The company announced today that it has signed a multi-year agreement with British American Racing as a major sponsor of the new Formula One team.

The five-year deal provides Teleglobe with exclusive title as main secondary sponsor of British American Racing, a team making its debut on the Formula One circuit this March. The drivers for the two-car team are Iberville, Que.-born Jacques Villeneuve, a former world champion, and Brazil's Ricardo Zonta, 1997 F-3000 champion and defending FIA-GTI champion.

The sponsorship agreement ties in with Teleglobe's overall business development plans, which are to expand its business and retail operations and increase its visibility throughout the world. It will provide Teleglobe, and its retail subsidiary Excel Communications, with a major corporate presence within the British American Racing team - on cars, associated accessories, and the drivers' uniforms.

"In the last few years, Teleglobe has been focused on growing its business presence throughout the world particularly in Europe, Asia and South America. Our entry into the world of Formula One, through our strategic partnership with British American Racing, will shift us into high gear towards achieving that objective both in business and retail markets," said Charles Sirois, Chairman and Chief Executive Officer of Teleglobe. "Furthermore, he added, Teleglobe and British American Racing are very similar organizations. Our approach to business is very much alike, in that we are both dynamic, innovative, assertive and ever eager to take on new challenges and compete with the best." Craig Pollock, Managing Director of British American Racing, hailed the arrival of Teleglobe as the team's main secondary sponsor. "Its great to have a fast-growing global player on board, one with strong Canadian roots!"

"Both Teleglobe and British American Racing strive to be leading-edge companies, said Mr. Pollock. "I really believe this working relationship will be a win-win situation for both of us. "

"Since the creation of British American Racing last year, we have been devoting all our energies to building an organization that is well-equipped to take on the world's best in the sport of motor racing. Our challenge is to perform to the highest possible level, to attract and access the best talent and to get the most out of our collective experience. It is an enormous challenge but I feel we have already developed a certain chemistry and synergy within the team. And aligning ourselves with long-term partners, such as Teleglobe, will help us to achieve success."

As a further example of Teleglobe's deep commitment to its partnership with British American Racing, Mr. Sirois has named Martin Tiernay as Director, Global Sponsorship. Martin Tiernay brings to Teleglobe a solid background in both sponsorship and international business. Under the direction of Claude Seguin, Executive Vice-President, Finance and Chief Financial Officer, he will be managing every aspect of the sponsorship program to ensure maximum return on investment for both Teleglobe and Excel.

Teleglobe Inc. (NYSE, TSE, ME: TGO) is a recognized leader in global telecommunications. Through its subsidiary Teleglobe Communications Corporation, the company develops and supplies global connectivity services to carriers, Internet service providers, multinational corporations and broadcast customers worldwide. Through Excel Communication's proven marketing and distribution channels, Teleglobe also caters to an expanding global retail customer base. The company is the fourth-ranked long distance provider in North America and the second largest owner of international undersea fiber optic cable systems. Teleglobe has a 50% interest in ORBCOMM, the world's first commercial low-earth-orbit, satellite-based, data communications system.