carriers' carrier, has said its cash revenues have increased 87 percent to $64.8 million in its first quarter of 2000 compared to the previous quarter.

The company said the strong global demand for data/Internet provider bandwidth had pushed the figure up from $34.7 million in the fourth quarter of 1999 and $12.3 million in the first quarter of last year.

The company said that the rollout of network services won its first 15 customers and Bell Atlantic had signed a primary agreement with Flag for its international requirements.

"We are delighted with FLAG Telecom's financial performance in our first quarter as a public company and are confident of our strong prospects for the year as a whole,'' commented Andres Bande, Chairman and Chief Executive Officer.

"The strength of our results underscores the continuing growth in global demand for higher bandwidth capacity. FLAG Telecom is increasingly recognised as the leading independent carriers' carrier, with a customer base of over 100 international operators, ASPs and ISPs.

According to a release issued by the company, the net loss was $31 million for the quarter, compared to $16.8 million in the previous quarter.

The company had revenues of $19.2 million in the quarter, compared to $14.4 million the previous quarter.

Mr. Bande added: "Our recently announced plan to build a new cable across the Pacific puts us on course to more than double our network reach during the next two years and will strengthen our position in the world's more bandwidth-constrained regions.

"The progress in implementing our Network Services business demonstrates our ability to meet the market's demand for innovative, flexible and value-added products and services.

We expect to continue to expand in the Network Services area in parallel with the build-out of our global network infrastructure.'' Ed McCormack, Chief Operating Officer and Chief Financial Officer said that the company was in a very strong financial position because over $1.2 billion in cash was raised from our recently concluded initial public offering and senior notes offering.

He said: "It is intended that these proceeds, together with anticipated pre-sales of network capacity and non-recourse bank debt, should fully fund our current business plan, including the rollout of further Network Services and construction of the recently announced FLAG Pacific-1 cable system.'' The report said that as of this quarter, FLAG Telecom is reporting financial results for two business segments. This is because the Network Services business now makes a material and growing contribution to the company's revenues.