Startec Reports Fourth Quarter and Full Year 2000 Results

Announces Financing;

Writes Down Acquisition Related Goodwill;

Impairs Investments;

Company to Focus on Higher Margin Business



Apr 16, 2001, 01:00 ET from Startec Global Communications Corporation

    POTOMAC, Md., April 16 /PRNewswire/ --
 Startec Global Communications Corporation (Nasdaq: STGC) today announced
 financial results for the fourth quarter and year ended December 31, 2000, as
 well as a number of initiatives designed to improve operating results and
 achieve positive cash flow as soon as possible.  The Company provides a
 complete menu of telecommunications services on its own global IP network,
 which it markets to ethnic residential customers and to enterprises
 transacting businesses in the emerging economies.
     The Company announced that it has obtained gross proceeds of $15 million
 from Allied Capital Corporation, one of its major creditors.  In addition, the
 Company stated that it has retained Jefferies & Company, Inc. to assist in
 negotiating a restructuring of its $160 million 12.0% Series A Senior Notes
 due in 2008.
     The fourth quarter results reflect the recording of a loss on impairment
 of certain of the Company's investments and the write-down of goodwill and
 intangibles associated with previous acquisitions.  In addition, the Company
 announced that it has discontinued those business lines that do not have a
 near-term prospect of profitability.
     "There is clearly a ripple effect spreading through the global economy,
 affecting technology companies generally and telecommunications companies in
 particular, and we are not unaffected," said Ram Mukunda, Startec president
 and CEO.  "As the market deteriorated, it impacted our financial results, and
 the need to initiate remedial action became clear.  We took several
 cost-cutting steps immediately, and then we identified the additional actions,
 that we are announcing today, which we believe are prudent and necessary to
 lead us to future profitability.  Our focus is on: 1) our P&L, 2) our balance
 sheet, and 3) our operating strategy going forward.  Our most immediate goal
 is to obtain positive cash flow as soon as possible and restore shareholders'
 value," he said.
 
     FINANCIAL RESULTS:
     Revenue for the fourth quarter 2000 were $74.8 million, compared to
 $80.2 million in the same quarter last year.  Although revenues decreased by
 seven percent, gross profit increased by 39 percent, from $11.4 million to
 $15.9 million, as the Company succeeded in its goal of generating more of its
 revenues from traffic on its own Internet Protocol (IP) network which allows
 the Company to achieve a significantly higher profit margin than their circuit
 switched wholesale business.
 
     * $48.1 million, or 64 percent of total fourth quarter 2000 revenues, were
       generated through the Company's IP network, producing a gross profit of
       $15.3 million, representing 32 percent of IP revenues.  The remaining
       $26.7 million of the fourth quarter revenues were from the circuit
       switched business.  Those revenues generated a 2 percent margin for a
       gross profit of $0.6 million.  "It has been our goal since lighting our
       IP network early in 2000 to achieve a higher mix of revenues from our IP
       network and gradually exit from the circuit switched business," Mukunda
       said.  "In executing this strategy, we have given up approximately
       $120 million in annual revenues, but this is well worth the improvement
       in margin," he added.
 
     * By comparison, the entire $80.2 million in fourth quarter 1999 revenues
       were circuit switched and they generated a gross profit of
       $11.4 million, 14 percent of revenues.  The consolidated gross margin
       improved to 21 percent in the fourth quarter of 2000.
 
     General and Administrative (G&A) Expenses totaled $33.8 million in the
 fourth quarter of 2000, or 45 percent of revenues, which compares to
 $10.5 million in G&A expenses, or 13 percent of revenues, recorded in the
 fourth quarter of 1999.  The Company significantly increased its provision for
 bad debt as a result of its decision to exit from the carrier circuit switched
 business and the Company also recorded other charges related to impairments of
 deposits and prepaid amounts.  These charges added $17.2 million to G&A
 expense in the quarter.  The balance of the increase is primarily related to
 the costs of consolidating acquisitions made in 2000.
     Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA), was
 negative $21.9 million in the fourth quarter of 2000 versus negative
 $3.7 million in the same quarter last year.
     Loss on Impairment, totaling $50.3 million, is a separate line item on the
 Company's 2000 fourth quarter P&L, and represents the impairment of
 investments and goodwill, resulting primarily from exiting certain markets.
     "We invested in telecommunications companies with the expectation that the
 required additional growth funding would be raised in the capital markets,"
 Mukunda said.  "However, as funding options were curtailed by the capital
 markets, these companies were compelled to scale back their business plans
 substantially.  Accordingly, we have recorded a $29.6 million loss on
 impairment of our minority interests," Mukunda said.
 
     * He said that an additional $17.4 million of the "Loss on Impairment"
       relates to the write-off of goodwill associated with the acquisition of
       two Internet portals.  "The portals were acquired with a view to
       capturing a share of the growing online advertising market, especially
       advertising targeted to the ethnic customers we serve.  As a result of
       the collapse of the on-line advertising model, we have written off the
       goodwill recorded when we purchased the portals," Mukunda said.
 
     * Approximately $3.3 million, or less than seven percent of the "Loss on
       Impairment," represents impairments of the Company's operations in Asia.
 
     The net loss for the fourth quarter of 2000, inclusive of all charges,
 adjustments and reserves, was $85.4 million, or ($5.60) per share, as compared
 to a net loss of $11.2 million, or ($1.15) per share, in the fourth quarter of
 1999.
     For the full year, revenues grew 17 percent to a record $324.5 million,
 compared to $276.5 million in 1999.  Gross margin in 2000 increased to
 $65.6 million, or 20 percent of revenue, compared to $33.7 million, or
 12 percent of revenue, in 1999.  The net loss for the year totaled
 $128.4 million, or ($9.39) per share, compared to a net loss in 1999 of
 $48.2 million, or ($5.13) per share.
 
     BALANCE SHEET:
     At December 31, 2000, the Company maintained a cash balance of
 $14.9 million.  The Company expects that it will need to restructure its
 senior notes with the bondholders or obtain additional financing in the fourth
 quarter of 2001 in order to make its November 2001 interest payment on the
 Company's senior notes.  In the event that the Company is unable to obtain
 additional financing or restructure its senior notes, it is unlikely that the
 Company will make its semi-annual interest payment due in November, 2001.  The
 Company's independent auditors will express a going concern on the Company's
 December 31, 2000, financial statements.
     The losses arising from the deterioration of Startec's market led to a
 liquidity crunch, which has taken a toll on the Company's expectations for
 revenue growth and operating margins in the first quarter and possibly the
 second quarter of 2001, according to Mukunda.  He explained that the Company's
 services require the use of carriers to terminate calls made on the Startec IP
 network and that the lower cost carriers, in reaction to the global market
 conditions, have increased the cash prepayments they require from their
 customers.  This has forced Startec to rely on more expensive carriers, which
 will cause the erosion in both revenues and profit margins in the first part
 of 2001.
     Mukunda said that the Company is addressing its liquidity issues in a
 number of ways.
 
     * Startec is currently working with Jefferies to explore a restructuring
       of the Company's $160 million 12.0% Series A Senior Notes.  "We
       currently pay approximately $9.6 million semiannually to our
       bondholders," Mukunda said, "and a decrease of that expense would be a
       significant help to our cash flow."
 
     * The $15 million financing from Allied Capital is for a two-year term and
       is structured as a monthly receivables purchase.  Mukunda said:  "This
       financing assures funding for current operations and also assures that
       we stay current through September 1, 2001 on the interest payments due
       NTFC Capital Corporation, our senior secured lender."
 
     * Additionally, Mukunda said that many of the Company's actions have
       resulted in a significant reduction of its expenses.  "Many of our cost
       reduction efforts have been painful, especially the reduction in
       personnel from a high of almost 900 in 2000 to a little over 400 today,
       but we believe these have been necessary and realistic steps, he said.
       He noted that the benefit of many of the cost cutting measures would not
       be realized until later in the year, further impacting the results
       expected early in the year.
 
     OPERATING STRATEGY:
     "Early in 2000, we achieved a significant milestone when we lit our own
 global IP network," Mukunda said.  "This gives us greater potential to grow
 our high margin business, primarily by providing services such as IP-VPN to
 commercial customers as well as continuing to transport traffic from our
 existing base of more than one million residential customers using VoIP
 technology.
     "The activation of this network was also a key precondition to our move
 away from the wholesale circuit switched business which experienced a huge and
 permanent reduction in profit margins last year," Mukunda added.  "Our focus
 now is to complete the transition of our business to higher margin sales.
 Consistent with this, our operating strategy is to focus only on those
 business segments that offer a high probability of profits in the near term,"
 he said.
     As part of the restructuring of its operations the Company has reduced its
 activities in France and Hong Kong and exited from post-paid dial around
 services, dial one services, and ISP services in the UK.
     "We have developed our budgets accordingly, and we believe we will begin
 to see many of our actions start to work to our benefit later this year," he
 said.  Mukunda cautioned that the success and timing of the Company's debt
 restructuring and infusion of additional capital could affect results.
     "Our immediate goal is to become EBITDA positive," said Mukunda.  "We
 believe we are responding realistically to market conditions by seeking to
 obtain additional capital, restructure our balance sheet, reduce expenses, and
 focus on our core business.  Going forward, we believe the successful
 execution of our IP-focused strategy will allow us to achieve positive cash
 flow in the shortest time possible," he said.
 
     ABOUT STARTEC:
     Startec Global Communications is a leading provider of advanced
 communications and Internet services to ethnic residential customers and
 enterprises transacting business in the world's emerging economies.  The
 Company's extensive affiliated network of international gateway and domestic
 switches, IP gateways and ownership in undersea fiber optic cables also
 provides IP-based voice, data and video service to major long distance
 carriers, Internet Service Providers (ISPs) and Internet Portals.
 
     SAFE HARBOR CAUTION:
     Other than historical information contained herein, certain statements in
 this release are "forward-looking statements" within the meaning of the
 Private Securities Litigation Reform Act of 1995.  Forward-looking statements
 in this release such as statements regarding our expectations of becoming
 EBITDA and cash flow positive, statements regarding possibly restructuring the
 Senior Notes and statements of our belief that we have sufficient capital to
 ensure that our operations will be funded through the November 2001 interest
 payment due our noteholders, involve a number of risks and uncertainties,
 including, but not limited to, reductions in revenue due to reduction in
 circuit-switched traffic; changes in market conditions, government regulation,
 the volatile and competitive environment for Internet telephony, technology,
 the international communications industry and the global economy; availability
 of transmission facilities; management of growth; entry into new and
 developing markets; competition; customer concentration and attrition; the
 expansion of a global network; and difficulties in integrating prospective
 acquisitions.  The Company's existing debt obligations also create financial
 and operating risks and there can be no assurance that that the Company can
 satisfy its debt covenants and, in the event that the Company is unable to
 restructure its balance sheet enough to achieve EBITDA breakeven in a timely
 manner, there will likely be a material adverse change in the Company's
 operations and financial condition.  These and other relevant risk factors are
 discussed in further detail in the Company's SEC filings.
 
 
           STARTEC GLOBAL COMMUNICATIONS CORPORATION AND SUBSIDIARIES
 
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
                    (in thousands, except per share amounts)
 
                              For the Three Months       For the Twelve Months
                                Ended December 3l,        Ended December 31,
 
                               2000          1999          2000         1999
 
     Net revenues           $74,807       $80,225     $324,547      $276,471
     Cost of services        58,872        68,808      258,933       242,735
 
       Gross margin          15,935        11,417       65,614        33,736
     General and
      administrative
      expenses               33,798        10,475       83,577        41,783
     Selling and
      marketing expenses      4,081         4,680       16,227        15,409
     Depreciation and
      amortization            5,691         2,452       16,728         7,753
     Loss on impairment      50,255            --       50,255            --
 
     Loss from operations   (77,890)       (6,190)     (101,173)      (31,209)
     Interest expense        (7,866)       (5,779)      (27,707)      (21,813)
     Interest income            516           985        2,812         5,077
     Equity in loss from
      affiliates               (188)         (230)       (1,385)        (290)
      Loss before income
       taxes                (85,428)      (11,214)     (127,453)     (48,235)
 
     Income tax provision        --            --           --            --
      Loss before
       extraordinary item   (85,428)      (11,214)    (127,453)       (48,235)
     Extraordinary
      item-loss on early
      extinguishment of debt     --            --         (902)           --
     Net loss              $(85,428)     $(11,214)   $(128,355)      $(48,235)
 
     Basic and diluted
      earning (loss) per
      common share:
     Net loss before
      extraordinary item     $(5.60)       $(1.15)      $(9.32)        $(5.13)
     Extraordinary
      item-loss on early
      extinguishment of debt     --            --        (0.07)           --
     Basic and diluted
      loss per common
      share                  $(5.60)       $(1.15)      $(9.39)       $(5.13)
     Weighted avg. common
      and equivalent shares
      outstanding-basic
      /diluted               15,247         9,681       13,676         9,411
 
 
     Balance Sheet Data:                          December 31,    December 31,
                                                      2000            1999
 
     Cash and cash equivalents                        $14,875        $54,731
 
     Working capital (deficit)                        (88,619)        28,450
 
     Property, plant, and equipment, net              123,843         94,221
 
     Long-term obligations                            158,444        177,867
 
 

SOURCE Startec Global Communications Corporation
    POTOMAC, Md., April 16 /PRNewswire/ --
 Startec Global Communications Corporation (Nasdaq: STGC) today announced
 financial results for the fourth quarter and year ended December 31, 2000, as
 well as a number of initiatives designed to improve operating results and
 achieve positive cash flow as soon as possible.  The Company provides a
 complete menu of telecommunications services on its own global IP network,
 which it markets to ethnic residential customers and to enterprises
 transacting businesses in the emerging economies.
     The Company announced that it has obtained gross proceeds of $15 million
 from Allied Capital Corporation, one of its major creditors.  In addition, the
 Company stated that it has retained Jefferies & Company, Inc. to assist in
 negotiating a restructuring of its $160 million 12.0% Series A Senior Notes
 due in 2008.
     The fourth quarter results reflect the recording of a loss on impairment
 of certain of the Company's investments and the write-down of goodwill and
 intangibles associated with previous acquisitions.  In addition, the Company
 announced that it has discontinued those business lines that do not have a
 near-term prospect of profitability.
     "There is clearly a ripple effect spreading through the global economy,
 affecting technology companies generally and telecommunications companies in
 particular, and we are not unaffected," said Ram Mukunda, Startec president
 and CEO.  "As the market deteriorated, it impacted our financial results, and
 the need to initiate remedial action became clear.  We took several
 cost-cutting steps immediately, and then we identified the additional actions,
 that we are announcing today, which we believe are prudent and necessary to
 lead us to future profitability.  Our focus is on: 1) our P&L, 2) our balance
 sheet, and 3) our operating strategy going forward.  Our most immediate goal
 is to obtain positive cash flow as soon as possible and restore shareholders'
 value," he said.
 
     FINANCIAL RESULTS:
     Revenue for the fourth quarter 2000 were $74.8 million, compared to
 $80.2 million in the same quarter last year.  Although revenues decreased by
 seven percent, gross profit increased by 39 percent, from $11.4 million to
 $15.9 million, as the Company succeeded in its goal of generating more of its
 revenues from traffic on its own Internet Protocol (IP) network which allows
 the Company to achieve a significantly higher profit margin than their circuit
 switched wholesale business.
 
     * $48.1 million, or 64 percent of total fourth quarter 2000 revenues, were
       generated through the Company's IP network, producing a gross profit of
       $15.3 million, representing 32 percent of IP revenues.  The remaining
       $26.7 million of the fourth quarter revenues were from the circuit
       switched business.  Those revenues generated a 2 percent margin for a
       gross profit of $0.6 million.  "It has been our goal since lighting our
       IP network early in 2000 to achieve a higher mix of revenues from our IP
       network and gradually exit from the circuit switched business," Mukunda
       said.  "In executing this strategy, we have given up approximately
       $120 million in annual revenues, but this is well worth the improvement
       in margin," he added.
 
     * By comparison, the entire $80.2 million in fourth quarter 1999 revenues
       were circuit switched and they generated a gross profit of
       $11.4 million, 14 percent of revenues.  The consolidated gross margin
       improved to 21 percent in the fourth quarter of 2000.
 
     General and Administrative (G&A) Expenses totaled $33.8 million in the
 fourth quarter of 2000, or 45 percent of revenues, which compares to
 $10.5 million in G&A expenses, or 13 percent of revenues, recorded in the
 fourth quarter of 1999.  The Company significantly increased its provision for
 bad debt as a result of its decision to exit from the carrier circuit switched
 business and the Company also recorded other charges related to impairments of
 deposits and prepaid amounts.  These charges added $17.2 million to G&A
 expense in the quarter.  The balance of the increase is primarily related to
 the costs of consolidating acquisitions made in 2000.
     Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA), was
 negative $21.9 million in the fourth quarter of 2000 versus negative
 $3.7 million in the same quarter last year.
     Loss on Impairment, totaling $50.3 million, is a separate line item on the
 Company's 2000 fourth quarter P&L, and represents the impairment of
 investments and goodwill, resulting primarily from exiting certain markets.
     "We invested in telecommunications companies with the expectation that the
 required additional growth funding would be raised in the capital markets,"
 Mukunda said.  "However, as funding options were curtailed by the capital
 markets, these companies were compelled to scale back their business plans
 substantially.  Accordingly, we have recorded a $29.6 million loss on
 impairment of our minority interests," Mukunda said.
 
     * He said that an additional $17.4 million of the "Loss on Impairment"
       relates to the write-off of goodwill associated with the acquisition of
       two Internet portals.  "The portals were acquired with a view to
       capturing a share of the growing online advertising market, especially
       advertising targeted to the ethnic customers we serve.  As a result of
       the collapse of the on-line advertising model, we have written off the
       goodwill recorded when we purchased the portals," Mukunda said.
 
     * Approximately $3.3 million, or less than seven percent of the "Loss on
       Impairment," represents impairments of the Company's operations in Asia.
 
     The net loss for the fourth quarter of 2000, inclusive of all charges,
 adjustments and reserves, was $85.4 million, or ($5.60) per share, as compared
 to a net loss of $11.2 million, or ($1.15) per share, in the fourth quarter of
 1999.
     For the full year, revenues grew 17 percent to a record $324.5 million,
 compared to $276.5 million in 1999.  Gross margin in 2000 increased to
 $65.6 million, or 20 percent of revenue, compared to $33.7 million, or
 12 percent of revenue, in 1999.  The net loss for the year totaled
 $128.4 million, or ($9.39) per share, compared to a net loss in 1999 of
 $48.2 million, or ($5.13) per share.
 
     BALANCE SHEET:
     At December 31, 2000, the Company maintained a cash balance of
 $14.9 million.  The Company expects that it will need to restructure its
 senior notes with the bondholders or obtain additional financing in the fourth
 quarter of 2001 in order to make its November 2001 interest payment on the
 Company's senior notes.  In the event that the Company is unable to obtain
 additional financing or restructure its senior notes, it is unlikely that the
 Company will make its semi-annual interest payment due in November, 2001.  The
 Company's independent auditors will express a going concern on the Company's
 December 31, 2000, financial statements.
     The losses arising from the deterioration of Startec's market led to a
 liquidity crunch, which has taken a toll on the Company's expectations for
 revenue growth and operating margins in the first quarter and possibly the
 second quarter of 2001, according to Mukunda.  He explained that the Company's
 services require the use of carriers to terminate calls made on the Startec IP
 network and that the lower cost carriers, in reaction to the global market
 conditions, have increased the cash prepayments they require from their
 customers.  This has forced Startec to rely on more expensive carriers, which
 will cause the erosion in both revenues and profit margins in the first part
 of 2001.
     Mukunda said that the Company is addressing its liquidity issues in a
 number of ways.
 
     * Startec is currently working with Jefferies to explore a restructuring
       of the Company's $160 million 12.0% Series A Senior Notes.  "We
       currently pay approximately $9.6 million semiannually to our
       bondholders," Mukunda said, "and a decrease of that expense would be a
       significant help to our cash flow."
 
     * The $15 million financing from Allied Capital is for a two-year term and
       is structured as a monthly receivables purchase.  Mukunda said:  "This
       financing assures funding for current operations and also assures that
       we stay current through September 1, 2001 on the interest payments due
       NTFC Capital Corporation, our senior secured lender."
 
     * Additionally, Mukunda said that many of the Company's actions have
       resulted in a significant reduction of its expenses.  "Many of our cost
       reduction efforts have been painful, especially the reduction in
       personnel from a high of almost 900 in 2000 to a little over 400 today,
       but we believe these have been necessary and realistic steps, he said.
       He noted that the benefit of many of the cost cutting measures would not
       be realized until later in the year, further impacting the results
       expected early in the year.
 
     OPERATING STRATEGY:
     "Early in 2000, we achieved a significant milestone when we lit our own
 global IP network," Mukunda said.  "This gives us greater potential to grow
 our high margin business, primarily by providing services such as IP-VPN to
 commercial customers as well as continuing to transport traffic from our
 existing base of more than one million residential customers using VoIP
 technology.
     "The activation of this network was also a key precondition to our move
 away from the wholesale circuit switched business which experienced a huge and
 permanent reduction in profit margins last year," Mukunda added.  "Our focus
 now is to complete the transition of our business to higher margin sales.
 Consistent with this, our operating strategy is to focus only on those
 business segments that offer a high probability of profits in the near term,"
 he said.
     As part of the restructuring of its operations the Company has reduced its
 activities in France and Hong Kong and exited from post-paid dial around
 services, dial one services, and ISP services in the UK.
     "We have developed our budgets accordingly, and we believe we will begin
 to see many of our actions start to work to our benefit later this year," he
 said.  Mukunda cautioned that the success and timing of the Company's debt
 restructuring and infusion of additional capital could affect results.
     "Our immediate goal is to become EBITDA positive," said Mukunda.  "We
 believe we are responding realistically to market conditions by seeking to
 obtain additional capital, restructure our balance sheet, reduce expenses, and
 focus on our core business.  Going forward, we believe the successful
 execution of our IP-focused strategy will allow us to achieve positive cash
 flow in the shortest time possible," he said.
 
     ABOUT STARTEC:
     Startec Global Communications is a leading provider of advanced
 communications and Internet services to ethnic residential customers and
 enterprises transacting business in the world's emerging economies.  The
 Company's extensive affiliated network of international gateway and domestic
 switches, IP gateways and ownership in undersea fiber optic cables also
 provides IP-based voice, data and video service to major long distance
 carriers, Internet Service Providers (ISPs) and Internet Portals.
 
     SAFE HARBOR CAUTION:
     Other than historical information contained herein, certain statements in
 this release are "forward-looking statements" within the meaning of the
 Private Securities Litigation Reform Act of 1995.  Forward-looking statements
 in this release such as statements regarding our expectations of becoming
 EBITDA and cash flow positive, statements regarding possibly restructuring the
 Senior Notes and statements of our belief that we have sufficient capital to
 ensure that our operations will be funded through the November 2001 interest
 payment due our noteholders, involve a number of risks and uncertainties,
 including, but not limited to, reductions in revenue due to reduction in
 circuit-switched traffic; changes in market conditions, government regulation,
 the volatile and competitive environment for Internet telephony, technology,
 the international communications industry and the global economy; availability
 of transmission facilities; management of growth; entry into new and
 developing markets; competition; customer concentration and attrition; the
 expansion of a global network; and difficulties in integrating prospective
 acquisitions.  The Company's existing debt obligations also create financial
 and operating risks and there can be no assurance that that the Company can
 satisfy its debt covenants and, in the event that the Company is unable to
 restructure its balance sheet enough to achieve EBITDA breakeven in a timely
 manner, there will likely be a material adverse change in the Company's
 operations and financial condition.  These and other relevant risk factors are
 discussed in further detail in the Company's SEC filings.
 
 
           STARTEC GLOBAL COMMUNICATIONS CORPORATION AND SUBSIDIARIES
 
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
                    (in thousands, except per share amounts)
 
                              For the Three Months       For the Twelve Months
                                Ended December 3l,        Ended December 31,
 
                               2000          1999          2000         1999
 
     Net revenues           $74,807       $80,225     $324,547      $276,471
     Cost of services        58,872        68,808      258,933       242,735
 
       Gross margin          15,935        11,417       65,614        33,736
     General and
      administrative
      expenses               33,798        10,475       83,577        41,783
     Selling and
      marketing expenses      4,081         4,680       16,227        15,409
     Depreciation and
      amortization            5,691         2,452       16,728         7,753
     Loss on impairment      50,255            --       50,255            --
 
     Loss from operations   (77,890)       (6,190)     (101,173)      (31,209)
     Interest expense        (7,866)       (5,779)      (27,707)      (21,813)
     Interest income            516           985        2,812         5,077
     Equity in loss from
      affiliates               (188)         (230)       (1,385)        (290)
      Loss before income
       taxes                (85,428)      (11,214)     (127,453)     (48,235)
 
     Income tax provision        --            --           --            --
      Loss before
       extraordinary item   (85,428)      (11,214)    (127,453)       (48,235)
     Extraordinary
      item-loss on early
      extinguishment of debt     --            --         (902)           --
     Net loss              $(85,428)     $(11,214)   $(128,355)      $(48,235)
 
     Basic and diluted
      earning (loss) per
      common share:
     Net loss before
      extraordinary item     $(5.60)       $(1.15)      $(9.32)        $(5.13)
     Extraordinary
      item-loss on early
      extinguishment of debt     --            --        (0.07)           --
     Basic and diluted
      loss per common
      share                  $(5.60)       $(1.15)      $(9.39)       $(5.13)
     Weighted avg. common
      and equivalent shares
      outstanding-basic
      /diluted               15,247         9,681       13,676         9,411
 
 
     Balance Sheet Data:                          December 31,    December 31,
                                                      2000            1999
 
     Cash and cash equivalents                        $14,875        $54,731
 
     Working capital (deficit)                        (88,619)        28,450
 
     Property, plant, and equipment, net              123,843         94,221
 
     Long-term obligations                            158,444        177,867
 
 SOURCE  Startec Global Communications Corporation