NEW YORK, April 9 – Verizon Communications and FLAG Telecom have entered into an agreement whereby FLAG Telecom will collaborate in the development and use of Verizon's recently announced city-to-city European backbone network. This advanced terrestrial fiber optic network will provide connectivity to the major European business centers, and is expected to begin serving London, Paris, Amsterdam, Frankfurt, Dusseldorf and Brussels early in the second half of 2001. Expansion to other major European cities is planned during the remainder of 2001. Under the terms of the agreement, Verizon will purchase certain European dark fiber and collocation facilities owned by FLAG. Verizon will own, operate and manage the city-to-city backbone network, while FLAG will provide and manage its own IP layer and collocation space for its customers. Verizon will use dense wavelength division multiplexing technology in the backbone, providing a platform designed to deliver advanced services that are highly reliable and can be provisioned quickly.