Clarification: Globix Corporation

On 17 January 2002, we posted an article regarding Globix Corporation (the "Company") in which we stated that there had been a "demise" of this Company and that it had filed for Chapter 11 bankruptcy protection in the US as it struggled to restructure $600m of debt.

We wish to clarify that on 14 January 2002, the Company issued a press release and notified the SEC that it had entered into lock-up agreements regarding the restructuring of the Company's equity and debt and that once the necessary consents were received, the financial restructuring would be finalised through voluntary pre-packaged bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code.

The Company filed a voluntary petition for the Chapter 11 protection on 1 March 2002, with the consent of the bondholders. The Company emerged from Chapter 11 bankruptcy on 18 April 2002. Globix Limited, the UK subsidiary is not in any form of administration or liquidation. We also made reference to the company "Exodus" (Exodus Communications Inc).

We would like to make it clear that it was never our intention to compare Globix Corporation's proposed pre-packaged Chapter 11 proceedings with Exodus' Chapter 11 proceedings. We apologise to Globix, its employees and customers for any concern caused by our article.