Trading Desk: Master Agreement Remains in Committee

Posted: 12/2000

ACE Expands Global Program

The Asia Capacity Exchange (ACE, www.ace-asia.com),
which trades international telecommunications capacity, announced in late
October an aggressive plan to expand into the Europe and Asia markets.

With headquarters in Los Angeles and Hong Kong, ACE announced it has
submitted applications for telecom licenses in Japan, Singapore and Australia.
If those licenses are approved, ACE can operate as a neutral exchange in those
markets.

The Company will deploy switches and associated equipment in these countries
that will include satellite uplink/downlink facilities, which provides access to
its network of services and facilities.

ACE also has plans to expand its range of services and international reach to
strengthen its exchange platform for the global telecommunications industry.

The company’s new Thailand office already is serving Vietnam, Cambodia and
Laos.

"We continue to draw on our expertise in both software development and
market knowledge of the most bandwidth deficient countries within Asia–a
strategy that continues to be the most competitive advantage in the bandwidth
trading market," said Paula Brillson, ACE’s CEO, in a prepared statement
released at the time of the announcement. "Since we launched our
revolutionary "Bandwidth-on-Demand" service in September, we have seen
a dramatic increase in the number of on-line trans-pacific bandwidth trades. It
is an exciting time in ACE’s evolution as a global player."

The licenses, if approved, will make ACE stronger in Asia, and could put it
in a position to be the leading focal point of international call minutes and
bandwidth trading throughout the Asia-Pacific region.

In the meantime, the company also is strengthening ties in Europe.

"Our relationship with The London Satellite Exchange (e-sax, www.esax.com)
is enabling the two companies to provide end-to-end services for both the
telecom and enterprise customers," Brillson said. "Using both
satellite and fiber on-demand strategies, more and more customers are attracted
to ACE and e-sax’s services for the maximum flexibility we provide." She
said financial problems sweeping throughout telecom markets caused bandwidth
rates to drop significantly during the last quarter.

"Customers are reluctant to enter into long-term bandwidth contracts for
fear that rates will continue to drop," she said. "ACE’s
month-to-month contracts and on-demand service helps to manage risks for buyers
whose profit margins are highly dependent on the underlying costs for bandwidth
leases."

ACE’s web-based virtual trading floor (ACE VTF) lets traders enter bids and
offers for capacity–ranging from clear channel, frame relay and IP bandwidth to
international circuit-switched voice minutes and VoIP.

Operating as a neutral third party, ACE aggregates buyers and sellers to
deliver cost savings and efficiencies in transacting capacity trades.