NEW YORK, NY - May 17, 2000 - Viatel, Inc. (Nasdaq: VYTL) today announced that it will be deploying Cisco System's leading-edge optical IP technology throughout its pan-European network, thereby enabling it to roll-out a broad array of scalable optical IP-based services to its customers.

Viatel - the owner, operator and builder of Europe's most advanced and extensive fiber-optic network - will be deploying Cisco 12016 internet routers throughout its pan-European network. The Cisco 12016 routers will enable Viatel to deliver high quality IP services with scalability to terabit capacity. In addition, this carrier class IP backbone will leverage Cisco IOS(R) and MPLS (Multi Protocol Label Switching) technologies. IOS is a leading technology that will enable Viatel to deploy advanced features and differentiated quality services across its backbone network, allowing these IP services to be extended and leveraged by its enterprise customers. The IOS network will also allow Viatel to rapidly deploy IP VPN services throughout the entire network using MPLS-VPN (RFC2547) technology. Optimizing the VPN service at the Internet Protocol layer will allow Viatel to benefit from both the scalability and economic benefits that in turn can be passed on to its customers.

This advanced IP technology will enable Viatel to offer integrated voice (Voice over IP), dial access Virtual Private Networks (VPNs), Web hosting and unified messaging services to its corporate customers.

"We always knew we'd go 'Optical IP,'" said Michael J. Mahoney, Viatel's Chairman and Chief Executive Officer. "By deploying IP over optical fiber, Viatel will be able to offer sophisticated, feature and functionality rich, value-added network services to businesses and other service providers, including fast and secure IP-VPNs that significantly out-compete the traditional switched-based service offerings on price, speed and flexibility."

Mahoney added, "And because quality and reliability are what our customers expect, we chose Cisco Systems as our provider of optical IP technology. Cisco's market presence and track record in IP networking solutions made them the obvious choice to help us build our optical network. As a Cisco Powered Network (CPN), Viatel will not only enjoy the benefits of an end-to-end service solution, but also have the full commitment and resources of Cisco Systems to ensure the security, quality and reliability of our network. Viatel will be able to leverage the CPN brand as we market our cross-border and intra-city broadband IP services and capacity to small businesses, enterprises, Internet Service Providers, Application Service Providers and other carriers.

"The scale of Viatel's advanced fiber optic network across Europe makes it an outstanding example of leading-edge technology and 'New World' thinking," said Kevin J. Kennedy, senior vice president, Service Provider Line of Business, Cisco Systems Inc. "Its strategy of deploying one of the most impressive optical networks in the EMEA (European, Middle Eastern and African) market, will ensure that Viatel can stay at the forefront of this dynamic marketplace and bring all of the benefits of optical networking to its customers."

About Viatel:

Viatel, Inc. is a rapidly growing provider of all distance, all services --including local and long-distance, voice and data, Web-centric and multimedia - to end-users, ISPs, ASPs and other carriers in Europe and North America. It currently operates one of the largest international networks, with international gateways in New York and London; state-of-the art network operations centers in Egham, England and Somerset, New Jersey; and network points of interconnection in over 250 cities.

Viatel's Global Network now consists of:

• A multi-duct, continuously-upgradeable, cross-border network in Western Europe of which construction of over 7,000 route kilometers of the announced 10,400 route kilometers, linking 59 major cities, is completed. Construction of the remaining route kilometers will be finished by year's end.
• Metropolitan networks being built throughout London, Amsterdam, Paris, Berlin, Frankfurt and Dusseldorf as well as throughout the New York metropolitan area.
• High-speed fiber-optic links from New York to Boston, Chicago, Philadelphia and Washington, D.C.
• Significant trans-Atlantic capacity, including the fiber pair it will own and operate on the Yellow Submarine cable.

Taken together, Viatel is now able to link its pan-European, North American and local broadband networks with a high-speed trans-Atlantic fiber network to offer its customers a wide array of voice and data services over a single integrated network.

The matters discussed in this release are forwarding-looking statement that involve risks and uncertainties detailed from time to time in Viatel's registration statements and reports filed with the Securities and Exchange Commission, including those contained in its Annual Report or From 10-K. Viatel undertakes no duty to update such forward-looking statements.

For more information about Viatel and the products and services that it offers, visit www.viatel.com.