360Networks Announces OVPN Contract with Navigata

Award-Winning Network Service Leads to Expanded Relationship

Vancouver, BC - 360networks Corporation, a leading provider of data communications services, announced today that Navigata Communications Ltd, a member of the SaskTel group of companies, will deploy 360networks’ innovative Optical Virtual Private Network (OVPN) solution. Navigata will use 360networks’ OVPN service to expand the footprint of its backbone network in both the United States and Canada. Using the OVPN service, Navigata can establish OC-n port capacity throughout their network and quickly scale circuits at STS-1 or 50Mbps increments. The OVPN service will improve efficiency by providing the ability to quickly scale bandwidth based on customer demand.

"The OVPN solution is another excellent addition to Navigata’s network enabling us to respond to our customers’ needs quickly, and will position us well in this dynamic environment," said Thomas Laird, President and Chief Executive Officer of Navigata Communications Ltd. "360networks has provided quality network services to us for the past two years, and we are excited to expand our relationship with the Company going forward."

"Navigata is a valued customer of 360networks and we are pleased to grow our relationship with them," said Jimmy Byrd, 360networks president and chief operating officer. "We are convinced that the cost savings and the network flexibility that our OVPN service offers will continue to attract the attention of network service providers and other customers with large data requirements for the same reasons the product was compelling to Navigata." 360networks introduced the OVPN service in 2001 as the first optical virtual private networking solution available in the telecommunications industry. The service is compelling to network and enterprise data customers because it offers several unique benefits:

"Pay as you grow": 360networks OVPN users have the unique ability to purchase incremental bandwidth at the STS-1 level. This option allows customers to buy only what they need at a given point in time, without having to purchase unnecessary network capacity in advance.

Quick provisioning: Once the initial OVPN port is provisioned, additional capacity can be provisioned in hours, not the typical days or weeks. 360networks guarantees an initial service provisioning interval of 15 days.

Multiple protection options: Depending on the protection needs of the customer, multiple levels of network protection are available at the STS1 level, ranging from an unprotected circuit to a fully-protected mesh circuit. After successfully introducing the OVPN service last year, 360networks was awarded the "Market Engineering Product Innovation Award" by leading telecommunications industry analysts Frost and Sullivan.

About 360networks

360networks offers telecommunications services and network infrastructure in North America to telecommunications and data communications companies. The Company’s optical mesh fiber network is one of the largest and most advanced on the continent, spanning approximately 25,000 miles (40,000 kilometers) and connecting 48 major cities in Canada and the United States.

About Navigata Communications Ltd

Navigata offers a full range of products to address the telecom needs of businesses, including data networking, high-speed Internet, hosting services, data center co-location, managed security solutions, long distance and local phone services. The company has offices in British Columbia, Alberta, Ontario and Quebec. Navigata is a member of the SaskTel group of companies, the leading full service communications company in Saskatchewan, offering complete wireline, wireless, Internet and e-business solutions over a state-of-the art, digital network. Visit www.navigata.com.

For more information, please contact:

Chris Mueller
Media and Investor Relations

Todd Wolfenbarger
The Summit Group

Patrick Brophy
Marketing Manager, Advertising & Communication
Navigata Communications