Global Crossing ERISA Litigation

The In re Global Crossing LTD. et al. ERISA Litigation Complaint was filed in United States District Court for the Southern District of New York on behalf of Plaintiffs and a class (the "Class") of all persons who were participants in or beneficiaries of the Global Crossing Employees’ Retirement Savings Plan (the "Global Crossing RSP") or the Frontier Group Bargaining Unit Employees Retirement Savings Plan (the "Bargaining Unit RSP") ("the Plans") between September 28, 1999 and December 8, 2003 (the "Class Period").

Settlement

On November 11, 2004, U.S. District Judge Gerald E. Lynch granted final approval to the proposed class action settlement In re Global Crossing LTD. et al. ERISA Litigation. The Global Crossing ERISA Settlement proceeds were disbursed on May 17, 2005. The portion of the proceeds allocable to current or former employees of Global Crossing who did not become employees of Citizen’s Communications were disbursed to the Global Crossing 401(k) Plan. The portion of the proceeds allocable to former Global Crossing employees who became participants in the Citizen's Communications plan were disbursed to that plan. The total amount disbursed was approximately $58 million. It is anticipated that a relatively small additional disbursement (less than 1% of the May 16 disbursement) will be made after certain notice and administrative expenses incurred in connection with the settlement have been finally accounted for. The ERISA settlement involves participants or beneficiaries of the Global Crossing Employees' Retirement Savings Plan or the Frontier Group Bargaining Unit Employees Retirement Savings Plan who held Global Crossing stock in their accounts between September 28, 1999 and December 8, 2003. The ERISA settlement also covers people who were participants or beneficiaries of the Frontier Corporation/Global Crossing, Ltd., Change of Control Severance Plan between September 28, 1999 and December 8, 2003. The ERISA settlement resolves claims that have been asserted against certain fiduciaries of these Plans under the Employee Retirement Income Security Act of 1974.