Viatel, Inc.
Ticker: VYTL 800 Third Avenue
Exchange: NASDAQ-National Market New York, New York 10022
Industry: Service (212) 935-6800

Type of Shares:Common Shares Filing Date:8/7/96
U.S. Shares:5,200,200 Offer Date:10/17/96
Non-U.S. Shares:3,466,800 Filing Range:$12.00 - $15.00
Primary Shares:8,667,000 Offer Price:$12.00
Secondary Shares:0 Gross Spread:$0.84
Offering Amount: $117,004,500 Selling:$0.50
Expenses:$1,600,000 Reallowance:$0.10
Shares Out After:22,374,648

ManagerTierPhone
Salomon Brothers Inc.Lead Manager (212) 783-2947
CS First BostonCo-manager (212) 909-3312
Lazard Freres & Co.Co-manager (212) 632-3000

Auditor: KPMG Peat Marwick
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$32.31$38.47$24.14Assets:$48.55
Net Income:-$28.48-$20.62-$12.44Liabilities:$84.15
EPS:-$2.04-$1.47-$0.89Equity:-$35.60

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
Viatel is a growing provider of international and national long distance telecommunications services principally in Western Europe, Latin America, the United States and the Pacific Rim and offers its services primarily to small and medium-sized businesses The company operates a digital, switch-based telecommunications network in Western Europe including a central switching center in London and additional switching centers in Amsterdam, Barcelona, Brussels, Frankfurt, Madrid, Milan, Paris and Rome connected by leased, digital fiber optic transmission facilities. In addition, the company operates a switching center in Omaha, Nebraska which is connected to the central switching center in London by leased, digital fiber optic transmission facilities. The company has achieved rapid growth since its inception in 1991 with telecommunications revenue reaching $32.3 million in 1995 and $10.6 million during the three months ended March 31, 1996.

Use of Proceeds
The proceeds from the proposed offering will be used for i) network upgrade and expansion ii) investment in digital undersea fiber optic cable iii) acquisitions of customer bases and businesses or for investment in joint ventures or strategic alliances iv) general corporate and working capital purposes, including feasibility studies of the company's provision of competitive local exchange carrier services.

Last updated: 11/3/96

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