Viatel Holding Bermuda (VTLAF) SC 13E3 Going private transaction

Exhibit 4

Presentation to Viatel Holding (Bermuda) Limited October 31, 2007`is intended for the exclusive use of the persons or firm to whom it is furnished by us.DRAFT, For Discussion Purposes Only The Special Committee to the Board of Directors of Preliminary Assessment: Subject to Further Review The information contained herein is of a confidential nature and Reproduction, publication, or dissemination of portions hereof may not be made without prior written approval of Duff & Phelps, LLC.

CONFIDENTIAL -

Valuation AnalysisHistorical Stock Price & Volume

Introduction and BackgroundViatel

Table of ContentsI.II.AppendicesA.

DRAFT, For Discussion Purposes Only CONFIDENTIAL -

Duff & Phelps Disclaimer

•and relied the

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DRAFT, For Discussion Purposes Only CONFIDENTIAL -

Statement of Limiting Conditions

•from withhave futuretheof and towill value they thesubjective availablethat toarerespectcases assingle or representationswithmany Viatelassumedanalysisin no theat of, makehave managementimplied,indisputable foror behalfwearrived no andViateldatais onand ofexpress andthethere ofconclusions by, informationjudgmentswhether somethe thisand provided of(“Management”)however,guarantees, services.and Consequently, estimatesManagement.thescience o r information verificationmanagement availableanalysis, fromofexact judgment. theourwarrantiesan ViatelPhelpsprovisionas upontoindividual range. by&any the independentcurrentlyof based theinputs Duffoflikely bestmaderegardeda is for information.byresult developed thekeybe exercise thisnot awithin Phelpswereasthe ofcollectedhavecannot on &falling reflectingwe obtain Duff responsibilityprojectionsas on basesthat mayanalysis by noCompany.informationdependent completenesspart on theinformationyouestim ate orofand prepared assumeinmarket fromacknowledge thatvaluationour Webased preparedresults accuracyand productisderivedand thenature, subjective express theperformancedatabe work sources. toanalysis reasonablyaccept orvery itstherefore The public respectOur been financialIndustry assessmentsYou servicesBy necessity we 333

DRAFT, For Discussion Purposes Only CONFIDENTIAL -

Introduction & Background I.

DRAFT, For Discussion Purposes Only CONFIDENTIAL -

Scope of Engagement

The Proposed Transaction

•the of the or one (“Viatel” that consolidation stock Limited understanding split, our stock is (Bermuda) It reverse a Holding Transaction”). is Viatelconsidering of “Proposed currently Committee”) (the is “Special transaction Committee (the private Special the Directors going that law. of potentialBermuda Board the a Transaction under to considering Proposed Committee are the transaction Specialof equivalent The “ Company”) structures or

The Engagement

Preliminary valuation analysis with respect to the Company If required, an Opinion as to whether the share price to be offered to the minority shareholders of the Company pursuant to the Proposed Transaction is fair from a financial point of view to those minority shareholders. Phase I — Phase II -Duff & Phelps, LLC (“Duff & Phelps”) has been engaged by the Special Committee to provide certain financial advisory services to the Special Committee in connection with its considerations of the Proposed Transaction.We will provide advisory services (collectively, the “Services”) in two phases. — -

DRAFT, For Discussion Purposes Only CONFIDENTIAL -

Summary of Documents and Information Reviewed

The documents and information reviewed with regards to the preparation of our preliminary valuation analysis included, but was not limited to, the items summarized below:

•and relevant. relevant; deemed Horwood;deemed we Management; 2012; Management;we Stuart performance;Viatel 31,information andbyViatelcompanies CFO; operatingDecember bypublic investment Court, andended providedselected and Andrew financialprovided/prepared yearson industry, its 2007;five Company companies; relevant; and CEO; and tothe Companythe public 2002for todeemed industry economic, Woods,theselect Company period forrespectwe Lucy theonincludi ng the 2008 Management, with for and regarding Viatelbyinformation transactions telecommunications 2007information, Management:for for prepared informationgoing-private senior presentations statements Reportsfinancial transactionEuropean available andthe Viatelprojections, andrecent on publicly with management financial Backlogmarket, on meetingsand Company’s operatingreports other various historical Funnel the other financial, information analyst certain Conducted Reviewed Reviewed Reviewed Reviewed R eviewed Reviewed Reviewed Reviewed Reviewed 3 3 3 33 3 3 3

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Overview of ViatelFounded in 1991, Viatel, Inc. initially specialized in international communications throughout Western Europe and North America. Viatel went public on the NASDAQ in 1996.

•7, the4,smallsince thanofPan itsJuneto a 11stock lowerJanuary onownsNational andChapteronprovidersheet restructurealso tobankruptcyandpink marketunderNASDAQa beginincorporated fromas toreliefEuropetheOTC forwas Inc.emergedtelecommunications acrossfrom filed Viatel,Limited anda telecommunicationsInc.asdelistedNASDAQ lawbusinesses network. wasthe the forcedViatel, on inCode. (Bermuda) Bermudaoperates sized optic Viatel trends volumes operations. 2001 ,fibertraded 2002.•Holdingcurrently2002, exchange.•2001,Mayundermediumhas expected worldwideViatelViatelJuly Market Viatel ByOn Bankruptcy2002 2002.and European InDecember

Viatel Summary Financials

2006 33.5 62.8% 16.4 49.1% (32.5) (97.1%) 85.6 161.70.0001 0.0055 10.63 0.06 /2005 20.6 47.1% 7.9 38.3% (48.1) (234.0%) 56.4 92.30.06002004 14.0 36.8% 6.7 48.1% (58.5) (418.7%) 99.7 64.3In millions of USD 2003 10.2 5.3 51.5% (42.4) (415.0%) 94.9 33.4Revenue % growth Gross Profit % of revenue EBITDA % of revenue Total Assets Total LiabilitesCurrent Capitalization (VTLA.F) 52 week high / Low Current Share Price ( as of October 01, 2007) x Shares Outsata nding = Market Capitalization (in millions) financial statement and Management Source: Viatel

3/1/04 6/16/03 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 -

Viatel Holding (Bermuda) Ltd. (OTCPK:VTLA.F) — Common Stock Share Price in USD

7/28/05 11/11/04

12/26/06 4/12/06

9/12/07

Major Beneficial Shareholders of Common Stock

% of Ownership 14.3% 8.3% 6.5% 70.9% 100.0%Number of Shares 1,517,535 882,531 691,850 7,538,084 10,630,000Owner Morgan Stanley & Co. Incorporated The Värde Fund L.P. Kanagawa Holdings, LLC Other Shareholders Total Shares Outstanding * Source: Viatel December 31, 2006 20-F

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Overview of Key Financing Events

Viatel Financing

•ofonwillJuly seniorto:ata sixmaturesbelowtheininterest to rounds$13its secured rightshare ifvotes)raised ableCompanyall which theper1 non- have matureraised convertiblethepricingincluding to ofsenior beenundergone(9 continuousof million,in$0.75notes notes hashasat2007. toinvestors stakeapprovedprivileges power financingThesefinancingrefinancing additional dueViatelfinancing $52.3 theequitysharevoting of securedof August been Companyfinancing. ofgiv esto 2004raisedmajorityboard per sharemillion.round in has issuing thedebtbut aarounds seniorby operationsAprilround notesat$63.8 2004,of2014 Gain conversion Convert or $0.75 Special majorityLatest million financing.first•••ofCompany Since maintain debt Starting rounds The secured AprilSubsequent convertible total 2008.The obligations notes•••••

Management *Source: Viatel

Total 86.35 22.30 1.80 3.00 0.50 0.50 1.000.25 0.25 0.10 116.0518.43 4.88 0.92 0.93 0.16 0.16 0.310.08 0.31 0.08 0.03 26.28 142.33 Non- Convertible August 2007 10.30 2.50 0.20 — - - — - — 13.000.19 0.04 0.05 — - - — - — - 0.29 13.29 Non- Convertible April 2007 10.30 2.50 0.20 — - - — - — 13.000.67 0.16 0.07 — - - — - — - 0.89 13.89 Non- Convertible December 2006 10.30 2.50 0.20 — - - - — - — 13.001.05 0.25 0.08 — - - — - — - 1.38 14.38 (in millions of USD) Non- Convertible March 2006 6.90 1.70 0.20 — - - — - — 8.801.59 0.36 0.01 — - - — - — - 1.95 10.75Viatel Financing History Non- Convertible July 2005 12.90 3.10 — - — - — - — 16.003.86 0.96 0.41 — - - — - — - 5.23 21.23 Convertible April 2004 35.65 10.00 1.00 3.00 0.50 0.50 1.000.25 0.25 0.10 52.2511.07 3.10 0.31 0.93 0.16 0.16 0.3 10.08 0.31 0.06 0.23 16.72 68.97 Investor Morgan Stanley & Co Inc Varde Partners, Inc Stonehill Institutional Ptns LP Ahab Ptnrs LP Wayland Distressed Opp Fund I-A LLC Wayland Distressed Opp Fund I-B LLC Ore Hill Hub Fund LtdLucy Woods John Colton Francis William Total Initial LoanCapitalized & Accrued Interest Morgan Stanley & Co Inc Varde Partners, Inc Stonehill Institutional Ptns LP Ahab Ptnrs LP Wayland Distressed Opp Fund I-A LLC Wayland Distressed Opp Fund I-B LLC Ore Hill Hub Fund LtdL ucy Woods Lucy Woods Dependent Trust* John Colton Francis William Total Capitalized & Accrued Interest Total Loan Amount * Lucy Woods Trust represent convertible notes issued by the Company to Lucy Woods

DRAFT, For Discussion Purposes Only CONFIDENTIAL -

Preliminary Valuation Analysis II.

DRAFT, For Discussion Purposes Only CONFIDENTIAL -

Discounted Cash Flow Analysis Background

provided by The Management case “Management Case with co-location services”

2007 for the business in GBPs.ability to raise additional financing to fund operations.based on information provided by management.going forward.was used to convert the value to USD. provided the latest Management Case projections as of SeptemberManagement is currently investigating the feasibility of the services. Duff & Phelps treated this as an alternative scenario and performed a DCF analysis on this scenario.Revenue growth rate from 2012 onwards was n ormalized to a long term sustainable growth rate based on discussion with Management. Taxes were adjusted to reflect the use of Net Operating Losses (“NOLs”) and a corporate tax rate of 30% was assumed based on discussion with Management. Depreciation, Working Capital and Capital Expenditure levels are Terminal Value was calculated using the Gordon Growth Model. As per management, no public company listing expense are assumed Duff & Phelps performed a discounted cash flow (“DCF”) an alysis utilizing the projected free cash flows of Viatel Company Management. Viatel superseded the board approved December 2006 business plan and per Management, reflects the most recent performance and outlook for the business. The Management case is predicated on Viatel’s Management also provided a scenario with additional co-location services — - — Future free cash flow estimates were based on projections provided by Viatel Management for fiscal years 2007 through 2012. -— -  1; Duff & Phelps discounted the resulting free cash flows and continuing value at a weighted average cost of capital of 16%. Duff & Phelps performed sensitivity analyses by varying the Discount Rate and Long Term Growth Rate. A conversion rate of 2.0477 for USD to GBP as of October 1, 2007

333 333 3 3

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Discounted Cash Flow Analysis Background Cont.

Other Key Assumptions Based on Discussion with Management

subsidiary. to Viatel. As such, the contingent liability is excluded from the AG, a Viatel is currently in an ongoing litigation with a French-based telecom company, VNF, over Rights of Way payments. Management expects the outcome of the litigation to be favorable analysis. The above adjustments would result in a reduced value for the business. is currently in an ongoing litigation in Switzerland involving Viaphone As per Management, the chance of a favorable o utcome is unclear and hence, our analysis excluded the impact of this potential outcome. Viatel — Viatel -

33

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Key Assumptions Based on discussion with Management

Discounted Cash Flow AnalysisManagement Case — Revenue

•revenue. non-recurring and revenue, recurring staff. sale monthly of sales. existing number retailand and revenue, value sales recurring order (wholesale)sale monthly monthly networkon below: generated based between newly is summarized on revenue are segmented based is generated wasassumptions Revenue Newly Key Revenue•••

4.0k 90% 90% 350% 1.0%45% 45% 85%Direct Retail 17, increase to 26 in 2010 £ Direct Retail60% 60% 88%2.1k 90% 90% 350% 1.0%Indirect Retail 12, increase to 16 in 2010 £ Indirect RetailNetwork10% 16% 85%Network 12 sales person 2009 and onwards £5.0k 2008 and onwards 100% 100% 300% 1.0%Average Sales Person Headcount Monthly Sales Order Value Success Rate for SOV Booked* Success for Booked to invoiced** Non-recurring Revenue as % of New Sales Monthly Churn COGS MarginsNewly generated monthly recurring revenue gross margin Existing monthly recurring revenue gross margin Non-recurring revenue gross margin Success rate reflects revenue booked after accounting for cancelled orders related to technical issues.

*** Success rate reflect revenue booked after accounting for cancelled orders.

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Discounted Cash Flow Analysis

Key Assumptions based on discussion with ManagementS G&A consisted of the following components: Management Case -

•marketing, maintenance, repairs, onwards. includes 2008 costs from These annually onwards. 3% 2008 approximately from annuallycount. growhead to 2% and assumedscale way approximatelypay on of grow based rights to & assumed etc. calculated travel property costsis Networkcost Other consulting, Staff•• were factored in the cash flows. The impact of the financial terms of the Global Voice contract

Global Voice Contract•Other Cash Flow Assumptions

•receivable. accounts for days 40 and Management. payable by accounts provided for were days 40 on Depreciation based and calculated expenditures capital Capital Working•

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DRAFT, For Discussion Purposes Only CONFIDENTIAL -

Discounted Cash Flow Analysis

Management Case

65.79 3.0% 42.33 3.0%108.12 3.0%40.04 60.9% 6.41 15.1%46.46 43.0%25.74 39.1% 35.92 84.9% 61.6657.0%19.6929.9% 19.00 44.9%40.4937.5%6.05 9.2%16.9340.0% Terminal Year63.87 5.0% 41.10 6.0%104.97 5.4%38.88 60.9% 6.23 15.1%45.10 43.0%24.99 39.1% 34.87 84.9% 59.8757.0%19.1229.9% 18.44 44.9%39.3237.5%5.87 9.2%16.4340.0% 201560.83 8.0% 38.77 10.0%99.60 8.8%37.03 60.9% 5.87 15.1%42.90 43.1%23.80 39.1% 32.90 84.9% 56.7056.9%18.2129.9% 17.40 44.9%37.3437.5%5.59 9.2%15.504 0.0% 201456.32 10.0% 35.25 16.0%91.57 12.2%34.28 60.9% 5.34 15.1%39.62 43.3%22.04 39.1% 29.91 84.9% 51.9556.7%16.8629.9% 15.82 44.9%34.3937.6%5.18 9.2%14.0940.0% 201351.20 15.4% 30.39 18.8%81.59 16.7%31.17 60.9% 4.60 15.1%35.77 43.8%20.04 39.1% 25.78 84.9% 45.8256.2%15.3329.9% 13.63 44.9%30.6537.6%4.71 9.2%12.1540.0% 201244.35 21.5% 25.57 27.0%69.92 23.5%27.07 61.0% 4.13 16.2%31.20 44.6%17.28 39.0% 21.44 83.8% 38.7255.4%14.8833.5% 13.30 52.0%29.8542.7%2.41 5.4%8.1431.8% 201136.50 20.0% 20.13 43.8%56.64 27.5 %22.19 60.8% 3.60 17.9%25.79 45.5%14.31 39.2% 16.53 82.1% 30.8554.5%14.4339.5% 12.97 64.4%29.0651.3%(0.12) (0.3%)3.5617.7% 201030.43 21.3% 14.0044.43 38.5%18.24 59.9% 3.00 21.4%21.24 47.8%12.19 40.1% 11.00 78.6% 23.1952.2%12.7141.8% 12.63 90.2%26.9660.7%(0.52) (1.7%)(1.63)(11.7%) 2009100.5%15 25.09 29.1% 6.9832.07 44.3%15.05 60.0% 1.95 27.8%17.00 53.0%10.03 40.0% 5.04 72.2% 15.0747.0%12.3649.3% 12.2626.2181.7%(2.33) (9.3%)(7.23)Discounted Cash Flow Analysis As of October 1, 2007 (In millions of GBP)200 8150.5%175.6%(103.5%)Viatel Holding (Bermuda) Limited 2007 4Q5.42 0.856.273.20 59.0% 0.21 25.0%3.41 54.4%2.22 41.0% 0.64 75.0% 2.8645.6%3.1858.7% 3.00 351.6%6.90110.1%(0.96) (17.7%)(2.36)(276.6%)YTD 200714.02 1.9415.958.21 58.6% 0.43 22.3%8.64 53.0%5.81 41.4% 1.50 77.7% 7.3145.8%9.0864.8% 8.98 463.9%20.06125.8%(3.27) (23.3%)(7.48)(386.2%) 19.43 42.2% 2.79 1.6%22.22 35.4%11.40 58.7% 0.64 23.1%12.05 54.2%8.03 41.3% 2.14 76.9% 10.1745.8%12.2663.1% 11.9826.96(4.23) (21.8%)(9.83)2007429.6%121.3%(352.7%)DRAFT, Fo r Discussion Purposes Only % growth % growth% growth% Retail Revenue % Network Revenue% Total Revenue% Retail Revenue % Network Revenue% Total Revenue% Retail Revenue % Network Revenue% Total Revenue% Retail Revenue% Network RevenueRevenue Retail NetworkTotal RevenueCost of Goods Sold Retail NetworkTotal Cost of Goods SoldGross Profit Retail Network Total Gross ProfitSales, General and Administrative RetailNetworkTotal Sales, General and AdministrativeRetail EBITDANetwork EBITDACONFIDENTIAL - Discounted Cash Flow Analysis

Terminal Year 22.98 1.81 1.7%2.71 23.88 22.1% 20.66 19.1% 6.2014.46 13.4% 3.22 3.60 0.11 -13.9813.98 16.0% 3.0% 13.0%107.53 0.3184 34.24 22.31 1.75 1.7%2.68 23.23 22.1% 19.63 18.7% -19.63 18.7% 3.60 3.49 0.17 -19.57 0.3184 6.23 2015 21.10 1.73 1.7%2.64 22.00 22.1% 18.40 18.5% -18.40 18.5% 3.60 3.31 0.23 -18.46 0.3693 6.82 2014 19.27 1.71 1.9%2.59 20.15 22.0% 16.55 18.1% -16.55 18.1% 3.60 3.03 0.30 -16.82 0.4284 7.21 2013Residual Calculation Residual Year Availa ble Cash Flow Discount Rate ( r ) Long-Term Growth Rate ( g ) Capitalization Factor ( r — g )Residual Value Times: Discount Factor Present Value of Residual Value 16.86 1.69 2.1%2.54 17.70 21.7% 14.10 17.3% -14.10 17.3% 3.60 2.68 0.72 -14.30 0.4970 7.11 2012 10.54 1.67 2.4%3.35 12.22 17.5% 8.62 12.3% -8.62 12.3% 3.60 2.83 0.81 0.877.71 0.5765 4.44 20114.0%140.00 122.00 106.00 3.44 1.65 2.9%4.15 5.94 10.5% 2.34 4.1% -2.34 4.1% 3.60 3.00 0.64 1.740.56 0.6687 0.37 2010USD millions 3.0%131.00 115.00 101.00 $ (2.16) 1.62 3.6%4.07 0.30 0.7% (3.30) (7.4%) -(3.30) (7.4%) 3.60 3.19 0.84 1.74(5.47) 0.7757 (4.24)Growth Rate 2009BEV in 2.0%124.00 109.00 96.00 (9.55) 1.59 5.0%3.99 (7.16) (22.3%) (10.76) (33.5%) -(10.76) (33.5%) 3.60 3.75 0.47 1.74(13.11) 0.8999 (11.80) Discounted Cash Flow Analysis As of October 1, 2007 (In millions of GBP)200815.0% 16.0% 17.0% 0.731.59 -0.90 0.82 0.29 0.89 Viatel Holding (Bermuda) Limited(3.32) 11.6%(2.45) (39.1%) (3.35) (53.4%)(3.35) (53.4%)(4.45) 0.9845 (4.38)Rate 2007 4QDisc ount YTD 2007 (10.75) 2.18 13.6%2.95 (9.97) (62.5%) (12.67) (79.4%) -(12.67) (79.4%) 2.70 2.45 (8.69) 2.67(6.40) (14.06) 2.90 13.1%4.55 (12.42) (55.9%) (16.02) (72.1%) -(16.02) (72.1%) 3.60 3.26 (8.40) 3.56(10.84)11.76 34.24 10.13 — 56.13 115.00 2007 millions, rounded) $Management Case Network and Retail EBITDA Less: Corporate SG&A Expenses % Total RevenuePlus: Global Voice Adjustments Total EBITDA % Total Revenue Operating Profit (“EBIT”) % Total Revenue Less: Taxes @ 30.0%After-Ta x Operating Profit % Total Revenue Plus: Depreciation & Amortization Less: Capital Expenditures Less: Investment In Net Working Capital Less: Global Voice AdjustmentsFree Cash Flow Present Value Factor Present Value of Free Cash FlowBusiness Enterprise Value Present Value of Available Cash Flow Plus: Present Value of Residual Value Plus: Present Value of Tax Savings in Terminal Year Plus: Non-operating AssetsLess: Contingent Liabilities Business Enterprise Value ( in £ millions) Business Enterpris e Value ( in 16

DRAFT, For Discussion Purposes Only CONFIDENTIAL -

Net Operating Loss (NOLs) Benefits for the Terminal Year

Viatel has approximately £279.3 million ($572 million) of NOLs as of the Valuation Date.

•in million $32 plus 2007 in expires which NOLs based US of million accounts. $5 less 20-F Management 2006 per 2007 as NOLs September of of million as losses $545 on accumulated Based

in the past and has been unsuccessful in doing so. has tried to monetize the NOLs As per Management, there were no time bound restrictions on the use of the NOLs.

ViatelNOLs were factored in the discrete projection period. The benefit from the NOLs beyond the projection period was calculated separately assuming a 3% annual growth rate in profitability.

Net Operating Loss Calculations

3%202728.6- 28.60 28.608.58 -0.0536-3%202627.8- 27.77 27.778.33 -0.0622-27.03%(7.23) 26.96 19.735.92 2.170.1620250.07223%202426.2(33.40) 26.17 — 7.850.08370.663%202325.4(58.81) 25.41 — 7.620.09710.74202224.673.0%(83.47) 24.67 — 7.400.11270.83202123.953.0%(107.43) 23.95 — 7.190.13070.94Fiscal Year Ended December 31, 2007 202023.253.0%(130.68) 23.25 — 6.980.15161.06201922.583.0%(153.25) 22.58 — 6.770.17581.19201821.923.0%(175.17 ) 21.92 — 6.580.20401.34201721.283.0%(196.45) 21.28 — 6.380.23661.51201620.663.0%(217.11) 20.66 — 6.200.27451.7010.13Cash Flow Analysis (in millions of USD)EBIT% Growth TaxesOperating Loss Carry Forward Operating Income Taxable Income after NOLsLess: Income Tax at 30.0% Tax SavingsPresent Value Factor @ 16% discount ratePresent Value of Tax SavingsSum of Present Value of Tax Savings 17

DRAFT, For Discussion Purposes Only CONFIDENTIAL -

Discounted Cash Flow Summary

latest projections. Management has indicated that the Company is investigating increasing their co-location capability by investing in a new co- “Management Case with Co-Location”. Management Case was based on Viatel’slocation facility in London -

•£800. of fee monthly a and capacity rack 100 a on center. based year co-location per the million for £1.2 2008 be in projections will anticipated revenue is financials that expenditure provided anticipates capital Management of Management£600k•3

High Value Range Low Viatel Holding (Bermuda) Limited Business Enterpise Value Summary (in millions of USD)

Management Case

140.00

96.00

102.00 Management Case w/ Colocation Business

147.00

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Duff & Phelps selected public companies that operate in the network and retail businesses. Valuation AnalysisSelected Public Company Valuation Multiples 3

EV / PP&E1.1x 0.6x 1.4x 0.7x 1.1x 1.7x 2.5x 4.0x 2.6x 3.3x 5.1x 3.0x2.2x 2.1x 0.6x 5.1x EV / 2008 Proj. Revenue2.9x 0.8x 1.0x 0.5x 1.2x 1.6x 0.4x 0.6x 0.9x 1.3x 0.8x 1.3x1.1x 1.0x 0.4x 2.9x EV / 2007 Proj. Revenue3.2x 0.9x 1.0x 0.5x 1.4x 1.7x 0.5x 0.6x 1.0x 1.4x 0.8x 1.3x1.2x 1.0x 0.5x 3.2x PP&E6,709.0 1,408.0 1,193.0 381.3 56.9 15,124.0 6.7 16.2 132.4 258.9 44.7 1,465.0 2008 EBITDA Margin26.3% 9.7% 17.2% 10.1% 17.2% 27.9% 7.3% 20.4% 14.7% 20.3% 9.3% 17.9% 2007 EBITDA Margin20.3% 3.5% 16.1% 7.2% 15.6% 27.8% 4.7% 17.1% 14.4% 16.6% 7.9% 13.4% 2008 Projected EBITDA1,204.4 239.7 294.8 56.4 9.6 5,792.6 3.3 14.1 79.9 191.5 40.4 592.3 2007 Projected EBITDA858.1 78.2 276.0 38.5 7.6 5,618.8 1.7 10.3 75.7 138.0 31.2 456.2 FINANCIAL PERFORMANCELTM EBITDA675.0 (25.0) 276.5 42.2 6.0 5,805.0 2.2 5.3 65.2 108.2 20.1 489.0 2008 Growth Rate8.6% 9.9% (0.0%) 4.4% 14.1% 3.0% 24.1% 14.1% 3.0% 13.7% 9.2% (2.8%) As of October 1, 2007 (in millions of reported currency)200 8 Projected Revenue4,581.1 2,464.5 1,712.8 555.7 55.4 20,788.2 45.7 69.1 542.4 944.9 433.1 3,303.8Viatel Holding (Bermuda) Limited Selected Public Company Analysis 2007 Projected Revenue4,219.1 2,242.3 1,713.1 532.5 48.6 20,183.6 36.8 60.6 526.5 831.0 396.6 3,398.7 LTM Revenue4,015.0 2,005.0 1,704.2 532.7 45.3 20,392.0 30.1 55.3 483.1 759.0 299.5 3,348.0 Equity Value7,226.3 813.3 1,716.4 265.9 60.4 25,665.4 16.5 64.7 338.6 845.0 227.7 4,410.5 Enterprise Value13,393.3 2,055.3 1,764.6 290.5 67.7 33,831.4 20.2 39.1 502.8 1,182.1 326.0 4,292.5 MARKET DATAMean Median Minimum Maximum Stock Price(per share)4.71 21.97 2.52 1.45 8.18 3.10 0.33 4.00 0.66 1.99 0.09 1.88 CurrencyUSD USD GBP GBP USD GBP GBP EUR GBP EUR GBP GBP COMPANY INFORMATIONCompany Name Level 3 Communications Inc. Global Crossing Ltd. COLT Telecom Group SA Thus Group plc FiberNet Telecom Group Inc. BT Group plc BNS Telecom Group plc Broadnet AG KCOM Group PLC. Tiscali SpA Pipex Communications plc Cable and Wireless plc Notes: Values in millions except per share data LTM = Latest Twelve Months Enterprise Value = (Market Capitalization) + (Debt + Preferred Stock + Minority Interest) — (Cash & Equivalents) EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization Source: Capital IQ, Bloomberg, I/B/E/S, and SEC filings

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Valuation Analysis

Selected M&A Transaction Analysis

•retail provide that those as well as networks fiber-optic operate and own that companies involving transactions services. selected Phelps & telecommunication Duff IP

EV / Revenue 2.7x 3.1x 0.4x 1.1x 3.2x0.7x 1.6xN/A 2.6x N/A 1.9x 2.1x 0.4x 3.2x LTM Revenue 352.80 1940.9 245.50 89.44 3320.7174.70 687.55338.39 664.03 6.71 Median Minimum Maximum Mean Enterprise Value 956.09 6042 90.10 94.6 10614.350.10 1093.2N/A 1741.5 N/A Percent Sold 55.00% 80.62% 58.01% 100.0% 5.8%67.00% 80.30%100.0% 10.0% 100.0% Acquirer Clinven Limited, Altice One SAS Swisscom AG Vive La Vie SpA Global Crossing Ltd. SFRQSC AG Tele2 ABTDC Song Qwest Communications International Inc. WorldPort Communications Europe Holdings, B.V. Viatel Holding (Bermuda) Limited Selected Transaction Analysis As of September 30, 2007 (in millions of USD) 20

Target Business Description Broadnet AG operates as a broadband Internet carrier in Germany. It provides broadband communications solutions to business customers based on wireless and DSL technology. Versatel Telecom International N.V. provides telecommunications services in theTDC Song operates data, Internet, and telecommunications, through its offices located in the Nordic region of Sweden. Song Networks is building a fiber-optic network to interconnect its local networks and reach key Nordic cities. Completel Europe NV, through its subsidiaries, operates as an infrastructure based operator providing telecom services primarily to large and medium businesses. FASTWEB SpA provides fixed line broadband telecommunications services to individual and business customers in Italy. Elietel Telecom SpA provides telecommunication operator services in Italy. Services include fixed line telephony; broadband services and data services, as well as VoIP. Fibernet Group provides telecommunications services to large ente rprises. Its products and solutions include IP communications and fibre optic networks. Neuf Cegetel is an alternative operator offering a range of telecommunications services in France. As of January 25, 2007, the company operated 45,000 kilometers of optical fibers network.Netherlands and Belgium. Its product portfolio comprises fixed telephony, data, Internet, and mobile telephony products.KPNQwest N.V. operates as a data communications and hosting company that delivers a range of carrier and corpor ate networking solutions, as well as hosting internet services to businesses via its wholly owned fiber optic network, the EuroRings. The network spans 25,000 km. Enertel N.V. provides telecommunication services in The Netherlands. The company operates a fiber optic network through which it provides a variety of services. Target Versatel Telecom International NV CompleTel Europe NV Fastweb SpA Elitel Telecom SpA Fibernet Group plc Neuf Cegetel SABroadnet AGSong Networks KPNQwest NV Enertel N.V.DRAFT, For Discussion Purposes Only Date Announced 8/30/2007 3/12/2007 3/1/2007 8/25/2006 8/25/20066/6/2006 7/18/20059/14/2004 10/18/2001 6/25/1998 CONFIDENTIAL -

Valuation Analysis

Market Approach Valuation

The M&A

southern portion of the Company’s network represents future organic growth opportunities.is not expected to generate operating profits until 2010.is generating operating losses and does not turn EBITDA positive until 2010. has an extremely constrained balance sheet Significant leverage Cash on hand sufficient only to fund operations until December 2007 Viatel owns and operates an extensive fiber-optic network throughout continental Europe and the Unit ed Kingdom. The “unlit” Viatel’s young (operating since 2004) Retail Business is growing at 4 percent per month. Viatel is projecting significant growth as compared to the peer group. Viatel Viatel•• There were several business and financial factors that were key considerations in the selection of the valuation multiples for Viatel: — - — - — -Selected Public Company multiples and M&A transaction multiples were used as data points in determin ing the appropriate multiples for our analysis. transaction multiples were in line with the selected public company multiples. Relied on a revenue multiple as Viatel

333

High91.0 118.2 112.0120.0 Enterprise Value- - — Low68.3 85.4 80.080.0 Valuation Summary Viatel45.5 65.7 32.0 High2.0x 1.8x 3.5x Selected Multiples Low1.5x 1.3x 2.5x Median2.1xEnterprise Value Conclusion (Rounded) As of October 1, 2007 (in thousands of USD)Transaction Mean1.9xViatel Holding (Bermuda) Limited Selected Public Company / Transaction Analysis Summary Range0.4x — 3.2x Median1.0x 1.0x 2.1x Enterprise Valuation Multiples Public Company Me an1.2x 1.1x 2.2x Range0.5x — 3.2x 0.4x — 2.9x 0.6x — 5.1x 1 MetricPublic Company Multiples 2007 Projected Revenues 2008 Projected Revenues PP&E (1) Viatel PP&E is based on the latest avaliable 20F and adjusted for $9 million in accumulated depreciation ($80 million straight line over 9 years).

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Equity Valuation

Value Range (1) High (2) 140.00 147.00 120.00 147.00 73.55 68.78Low 96.00 102.00 80.00 96.00 73.55 68.78Viatel Holding (Bermuda) Limited Equity Value Summary (in millions of USD)Management Case w/ Colocation BusinessMethodology Discounted Cash Flow Analysis Management Case Market Approach Analysis Business Enterprise Value (DCF High / Low) Less: Senior Debt Less: Convertible Debt High0.4390.006 0.053 0.105 0.2070.496$ $ $ $ $$— - — —LowNMF0.002 0.016 0.032 0.0630.1514.67$ $ $ $$(2)NMF4.6773.45 73.45 73.45 73.4573.45Equity Value HighNMF22.45 22.45 22.45 22.4522.45Viatel Per Share Price Calculations (in USD Millions)Equity Value Low10.6312,516.62 1,386.29 698.46 354.54148.20Equity ValueShares Outstanding (Millions) (1)-0.0055 0.0500 0.1000 0.20000.5000Illustrative Conversion Price Scenarios in USD$ $ $ $$ Represents fully diluted shares with all convertible debt converted to equity. (1)

(2)

Absent the new co-location business and assuming all other assumptions remain constant, the total equity value of Viatel would not be meaningful.

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Reverse Stock Split Transactions

VIATEL HOLDING (BERMUDA) LIMITED SELECTED REVERSE STOCK SPLITS AS OF SEPTEMBER 30, 2007 CURRENCY IN MILLIONS (UNLESS OTHERWISE NOTED)

30 Day Before Average Premium 2.04% -11.89% 86.03% 34.10% 94.46% 76.00% 3.27% 72.73% 18.69%18.66% 39.4% 26.4% 94.46% -11.89%PREMIUMSOne Day Before Premium 4.00% 7.50% 62.50% 29.63% 99.17% 33.33% 14.60% 46.67% 13.64%13.06% 32.4% 22.1% 99.17% 4.00%1.27 2.44 1.75 0.26 1.23 0.07 22.27 0.64 2.111.90$ $ $ $ $ $ $ $$30 Day Before Average Price $Mean Median High Low1.25 2.00 2.00 0.27 1.20 0.09 20.07 0.75 2.201.99$ $ $ $ $ $ $ $$HISTORICAL PRICESOne Day Before Price $1 ..30 2.15 3.25 0.35 2.39 0.12 23.00 1.10 2.502.25Price $ $ $ $ $ $ $ $$Execution $Stock Split Ratio 1 : 100 1 : 1000 1 : 100 1 : 2000 1 : 2000 1: 101 1 : 300 1 : 2500 1 : 1001 : 1500TRANSACTION DETAILSCompany Name SED International Holdings Inc. Innovative Micro Technology, Inc. Xanadoo Refocus Group PVC Container Corp. Sagient Research Systems, Inc. ASB Financial Corp Color Imaging Inc. Trek Resources, Inc.SafeGuard Health EnterprisesDate February 9, 2007 December 13, 2006 September 19, 2006 December 9, 2005 September 16, 2005 October 21, 2005 July 19, 2005 May 5, 2005 January 10, 2005November 23, 2003 Notes: $ in millions except per share data Date and Execution Price taken from 13E3 form filed with the Securities and Exchange Commission Data consists of public companies in the information technology and telecommunications industries that filed 13E3s with the SEC in the past two years. Source: SEC Filings, Capital IQ, Bloomberg Estimates, and Duff & Phelps, LLC.

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Appendix A:

Historical Stock Price & Volume Viatel

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Stock Price and Volume -Viatel

Volume 93,704 2,260 177 2,986 103 1,000 305 166 162 4,000 146 267 824 151 288 182 387 902 162 124 106 16,129 208Stock Price 0.011 0.060 0.011 0.0001 0.011 0.060 0.011 0.011 0.011 0.011 0.006 0.006 0.006 0.006 0.006 0.008 0.008 0.006 0.010 0.006 0.005 0.005 0.005Date 5/8/2007 5/11/2007 5/22/2007 5/25/2007 5/31/2007 6/4/2007 6/8/2007 6/27/2007 6/29/2007 7/5/2007 7/10/2007 7/20/2007 8/2/2007 8/6/2007 8/7/2007 8/17/2007 8/22/2007 9/4/2007 9/14/2007 9/19/2007 10/16/ 2007 10/23/2007 10/29/2007Viatel Stock Price and VolumeJanuary 1, 2007 to current Volume 106 150 126 456 107 107 114 166 350 2,040 170 76,555 648 167,277 207 158 207 189 182 280 199,266 162As listed on the Pink Sheets (Ticker: VTLAF)Stock Price 0.003 0.001 0.003 0.003 0.003 0.001 0.003 0.001 0.0001 0.002 0.005 0.020 0.020 0.060 0.005 0.005 0.011 0.011 0.011 0.011 0.059 0.011Date 1/18/2007 1/22/2007 1/29/2007 1/30/2007 2/7/2007 2/8/2007 2/12/2007 2/14/2007 2/22/2007 2/27/2007 3/2/2007 3/5/2007 3/8/2007 3/13/2007 3/15/2007 3/21/2007 4/12/2007 4/13/2007 4/18/2007 4/25/2007 5/2/2007 5/3/2007 * Stock Price in USD ** Volume in number of shares

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