Greetings:

Due to scheduling conflicts and in the attempt not to waste anyone's time, 
we'll try to conduct some preliminary due diligence via email, voicemail, 
etc.  I've asked GP to get us their audited financial statements for purposes 
of credit check.  Here is some additional information about the project.  If 
any questions come to mind based on this info, please let me know and we can 
forward along to GP for answers.  At this point we have tentatively scheduled 
a meeting with GP's CEO in the S.F. office for Tuesday, June 27th at 10 AM 
(PDT).

A Little Background:
Plan to construct an undersea fiber optic (24 fiber) cable linking several of 
California's major coastal cities (San Diego, L.A., Santa Barbara, San Luis 
Obispo, Monterey, S.F.). Will use a "festooned" arrangement (i.e., exit sea 
at each city point).  Total undersea length is ~900 km.
At each coastal city, they'll have a POP to connect to PSTN.
At San Luis Obispo, Santa Barbara and Manhattan Beach, they will deploy two, 
separate diverse cable routes from sea to POP.
Will deploy DWDM.
Plan includes eventual connections to existing and planned trans-Pacific 
systems.
In addition to "loops" created in SLO, SB and Manhattan Beach, plan includes 
a terrestial leg from S.F. to Monterey to create a land/sea loop between SF 
and Monterey.
Total terrestial piece is ~400 km (which includes S.F. to Monterey terrestial 
leg).
Eventually, they'd like to secure terrestial leg from Monterey to San Diego 
to create a complete loop.
Has received environmental permit from State Lands Commission; CLEC 
certification from California PUC; and is awaiting environmental permit from 
Coastal Commission.
Expect to have southern portion of system (San Diego to San Luis Obispo) 
built and lit by end of Q1 2001.  
Northern piece likely to take longer due to complications associated with 
federal wildlife preserve off of Monterey.  May end up bypassing Monterey 
altogether.
The people behind the build are techno-philes; they admit to being "clueless" 
when it comes to marketing the capacity.
Due to Tyco's perceived lack of performance, Tyco is out and Alcatel is in 
(per Ethan's emails).
They are distressed.  Deutschbank has $8MM in the deal and is pushing on them.
Willing to part with dark fiber for a deep discount.

Best,
Jeff