Level 3 Announces New Network Services Agreement With XO Communications

Companies Execute New Agreement for XO Communications to Buy Broadband

Transport Services From Level 3 and Amend Dark Fiber Contracts



Apr 26, 2001, 01:00 ET from Level 3 Communications, Inc.

    BROOMFIELD, Colo., April 26 /PRNewswire/ -- Level 3 Communications, Inc.
 (Nasdaq:   LVLT) today announced it has signed a new agreement to provide
 network services to XO Communications, Inc. (Nasdaq:   XOXO).  Level 3 will
 provide its (3)Link Global Wavelength service to XO Communications ("XO")
 throughout North America.  As part of the agreement, the companies are
 amending their previously announced dark fiber agreements.
     Today's agreement reached between XO and Level 3 modified two separate
 transactions that were announced during the past three years.  The original
 transactions included:
 
     -- A July 1998 agreement for XO to purchase 24 fibers and an empty conduit
        in a 16,000-mile North American intercity fiber network from Level 3
        for $700 million.  To date, more than 60 percent of this commitment has
        been purchased and paid for.  Additionally, XO was also to have
        received tag-along rights for additional fibers as deployed in the
        future in certain conduits of Level 3's North American network.
     -- A November 2000 agreement for XO to purchase nine European metro fiber
        networks and a pan-European intercity fiber network from Level 3 for
        $148 million, as well as transatlantic capacity for an additional
        $15 million.
 
     The newly signed agreement between the two companies resulted in the
 following changes to the original transactions:
 
     -- XO and Level 3 have agreed to cancel agreements relating to the
        purchase of the European metro and inter-city fiber networks from Level
        3 and to apply the $128 million in payments that have already been made
        to Level 3 for the European networks to reduce the remaining amounts
        payable by XO under its $700 million North American intercity network
        commitment.
     -- XO will become a broadband transport customer of Level 3.  Initially,
        XO will purchase approximately $30 million worth of wavelength services
        on Level 3's intercity network.
     -- XO will give up certain contractual provisions included in its 1998
        agreement with Level 3, including the tag-along rights for additional
        fibers as deployed in the future in certain conduits of Level 3's North
        American network.
     -- XO will purchase Trans-Atlantic capacity per the original European
        agreement.
     -- XO will transfer certain transmission equipment it has purchased to
        Level 3, the value of which will be applied toward the purchase price
        of Level 3 broadband transport services.
 
     A joint Level 3-XO implementation team has been established to rapidly
 activate the wavelengths and migrate traffic from XO's existing leased network
 capacity onto the new wavelength capacity obtained from Level 3.
     "This new agreement demonstrates the strengths of both companies and
 enables a long-term, mutually beneficial relationship," said Jim Crowe, Level
 3's chief executive officer.  "It also reflects broader trends that are
 reshaping the communications industry.  We think that, because of the cost
 efficiency of the Level 3 network, companies increasingly will look to us to
 provide broadband transport services."
     "We are pleased to have reached a mutually beneficial agreement with Level
 3 that will extend our relationship and yield financial advantages for both of
 our companies," said XO Chairman and CEO Dan Akerson.  "We are disappointed
 that our European opportunity is not going to be realized.  The current market
 conditions, however, demand that we direct our resources and attention to the
 significant opportunity that exists for XO in the United States."
     With (3)Link Global Wavelength, customers purchase single or multiple
 wavelengths of light on particular Level 3 intercity or international network
 fiber routes.  Level 3 terminates the wavelengths at on-net customer
 facilities at which customers can use their existing SONET, IP and ATM
 equipment, thereby reducing costs.  (3)Link Global Wavelength services are
 available in North America, Europe, and on Level 3's transatlantic network.
 
     About Level 3 Communications
     Level 3 (Nasdaq:   LVLT) is a global communications and information services
 company offering a wide selection of services including IP services, broadband
 transport, colocation services and the industry's first Softswitch based
 services.  Level 3 offers services primarily to communications intensive
 companies that deliver their services over the Level 3 Network.  Its Web
 address is www.Level3.com.
 
     (3)Link Global Wavelength is a service mark of Level 3 Communications,
 Inc.
 
     Forward Looking Statement
     Some of the statements made by Level 3 in this press release are
 forward-looking in nature.  Actual results may differ materially from those
 projected in forward-looking statements.  Level 3 believes that its primary
 risk factors include, but are not limited to: substantial capital
 requirements; development of effective internal processes and systems; the
 ability to attract and retain high quality employees; changes in the overall
 economy; technology; the number and size of competitors in its markets; law
 and regulatory policy; and the mix of products and services offered in the
 company's target markets.  Additional information concerning these and other
 important factors can be found within Level 3's filings with the Securities
 and Exchange Commission.  Statements in this release should be evaluated in
 light of these important factors.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X70561802
 
 

SOURCE Level 3 Communications, Inc.
    BROOMFIELD, Colo., April 26 /PRNewswire/ -- Level 3 Communications, Inc.
 (Nasdaq:   LVLT) today announced it has signed a new agreement to provide
 network services to XO Communications, Inc. (Nasdaq:   XOXO).  Level 3 will
 provide its (3)Link Global Wavelength service to XO Communications ("XO")
 throughout North America.  As part of the agreement, the companies are
 amending their previously announced dark fiber agreements.
     Today's agreement reached between XO and Level 3 modified two separate
 transactions that were announced during the past three years.  The original
 transactions included:
 
     -- A July 1998 agreement for XO to purchase 24 fibers and an empty conduit
        in a 16,000-mile North American intercity fiber network from Level 3
        for $700 million.  To date, more than 60 percent of this commitment has
        been purchased and paid for.  Additionally, XO was also to have
        received tag-along rights for additional fibers as deployed in the
        future in certain conduits of Level 3's North American network.
     -- A November 2000 agreement for XO to purchase nine European metro fiber
        networks and a pan-European intercity fiber network from Level 3 for
        $148 million, as well as transatlantic capacity for an additional
        $15 million.
 
     The newly signed agreement between the two companies resulted in the
 following changes to the original transactions:
 
     -- XO and Level 3 have agreed to cancel agreements relating to the
        purchase of the European metro and inter-city fiber networks from Level
        3 and to apply the $128 million in payments that have already been made
        to Level 3 for the European networks to reduce the remaining amounts
        payable by XO under its $700 million North American intercity network
        commitment.
     -- XO will become a broadband transport customer of Level 3.  Initially,
        XO will purchase approximately $30 million worth of wavelength services
        on Level 3's intercity network.
     -- XO will give up certain contractual provisions included in its 1998
        agreement with Level 3, including the tag-along rights for additional
        fibers as deployed in the future in certain conduits of Level 3's North
        American network.
     -- XO will purchase Trans-Atlantic capacity per the original European
        agreement.
     -- XO will transfer certain transmission equipment it has purchased to
        Level 3, the value of which will be applied toward the purchase price
        of Level 3 broadband transport services.
 
     A joint Level 3-XO implementation team has been established to rapidly
 activate the wavelengths and migrate traffic from XO's existing leased network
 capacity onto the new wavelength capacity obtained from Level 3.
     "This new agreement demonstrates the strengths of both companies and
 enables a long-term, mutually beneficial relationship," said Jim Crowe, Level
 3's chief executive officer.  "It also reflects broader trends that are
 reshaping the communications industry.  We think that, because of the cost
 efficiency of the Level 3 network, companies increasingly will look to us to
 provide broadband transport services."
     "We are pleased to have reached a mutually beneficial agreement with Level
 3 that will extend our relationship and yield financial advantages for both of
 our companies," said XO Chairman and CEO Dan Akerson.  "We are disappointed
 that our European opportunity is not going to be realized.  The current market
 conditions, however, demand that we direct our resources and attention to the
 significant opportunity that exists for XO in the United States."
     With (3)Link Global Wavelength, customers purchase single or multiple
 wavelengths of light on particular Level 3 intercity or international network
 fiber routes.  Level 3 terminates the wavelengths at on-net customer
 facilities at which customers can use their existing SONET, IP and ATM
 equipment, thereby reducing costs.  (3)Link Global Wavelength services are
 available in North America, Europe, and on Level 3's transatlantic network.
 
     About Level 3 Communications
     Level 3 (Nasdaq:   LVLT) is a global communications and information services
 company offering a wide selection of services including IP services, broadband
 transport, colocation services and the industry's first Softswitch based
 services.  Level 3 offers services primarily to communications intensive
 companies that deliver their services over the Level 3 Network.  Its Web
 address is www.Level3.com.
 
     (3)Link Global Wavelength is a service mark of Level 3 Communications,
 Inc.
 
     Forward Looking Statement
     Some of the statements made by Level 3 in this press release are
 forward-looking in nature.  Actual results may differ materially from those
 projected in forward-looking statements.  Level 3 believes that its primary
 risk factors include, but are not limited to: substantial capital
 requirements; development of effective internal processes and systems; the
 ability to attract and retain high quality employees; changes in the overall
 economy; technology; the number and size of competitors in its markets; law
 and regulatory policy; and the mix of products and services offered in the
 company's target markets.  Additional information concerning these and other
 important factors can be found within Level 3's filings with the Securities
 and Exchange Commission.  Statements in this release should be evaluated in
 light of these important factors.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X70561802
 
 SOURCE  Level 3 Communications, Inc.