XO Communications to Launch First of New XOIP Service Offerings XOptions(R) Flex VoIP Services Bundle Combines Unlimited Local and Long Distance Calling with Dynamic Bandwidth Allocation for One Flat Monthly Rate RESTON, Va., Jan. 31 /PRNewswire-FirstCall/ -- XO Communications, Inc. (OTC:XOCM.OB) (BULLETIN BOARD: XOCM.OB) today announced plans to launch XOptions(R) Flex, its new industry-leading bundled voice over Internet Protocol (VoIP) solution that will give business customers enhanced features, functionality and value for their voice and Internet services. XOptions Flex represents the first offering of the company's new XOIP services, a series of next generation IP services that will leverage the XO national IP network and softswitch technology to provide customers advanced IP-based voice and data services. XO is the only national competitive carrier focused exclusively on businesses to offer a simple, integrated VoIP services solution with unlimited local and long distance calling over its own Tier 1 IP network. In 2000, XO revolutionized the telecommunications industry with XOptions(R), the first bundled services solution for businesses that combined local, long distance, Internet access and web hosting services for one flat monthly rate on a single bill. XOptions Flex represents the next generation of XOptions by delivering these services over a single broadband connection on the XO award-winning IP network supported by VoIP-enabling softswitch technology to provide enhanced capabilities such as unlimited local and long distance calling, dynamic bandwidth allocation, and voice virtual private networking (VPN). XOptions Flex will be available for a flat monthly price and include more than a dozen standard voice applications and features for each phone line including call forward, three-way calling, and hunt groups. Key features will include: * Dedicated Internet Access up to 3 Mbps * Dynamic bandwidth allocation * Unlimited local calling * Unlimited inbound and outbound domestic long distance calling * Easy-to-use web portal for self-administered feature changes * Web Basic Hosting Package * Additional voice lines, hosting and other applications can also be added on an a la carte basis. "XOptions Flex takes our industry-leading bundled services offering to the next level by leveraging IP technology to provide our customers with more advanced features and capabilities," said Craig Collins, vice president of product management at XO Communications. "While traditional services assign fixed capacity for voice and data traffic, XOptions Flex will allow the full use of the IP circuit to support data traffic when voice lines are idle. When there are voice calls, voice traffic will always have priority. In this way, businesses get maximum utilization and value from their integrated access circuit while ensuring the highest quality of service for voice calls." The new suite of XOIP services, including XOptions Flex, will leverage technology from market-leading companies, including Sonus Networks (NASDAQ: SONS) and BroadSoft, Inc. Four years ago, XO deployed softswitch technology in its national IP network from Sonus Networks, the leading provider of VoIP infrastructure solutions. Today, XO has deployed Sonus softswitches in forty-four markets and delivers more than 600 million minutes of customer long distance traffic each month across its national IP network. XO is also utilizing BroadSoft(R) Inc.'s BroadWorks(R) VoIP application platform to provide the comprehensive range of IP telephony applications and features XOptions Flex will be available in Boston, New York and Washington, DC in early March followed by full nationwide availability in the second quarter. About XO Communications XO Communications is a leading provider of national and local telecommunications services to businesses, large enterprises and telecommunications companies. XO offers a complete portfolio of services, including local and long distance voice, dedicated Internet access, private networking, data transport, and Web hosting services as well as bundled voice and Internet solutions. XO provides these services over an advanced, national facilities-based IP network and serves more than 70 metropolitan markets across the United States. For more information, visit http://www.xo.com/. DATASOURCE: XO Communications, Inc. CONTACT: Chad Couser of XO Communications, +1-703-547-2746, Web site: http://www.xo.com/

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