Represents First Major National Facilities-Based Solution to UNE-P for Carriers in Competition with Local Telephone Companies RESTON, Va., Aug. 29 /PRNewswire-FirstCall/ -- XO Communications, Inc. (OTC:XOCM.OB) (BULLETIN BOARD: XOCM.OB) today announced that it is broadening its Wholesale Local Voice services platform to support competitive local exchange carriers (CLECs) that offer local and long distance services to residential customers in competition with the regional Bell operating companies (RBOCs). Building on its success in supporting business-focused CLECs, the XO Wholesale Local Voice services platform can now help CLECs focused on residential customers transition off of the RBOCs' unbundled network element platform (UNE-P) and utilize central office and transport services from XO in order to continue to cost-effectively deliver telephone services. As a result of new rules governing local network unbundling issued by the Federal Communications Commission earlier this year, competitive carriers now pay higher rates for leasing switching and transport facilities from the RBOCs and can no longer rely exclusively on UNE-P to provide services. XO offers its Wholesale Local Voice services platform through more than 950 collocation facilities in 70 metropolitan markets across the United States. The platform offers CLECs a more cost-effective alternative to building local network facilities and presents an opportunity to save between 15 and 30 percent over long-term wholesale agreements with the RBOCs. "As the largest independent national local exchange carrier, XO can offer CLECs a more cost-effective facilities-based alternative to the Bells' UNE-P platform," said Ernie Ortega, president of carrier sales at XO Communications. "By utilizing our national facilities-based network, competitive providers in the residential market can continue to provide their customers with an alternative to the local telephone companies." To support residential-focused CLECs, the XO Wholesale Local Voice services platform provides a pre-determined block of capacity for telephone lines and a physical connection for transporting voice traffic from the XO collocation facility to the competitive provider's voice switch. Competitive service providers will need to provision local loops to their customers, but the platform eliminates the need for competitive providers to build costly switching facilities in every central office in order to provide services to their customers. The XO Wholesale Local Voice services platform already supports a number of business-focused CLECs in providing local voice and integrated services. The platform provides a number of services that enable business-focused CLECs to cost-effectively continue to offer services and enter new markets. These services include: * Wholesale Integrated Access -- provides voice and data over a single T-1 to carriers' end users needing at least 6 analog or digital voice lines and 512 Kbps of data speed * Wholesale PRI -- provides full PRI configuration to carriers' end users * Wholesale Digital PBX -- provides a full T-1 of digital trunks to carriers' end users. For information about the service or to contact an XO sales representative, call 214-237-7887. 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/. THE STATEMENTS CONTAINED IN THIS RELEASE THAT ARE NOT HISTORICAL FACTS ARE "FORWARD-LOOKING STATEMENTS" (AS SUCH TERM IS DEFINED IN THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995). THESE STATEMENTS INCLUDE THOSE DESCRIBING XO'S EXPECTED FUTURE BUSINESS AND NETWORK OPERATIONS AND RESULTS OF OPERATIONS, XO'S ABILITY TO CONTINUE TO ACHIEVE PROJECTED SYNERGIES AND REVENUE FROM THE ACQUISITION OF ALLEGIANCE'S ASSETS, XO'S ABILITY TO INCREASE SALES, XO'S ABILITY TO CONTINUE TO IMPLEMENT EFFECTIVE COST CONTAINMENT MEASURES, AND XO'S ABILITY TO MITIGATE THE EFFECTS OF REGULATIONS RECENTLY ADOPTED BY THE FEDERAL COMMUNICATIONS COMMISSION. SUCH STATEMENTS ARE BASED ON CURRENT EXPECTATIONS BUT ARE SUBJECT TO A NUMBER OF BOTH KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS, PERFORMANCE, AND/OR ACHIEVEMENTS OF XO TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS, PERFORMANCE, AND/OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY THE FORWARD-LOOKING STATEMENTS. MANAGEMENT CAUTIONS THE READER THAT THESE FORWARD-LOOKING STATEMENTS ARE ONLY PREDICTIONS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES AND ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE INDICATED IN THE FORWARD-LOOKING STATEMENTS AS A RESULT OF A NUMBER OF FACTORS. THESE FACTORS INCLUDE, WITHOUT LIMITATION, THOSE RISKS AND UNCERTAINTIES DESCRIBED FROM TIME TO TIME IN THE REPORTS FILED BY XO COMMUNICATIONS, INC. WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING ITS ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2004 AND ITS QUARTERLY REPORTS ON FORM 10-Q. XO UNDERTAKES NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS. DATASOURCE: XO Communications, Inc. CONTACT: Chad Couser of XO Communications, +1-703-547-2746, or Web site: http://www.xo.com/

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