6/3/02
Shareholder Lawsuits Against XO Communications Dismissed By Federal Court
RESTON, VA - XO Communications, Inc., (OTCBB:XOXO) announced today that it has been notified that Federal District Court Judge Leonie M. Brinkena of the Eastern District of Virginia has issued a decision dismissing, with prejudice, the consolidated shareholders' securities class action lawsuit pending before that Court.
The complaints in the dismissed lawsuit had alleged that certain directors and officers of XO had violated federal securities laws and that the directors and certain other parties had breached their fiduciary responsibilities in connection with the company's efforts to raise funding and implement a related financial restructuring.
XO issued this response regarding the decision:
"We are pleased with the Court's decision and view the dismissal of the suit as consistent with the company's assertion that our disclosures were both proper and timely."
During the months since XO announced its plans to seek additional funding and implement a related financial restructuring, XO has continued to effectively serve and add customers. XO's Quarterly Report on Form 10-Q for the first quarter of 2002 filed with the Securities and Exchange Commission on May 16, 2002 reported operating results that reflected revenue levels consistent with the previous quarter and quarter-over-quarter EBITDA improvements in a difficult business environment.
About XO Communications
XO Communications is one of the world's leading providers of broadband communications services offering local and long distance voice communication services, Digital Subscriber Line (DSL) access, Web hosting and e-commerce service, Virtual Private Networks (VPNs), dedicated access, global transit and application infrastructure services for delivering applications over the Internet or a VPN.
XO has assembled an unrivaled set of facilities-based broadband networks and Tier One Internet peering relationships throughout the United States. XO currently offers facilities-based broadband communications services in 65 markets throughout the United States.
For more information contact:
Todd Wolfenbarger / XO Communications
Media and Industry Analysts
703-547-2011 or 703-675-3496
Lisa Miles / XO Communications
Financial Analysts
703-547-2440
