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Read Press Release

10/3/00

XO Communications and CloudSource Team to Deliver Full-Scale Web Site Content and Design Services

Leveraging the Strength of XO in the Web Hosting Market, CloudSource is Selected to Offer XO Customers Full Service Web Site Consultation and Development Services

SAN JOSE, CA - XO Communications (NASDAQ: XOXO), one of the world's fastest growing providers of broadband communications services, today announced it has selected CloudSource, a top developer of Web sites for small and medium-sized businesses (SMB), as the company's consultation, design and site development service for XO Web hosting customers. The company's number two market position for shared Web hosting allows CloudSource to effectively reach and service the needs of a growing audience of small-and medium-sized businesses.

"Custom Web site development and design is becoming increasingly important within the SMB space, making CloudSource's unique Web site creation model a critical element within our Web hosting portfolio," said Mark Fisher, Senior Vice President of Hosting and Alternate Channels for XO. "CloudSource provides a tremendous resource for creating an effective Web presence that addresses distinct business objectives in a timely and cost effective manner."

CloudSource has developed a design methodology that isolates the best techniques for site layout, design and content. CloudSource's proprietary engineering process aids in leveraging this leading expertise in Web site design so that customers gain a trusted partner for creating an easily navigated format and for compiling effective Web site copy. More importantly, the design methodology allows for dynamic scaling of the site to accommodate company growth and state-of-the-art technology.

"Teaming with XO provides us the opportunity to capture market share among a large and expanding number of growing companies," said David Daniels, the Chief Executive Officer for Cloudsource. "Few small-and medium-sized businesses have the time or internal resources needed to develop and maintain and effective Web presence. As a result, more companies are looking to outsource their Web site development to a partner that can deliver a well-engineered site at a reasonable cost. By teaming with XO, we are delivering an unparalleled offering."

Full Service At An Affordable Price
CloudSource provides full-service Web site development, including a business consultation, Web site design, content development, and implementation. A price is developed based upon the modules and features employed, and all prices are fixed and affordable. There is an up-front development fee and a monthly fee for maintenance and technological upgrades. The CloudSource maintenance program, which includes Web-based self-editing, gives customers the confidence that their Web site will always be up-to-date and state-of-the-art.

About CloudSource
CloudSource, based in Oakland, California, is a rapidly growing, full-service Web site development and design firm that offers customers the muscle of big business technology at a small-business price. Along with a variety of Web site support services, including an on-going maintenance and upgrade program, CloudSource provides its customers with unsurpassed personal attention, demonstrating an ability to offer quality, convenience, and customization at affordable prices. Its investors include Ascend Venture Partners, Wellfleet Partners, and SAC Capital. More information can be obtained at www.cloudsource.com, or by calling toll-free 877-77-CLOUD.

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 peering relationships that, when complete, will serve much of the United States, Canada and Europe. In the United States, XO has more than 430,000 metro fiber miles in operation and a 384,000 fiber-mile inter-city network under construction. The Company is also North America's largest holder of fixed broadband wireless spectrum, with licenses covering 95 percent of the population of the 30 largest U.S. cities and a partnership with licenses covering all of the top cities in Canada. XO has also agreed in principle to acquire more than 80,000 metro fiber miles in Europe to serve the London, Frankfurt, Brussels, Amsterdam and Paris markets and an 88,000 fiber-mile pan-European fiber network connecting 21 major European cities and transatlantic capacity that will eventually expand to 10 Gbps.

For more information contact:

Jenna Dee / XO™ Communications
Media and Industry Analysts
408-817-2297

Michelle Heath/ XO™ Communications
Media and Industry Analysts
703-547-2476

Guy Louie
CloudSource
510-740-4315

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