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Read Press Release

10/2/00

XO Launches Service in Austin, Texas

XO Communications Launches Commercial Broadband Communications Services in Austin

AUSTIN, TX - XO Communications (Nasdaq:XOXO), one of the world’s fastest growing providers of broadband communications services, announced that it began offering local businesses broadband communications services in the greater Austin metropolitan area on September 29, 2000.

Austin is XO’s third market in Texas--current cities served include Dallas and Houston. With the launch of services in Austin, as well as the concurrent launch of services today in Portland, XO now serves 53 markets.

XO provides small and medium-sized businesses broadband communications services including local and long distance voice, Internet access, email and Web hosting/e-commerce capabilities. The Company also provides services for larger enterprises such as virtual private networks (VPN’s), global transit and application infrastructure services for delivering applications over the Internet or a VPN.

“Austin is one of the country’s fastest growing technology centers,” said XO Vice President and General Manager for Austin, Kevin McKeand. “By utilizing its rich set of infrastructure assets and compelling business communications services, XO intends to meet the needs of this area.”

Last week, XO introduced XOptions™, a set of revolutionary flat rate service combinations in the United States for small and medium-sized businesses. The Company also announced that the XO Communications name would replace the NEXTLINK and Concentric brands in the marketplace and would be supported in the U.S. by an extensive fall advertising campaign. Additionally, XO said it would begin offering Gigabit Ethernet services throughout the United States by mid-2001, and that XO would be the preferred provider of Ethernet services to Internet giant Yahoo!

“We’re hearing industry experts predict the future of computer architectures to be bandwidth-based rather than processing based,” said XO President for the South Region, Peter Marsh. “Building out our network to stay ahead of the bandwidth curve and developing a product set that anticipates customers’ needs means they can focus on their business without worrying about telecommunications shortfalls.”

XO is constructing an extensive underground fiber optic network that will serve Austin and the surrounding metropolitan areas. Within the next 12 months, the locally operated network will be connected to more than 60 other XO local networks in the United States via XO’s 16,000-mile, IP-centric long-haul fiber network. Austin will also take advantage of XO’s local broadband wireless transport technology assets by the end of this year, providing an additional technology to access customers.

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 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 about XO, visit www.xo.com.

XO Communications, Austin Market:
Phone: 512.692.1000
Fax: 512.692.1001
Address: 2100 South IH 35, Austin, Texas 78704

For more information contact:

Jennifer Bell / XO™ Communications
Local Media
512-692-0602

Lisa Miles / XO™ Communications
Financial Analysts
703-547-2440

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