8/31/06

XO Communications Brings Industry-Leading VoIP Services Bundle to Businesses in Tucson

TUCSON, AZ - XO Communications today announced the launch of its industry-leading business-class Voice over Internet Protocol (VoIP) services bundle, XOptions® Flex, in Tucson. Today, more than 5,000 businesses nationwide have deployed XOptions Flex and are taking advantage of the cost savings and flexibility of VoIP provided by XOptions Flex.

XOptions Flex is an integrated VoIP services solution that gives businesses enhanced features, functionality and value for their voice and Internet services, all in one simple package that combines up to 100,000 minutes a month for virtually unlimited local and long distance calling, dedicated Internet access and web hosting services for a flat monthly price.

“XOptions Flex offers businesses in Tucson the most comprehensive and flexible VoIP services bundle,” said David Paul, general manager of the Phoenix and Tucson markets for XO Communications. “VoIP is truly revolutionizing the telecommunications industry, and XOptions Flex leverages the power of IP to provide a high quality and reliable communications solution that integrates voice and data over a single broadband connection with more valuable features, saving small and medium-sized businesses time and money.”

XOptions Flex leverages the latest in VoIP technology to provide businesses with advanced capabilities such as dynamic bandwidth allocation, voice virtual private networking (VPN), and a simple online feature management tool for making real-time changes to services. In addition, XOptions Flex allows businesses to take full advantage of all of these IP-enabled capabilities and features without having to replace their existing telephone systems.

XOptions Flex Features
XOptions Flex includes more than twenty standard voice features including voice mail, caller ID, call waiting, call forward, three-way calling, and one toll free number. Other key features include:
- Dedicated Internet Access up to 3 Mbps
- Dynamic bandwidth allocation
- Virtually unlimited local calling and inbound and outbound domestic long distance calling
- Up to 32 voice channels to support as many as 160 employees at each location
- Online feature management through the XO Business Center
- Web Hosting package
- Hosting and other application can also be added on an a la carte basis

With an XO business-class broadband connection, XOptions Flex carries voice calls over the XO nationwide private IP network and softswitch platform, not the public Internet, and more efficiently and cost-effectively than voice services delivered over traditional telephone networks. As a business-class VoIP solution, XOptions Flex also provides customers with full access to E911 emergency services.

For more information about XOptions Flex, visit www.xo.com/flex or contact an XO sales representative by calling (866) 963-9696.

About XO Communications
XO Communications, a subsidiary of XO Holdings, Inc. (OTCBB: XOHO.OB), is a leading provider of national and local telecommunications services to businesses, large enterprises and communications service providers. 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, nationwide facilities-based IP network and serves 75 metropolitan markets across the United States. For more information, visit www.xo.com.

XOptions Flex flat rate pricing varies by market. XO, XOptions, XOptions Flex, and all related marks are either registered trademarks or trademarks of XO Communications, LLC in the United States and/or other countries.

For more information contact:

Chad Couser / XO Communications
703-547-2746
chad.couser@xo.com