1/24/07

XO Communications Marks 100,000 Business VoIP Users

More Than 7,500 Businesses Nationwide Now Utilize XOptions Flex, XO Communications’ Business-Class VoIP Service

RESTON, VA - XO Communications today demonstrated its leadership in offering voice over Internet Protocol (VoIP) solutions for businesses, announcing that XOptions® Flex, its award-winning VoIP service, now supports more than 100,000 business customer employees. In addition, XO Communications also announced today that it will expand its suite of IP solutions for businesses by launching new VoIP and private IP networking solutions designed for larger businesses later this year.

Launched in the spring of 2005, XOptions Flex has rapidly grown to be one of the industry’s most widely deployed VoIP services bundle for small and medium-sized businesses. Today, more than 7,500 businesses nationwide have deployed XOptions Flex and enjoy the benefits of an integrated VoIP services solution that provides enhanced features, functionality and value for voice, Internet access and web hosting, all in one simple package.

XOptions Flex combines virtually unlimited local and generous long distance calling, Dedicated Internet Access and web hosting services for a flat monthly price and provides customers 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. For businesses with existing key or private branch exchange (PBX) systems, XOptions Flex is designed to support businesses with as many as 160 employees at each location. 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 phone systems.

“XOptions Flex has truly simplified communications and provided real cost-savings for our company,” said Jasch Hamilton, founder and president of Diamond Organics (www.diamondorganics.com), which provides organically grown food and other organic products by direct home delivery. “We not only benefit by being able to consolidate all of our local, long distance and Internet services with one provider, but the VoIP features of XOptions Flex also give us more calling capabilities and increased bandwidth to support our growing business.”

“This is another major milestone for XOptions Flex and is testament to XO’s leadership in providing the innovative and cost-effective VoIP solutions for businesses,” said Tom Cady, president of XO Business Services. “The rapid adoption of XOptions Flex demonstrates its ability to deliver real cost-savings and improve the way businesses communicate.”

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
- Online feature management through the XO Business Center
- Hosting and other applications can also be added on an a la carte basis.

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

For more information about XOptions Flex, go to 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 broad portfolio of services, including local and long distance voice, dedicated Internet access, private net working, 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.

For more information contact:

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