5/23/07

XO Communications and Jamcracker to Deliver On-Demand Software Services to Small and Medium Businesses

Leading Telecom Carrier Partners with Jamcracker to Offer Web-based Security, Mobility, Collaboration, and Backup & Recovery Software Applications

ORLANDO, FL - Jamcracker, the on-demand services company, and XO Communications, a leading provider of 21st century communications for businesses and communications carriers, today announced a strategic partnership to deliver on-demand collaboration, mobility and security software applications for small and medium-sized businesses (SMBs).

To help reduce IT operating costs for SMBs, XO Communications will offer the Jamcracker suite of hosted on-demand software services direct to customers, and also through XO reseller channel partners. The companies will highlight the benefits of On-Demand Services for SMBs in a special joint presentation at ISPCon today, beginning at 11:30am ET in the conference session hall.

Enabling Businesses to Connect and Collaborate, with Confidence
XO Communications will offer best-in-class hosted software services individually or as a bundle with other XO services. Initial software applications available from XO will include:

- Arsenal Digital Solutions online desktop backup services
- BlackBerry hosted services
- McAfee Total Protection for Small Business
- Microsoft Exchange e-mail
- Microsoft SharePoint collaboration server

“With a hosted solution tailored to their needs, SMBs have enterprise-level IT sophistication at an affordable price,” said Charlie Cary, vice president of small business services for XO Communications. “ The Jamcracker suite meets an important need of XO’s customers, who now can focus on their business 100% without the distraction of running an IT system.”

“SMBs are increasingly interested in offloading various aspects of their IT/network operations to trusted solution providers so they can focus on their core businesses,” said Jeffrey M. Kaplan, the managing director of THINKstrategies, a leading analyst firm focused on the On-Demand Services market. “By leveraging Jamcracker’s suite of on-demand solutions, XO Communications and its channel partners can quickly deliver a set of valuable services to better serve their customers.”

Jamcracker Automates the Back-End
The Jamcracker Services Delivery Network (JSDN) provides XO Communications with a turnkey solution that enables rapid time to market for on-demand software services, and eliminates the need for costly and complex new technology investments. JSDN is a complete business process outsourcing solution that includes: a hosted services-delivery platform, content/ISV wholesale distribution agreements, help desk services, billing, collections, settlement, and infrastructure management. Jamcracker customers can choose from a catalogue of hundreds of software services.

To increase the profitability of XO Communications’ on-demand services, JSDN provides the following capabilities:

- IT Automation: JSDN offers a catalogue of On-Demand Services from leading software vendors including McAfee, Microsoft, and others. JSDN enables the automated and unified provisioning, management, and delivery of these services;
- Vendor Management: JSDN has negotiated master distribution agreements and completed JSDN service integration with dozens of software and other on-demand service providers, allowing XO Communications and its channel partners to resell these products immediately;
- Support and Billing Administration: Jamcracker provides XO Communications-branded call center support services as well as payment processing and settlement.

“The ability to deliver on-demand services, even for a market leader like XO Communications, requires a specialized infrastructure and patchwork of license agreements that are not easily put into place,” said Steve Crawford, vice president of marketing for Jamcracker. “By offloading the IT, procurement, and support/billing administration associated with software as a service, we enable XO Communications and its channel partners to become a one-stop shop to meet the telecom and IT needs of their small-to-medium business customers.”

Pricing and Availability
Services pricing will be a simple monthly fee per user. On-Demand Servic es will be available later this summer from XO Communications and its business partners.

For more information about XO Software On-Demand, go to www.xo.com/software.

About Jamcracker
The Jamcracker Services Delivery Network enables Telcos, Internet Service Providers (ISPs), Value Added Resellers (VARs), and SaaS (Software as a Service) vendors to profitably deliver on-demand services to businesses and consumers. Founded in 1999 by K.B. “Chandra” Chandrasekhar, the founder of Exodus Communications and chairman of e4e Services and Aztec Software, Jamcracker’s mission is to enable on-demand service delivery on a global scale. Jamcracker is a privately held company with headquarters in Santa Clara, California, and offices in Bangalore, India. For more information, visit www.jamcracker.com.

About XO Communications
XO Communications, a subsidiary of XO Holdings, Inc. (OTCBB: XOHO.OB), is a leading provider of 21st century communications services for businesses and communications services providers, including 40 percent of the Fortune 1000 and leading cable companies, carriers, content providers, and mobile operators. Utilizing its unique and powerful nationwide IP network and extensive local metro networks and broadband wireless facilities, XO offers customers a broad range of managed voice, data and IP services in 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

Marc Gendron/Jamcracker
781-237-0341
marc@mgpr.net