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XO Communications Signs 1,500th Business VoIP Services Customer

Success of XOptions Flex Demonstrates Small and Medium-Sized Businesses Demand for Simple and Flexible VoIP Solutions that Deliver Cost-Savings

September 20, 2005 -- BOSTON, MA - XO Communications, Inc. (OTCBB: XOCM.OB) today announced that it has signed its 1,500th customer of XOptions Flex, its industry-leading voice over Internet Protocol (VoIP) services bundle for businesses. All new customers to XO, the 1,500 XOptions Flex customers have been signed just five months after launching the service nationwide, demonstrating the strong demand by small and medium-sized businesses for VoIP solutions that are simple, flexible and cost-effective. XO made this announcement at the Fall 2005 VON (Voice on the Net) Conference and Expo being held this week in Boston.
The 1,500th XOptions Flex customer is Villa Financial Services, which specializes in providing mortgage services to the Hispanic market. Villa Financial Services is deploying the service at its Denver and Phoenix offices. XOptions Flex provides us with capabilities to help us stay even more competitive in an increasingly competitive mortgage industry, said William Kerbs, vice president of Villa Financial Services. With features like unlimited calling and dynamic bandwidth allocation, XOptions Flex allows us to take advantage of VoIP to give us more capabilities than before and a greater overall value for our telecommunications spend.

Best Web Hosting Were very pleased with the success and adoption of XOptions Flex by businesses across the country, said Craig Collins, vice president of product management and marketing communications at XO Communications. Businesses quickly see the advantages of XOptions Flex. With its features, flexibility and simplicity, XOptions Flex offers businesses the best value for voice, Internet and hosting needs all in one simple solution.

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Top Web Hosting XOptions Flex is the industrys first VoIP services bundle for businesses that combines unlimited local and long distance calling, dedicated Internet access and web hosting for a flat monthly price. XOptions Flex leverages the latest in VoIP technology to provide customers with advanced capabilities such as unlimited voice calling, dynamic bandwidth allocation, voice virtual private networking (VPN), and a simple Administrative Web Portal. In addition, businesses can take full advantage of all of these IP-enabled capabilities and features without having to replace their existing analog phone systems.

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Web Hosting Companies With a broadband connection on the XO IP network, XOptions Flex utilizes the XO national IP network and softswitch technology to carry customers voice calls more efficiently and cost-effectively than traditional services that rely on the public switched telephone network. As a business-class VoIP solution, XOptions Flex provides customers with full access to E911 emergency services.

Web Site Design And Hosting XOptions Flex Features
XOptions Flex includes more than twenty standard voice features for each phone line including call forward, three-way calling, and voice mail. Key features of the service include:
Dedicated Internet Access up to 3 Mbps
Dynamic bandwidth allocation
Unlimited local calling
Unlimited inbound and outbound domestic long distance calling
An easy-to-use Administrative Web Portal for making real-time changes to services
Web Hosting Package
Additional voice lines, hosting and other applications can also be added on an a la carte basis.

Email Web Hosting XOptions Flex is available in major metropolitan areas across the United States, including Akron, Allentown, Atlanta, Austin, Baltimore, Boston, Chicago, Cleveland, Columbus, Dallas, Denver, Detroit, Fort Lauderdale, Fort Worth, Harrisburg, Houston, Jersey City, Las Vegas, Los Angeles, Miami, Memphis, Minneapolis, Nashville, New York, Newark, Oakland, Orange County, CA, Orlando, Philadelphia, Phoenix, Portland, Sacramento, St. Louis, St. Paul, St. Petersburg, Salt Lake City, San Antonio, San Diego, San Francisco, San Jose, Scranton, Seattle, Spokane, Tampa, Trenton, Washington, DC, West Palm Beach, and Wilmington, DE.

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

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