Success of XOptions Flex Demonstrates Small and Medium-Sized Businesses' Demand for Simple and Flexible VoIP Solutions that Deliver Cost-Savings BOSTON, Sept. 20 /PRNewswire-FirstCall/ -- XO Communications, Inc. (OTC:XOCM.OB) (BULLETIN BOARD: 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." "We're 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." XOptions Flex is the industry's 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. 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. 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. 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. For more information about XOptions Flex visit http://www.xo.com/flex or contact an XO sales representative by calling (866) 963-9696. About XO Communications XO Communications is a leading provider of national and local telecommunications services to businesses, large enterprises and telecommunications companies. 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, national facilities-based IP network and serves more than 70 metropolitan markets across the United States. For more information, visit http://www.xo.com/. The statements contained in this release that are not historical facts are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements include those describing XO's expected future business and network operations and results of operations, XO's ability to continue to achieve projected synergies and revenue from the acquisition of allegiance's assets, XO's ability to increase sales, XO's ability to continue to implement effective cost containment measures, and XO's ability to mitigate the effects of regulations recently adopted by the federal communications commission. Such statements are based on current expectations but are subject to a number of both known and unknown risks and uncertainties that could cause actual results, performance, and/or achievements of XO to differ materially from any future results, performance, and/or achievements expressed or implied by the forward-looking statements. Management cautions the reader that these forward-looking statements are only predictions and are subject to risks and uncertainties and actual results may differ materially from those indicated in the forward-looking statements as a result of a number of factors. These factors include, without limitation, those risks and uncertainties described from time to time in the reports filed by XO Communications, Inc. with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2004 and its quarterly reports on Form 10-Q. XO undertakes no obligation to update any forward-looking statements. DATASOURCE: XO Communications, Inc. CONTACT: Chad Couser of XO Communications, +1-703-547-2746, Web site: http://www.xo.com/

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