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Level 3 to Provide Internet Access Services to Xuma

XUMA to Use Level 3's New (3)CrossRoads Internet Access Service to Provide Managed Hosting Services to Businesses

BROOMFIELD, Colo., August 28, 2000 – Level 3 Communications, Inc. (Nasdaq:LVLT) today announced that San Francisco-based XUMA will use Level 3's new (3)CrossRoads Internet access service to provide managed hosting services to businesses.

XUMA will provide its services from Level 3's advanced data centers called gateways. Under contracts that range in term from three to five years, Level 3 expects to receive approximately $40 million. In addition to
(3)CrossRoads, XUMA has secured colocation space in Level 3's new 500,000-square-foot gateway in New York in which XUMA has built and is operating its own data center. XUMA also operates data centers from
Level 3 Gateways in San Francisco and Sunnyvale, California.

"We are pleased to be working with XUMA in our gateways," said Elizabeth Vanneste, senior vice president of sales and marketing for Level 3 North America. "By leveraging (3)CrossRoads, our upgradeable network and support services, XUMA will be able to offer its customers optimum performance and value for their online business operations."

XUMA (www.xuma.com) is an application service provider (ASP) and provider of customized e-business systems. The company was founded in 1998 and has launched more than 70 e-businesses. XUMA also is a member of Level 3's Integrated Partner Program (IPP), a marketing program designed to help Level 3 and its IPP members expand their sales channels through joint marketing efforts.

"The Level 3 strategic alliance and the opening of our New York data center is a demonstration of XUMA's commitment to provide reliable hosting services to its growing East Coast client base," said Jamie Lerner, chairman and chief technology officer of XUMA.

(3)CrossRoads Introduced earlier this month, is a new and more cost effective Internet access and transport service that can lower bandwidth costs for Internet companies by as much as 50 percent. (3)CrossRoads features Destination Sensitive Billing (DSB), the industry's first pricing based on the destination of Internet traffic rather than traditional flat rate pricing.

The new service enables Level 3 customers to enjoy long-term cost savings and bypass congested Internet exchange points, minimizing latency and improving end-user experience. (3)CrossRoads is an IP service network platform that offers a wide range of interface types and access locations, including a Gigabit Ethernet (1,000 Mbps) customer interface option. Level 3 employs a unique network approach to track the destination and monitor the bandwidth usage of IP packets traveling on or off its high-capacity, continuously upgradeable fiber network. (3)CrossRoads service is available today in 38 major North American markets where Level 3 owns and operates advanced Internet and communications facilities called gateways, including Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, New York, San Francisco, Seattle and Washington, D.C.

Additionally, Level 3 expects to offer (3)CrossRoads service in 11 European and Asian markets by year's end. For more information on (3)CrossRoads, visit www.level3.com/560.html.

(*Softswitches are advanced software based switching systems that enable Level 3 to provide services combining the best features of the Internet and traditional telephone networks.)


About Level 3 Communications
Level 3 Communications, Inc. (NASDAQ: LVLT), an international communications company, operates one of the largest Internet backbones in the world, connecting 180 markets in 18 countries. The company serves a broad range of wholesale, enterprise and content customers with a comprehensive suite of services including: Internet Protocol (IP) services, broadband transport and infrastructure services, colocation services, voice and voice over IP services, content delivery and media distribution services. These services provide the building blocks to enable Level 3’s customers to meet their growing demands for advanced communications solutions. The company’s Web address is www.Level3.com.

"Level 3 Communications,” "Level 3," the red 3D brackets and the Level 3 Communications logo are registered service marks of Level 3 Communications, LLC in the United States and/or other countries.  Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc.  Any other service, product or company names recited herein may be trademarks or service marks of their respective owners.

Forward-Looking Statement
Some of the statements that we make in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside our control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent us from achieving our stated goals include, but are not limited to our ability to: successfully integrate acquisitions; increase the volume of traffic on our network; defend our intellectual property and proprietary rights; develop new products and services that meet customer demands and generate acceptable margins; successfully complete commercial testing of new technology and information systems to support new products and services; attract and retain qualified management and other personnel; and meet all of the terms and conditions of our debt obligations. Additional information concerning these and other important factors can be found within Level 3’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.