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New Level 3 Service Enables Telephony Quality Voice Communications Using PCs and IP Phones

(3)Voice Exchange Service Allows Web-centric Service Providers to Deliver Innovative IP Voice Services Economically and Efficiently

New Service Expands Company's (3)Voice IP Product Line

BROOMFIELD, Colo., September 12, 2000 – Level 3 Communications, Inc. (Nasdaq:LVLT) today introduced
(3)Voice Exchange, a new service that enables telephone quality voice communication using personal computers and Internet protocol (IP) phones.

The announcement of (3)Voice Exchange follows Level 3's launch last year of (3)Voice, the industry's first long-distance IP voice service with sound quality and ease of use indistinguishable from traditional telephone service.

(3)Voice enables long-distance callers to use their traditional telephones to place calls over Level 3's IP network. The new service, (3)Voice Exchange, enables customers of Level 3's IP voice service providers to place calls with their PCs and with new IP or "smart" phones with the same voice quality as traditional voice services. "The development of (3)Voice Exchange further solidifies Level 3's Softswitch leadership and commitment to making quality communications faster, less expensive and more productive," said Ike Elliott, senior vice president of Global Softswitch Services for Level 3. "Using (3)Voice Exchange, Level 3 customers can connect to our high quality network in a pure IP format. This new capability means our customers won't have to buy traditional and expensive circuit switches to connect their voice traffic to our network."

The Industry's First (SIP)-based IP Voice Service (3)Voice Exchange is the industry's first Session Initiation Protocol (SIP)-based IP voice service. SIP is an open, scalable Internet-based standard that initiates voice, video, interactive games, virtual reality and other communication over IP networks. Since its designation as a standard by the Internet Engineering Task Force (IETF), SIP has emerged as the premier signaling system for merging telephony services with the Internet to create whole new classes of enhanced session-based communications services.

Allied Riser and TalkingNets Support (3)Voice Exchange Dallas-based Allied Riser, a nationwide provider of broadband services to enterprise customers, said Level 3's announcement is key to its voice strategy. "(3)Voice Exchange provides a SIP-based service that we expect can play a critical role in providing our customers with IP telephony applications and next generation network capabilities," said Tom Guthrie, senior vice president, Technical Services at Allied Riser. Tony Surak, executive vice president of marketing and sales for TalkingNets, a telephony ASP headquartered in Wilmington, NC, said, "We're excited to be able to connect our softswitch controlled network using Level 3's (3)Voice Exchange product as the common long distance network platform for delivering our local voice services to our service provider channel partners."

About (3)Voice Exchange
(3)Voice Exchange allows Internet service providers (ISPs), application service providers (ASPs), interexchange carriers (IXCs) and competitive local exchange carriers (CLECs) to deliver high quality, innovative IP voice services economically and efficiently.

The new service enables voice service providers to focus on developing innovative voice services instead of managing the underlying infrastructure. The new service uses Level 3's softswitch technology to provide customers with a secure IP voice platform connected to the Public Switched Telephone Network (PSTN).

(3)Voice Exchange allows service providers to use Level 3's IP network to deliver voice traffic to any location in the world, and is a secure and flexible service that connects customers through standard interfaces such as SIP, Signaling System 7 (SS7), and Primary Rate Interface (PRI). Because Level 3 transmits voice traffic over its own private IP network, the company can minimize the latency and packet loss that typically occur with VoIP services that use the public Internet to transmit voice traffic. Level 3 protects its network with firewalls that provide customers with a secure environment for their voice services.

Jack Toto, vice president of business development at dynamicsoft, a participant in Level 3's (3)Works program, also commented on today's announcement, stating, "We envision Level 3's (3)Voice Exchange service as a catalyst for enabling a new class of innovative applications that use IP-based devices. We're pleased to be among the first companies to provide IP products to Level 3's customers."

Level 3 expects to begin accepting orders for (3)Voice Exchange on September 18. The (3)Voice Exchange service will be available this year in a number of major markets, including Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, New York, San Francisco, Seattle and Washington, D.C. Level 3 expects to offer (3)Voice Exchange service in Europe and Asia by year's end.

(*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.)

(3)Voice and (3)Voice Exchange are service marks of Level 3 Communications, Inc.


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.