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Level 3 Announces Expanded Agreements with BlueLight.com, Kmart's Online Shopping Site and Internet Service Provider

BlueLight.com to Use Multiple Level 3 Services to Support its More than Six Million Internet Service Subscribers

BlueLight.com Extends Use of Level 3's Dial-Up Internet Access Service from 24 to 47 Markets

Level 3 Communications, Inc. (Nasdaq:LVLT) today announced expanded broadband service agreements with BlueLight.com, Kmart Corporation's electronic commerce channel and Internet service provider.

Under terms of the agreements, BlueLight.com has expanded its commitment to use a range of Level 3 services, including (3)Connect Modem, Level 3's dial-up Internet access service. BlueLight.com plans to extend its use of (3)Connect Modem from 24 to 47 markets in the U.S., and also is using (3)CrossRoads and (3)Center Colocation services to support its more than six million Internet service subscribers.

"We're pleased that BlueLight.com has chosen to expand our relationship and its commitment to use our broadband infrastructure services," said Kevin O'Hara, president and chief operating officer for Level 3. "We look forward to continuing to provide our reliable and scalable network services to one of the most trusted and recognized retailers in America."

Based in San Francisco, BlueLight.com is an independent company majority owned by Kmart Corporation. Formed to leverage the substantial assets of the nation's second-largest discount retailer, BlueLight.com's goal is to meet the online shopping needs of the more than 30 million Americans who shop at Kmart every week. BlueLight.com represents Kmart's BlueLight brand online by rewarding customers with nationally recognized products at unprecedented values. BlueLight.com was formed in 1999 by Kmart Corporation (NYSE:KM) and SOFTBANK Venture Capital with investments by Martha Stewart Living Omnimedia, Inc. (NYSE: MSO).


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.