Global Crossing and XO Communications, Inc. Sign Five-Year Network and Access Services Agreements [January 8, 2004]

FLORHAM PARK, N.J. and RESTON, Va., Jan 08, 2004 /PRNewswire-FirstCall via Comtex/ -- Global Crossing (GLBCF) and XO Communications, Inc. (XOCM) announced today two commercial agreements focused on bringing both companies more effective pricing and services to better serve their customers while leveraging their individual strengths. Global Crossing will benefit from XO's alternative local and metro access facilities, while XO Communications will take advantage of Global Crossing's network capabilities, enabling both companies to deliver seamless connectivity to their customers.

In the first agreement, XO Communications, a national broadband telecommunications services provider, agreed to purchase from Global Crossing voice termination and private line termination services for a guaranteed minimum of $50 million over the next five years. The agreement contains provisions for Global Crossing to sell up to an additional $50 million in services to XO Communications. The new agreement amends the scope of a previous agreement for private line services between the two companies.

In a separate deal, Global Crossing and XO Communications have amended the scope of an existing agreement for the purchase of local access and private line data services. Under the revised agreement, Global Crossing will purchase a guaranteed minimum of $70 million in services from XO Communications over the next five years. The revised agreement is structured to facilitate the purchase of additional services over and above the committed amount during the term of the agreement.

"These two agreements effectively leverage the synergies between our companies to benefit customers and boost our strong competitive positioning," said John Legere, chief executive officer of Global Crossing. "XO recognizes the outstanding quality and performance capabilities of our global network. Simultaneously, the access services provided by XO enable us to recognize substantial costs savings in excess of 40 percent, and to streamline and optimize our access delivery, further enhancing our ability to provide a top-of-the-line customer experience."

"We're pleased to enter such mutually beneficial commercial arrangements with Global Crossing," said Carl Grivner, chief executive officer of XO Communications. "Global Crossing appreciates that XO offers an unmatched combination of high quality services, complementary network solutions and overall value. This is a win-win for XO and Global Crossing."

Today's announcement expands a beneficial business relationship that has developed between XO Communications and Global Crossing over the past few years. The network services agreements became effective upon Global Crossing's emergence from Chapter 11.

ABOUT XO COMMUNICATIONS

XO Communications, Inc. is a leading broadband telecommunications services provider offering a complete portfolio of telecommunications services, including: local and long distance voice, Internet access, Virtual Private Networking (VPN), Ethernet, Wavelength, Web Hosting and Integrated voice and data services.

XO Communications has assembled an unrivaled set of facilities-based broadband networks and Tier One Internet peering relationships in the United States. XO Communications currently offers facilities-based broadband telecommunications services within and between more than 60 markets throughout the United States.

ABOUT GLOBAL CROSSING

Global Crossing provides telecommunications solutions over the world's first integrated global IP-based network. Its core network connects more than 200 cities and 27 countries worldwide, and delivers services to more than 500 major cities, 50 countries and 5 continents around the globe. The company's global sales and support model matches the network footprint and, like the network, delivers a consistent customer experience worldwide.

Global Crossing IP services are global in scale, linking the world's enterprises, governments and carriers with customers, employees and partners worldwide in a secure environment that is ideally suited for IP-based business applications, allowing e-commerce to thrive. The company offers a full range of managed data and voice products including Global Crossing IP VPN Service, Global Crossing Managed Services and Global Crossing VoIP services, to more than 40 percent of the Fortune 500, as well as 700 carriers, mobile operators and ISPs.

Please visit www.globalcrossing.com for more information about Global Crossing and www.xo.com for more information about XO Communications.

For further information please contact Press, Becky Yeamans, +1-973-937-0155, or Tom Topalian, +1-973-937-0154, PR@globalcrossing.com, or Analysts/Investors, Ken Simril, +1-310-385-3838, investors@globalcrossing.com, all of Global Crossing; or Press, Dawnyielle Downes of XO Communications, Inc., +1-703-547-2682, or +1-703-675-3450.

SOURCE Global Crossing; XO Communications, Inc.