XO Communications Enhances Ethernet Infrastructure to Deliver New Speeds, Extended Reach and Enable Next Generation Service Offerings

Customers Have More Ethernet Options Than Ever to Meet Specific Bandwidth Needs

HERNDON, VA–(EMWNews – August 18, 2008) – XO Communications (OTCBB: XOHO) today announced

that it has made significant enhancements to its Ethernet infrastructure in

order to offer businesses and wholesale customers new speed options,

greater availability of Ethernet services, and next generation Ethernet

service offerings. XO is currently capable of delivering Ethernet services

to nearly four million commercial buildings in 75 major metropolitan

markets across the United States utilizing its nationwide fiber network

assets, expanded deployment of Ethernet over copper technology, and fixed

broadband wireless capabilities.

XO Communications has deployed a new and enhanced Ethernet switching

platform in major metropolitan locations across its nationwide network.

This new platform provides a highly reliable, service rich, next generation

infrastructure that will enable XO to offer a broader range of Ethernet

bandwidth options and services. In addition, this new platform will

provide the pathway for XO to provide true any-to-any, multi-site Ethernet

solutions along with multiple classes of service on an on-demand basis.

“The recent upgrades we have made to our platform illustrate our dedication

to Ethernet and its progression as the preferred networking solution for

many of our customers,” said Randy Nicklas, chief technology officer at XO

Communications. “We continue to invest in our Ethernet infrastructure in

order to meet the needs of our customers who are increasingly relying on

Ethernet to support mission-critical applications and data across their

wide area networks.”

New Incremental Ethernet Speeds

XO Communications now offers customers an even wider range of incremental

bandwidth options to choose from when creating their custom Ethernet

solution. Customers can now obtain new speeds of 20, 30, 40, 50, 60, 70,

200, 300, 400, or 500 Mbps at on-net fiber locations, and speeds of 15 or

20 Mbps at locations served by last mile copper where XO has deployed

Ethernet over copper technology. These speeds are currently available in

Chicago, Dallas, Los Angeles, Minneapolis, New York, San Jose, Seattle,

Philadelphia and Washington, D.C. XO expects to roll out the speed options

to all of its markets across the country early next year.

“Our customers in industries like healthcare, education, government and

finance have a wide range of data requirements for their

bandwidth-intensive applications,” said Nicklas. “Incremental bandwidth

options are great for these businesses that need increased scalability for

their Ethernet needs.”

Expanded Ethernet over Copper Reach

With deployments today in 75 major metropolitan markets, Ethernet over

copper technology enables XO Communications to extend its Ethernet services

footprint beyond its fiber network and enable businesses at copper-fed

locations to take advantage of mid-band Ethernet services for the first

time. In addition to the recent Ethernet infrastructure improvements, XO

has increased the distance over which it can deliver Ethernet services via

last mile copper to business locations that are up to 11,000 feet from

central offices in which XO has deployed Ethernet over copper technology.

This expansion has increased XO’s Ethernet over copper services footprint

by 18 percent.

XO Communications has taken a leadership role in expanding the availability

of Ethernet services to more locations through its utilization of Ethernet

over copper technology and other network access platforms, including:

--  Extensive Nationwide Inter-City and Metro Fiber Networks.  XO offers

    Ethernet services at speeds from 10 Mbps to 10 Gbps to businesses and

    service providers in 75 major metropolitan markets through its 18,000 route

    mile inter-city fiber optic network and nearly one million fiber miles of

    metro networks.

--  Fixed Broadband Wireless Capabilities.  XO currently has the

    capability to utilize fixed broadband wireless technology in 36 major

    metropolitan markets to further expand its network footprint and deliver

    Ethernet services directly to businesses at speeds ranging from 10Mbps to

    155Mbps.

    

Enhanced Ethernet Infrastructure Provides Platform for Next Generation

Ethernet Services

The upgrades XO Communications has made on its Ethernet platform have also

set the stage for the company to offer exciting new Ethernet service

offerings in the near future. These upgrades will provide XO

Communications with the ability to offer Classes of Service (CoS) with

Ethernet and Ethernet Virtual Private LAN Service (E-VPLS), which it

expects to be able to offer customers in 2009. As a layer 2 networking

service, E-VPLS will allow businesses to move multipoint to multipoint

traffic to support both IP and non-IP network traffic while maintaining the

flexibility to control the routing and increased network performance.

“As we continue to strengthen our Ethernet infrastructure, we’re preparing

to deliver Layer 2 technologies to our customers to meet their evolving

business needs,” said Nicklas. “We look forward to offering VPLS to

provide our customers with another flexible, reliable and cost-effective

wide area networking service offering.”

For more information about XO Ethernet Services, visit www.xo.com or

contact an XO Business Services sales representative at (866) 963-9696 or

an XO Carrier Services sales representative at (800) 474-1763.

About XO Communications

XO Communications, a subsidiary of XO Holdings, Inc. (OTCBB: XOHO), is a

leading nationwide provider of advanced communications services and

solutions for businesses, enterprises, government, carriers and service

providers. Its customers include more than half of the Fortune 500, in

addition to leading cable companies, carriers, content providers and mobile

network operators. Utilizing its unique combination of high-capacity

nationwide and metro networks and broadband wireless capabilities, XO

offers customers a broad range of managed voice, data and IP services with

proven performance, scalability and value in more than 75 metropolitan

markets across the United States. For more information, visit www.xo.com.