XO Communications has deployed a new and enhanced Ethernet switchingplatform in major metropolitan locations across its nationwide network.This new platform provides a highly reliable, service rich, next generationinfrastructure that will enable XO to offer a broader range of Ethernetbandwidth options and services. In addition, this new platform willprovide the pathway for XO to provide true any-to-any, multi-site Ethernetsolutions along with multiple classes of service on an on-demand basis.

"The recent upgrades we have made to our platform illustrate our dedicationto Ethernet and its progression as the preferred networking solution formany of our customers," said Randy Nicklas, chief technology officer at XOCommunications. "We continue to invest in our Ethernet infrastructure inorder to meet the needs of our customers who are increasingly relying onEthernet to support mission-critical applications and data across theirwide area networks."

New Incremental Ethernet Speeds

XO Communications now offers customers an even wider range of incrementalbandwidth options to choose from when creating their custom Ethernetsolution. 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 or20 Mbps at locations served by last mile copper where XO has deployedEthernet over copper technology. These speeds are currently available inChicago, Dallas, Los Angeles, Minneapolis, New York, San Jose, Seattle,Philadelphia and Washington, D.C. XO expects to roll out the speed optionsto all of its markets across the country early next year.

"Our customers in industries like healthcare, education, government andfinance have a wide range of data requirements for theirbandwidth-intensive applications," said Nicklas. "Incremental bandwidthoptions are great for these businesses that need increased scalability fortheir Ethernet needs."

Expanded Ethernet over Copper Reach

With deployments today in 75 major metropolitan markets, Ethernet overcopper technology enables XO Communications to extend its Ethernet servicesfootprint beyond its fiber network and enable businesses at copper-fedlocations to take advantage of mid-band Ethernet services for the firsttime. In addition to the recent Ethernet infrastructure improvements, XOhas increased the distance over which it can deliver Ethernet services vialast mile copper to business locations that are up to 11,000 feet fromcentral offices in which XO has deployed Ethernet over copper technology.This expansion has increased XO's Ethernet over copper services footprintby 18 percent.

XO Communications has taken a leadership role in expanding the availabilityof Ethernet services to more locations through its utilization of Ethernetover 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 GenerationEthernet Services

The upgrades XO Communications has made on its Ethernet platform have alsoset the stage for the company to offer exciting new Ethernet serviceofferings in the near future. These upgrades will provide XOCommunications with the ability to offer Classes of Service (CoS) withEthernet and Ethernet Virtual Private LAN Service (E-VPLS), which itexpects to be able to offer customers in 2009. As a layer 2 networkingservice, E-VPLS will allow businesses to move multipoint to multipointtraffic to support both IP and non-IP network traffic while maintaining theflexibility to control the routing and increased network performance.

"As we continue to strengthen our Ethernet infrastructure, we're preparingto deliver Layer 2 technologies to our customers to meet their evolvingbusiness needs," said Nicklas. "We look forward to offering VPLS toprovide our customers with another flexible, reliable and cost-effectivewide area networking service offering."

For more information about XO Ethernet Services, visit www.xo.com orcontact an XO Business Services sales representative at (866) 963-9696 oran XO Carrier Services sales representative at (800) 474-1763.

About XO Communications

XO Communications, a subsidiary of XO Holdings, Inc. (OTCBB: XOHO), is aleading nationwide provider of advanced communications services andsolutions for businesses, enterprises, government, carriers and serviceproviders. Its customers include more than half of the Fortune 500, inaddition to leading cable companies, carriers, content providers and mobilenetwork operators. Utilizing its unique combination of high-capacitynationwide and metro networks and broadband wireless capabilities, XOoffers customers a broad range of managed voice, data and IP services withproven performance, scalability and value in more than 75 metropolitanmarkets across the United States. For more information, visit www.xo.com.