XO Communications Embarks on Third Major Nationwide Network Capacity Upgrade

XO Communications Embarks on Third Major Nationwide Network Capacity Upgrade

HERNDON, VA – August 17, 2009 – XO Communications (OTC.BB:XOHO) today announced its third nationwide network upgrade, which will more than double the capacity of the XO inter-city transport network. XO Communications has selected Infinera’s ILS2 line system to deploy the ultra-long-haul nationwide network expansion, which will deliver 160 wavelengths on a single fiber and create 1.6 Terabits/second (Tb/s) of additional optical capacity.

The capacity upgrade of XO Communications’ ultra-long-haul network will be completed later this year and will help the company continue to meet the increasing demand for high-capacity network transport solutions from carriers, service providers and large enterprise customers. The upgrade will also support XO’s unique and industry-leading Carrier Services network transport offerings, including its “Carrier Wavelength FLEX” promotion and its “10 Gigs in 10 Days” carrier service guarantee. Using the GMPLS-powered service intelligence in Infinera’s IQ(TM) network operating system, XO Communications will be able to provision any service, currently from 1 Gigabit/second (Gb/s) to 40 Gb/s, and up to 100 Gb/s in the future, between any two points on the network in 10 days or less.

XO Communications entered the United States’ long-haul market when it deployed the first-generation Infinera DTN system in 2006 and subsequently witnessed rapid market success for its portfolio of long-haul network transport services. In 2007, XO Communications again expanded its core transport network, deploying an additional 800 Gb/s of capacity on major coast-to-coast routes across the United States. The current Infinera DTN system is the only DWDM system with 160 wavelengths in the C-band and is scalable to 8 Tb/s in the future. The company has invested more than $450 million to enhance and expand its network infrastructure, services portfolio and systems — including its long-haul, metro, data and IP and interconnection networks — resulting in a network footprint that now reaches nearly half of all businesses in the United States. Through such investments, XO Communications provides customers with the most advanced, high-capacity network services available.

“We chose to continue our close relationship with Infinera because of its revolutionary technology, not to mention the world-class engineering and logistics support Infinera provides,” said Randy Nicklas, chief technology officer at XO Communications. “We recognize that bandwidth growth and the adoption of Ethernet have come at an inopportune time in the economic cycle. While many carriers are faced with tight budgets, XO continues to invest in its network, deploying the best technology and affording customers a variety of innovative products and services that offer flexibility in both price and service terms.”

“We are delighted to continue our partnership with leading nationwide service provider XO Communications,” said Infinera CEO Jagdeep Singh. “The technical and feature enhancements in our ILS2 line system coupled with its economic value proposition were designed to enable our customers to realize greater performance in their Digital Optical Network, and enhanced competitiveness in the marketplace.”

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. English to Japanese dictionary For more information, visit www.xo.com.

About Infinera
Infinera provides Digital Optical Networking systems to telecommunications carriers worldwide. Infinera’s systems are unique in their use of a breakthrough semiconductor technology: the photonic integrated circuit (PIC). Infinera’s systems and PIC technology are designed to provide customers with simpler and more flexible engineering and operations, faster time-to-service, and the ability to rapidly deliver differentiated services without reengineering their optical infrastructure.

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