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Level 3 Announces New Agreements to Sell Metropolitan Dark Fiber

    Recent Contracts Valued at Approximately $22 Million

Level 3 Communications, Inc. (Nasdaq:LVLT) today announced it has executed a number of new agreements to sell metropolitan dark fiber and related services to customers in North America and Europe. The recent agreements have a value of approximately $22 million.

"We continue to see strong demand for our metropolitan dark fiber," said Glenn Russo, Level 3's senior vice president of global infrastructure services. "For customers, metro dark fiber provides a fast, cost-efficient way of establishing or expanding their presence in key markets. And for Level 3, these sales remain a significant source of cash. Though we recognize revenue from the typical fiber sale over the long-term life of the contract, we receive cash payments up front, as fiber segments are delivered to the buyer."

Specifically, Level 3 has sold dark fiber inside metropolitan networks it owns in the following North American markets: Atlanta, Chicago, Denver, Houston, Los Angeles, Miami, New York, St. Louis, San Diego, San Francisco, San Jose, Seattle and Tampa. In Europe, the markets include Amsterdam, Brussels, Dusseldorf, Frankfurt, London and Paris. Many of the dark fiber customers also purchased colocation and operation and maintenance services from Level 3.

Dan Caruso, Level 3's group vice president of transport services, said the growth of gigabit Ethernet as the interface of choice in end-user network systems is one of the main reasons behind the demand for metro dark fiber. Gigabit Ethernet allows a customer with dark fiber in a metropolitan loop to significantly lower network expenses by reducing the need for DWDM equipment and other costly network electronics.

"Level 3 has a unique footprint in the local loop, with 27 metro networks across the United States and nine in Europe," Caruso said. "And because all of them were constructed with multiple conduits, we have the ability to add additional fiber quickly in response to new demand, in whatever quantity is needed. The metro networks connect our data centers to key data traffic aggregation points in each city. They are one of our most important strategic assets."

Level 3's metro networks are linked to Level 3?s multi-conduit long-haul network, which spans 16,000 miles in the United States and 3,600 miles in Western Europe. The network also includes data centers in Tokyo and Hong Kong and capacity on transpacific and transatlantic submarine cables.

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.