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Level 3 Becomes Prodigy Network Provider

    Prodigy Purchases (3)Connect Modem Service in more than 50 U.S. Markets to Provide Dial-Up Internet Access to Members

Level 3 Communications, Inc. (Nasdaq:LVLT) today announced it has signed an agreement to provide (3)Connect Modem dial-up Internet access service to Prodigy Communications Corporation (Nasdaq:PRGY), a leading Internet service provider (ISP) serving the largest number of DSL Internet subscribers in the United States. With the addition of Prodigy, Level 3 now provides (3)Connect Modem service to the top nine dial-up Internet service providers in the U.S.

Under the terms of the new contract, Prodigy is buying (3)Connect Modem dial-up Internet access - representing millions of hours of dial-up Internet access calls per month - from Level 3 to serve Prodigy's dial and roaming DSL Internet customers in more than 50 markets in North America. In addition, Level 3 will allow Prodigy to support the pending V.92 network protocol that will provide faster navigation and throughput for dial Internet customers, as it becomes available. The new agreement with Prodigy was enabled by Level 3's acquisition of the right to offer service to ISP customers served by NaviPath, a majority-owned operating company of CMGI, Inc.

"We're pleased that Prodigy has chosen Level 3 as a network provider of dial-up Internet access, and look forward to immediately helping the company serve its customers in North America," said Kevin O'Hara, Level 3's president and chief operating officer. "Our acquisition of this service opportunity, and our resulting agreement with Prodigy, are indicative of our ongoing effort to look for opportunities in the current market environment that add value and build our customer base." In addition to Prodigy, Level 3 has either signed or is pursuing new agreements with a number of other NaviPath ISP customers.

"Prodigy's agreement with Level 3, in conjunction with arrangements with our other network providers, should minimize any inconvenience for Prodigy's customers served by NaviPath," said Greg Williams, Prodigy's chief operating officer. "We look forward to working with Level 3 to maintain Prodigy's reputation among consumers for network reliability."

"Acquiring this new customer development avenue represents an excellent opportunity for us to continue to expand market share for our industry-leading (3)Connect Modem service," said Charles Meyers, Level 3's senior vice president of Global Softswitch Services. "We're confident we can provide Prodigy with a smooth transition onto our network. The substantial scalability of Level 3's managed modem infrastructure allows us to provision service to Prodigy and other (3)Connect Modem customers rapidly and cost-effectively."

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.