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Level 3 Launches Expansion of Data Networking Services in U.S. and Europe

Level 3 Enables Channel Partners to Resell Converged
Set of Voice, Video and Data Services

CHICAGO, Ill., June 21, 2004 – Level 3 Communications, Inc. (Nasdaq:LVLT) today launched an important expansion of its suite of data networking services in the U.S. and Europe. The company made the announcement at SUPERCOMM 2004, an annual symposium that is produced and managed by the Telecommunications Industry Association.

Level 3’s IP VPN service – which currently serves a number of large strategic customers – is being expanded through channel partners to the enterprise market. Additionally, as part of the expansion announced today,
Level 3 has enhanced its wide-area Ethernet, ATM and Frame Relay data networking offerings by adding new lower speed data services.

“Level 3 owns and operates one of the largest and most advanced MPLS backbones in the world, which has allowed us to build industry-leading experience and proficiency in developing reliable, scalable and cost-effective IP-based services,” said Scott Schaefer, group vice president of IP and Data Services for Level 3. “This expansion enables our channel partners to provide additional value to their end-user business customers by reselling a converged set of voice, video and data services.”

“Our suite of IP-based data networking services enables the replacement of multiple networks with a single, more cost-efficient network for a wide range of applications, including corporate wide area networks, voice services, disaster recovery networks, video distribution networks and IP backbones,” added Schaefer. “And they do so with the same quality and class of service as traditional ATM data networking services.”

Level 3’s MPLS-based (3)FlexSM Data Services provide a fully meshed, secure network with end-to-end, customer-controlled prioritization of traffic. Level 3 is an MPLS pioneer, having led the standards development of the technology beginning in 1998, and has been providing one of the first MPLS-based transport services since 1999.

“With the IP VPN expansion, Level 3 channel partners can now provide their business customers with an extensive and advanced set of voice and data services,” said Glenn Russo, senior vice president of Channel Programs for Level 3. “And they can resell and provide these services using the technologically and economically superior Level 3 network, the only network that was built from the ground up to deliver converged IP telecommunications services.”

(3)Flex Data Services
The (3)Flex family of data services, which includes (3)Flex Ethernet, (3)Flex ATM, (3)Flex Frame Relay, and
(3)Flex Network IP VPN, reduces costs and simplifies the task of transporting voice, video and data across wide area networks (WANs). The four services currently provide secure video, voice and data transmission to and from more than 90 markets in the U.S. and Europe.

(3)Flex data services offer a number of distinct advantages, including:

  • Flexibility: The MPLS-based long-haul (or WAN) data services can interface directly with a variety of legacy corporate data networking protocols, including ATM, Frame Relay and Ethernet.
  • Cost efficiency: MPLS-based data services are generally billed on a usage basis and are distance insensitive. Customers can send data from Dallas to Paris as cost effectively as from Dallas to Houston.
  • Reliability and security: (3)Flex services enable the establishment of flexible and secure intranets, extranets and remote access networks.
  • Network convergence: (3)Flex services provide a platform for converging voice, video and data onto one network.

(3)Flex Network IP VPN Service
The (3)Flex Network IP VPN service allows businesses to securely and cost-effectively connect their headquarters, satellite and remote office sites, and enables them to send voice, video and desktop application traffic while also providing secure access to company intranets and extranets. Enterprises can achieve cost savings and operational efficiencies by consolidating traffic that currently rides on different networks.

  • The IP VPN service is by default fully meshed to facilitate peer-to-peer applications like VoIP and video conferencing.
  • It provides one of the industry’s leading SLAs, including jitter and packet latency, for its three Class of Service options.
  • The MPLS-based, IP VPN network is separate from the Internet, resulting in security similar to Frame Relay and ATM.
  • Level 3 provides end-to-end Class of Service for its IP VPN offering that spans customer sites and the Level 3 backbone network.

Bandwidth is scaleable from T-1/E1 to OC-48/STM-16, but customers are charged only for what they use, providing them with bandwidth flexibility free of rigid financial commitments.

Just as the company does with its (3)ToneSM Business, Internet access and other services, Level 3 will provide (3)Flex Network IP VPN channel partners with operational, sales and marketing support through the
Level(3)EnabledSM Partner Program.

For more information about Level 3’s data networking services, please visit www.level3.com. For more information on the Level(3)Enabled Partner Program , please visit www.Level3.com/Partner.

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.