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Level 3 to Supply Data Networking Services to Northrop Grumman

BROOMFIELD, Colo., Oct. 12, 2004 – Level 3 Communications, Inc. (Nasdaq:LVLT) today announced that its wholly-owned subsidiary, Level 3 Communications, LLC, has been selected to provide data networking services to Northrop Grumman Information Technology.

Under the terms of the multi-year contract, Level 3 will provide IP VPN services to Northrop Grumman as part of a five-year, $337 million task order awarded to Northrop Grumman earlier this year by the U.S. Department of Homeland Security (DHS). Level 3’s multi-protocol label switching (MPLS)-based IP VPN service will provide secure, computer-to-computer connectivity, moving classified data among headquarters agencies and field activities.

“We’re honored that Northrop Grumman has chosen Level 3 to help meet this critical need,” said Jerry Hogge, senior vice president of Level 3’s Government Business Unit. “Northrop Grumman’s IT expertise and solutions are widely recognized as among the best and most advanced in the world. We look forward to working with Northrop Grumman on this important project.”

Level 3 is supplying Northrop Grumman with (3)FlexSM Network IP VPN services, which provide a fully meshed, secure network with end-to-end, customer-controlled prioritization of traffic. Level 3 is a pioneer of MPLS, having helped lead the standards development of the technology beginning in 1998, and has been operating an MPLS network since 1999.

“A key competitive advantage in the selection of Level 3 was our MPLS-based broadband network, one of the world’s most advanced and secure networks,” added Hogge. “Years of experience operating one of the first and largest MPLS-based broadband networks enables Level 3 to provide flexible data networking services. Our services interface directly with a variety of protocols, including IP, ATM, Frame Relay and Ethernet, while also providing a platform for converging data, video and voice traffic onto one network.”

The (3)Flex Network IP VPN service is part of Level 3’s suite of MPLS-based data networking services, which also includes (3)Flex Ethernet, ATM, and Frame Relay offerings. This suite of (3)Flex data services, including the IP VPN solution, extends the ease of use and cost effectiveness of transporting data across wide area networks (WANs), and provides secure data and voice transmission to and from more than 75 major markets in the U.S. and Europe.


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.