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8x8 Teams with Level 3 Communications to Collaborate on VoIP Channel Expansion

8x8 Teams with Level 3 Communications to Collaborate on VoIP Channel Expansion

BROOMFIELD, Colo. and SANTA CLARA, Calif., Sept. 06, 2005 -- Level 3 Communications (Nasdaq:LVLT) and 8x8, Inc. (Nasdaq:EGHT), the Packet8® broadband voice over Internet Protocol (VoIP) and videophone communications service provider, today announced enhancements to their business partnership to deliver high-quality VoIP and videophone solutions to 8x8’s customers nationwide.  In an effort to accelerate VoIP reach and adoption, Level 3 and 8x8 will collaborate to expand 8x8’s residential and small business channel and partner programs. 8x8 offers a variety of channel programs including agent, co-branded and wholesale models to support the capability to reach these two key market segments. 

Level 3 and 8x8 have worked together for nearly three years to deliver voice and video services over Level 3’s network, which is one of the largest Internet backbones in the world. To date, Level 3 has provided 8x8 with (3)VoIPSM Local Inbound, (3)VoIP EnhancedSM Local, and E-911services for subscribers of Packet8 services.

Under the terms of their ongoing expanded relationship, Level 3 is the wholesale network carrier for 8x8’s Packet8 voice and video Internet phone services, and 8x8 is a member of the Level(3)EnabledSM Master Reseller program, a program that provides assistance in driving sales for select partners. As part of this program Level 3 works with 8x8 to identify and target prospective channel partners for 8x8’s channel program. 8x8, in turn, is able to work directly with those partners to provide robust and reliable VoIP solutions to retail or end user customers. As a part of their program, 8x8 will also partner with selected resellers to identify end users, aid in training, recruit agents and participate in industry events.

“8x8 has grown to become a well respected provider of voice over IP services and Level 3 values the relationship that has evolved between our companies. We support the success of the 8x8 partner program,” said Craig Schlagbaum, Level 3 vice president of channel development. “Level 3 is focused on being the premier wholesale VoIP enabler. By concentrating on a smaller number of highly capable partners, Level 3 can focus on developing more robust sales programs to help drive the adoption and growth of services provided by Level 3 enabled VoIP customers like 8x8.”

“8x8’s relationship with Level 3 and its use of (3)VoIP Enhanced Local and E-911 services have been very positive and productive from the start. We are very pleased to be moving forward together to increase VoIP adoption through our resellers,” said Huw Rees, 8x8 vice president of sales and marketing. “This mutually advantageous program will provide us with an opportunity to expand our distribution channel, particularly in the small business market segment addressed by our Packet8 Virtual OfficeSM offering.”

Packet8 Virtual Office is a no-maintenance VoIP hosted PBX telephone service designed to offer small to mid-sized organizations a feature-rich audio platform for the implementation of effective business communications. The Packet8 Virtual Office provides users with an array of business-class features (i.e. auto-attendant, conference bridge, voicemail and extension to extension calling) along with unlimited local and long distance calling to the U.S. and Canada. Companies that subscribe to the Packet8 Virtual Office hosted PBX service operate as if they are using a premise-based switch yet derive flexibility, functionality and cost savings due to the Internet-based nature of the service.

About 8x8, Inc.
VoIP (voice over Internet Protocol) service provider 8x8, Inc. offers internet-based telephony solutions (www.packet8.net) for individual residential and business users as well as small to medium sized business organizations. In addition to regular Packet8 VoIP service plans, priced as low as $19.95 per month for unlimited anytime calling to the U.S. and Canada, 8x8 now offers the $99 Packet8 VideoPhone, the industry's first stand alone broadband consumer videophone with worldwide video calling for $19.95 per month. Packet8 Virtual Office, 8x8's VoIP solution for small to medium sized businesses, is a hosted PBX service comprised of powerful business class features. For additional company information, visit 8x8's web site at www.8x8.com.

8x8 Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements relating to the potential expansion of the distribution channels for8x8’s Packet8 service. Investors are cautioned that these statements involve risks and uncertainties, and actual results could be materially different from those discussed in this news release. These risks include the risk that 8x8 is not able to expand its distribution channels significantly or at all. Further information on factors that could affect the actual results of 8x8, Inc. are included in 8x8, Inc.'s Quarterly Report on Form 10-Q for the quarter ended June 30,, 2005, which is on file with the Securities and Exchange Commission. 8x8 does not assume any obligation to revise or update any forward-looking statements contained in this press release that become untrue because of subsequent events.


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.