HERNDON, VA, Feb 26, 2008 (MARKET WIRE via COMTEX) -- XO Communications (OTCBB: XOHO), a leading provider of 21st century communications for businesses and communications service providers, today announced a three-year agreement with Cisco(R) to accelerate the development and delivery of next-generation Cisco Powered IP communications services for businesses and large enterprises through collaboration on services and solutions as well as joint marketing and sales initiatives.

The two companies will combine leading-edge networking technologies from Cisco with XO's nationwide transport and IP networking capabilities to focus on the growing demand for IP convergence and networking services. In addition, the agreement will help XO Communications accelerate the development of new services under the XO IPfolio and strengthens the company's go-to-market capabilities as it expands its presence in the enterprise market.

NEW Cisco Powered Service Designations

XO Communications has also received the Cisco Powered service designation for several services, including MPLS IP-VPN, Metro Ethernet, Security, Web Hosting and Dedicated Internet Access. These designations demonstrate to businesses and large enterprises that XO Communications has committed to investing in the resources, systems, and procedures to deploy, manage, and support high-quality managed IP and networking services.

"XO and Cisco share a vision for the proliferation of managed services to enable business customers to focus on their core competencies rather than their IT infrastructure," said Jeff Spagnola, vice president service provider marketing at Cisco. "XO is a leader in the market in building out its service portfolio, which will allow its current and future customers to increase productivity while reducing the capex and opex associated with internal deployment of these resources."

Expanding XO's IP Services Portfolio

XO Communications has already developed and brought to market several converged and IP networking services based on the Cisco IP Next-Generation Network (IP NGN) architecture, including XO Metro Ethernet, XO IP Flex, XO SIP, XO VPN and XO MPLS IP-VPN. Together, XO Communications and Cisco intend to collaborate on the development of new Cisco Powered Managed Services and solutions bundles that incorporate new application-aware MPLS IP-VPN, managed security and next generation Unified Communications services in order to offer enterprises enhanced features and functionality for their mission-critical networks.

"With this agreement, XO Communications is taking a leadership position in delivering new and advanced IP solutions that allow enterprises to converge voice and data networks for increased network performance and employee productivity," said Tom Cady, president of XO Business Services. "By working closely with Cisco, we are better positioned to utilize Cisco's technology leadership and distribution channels to deliver new IP solutions to the enterprise market quickly."

Next-Generation Network and Increased Capacity Provides Platform for New IP Services

XO Communications will deliver these new services over its advanced, nationwide IP network. XO Communications recently announced a significant expansion in the capacity of its nationwide IP network based on the Cisco IP NGN architecture. The deployment of the Cisco CRS-1 Carrier Routing System will more than double current capacity and sets the stage for a four-fold increase, while helping XO Communications meet the growing demand for high-speed Internet access services and support its expansion into the high-capacity IP transit services market.

Sales Collaboration

Businesses will also benefit from collaboration between XO and Cisco sales forces. The managed services, some of which are available now and others which are scheduled to be deployed in 2008 and 2009, are designed to help customers maximize returns on existing network investments by enabling consolidation and upgrade of multi-service IP networks. These services ultimately will be made available through direct and indirect sales channels.

About XO Communications

XO Communications, a subsidiary of XO Holdings, Inc. (OTCBB: XOHO), is a leading provider of 21st century communications services for businesses and communications services providers, including 50 percent of the Fortune 500 and leading cable companies, carriers, content providers, and mobile operators. Utilizing its unique and powerful nationwide IP network and extensive local metro networks and broadband wireless facilities, XO offers customers a broad range of managed voice, data and IP services in 75 metropolitan markets across the United States. For more information, visit www.xo.com.

Forward-Looking Statement Note

The statements contained in this release that are not historical facts are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. These statements include those describing the benefit from new initiatives and enhancements to XO Communications' enterprise and carrier markets, XO Communications' ability to continue growth in data and IP services, its ability to expand market share through IP and private networking initiatives, and XO Communications' ability to benefit from increased network capacity and additional services from its long haul network. Management cautions the reader that these forward-looking statements are only predictions and are subject to a number of both known and unknown risks and uncertainties, and actual results, performance, and/or achievements of XO Communications may differ materially from the future results, performance, and/or achievements expressed or implied by these forward-looking statements as a result of a number of factors. These factors include, without limitation, our ability to generate sufficient capital or to obtain financing. Management is unable to provide assurance that XO Holdings, Inc. or its subsidiaries will ultimately consummate alternative financing transactions or that such financing transactions could be consummated before the lenders under our Credit Facility could accelerate repayment of the outstanding indebtedness. Other factors to consider also include the risk factors described from time to time in the reports filed by XO Holdings, Inc. with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2006 and its quarterly reports on Form 10-Q. XO Holdings, Inc. undertakes no obligation to update any forward-looking statements.

Media Contacts:
Chad Couser
XO Communications
T: 703-547-2746
E: Email Contact

Chris Roche
Brodeur (for XO Communications)
T: 202-775-2675
E: Email Contact

SOURCE: XO Communications

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