XO Communications Embarks on Third Major Nationwide Network Capacity Upgrade

HERNDON, VA--(Marketwire - August 17, 2009) - XO Communications (OTCBB: XOHO) today announced
its third nationwide network upgrade, which will more than double the
capacity of the XO inter-city transport network. XO Communications has
selected Infinera's ILS2 line system to deploy the ultra-long-haul
nationwide network expansion, which will deliver 160 wavelengths on a
single fiber and create 1.6 Terabits/second (Tb/s) of additional optical
capacity.

The capacity upgrade of XO Communications' ultra-long-haul network will be
completed later this year and will help the company continue to meet the
increasing demand for high-capacity network transport solutions from
carriers, service providers and large enterprise customers. The upgrade
will also support XO's unique and industry-leading Carrier Services network
transport offerings, including its "Carrier Wavelength FLEX" promotion and
its "10 Gigs in 10 Days" carrier service guarantee. Using the GMPLS-powered
service intelligence in Infinera's IQT network operating system, XO
Communications will be able to provision any service, currently from 1
Gigabit/second (Gb/s) to 40 Gb/s, and up to 100 Gb/s in the future, between
any two points on the network in 10 days or less.

XO Communications entered the United States' long-haul market when it
deployed the first-generation Infinera DTN system in 2006 and subsequently
witnessed rapid market success for its portfolio of long-haul network
transport services. In 2007, XO Communications again expanded its core
transport network, deploying an additional 800 Gb/s of capacity on major
coast-to-coast routes across the United States. The current Infinera DTN
system is the only DWDM system with 160 wavelengths in the C-band and is
scalable to 8 Tb/s in the future. The company has invested more than $450
million to enhance and expand its network infrastructure, services
portfolio and systems -- including its long-haul, metro, data and IP and
interconnection networks -- resulting in a network footprint that now
reaches nearly half of all businesses in the United States. Through such
investments, XO Communications provides customers with the most advanced,
high-capacity network services available.

"We chose to continue our close relationship with Infinera because of its
revolutionary technology, not to mention the world-class engineering and
logistics support Infinera provides," said Randy Nicklas, chief technology
officer at XO Communications. "We recognize that bandwidth growth and the
adoption of Ethernet have come at an inopportune time in the economic
cycle. While many carriers are faced with tight budgets, XO continues to
invest in its network, deploying the best technology and affording
customers a variety of innovative products and services that offer
flexibility in both price and service terms."

"We are delighted to continue our partnership with leading nationwide
service provider XO Communications," said Infinera CEO Jagdeep Singh. "The
technical and feature enhancements in our ILS2 line system coupled with its
economic value proposition were designed to enable our customers to realize
greater performance in their Digital Optical Network, and enhanced
competitiveness in the marketplace."

About XO Communications

XO Communications, a subsidiary of XO Holdings, Inc. (OTCBB: XOHO), is a
leading nationwide provider of advanced communications services and
solutions for businesses, enterprises, government, carriers and service
providers. Its customers include more than half of the Fortune 500, in
addition to leading cable companies, carriers, content providers and mobile
network operators. Utilizing its unique combination of high-capacity
nationwide and metro networks and broadband wireless capabilities, XO
offers customers a broad range of managed voice, data and IP services with
proven performance, scalability and value in more than 75 metropolitan
markets across the United States. For more information, visit www.xo.com.

About Infinera

Infinera provides Digital Optical Networking systems to telecommunications
carriers worldwide. Infinera's systems are unique in their use of a
breakthrough semiconductor technology: the photonic integrated circuit
(PIC). Infinera's systems and PIC technology are designed to provide
customers with simpler and more flexible engineering and operations, faster
time-to-service, and the ability to rapidly deliver differentiated services
without reengineering their optical infrastructure. For more information,
please visit http://www.infinera.com/.