Yankee Group Report Shows XO Communications Leads All Competitive Carriers in Marketshare for Small and Medium-Sized Businesses

RESTON, Va. - XO Communications leads all competitive local exchange carriers (CLEC) in terms of marketshare among small and medium-sized businesses, according to a recent report from the Yankee Group.

 The report, "How Do SMBs Fare in the CLEC Versus ILEC Matchup?," found that XO has the single largest share of the small and medium-sized business market among all CLECs with 11 percent, nearly double the marketshare of its nearest CLEC competitor. Among all local service providers, XO has the single largest marketshare in the small and medium-sized business market after the incumbent local exchange carriers. The Yankee Group defines the small and medium-sized business segment as companies with 20 to 500 employees.

"The findings of the Yankee Group report confirm that XO is leading the market in terms of IP services for business customers," said Charlie Cary, vice president of marketing at XO Communications. "Our focus on innovative bundles and VoIP solutions, like XOptions Flex, supported by superior customer service has enabled XO to break away from the pack in terms of leading the market with these types of offerings."

XO is a leading national provider of bundled communications services that offer small and medium-sized businesses predictable flat-rate pricing. In 2000, XO pioneered the bundled services market with the launch of XOptions, the industry's first integrated services offering to combine voice, Internet access and web hosting services for a flat monthly price. In 2005, XO again led the industry with the launch of XOptions Flex, the industry's first business-class VoIP bundle to offer virtually unlimited local and long distance calling combined with dedicated Internet access and web hosting for a single, flat monthly price. Since its launch last year, more than 4,300 businesses nationwide have deployed XOptions Flex.

For more information about XO, contact an XO sales representative by calling (866) 963-9696 or visit http://www.xo.com.

About XO Communications

XO Communications, a subsidiary of XO Holdings, Inc. (OTC Bulletin Board: XOHO.OB - News), is a leading provider of national and local telecommunications services to businesses, large enterprises and telecommunications companies. XO offers a complete portfolio of services, including local and long distance voice, dedicated Internet access, private networking, data transport, and Web hosting services as well as bundled voice and Internet solutions. XO provides these services over an advanced, national facilities-based IP network and serves more than 70 metropolitan markets across the United States. For more information, visit http://www.xo.com.