XO Communications Integrates PayPal E-Commerce into XO Web Hosting Services

PayPal E-Commerce Solution Enables XO and Concentric Hosting Customers to Securely and Easily Send and Receive Payments Online

HostReview.com
Monday, July 26, 2004; 12:00 AM

SAN JOSE, CA — July 26, 2004 -XO Communications, Inc. (OTCBB: XOCM.OB) today announced a co-marketing agreement with PayPal, an eBay Company, to incorporate e-commerce capabilities provided by PayPal into its Web Builder tool, enabling customers of XO Web Hosting and Concentric hosting services to securely and easily send and receive payments online. As part of the co-marketing agreement, PayPal will feature the services of Concentric, the XO small and medium-sized business hosting services brand, on its partner page and in the company's newsletter. As an additional feature for customers, PayPal will be integrated into the Concentric web site builder tools offered to XO and Concentric hosting customers, as well as in newsletter promotion and merchant usage referrals.

Founded in 1998, PayPal's service builds upon today's existing financial infrastructure of bank accounts and credit cards and utilizes an advanced proprietary fraud prevention system to create a safe, global, real-time payment solution. PayPal has become a global leader in online payment solutions with 50 million account members worldwide.

"The decision to co-market with PayPal was easy. They have a recognized brand built on a trusted platform," said Barbara Branaman, vice president and general manager of XO's hosting business. "The addition of PayPal features will strengthen our Web Builder tool, allowing businesses to further leverage and profit from their online presence." The XO Web Site Builder is an intuitive, easy-to-use solution that allows for real-time Web site creation through a simple Web browser interface. The addition of proven, secure PayPal solutions extends the already strong selection of features facilitate more effective marketing, sales and monitoring of online business.

"End users recognize PayPal as a safe and easy way to make online payments, in part because PayPal processes the transaction without providing sensitive financial information to the merchant. This is critical to the XO base of small business merchants who are building their own brands based on confidence among their buyers," said Peter Ashley, PayPal's Director U.S. Merchant Services. "We believe that the powerful combination of the XO Web Site Builder tool and PayPal's cost-effective payment solution will motivate new and existing XO merchants to start selling online to PayPal's 50 million member accounts around the world."

For more information on XO products, please go to www.xo.com or visit www.concentric.com to learn about Concentric business hosting services for small to med-sized businesses.

About Concentric
Concentric, an XO Communications service, offers business-grade web hosting solutions that cost-effectively scale to meet the needs of today's growing business needs. Built on its patented Web hosting architecture, Concentric has designed a unique platform that delivers superior performance, reliability and security. Backed by an industry leading 99.9% SLA, a 3-Month Satisfaction Guarantee along with 24x7 customer care, Concentric offers web site hosting, email, ecommerce, sophisticated junk mail filtering and web builder tools designed to help companies effectively leverage the power of the Internet. For more information, visit www.concentric.com or call 866-500-9696.

About XO Communications
XO Communications 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 www.xo.com.

information contact: Chad Couser / XO Communications 703-547-2746 chad.couser@xo.com