Level 3 Reports First Quarter Results

Level 3 Communications, Inc. (www.level3.com) reported consolidated revenue of $1.01 billion for the first quarter 2005 compared to $1.05 billion for the fourth quarter 2004.

"I am pleased that we were able to exceed our projections for communications revenue and Consolidated Adjusted OIBDA this quarter," said James Q. Crowe, CEO of Level 3.

Communications revenue was $510 million in the first quarter versus $482 million for the previous quarter, and information services revenue was $483 million compared to $547 million for the seasonally high previous quarter.

The net loss for the first quarter 2005 was $77 million, or $0.11 per share, consistent with the previous quarter. Included in the net loss for the first quarter 2005 is a $15 million cash restructuring charge associated with the previously announced reduction in workforce during the quarter.

Included in the fourth quarter 2004 net loss was a $50 million gain associated with the extinguishment of debt related to the company's tender offer, a $14 million lease impairment charge, and a $9 million gain associated with the sale of certain investment securities.

Consolidated Adjusted OIBDA was $209 million in the first quarter 2005 compared to previously provided projections of $90 million to $110 million and compares to $174 million for the previous quarter.