XO Communications Awarded $45 Million Contract From U.S. Postal Service XO Communications Will Provide Managed Network Services to 1,400+ USPS Locations

Press Release Source: XO Communications On Monday February 14, 2011, 8:00 am EST

HERNDON, VA--(Marketwire - 02/14/11) - XO Communications (OTC.BB:XOHO - News) today announced that it has been awarded a

six-year contract with the expected potential revenue of $45 million to provide managed network services to United States Postal

Service facilities under the Telecom Integrated Postal Network (TIPN) contract.

Under the terms of the multi-vendor agreement, XO Communications will provide managed network services, including design and

engineering, onsite installation, router management, and managed MPLS IP-VPN services to more than 1,400 U.S. Postal Service

facilities.

"We are very pleased to have been selected to help the Postal Service achieve its network performance and optimization goals," said

Dan Wagner, president of XO Business Services at XO Communications. "This agreement is a great testament to the high-quality

managed solutions XO Communications provides over its extensive North American network."

The U.S. Postal Service continues to face increased network traffic demands from the deployment of more bandwidth intensive,

next-generation applications across its network. XO MPLS IP-VPN provides a secure, intelligent and managed network solution for

federal agencies to connect operations, converge voice, video and data communications, and prioritize Internet, intranet, extranet,

voice, video and mission-critical applications -- all over a single, high performance application-aware IP network.

About the U.S. Postal Service

A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation,

150 million residences, businesses and Post Office Boxes. The Postal Service receives no tax dollars for operating expenses, and

relies on the sale of postage, products and services to fund its operations. With 32,000 retail locations and the most frequently

visited website in the federal government, usps.com, the Postal Service has annual revenue of more than $67 billion and delivers

nearly 40 percent of the world's mail. If it were a private sector company, the U.S. Postal Service would rank 29th in the 2010

Fortune 500. Black Enterprise and Hispanic Business magazines ranked the Postal Service as a leader in workforce diversity. The

Postal Service has been named the Most Trusted Government Agency six consecutive years and the sixth Most Trusted Business in

the nation by the Ponemon Institute.

About XO Communications

XO Communications, a subsidiary of XO Holdings, Inc. (OTC.BB:XOHO - News), is a leading nationwide provider of advanced

broadband 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 Communications 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.

Cautionary Language Concerning Forward-Looking Statements

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. 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,

including early termination of locations. 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, 2009 and its quarterly reports on Form 10-Q. XO Holdings, Inc. undertakes no obligation to update any

forward-looking statements, except as otherwise required by law.

Media Contacts:

Chad Couser

XO Communications

T: 703-547-2746

Email Contact