Pandora Networks Selects XO Communications as a Primary Provider of VoIP and Data Network Services

RESTON, Va. & EMERYVILLE, Calif. -- Sept. 26, 2005 -- Pandora Networks (http://www.pandoranetworks.com), the leading provider of On Demand IP Communications. services, today announced that is has chosen XO Communications, Inc. (OTCBB:XOCM) as a primary provider of VoIP wholesale network infrastructure, which will be used to deliver Pandora's award winning Worksmart On Demand IP Communications service to its customers.

The agreement gives Pandora Networks the ability to leverage the XO national private IP network to provide IP and traditional telephony services in support of the Worksmart full suite of video, messaging and collaboration services. Through XO, Pandora will be able to provide nationwide VoIP termination services, multi-market local inbound calling services, and a full suite of data services including T1 and DS3 to the customer premise. Additionally, Pandora's customers have the flexibility to either continue use of existing local loop providers or upgrade to XO T1 and DS3 loops that will connect directly to Pandora's Worksmart Data Centers.

"We are pleased to be selected by Pandora Networks to support its Worksmart On Demand IP Communications service," said Ernie Ortega, president of XO Carrier Services. "XO is well positioned to provide wholesale VoIP solutions that help next generation telecommunications providers like Pandora Networks expand into new markets with a broad range of services for customers across the U.S."

XO offers wholesale voice and data solutions over a national fiber-optic network with an advanced soft switch network platform powered by SONUS Networks and Juniper Networks that routes data, and both traditional circuit-switched voice traffic and packet-based VoIP traffic. With its national private IP network, XO delivers customers' voice traffic with the same quality and reliability of traditional telephone networks by avoiding the congestion and delays of the public Internet.

"Nationwide network coverage from XO allows us to enter all major U.S. markets with local and 800 numbers that can be provisioned to our customers on demand," adds Walter Snell, chief executive officer of Pandora Networks. "By leveraging the XO national private IP network and soft switch platform, we can offer scalability and quality to meet the unique demands of our SMB customers who demand more than just low cost, low quality communications services."

Pandora's On Demand IP Communications(TM) solution has already received technical and customer acclaim. Technology Marketing Corporation's TMC Labs named Worksmart(TM), the first, complete, IP Communications solution designed for small and medium sized businesses (SMB), as a 2005 Innovation Award winner and 2005 Internet Telephony Excellence Award from INTERNET TELEPHONY magazine. The awards were based upon the uniqueness and ground-breaking technology of Pandora Networks' solution.

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.

About Pandora Networks

Founded in 2001, Pandora Networks is the leading provider of On Demand IP Communications that provides an all inclusive, integrated suite of services for a fixed monthly cost including; traditional and IP telephony with Virtual PBX and ACD functionality, audio, video and web based conferencing and collaboration, and private and public instant messaging tailored to meet the unique business and budget needs of the small to medium sized business (SMB) market. Pandora Networks' Worksmart service offers an alternative to expensive telecommunications and data software and hardware point solutions that are too complex and expensive for the SMB. Sold under the Worksmart brand, co-branded or private labeled, Worksmart is sold exclusively through indirect channels via service providers, value added resellers and agents. For more information, please visit (www.pandoranetworks.com) The Company is privately held and headquartered in Emeryville, California.