XO Communications Raises $197.6 Million, Issues 39.7 Million Shares of Common Stock; Proceeds Used to Reduce Debt

RESTON, Va.--(BUSINESS WIRE)--Jan. 23, 2004--XO Communications, Inc. (OTCBB:XOCM.OB), one of the nation's leading providers of broadband telecommunications services, today announced that it has issued all of the 39.7 million shares of new common stock from its highly successful rights offering that closed on January 6, 2004.

XO's $200 million rights offering of 40 million shares of common stock yielded approximately $197.6 million in proceeds. All proceeds were used to reduce the company's outstanding debt from $536.5 million to $338.9 million.

"We are very pleased with the tremendous success of the rights offering," said Carl Grivner, chief executive officer of XO Communications. "The strong support shown by investors has generated proceeds that have allowed us to reduce our debt to an even lower level."

The rights offering commenced on October 16, 2003 in accordance with the Company's Chapter 11 plan of reorganization and concluded on January 6, 2004.

XO Communications is a leading broadband telecommunications services provider offering a complete set of telecommunications services, including: local and long distance voice, Internet access, Virtual Private Networking (VPN), Ethernet, Wavelength, Web Hosting and Integrated voice and data services.

XO has assembled an unrivaled set of facilities-based broadband networks and Tier One Internet peering relationships in the United States. XO currently offers facilities-based broadband telecommunications services within and between more than 70 markets throughout the United States.